Bangladesh drops plans to build 10 coal plants amid rising fuel costs

29 Jun 2021 CW Team

Bangladesh has dropped the plans to develop ten coal-fired power plants due to the increasing price of fuel and rising calls from activists to base more of the nation's energy on renewable power.

Nearly 8% of the current electrical power of the country comes from coal. However, till last year, Bangladesh had plans to increase that percentage by establishing at least 18 coal-fired plants.

Ten of those plants, which were not yet under development, have now been cancelled. Others continue in building or planning.

Mohammad Hossain, head of Power Cell, said when Bangladesh created an energy master plan in 2010, coal was affordable and the most suitable option after gas, but now declining prices for solar energy and slightly cheaper gas has changed the situation. He said, considering everything, they decided to be more renewable.

At present, more than half of the country's electricity comes from natural gas, although a few power plants operate on diesel and heavy fuel oil.

Around 3.5% of the power comes from renewable energy, which Bangladesh plans to increase to 40% by 2041.

For that change, the country is planning to start importing hydropower from neighbouring countries like Nepal and Bhutan.

Hossain said the shift to scrap the coal plants would not affect the current or future ability to produce energy.

Climate change activists say developing more coal power plants is incompatible with accomplishing the goals of the Paris Agreement to limit planetary heating and could put the low-lying nation at growing risk from the climate effects.

Under the 2015 Paris agreement, around 200 countries agreed to cut emissions to keep global temperature increases below 2 degrees celsius, but the planet has already warmed more than 1.2 degrees celsius.

However, climate activists praised the move and requested the Bangladesh government to add mainly renewables to its future energy mix.

Syeda Rizwana Hasan, Chief Executive of the Bangladesh Environmental Lawyers Association, said this is a positive decision of the government and has made clear that receiving funds internationally for coal-based power plants has become difficult.

Image Source

Also read: Coal plant pollution can lead to 8,300 deaths in India

Also read: New coal-fired power plants in India economically unviable: IEEFA report

Bangladesh has dropped the plans to develop ten coal-fired power plants due to the increasing price of fuel and rising calls from activists to base more of the nation's energy on renewable power. Nearly 8% of the current electrical power of the country comes from coal. However, till last year, Bangladesh had plans to increase that percentage by establishing at least 18 coal-fired plants. Ten of those plants, which were not yet under development, have now been cancelled. Others continue in building or planning. Mohammad Hossain, head of Power Cell, said when Bangladesh created an energy master plan in 2010, coal was affordable and the most suitable option after gas, but now declining prices for solar energy and slightly cheaper gas has changed the situation. He said, considering everything, they decided to be more renewable. At present, more than half of the country's electricity comes from natural gas, although a few power plants operate on diesel and heavy fuel oil. Around 3.5% of the power comes from renewable energy, which Bangladesh plans to increase to 40% by 2041. For that change, the country is planning to start importing hydropower from neighbouring countries like Nepal and Bhutan. Hossain said the shift to scrap the coal plants would not affect the current or future ability to produce energy. Climate change activists say developing more coal power plants is incompatible with accomplishing the goals of the Paris Agreement to limit planetary heating and could put the low-lying nation at growing risk from the climate effects. Under the 2015 Paris agreement, around 200 countries agreed to cut emissions to keep global temperature increases below 2 degrees celsius, but the planet has already warmed more than 1.2 degrees celsius. However, climate activists praised the move and requested the Bangladesh government to add mainly renewables to its future energy mix. Syeda Rizwana Hasan, Chief Executive of the Bangladesh Environmental Lawyers Association, said this is a positive decision of the government and has made clear that receiving funds internationally for coal-based power plants has become difficult. Image Source Also read: Coal plant pollution can lead to 8,300 deaths in India Also read: New coal-fired power plants in India economically unviable: IEEFA report