Germany eager to install transboundary power lines for Bangladesh

The government of Germany is interested in extending its support to Bangladesh over importing electricity from India, Nepal and Bhutan by installing a transboundary electricity grid, according to a summary report of consultations on development cooperation meeting between Berlin and Dhaka.

Besides, Germany can also help Bangladesh install rooftop photovoltaic cells at some 7,000 apparel factories, dozens of textile mills and other industrial facilities, an Economic Relations Division official said.

The consultations on development cooperation between the Economic Relations Division (ERD) of Bangladesh and South Asia Division of the Federal Ministry for Economic Cooperation and Development of Germany were held on March 21 in Dhaka.

Bangladesh was represented by additional secretary to ERD Uttam Kumar Karmaker in the consultation meeting while Barbara Schafer, head of South Asia Division Federal Ministry for Economic Cooperation and Development of Germany led the German team.

The next consultations meeting on the development cooperation between these two countries are scheduled to take place in Berlin this November.

“We will seek German support for the development of the national grid and transboundary lines for import of electricity from abroad,” the official of the ERD said, requesting anonymity.

The government badly wants foreign funds to address the problem of power shortage in the country, an also added.

Special assistant of a past caretaker government and currently Pro-Vice Chancellor of BRAC University, Mohammad Tamim, told Business Insider Bangladesh that Germany’s assistance to develop the country’s power grid is lauded but they should not control “our grid system”.

Regarding the investment in the country’s rooftop solar power generation, he said German development corporations could provide a loan for installing the rooftop photovoltaic cells. 

The country’s demand for power is around 15,000 megawatts, but the power plants are currently producing between 12,000 and 13,500 megawatts leading to a shortage of 1,500 MW to 3,000 MW, according to Bangladesh Power Development Board. 

Apart from installing a transboundary grid, German assistance is also to help Bangladesh develop renewable energies and encourage the government of Bangladesh to share project proposals.

Bangladesh had expressed its interest in developing smart grid solutions.

The country suffered its worst blackout in 10 years owing to a “technical glitch” on October 4.

Parts of the country –  Dhaka, Chattogram and Sylhet – plunged into darkness as soon as dusk fell after the national grid tripped at 2:05pm. Although there had been longer blackouts before, most were due to the natural calamities.

By the time electricity began to trickle back around 6pm, a lot of damage had already been done – businesses had to rely on generators which ran on diesel, a problem exacerbated by record price hike of the fuel in recent months.

The State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Sunday that two officials will be suspended for their negligence in duties over the recent blackout.  

The junior minister said recently the government plans to increase its electricity import to 9,000 MW from neighbouring countries, including Nepal, Bhutan, and India.

A deal for importing 500 MW from an Indian power plant in Nepal is underway. On October 17, 2021, the cabinet committee on public purchase of the Bangladesh government approved a proposal to extend the agreement with India by another five years to have the electricity from Tripura state. Bangladesh is importing 160 MW of electricity instead of previously agreed 100 MW at a relatively lower tariff. Bangladesh will be spending Tk 41.88 billion in the next five years to import 160 MW power from India. 

Bangladesh has been importing electricity from India since September 2013 and now its total import stands at 1,160 MW of which 1,000 MW is being imported from West Bengal through Bheramara border while 160 MW from Tripura through Cumilla border. There has been another agreement with an Indian private company, Adani Group, for importing another 1,600 MW for which transmission lines are being installed. 

Besides, around 5,000MW of electricity can be generated by installing solar panels on the rooftops of ready-made garment (RMG) factories, textile mills and other industries across the country.

Infrastructure Development Company Limited – a government-owned non-bank financial institution specialised in financing renewable energy – disclosed the prospective data at a webinar recently. While sharing his views, Md Enamul Karim Pavel, head of Renewable Energy at Idcol, said the country has more than 7,000 RMG factories with vast rooftops well-suited for the installation of solar photovoltaic cells.