Electricity demand is much lower than in summer in Bangladesh. There is a risk of serious load shedding as the demand for electricity increases as the winter season subsides.
Meanwhile, there may be a shortage of electricity supply for the upcoming Ramadan and Boro irrigation. Urgent steps must be taken by the government to meet the demand for electricity in the upcoming summer, as per electricity and energy experts.
In Bangladesh, electricity demand naturally decreases during the winter due to lower use of cooling appliances like air conditioners and fans. However, as temperatures rise after winter, demand surges, often outpacing supply. This seasonal spike can lead to serious load shedding due to several factors.
A senior official of the Bangladesh Power Development Board (BPDB) told The Bangladesh Today on condition of anonymity that uninterrupted power and fuel supply for irrigation during the Ramadan and Boro seasons will be disrupted if domestic and foreign power generation companies and energy suppliers, including India's Adani Power, do not pay a large portion of their dues by this month.
Besides, the Bangladesh Independent Power Producers Association (BIPPA) in the last week urged the government to clear half of its overdue payments, amounting to Tk 9,000 crore, within the next 10 days or contend with disruptions to the electricity supply during Ramadan.
In a letter signed by BIPPA President David Hasanat, the association said the Bangladesh Power Development Board (PDB) is obligated under power purchase agreements (PPA) to clear payments within 45 days.
He said up to 2,500MW of heavy fuel oil (HFO)-based power generation capacity could remain idle during Ramadan if fuel imports are delayed. This would result in significant load shedding at a time when demand will grow significantly.
Hasanat, said, "Approximately Tk18,000 crore in bills remain unpaid [in the power sector], with payment delays now exceeding six months, compared to the 45-day limit stipulated in contracts.
"Around Tk9,000 crore of the dues is owed to local companies. If at least half of this amount, Tk4,500 crore, is cleared by mid-January, it would enable timely imports of HFO." The imported fuel takes about one and a half months to arrive, he added.
According to BIPPA President, local power producers are facing additional financial strain, having incurred Tk8,500 crore in exchange rate losses since the taka began depreciating against the dollar in 2022.
Meanwhile, the Bangladesh Oil, Gas, and Mineral Corporation (Petrobangla) recently wrote to the finance ministry. The letter states that there is a risk of disruption in the import of liquefied natural gas (LNG) if foreign suppliers do not pay their dues of about $470 million on time.
The Petrobangla said that in the letter, they have requested at least Tk 5,000 crore from the subsidy allocation for LNG imports. Petrobangla also said in their letter that if the dues are not paid on time, there is a risk of stopping the supply of LNG to suppliers under long-term contracts. On the other hand, the participation of suppliers in the tender for importing LNG from the spot market may decrease. In addition, penalty interest may be imposed due to late payment of dues.
However, the Bangladesh Petroleum Corporation (BPC) Chairman Aminul Ahsan said currently the BPC has no outstanding debts to foreign energy suppliers. Due to the USD dollar crisis in December, not all supplier bills were paid. Therefore, some regular bills are outstanding.
Adviser to the Ministry of Power, Energy, and Mineral Resources Muhammad Fauzul Kabir Khan said that "It is normal for IPPs (Independent Power Producers) to demand dues. I will discuss with them how to pay the dues.
