Bangladesh: Study on Energy Security

Energy / Conventional energy generation - Energy sector development and institutional reform

a. Link to Country Partnership Strategy/Regional Cooperation Strategy:

The proposed capacity development technical assistance (TA) will conduct a study on the security of energy supplies in Bangladesh. The government has adopted a comprehensive energy development strategy as part of its Sixth Five-Year Plan. It includes measures to boost power supply emphasizing, among others, diversified primary energy sources. The government will try to exploit all forms of primary energy and increase electricity generating capacity based on different primary energy supply options. Implementation of this plan can be facilitated by a systematic study on energy security with the intention of diversifying the primary energy sources. The study can be extended by conducting feasibility studies on high priority power generation projects identified based on the recommendations. These studies are aligned with ADB's country strategy where key interventions in the energy sector include, among others, investments in new power-generating facilities.

b. Impact

The impact will be enhanced primary fuel diversification in Bangladesh''s power sector. The indicator will be at least one project recommended by the study is commissioned by 2022.

c. Outcome

The outcome of the TA will be capacity of the Power Division of the Ministry of Power, Energy and Mineral Resources to diversify fuel sources for power generation increased . The indicator will be inclusion of the recommendations of the study included in an updated optimal power generation plan by 2017. This will enable Bangladesh to diversify fuel sources in its power generation system which will lead to greater reliability and adequate power supplies.

d. Outputs

The output of the TA will be (i) understanding of the overall security of energy supplies in Bangladesh improved, and (ii) of the most attractive baseload generation options confirmed with specific case studies provided. The indicators will be the final energy security study report submitted to the Power Division of the Ministry of Power, Energy, and Mineral Resources by 2017 and feasibility study report (s) of the specific case studies submitted to the Power Division, Ministry of Power, Energy and Mineral Resources by 2017.

1. Understanding of the overall security of energy supplies in Bangladesh improved

2. Feasibility of the most attractive baseload generation options confirmed with specific case studies provided

Inception Workshop was conducted on 21 January 2016. The initial findings were presented with the stakeholders and the plan for the next steps.

The Inception Report was prepared by the consultants and submitted on 23 February 2016.

Energy Security Options Report was received in July 2016 after a workshop where Ministry, Power Division, Energy Division along with utilities attended. There were several recommendations including (i) introduction of small scale LNG solutions, (ii) recommendations on regional cooperation in the power and gas sector

Final Report on Energy Security (Phase I) received on 23 January 2017 including recommendations from meeting with Power Division and BPDB.

The Interim Report (Phase II) was received on 19 May 2017.

Further stakeholder consultations will be under taken during the implementation of the TA and its activities will be adjusted to be in line with the outcome of such meetings.

The progress of the TA will be monitored through inception, interim, draft final and final reports on the study. Further, a senior advisor appointed in the TA will continuously monitor and guide the consulting team during the whole period. Also there will be a minimum of two stakeholder meetings on the findings of the study to validate the approach of the study and the final findings.

These meetings, a final dissemination seminar and an ADB publication will be used to disseminate the findings of the study among the key stakeholders.

The services of the senior advisor (6 person-months) is on-going and the social safeguards specialist's contract (3 person-months) has ended.

A consulting firm has been recruited to conduct a comprehensive study on energy security in Bangladesh with emphasis on its power generation sector.

The consultants will also, based on the recommendations of the study and in consultation with the Government of Bangladesh and ADB, conduct adequate due diligence on the selected priority generation project(s) to support financing by ADB, other development partners and the private sector.

Goods procured under the TA will be handed over to the BPDB on completion of the TA project.