Gas Prices On A High: BTMA Discusses Energy In Their Recent Seminar

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Gas Prices On A High: BTMA Discusses Energy In Their Recent Seminar

Bangladesh Textile Mills Association (BTMA) recently held a seminar at Hotel Lakshore. Owing to the increasing tariff of gas, used to generate captive power, BTMA organised this one day seminar at Dhaka titled as ‘Energy Efficiency & Textile: Lifeline of the Economy’.“Bangladesh is maintaining over 6% GDP Growth for the last 10 years and is poised to increase over next couple of years. Energy consumption is likely to grow by at least 10% annually due to rising population growth, quick industrialization and rapid urbanization. Our economy is now feeling the pinch of shortage of energy supply and the gap between demand and supply may grow further in future,” mentioned Professor, Dr. M. Tamim, President, BTMA. During the last 7 years of the Present Government Power Generation capacity has been increased to 13675 MW in 2015 from 4942 MW of 2009. An additional 6323 MW has been added to National Grid. In the Energy sector 2700 mln cubic ft gas is now generated per day against1750 mln cubic ft of 2009. Such big improvement in development of Power & Gas led to bring about 60% population under power connection as compared to 47% 0f 2009. All these could be achieved due to the untiring efforts coupled with quick and effective action programmes of the Ministry of Energy and Power under the overall visionary role of Prime Minister Sheikh Hasina.

But these advantages have been eroded in recent time due to increase in the minimum wage and 100% rise in Gas Tariff for Gas supplied to the Captive Generators being used by the textile industries. In the past they were encouraged to use Captive Generators for power generations by using gas. Government could not provide sufficient power to run uninterrupted production. Most of the Spinning Mills and Dyeing-Finishing Mills invested huge amount of money to set up gas generators. A large number of Weaving mills also use Gas in their Captive Generators for production. It is estimated that BTMA Member Mills produce 1200-1300 MW power to run their own production and thus save national Grid Power to that extent. Recently increased 100% Gas Tariff for Captive Generators pushed up the cost of production enormously. Due to fierce competition from other countries it is not possible to shift the enhanced cost to product price thereby putting serious strain on our rate of return on investment and profitability. The seminar addressed these issues and explored BTMA’s role along the path of sustainability. The efforts of BTMA was highlighted and brought into light by Professor, Dr. M. Tamim through a paper subjected on the increasing price trajectory of gas prices and how to fight the same with a positive spirit and some sustainable efforts. Also present for the seminar was Dr. Towfiq-E-Elahi Chowdhury and Bir Bikram. A. R. Khan, Chairman of Energy Regulatory Commission (BERC) also graced the occasion with his presence.

Textile Mills are resorting to energy efficiency devices through co-generation process and other means to get maximum output from the use of Gas. Efficiency level is found to exceed over 80% in this case. Energy efficiency measures involve awareness, technical knowledge and capacity building, tools and equipments, Training of Human resources and Policy Support etc. Participation of Financial Institutions and Banks are also needed in this process. The industry is becoming increasingly aware about the positive impact of energy efficiency on energy security, environment, climate change and social and economic sustainable goals. Energy efficiency measures can efficiently meet the challenges of high energy price and rapid increase in energy demand. “Energy shortage and rising production cost have undermined our competitiveness. Power disruptions in the form of load shedding and low gas pressures add to production time and production losses. It is said that energy & power shortages account for about 2% production losses in GDP growth. Investment in the gas intensive textiles is largely hampered due to non availability of gas and electricity,” further mentioned Professor, Dr. M. Tamim, President, BTMA. The textile sector in Bangladesh use imported state-of-art machineries which require uninterrupted and quality power supply. The present grid line, have not yet reached to a level which can assure a 100% reliable power supply without disruption. In such a situation the dependence on Captive Generation cannot be stopped now. However, with sustainable improvement in power supply both in terms of quality and quantity the dependence on the grid line supply will get momentum. The president further added that till such time Bangladesh deserves to get gas supply for an uninterrupted production at reasonable rate which does not jeopardize the competitiveness. In this respect BTMA requested and highlighted that gradual approaches should be adopted in raising tariff so that the industry gets ample time and space to adjust with the changes.