Budget FY23Power and energy receive reduced allocation of Tk. 26,066 crore

The power and energy sector received Tk. 26,066 crore for new fiscal year 2022-23, down by 1,418 crore, from the outgoing fiscal year 2021-22.

Announcing the new allocation in his budget speech, Finance Minister AHM Mustafa Kamal said that one of the major goals of the government is to ensure high-quality power and energy resources in order to meet the rising demand.

“The government is committed to providing electricity access for all, and to ensuring uninterrupted and sustainable power supply across the country”, he said.

Large-Scale socio-economic development activities have been undertaken for smooth implementation of the Master Plan that Bangladesh has adopted for her transition to an Upper Middle-income Country by 2031 and a High-income Country by 2041.

The finance minister said that thanks to the relentless efforts of the government to increase power generation over the last 13 years, the total power generation capacity of the country, including captive and renewable energy, has recently increased to 25,566 MW.

“I am happy to announce that 100 percent of the population now has access to electricity. This success is attributable to integrated generation, transmission and distribution approach followed by the government keeping in mind the commemoration of the Mujib Borsho”.

He said that over the last 13 years, the government has been able to increase per capita power generation from 220 kWh to 560 kWh.

During the same period, 5,213 circuit kilometers of transmission line and 3,36000 kilometers of distribution line have been constructed. System loss in power distribution has also been reduced from 14 percent to 8 percent. At present, 34 Power Plants with a capacity of 13,530 MW are under construction.

Considering the availability of land, energy transportation facilities and load centres, mega projects are being implemented at Payra, Maheshkhali and Matarbari, transforming the region as a power hub.

Among them, the commercial production of 1,320 MW thermal power plant at Payra has been inaugurated by the prime minister recently.

On the other hand, construction of Rampal 1,320 MW coal-based Maitri Super Thermal Project, Matarbari 1,200 MW ultra-super critical coal project is running in full swing.

A 2,400 MW nuclear power plant project is under implementation at Rooppur with Russian assistance.

Moreover, around 780 MW of electricity is being generated from renewable energy sources. With a view to generating 10 percent of the country's total demand from renewable energy, emphasis has been laid on solar power generation. With the implementation of these projects, it will be possible to ensure quality electricity supply to all in near future.

The finance minister mentioned that the government is also emphasizing on the development of transmission systems to ensure uninterrupted power supply.

On completion of construction works, both the Payra- Gopalganj 400 KV double circuit transmission line and Gopalganj- Rampal 400 KV transmission line have already been commissioned.

In addition, Mongla- Khulna (South) 230 KV transmission line has been constructed. The foundation work of the Padma river crossing section of Gopalganj- Aminbazar 400 KV transmission line is going on which is 7.5 km long with 7 towers.

Six transmission lines of 400 KV and 230 KV voltage are being constructed for power evacuation of Rooppur nuclear power plant.

About the energy sector, Kamal said that with the pace of socioeconomic development of the country, the demand for energy is also increasing rapidly.

A large part of the demand is being met mainly by natural gas. Of the 28 gas fields discovered in the country, 20 are currently in operation.

In 2009, gas production in the country was 1, 788 million cubic feet, which has now increased to 2,525 million cubic feet.

Besides, to meet the increasing demand for gas, 600-753 million cubic feet of imported LNG or liquefied natural gas is being added to the national grid daily.

On the other hand, to meet the increasing demand for fuel in the country, ERL Unit-2 project for enhancing the refining capacity of Eastern Refinery Limited by 30 lakh tons, has been undertaken. After implementation of the project, the refining capacity of Eastern Refinery Limited will be increased to 45 lakh MT per annum.