The power master plan formulated by the Institute of Energy Economics, Japan with support from Japan International Cooperation Agency faces scrutiny for burdening Bangladesh towards further financial instability with depleting foreign exchange reserves
Amid growing criticism over the Japanese backed Integrated Power Master Plan (IEPMP) of Bangladesh, experts have termed it economically non-viable as the plan is misaligned with the Paris Agreement and G7 commitments, and diminishes the Net Zero targets.
“The power plan is designed for maximising the profit of Japanese companies, and simply a scheme for Japan in trying to re-sell their surplus LNGs to Asian Countries in Bangladesh,” said Yuki Tanabe, program director of Japan Center for Sustainable Environment and Society (JACSES).
Yuki was addressing a session called “Role of Bilateral Partnerships for Just Transition in Bangladesh”, on the second day of the Bangladesh Energy Prosperity (BEP) 2050 conference on Thursday.
The national power master plan formulated by the Institute of Energy Economics, Japan (IEEJ) with support from Japan International Cooperation Agency (JICA) faces scrutiny for burdening Bangladesh towards further financial instability with depleting foreign exchange reserves.
Bangladesh recently became the first South Asian country to challenge the Integrated Energy and Power Master Plan (IEPMP) 2023 in the Supreme Court.
In late November 2023, the Power Ministry unveiled the IEPMP. Its goal was ambitious: a sweeping, long-term roadmap designed to guide Bangladesh’s energy future, all the while nodding to the global push towards decarbonisation.
However, given that previous master plans have often been ignored or poorly implemented by former governments, there’s scepticism about whether the 2050 ambitious goals can truly be achieved.
In his speech, Yuki emphasized that the IEPMP lacks economic viability as it proposes 15% of Ammonia and Hydrogen co-firing in 2050, which is four times more expensive than renewables.
“The IEPMP is not economically viable for a developing country like Bangladesh. The IEPMP uses false solutions in the name of advanced technologies and these technologies are very expensive compared to renewable energy,” he said.
Hence, the IEPMP needs extensive revision and Japan should invest in more renewable energy to support Bangladesh towards energy transitions, he added.
“Bangladesh should not apply hydrogen and ammonia at this moment, however once these projects are tested and depending on technological advancements ensured, then we can update Bangladesh’s power master plan as needed,” assures Ichiguchi Tomohide, the chief representative from Japan International Cooperation Agency (JICA), Bangladesh.
Addressing as the guest of honor of the Bilateral Partnerships for Just Transition in Bangladesh at the BEP 2050 Conference, Ichiguchi agreed that the IEPMP should be revised, as advised by the Energy Advisor at the inaugural ceremony of the conference.
“The power master plan is a living document, as economic scenarios change so should the master plan. JICA has and will support Bangladesh towards renewable energy goals and energy efficiency,” he said.
The session on Role of Bilateral Partnerships for Just Transition in Bangladesh also highlighted the key role of Chinese and Nepalese investments in renewable energy and energy transition in Bangladesh as the most important strategic bilateral partners.
The session was chaired by Bareesh Hasan Chowdhury, the coordinator of Friends of the Earth Asia Pacific, and Makiko Arima, a Japan finance campaigner from Oil Change International (OCI) moderated the session.
Research presentations in the sessions find that fossil fuel-based power generation in Bangladesh is unsustainable and unacceptable considering value chain, policy chain and emission chain.
It was reported that Bangladesh’s power sector’s performance is extremely poor and economically nonviable while renewable energy is being generated 97.8% successfully and the cheapest option.
On other thematic areas of land constraints for renewable energy, bilateral and multilateral cooperation for energy transition, speakers highlight the role of Japan and G7 countries in progressing energy transition in Bangladesh, the potential of South-Asian Energy Cooperation and the historical responsibility and way forward of ADB and AIIB.
Another session on fair and sustainable financing, emphasised accountability, compliance and safeguarding mechanisms should be enhanced in the financial sector. Additionally, Bangladesh’s taxonomy must be revised and aligned with global standards, while banks should ensure the publication of financial policies, project documents, and ESG reports.
The three-day conference is uniting over 300 national and international representatives, including policymakers, energy experts, development partners, private sector investors and financiers, civil society organisations and youth for an impactful three-day event.
Building on the success of its first 2023 edition, this year’s conference features 23 co-organisers dedicated to advancing the shift towards renewable energy, powering prosperity through a collaborative approach to sustainable development. The conference will end with a declaration pledge to the governments, national and international stakeholders on Friday.
