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1. Why is the Commission proposing a plan to digitalise the energy system?
To end the EU’s dependence on Russian fossil fuels and tackle the climate crisis, our energy system requires a deep transformation, in which digitalisation plays a central role. In a context of high energy prices in particular, accelerating the digitalisation of the energy sector is key to help consumers save on their bills. Smart buildings, smart meters and electric vehicles, Internet of Things devices provide key information that allows to monitor energy consumption, increase renewable integration and reduce costs. Innovative data services, apps, and energy management systems have a large untapped potential for energy users, but they need a further boost and adequate policy support measures to become ubiquitous.
This is why the Commission is setting out a series of actions to support this process via legislative initiatives, investments and coordination with the Member States in the next months and years. In the medium term, digitalisation will enable seamless interactions among very diverse actors. In particular, it will allow consumers to further profit from domestic energy sources such as solar PVs or community-owned wind turbines. For example, it could allow solar panel owners to sell electricity to their neighbours when they are not using it at a price which is cheaper than buying from the grid. Similarly, bidirectional EV charging would allow the use of car batteries as an additional resource for electricity during peak hours on the grid.
To support these developments, the Commission will formally re-establish the existing Smart Grids Task Force. The group will be renamed the ‘Smart Energy Expert Group’ and will have greater responsibilities and involve all Member States and additional relevant stakeholders. Within this expert group, the Commission will set up, by March 2023 at the latest, the “Data for Energy” (D4E) working group to support with developing and rolling out a common European data space for energy.
In the longer-term, digitalisation will be a prerequisite for the integration of decentralized forms of renewable energy in the grid, which will enable the EU to become less reliant on imported fossil fuels, and therefore less exposed to their price volatility. The integration of renewable energy sources requires more grid decisions to be taken closer to the edge of the network. It also requires more grid flexibility, which can be provided by active consumers and prosumers that flexibly manage their energy assets. By doing so, they can also lower their energy bills and reduce their carbon footprint. A seamless access to more granular data about the state of the electricity smart grids and smart consumer assets (such as heat pumps, solar panels, home batteries, smart thermostats, building automation systems or electric vehicle charging points) will be central, but this can only happen if digital tools and shared data infrastructure for delivering energy services at the right moment in time become widespread.
2. What is the Commission proposing to tackle the energy consumption of the ICT sector?
The ICT sector accounts for approximately 7% of global electricity consumption, and it is forecast to rise to 13% by 2030. This energy footprint currently represents 3-5% of global carbon emissions, putting it on a par with the aviation sector. The growing energy needs of the ICT sector shouldn’t become an obstacle to the EU’s objective to reduce energy demand in the current context and to achieve climate neutrality in the longer term.
The Commission will extend the Ecodesign for Sustainable Products Regulation to cover new ICT products and develop an energy label for computers. This should encourage manufacturers to make their products more energy efficient and more easily reparable, reusable and recyclable.
With data centers accounting for 2.7% of EU electricity demand in 2018 and their energy consumption expected to rise 200% between 2020 and 2030, the Action Plan outlines different actions to address the growth in this critical infrastructure. The Commission will, in particular: introduce monitoring and reporting requirements for their energy consumption in the review of the Energy Efficiency Directive; develop an environmental labelling scheme for data centers; explore introducing separate reporting lines for indirect greenhouse gas emissions stemming from the purchase of cloud computing and data center services in EU sustainability standards; and improve requirements on the operating conditions of servers and data storage products through the revision of the Ecodesign rules.
The Commission will also increase efforts to develop common indicators for measuring the environmental footprint of electronic communications services, such as the telecommunication networks used by ICT devices to send and receive information. It will work towards an EU Code of Conduct for the sustainability of telecommunications networks.
3. Does the Action Plan tackle cryptocurrencies?
The energy consumption of cryptocurrency mining has attracted considerable attention over the past years. The energy consumption of cryptocurrencies has increased by 900% in the past 5 years and has more or less doubled compared to 2 years ago, reaching around 0.4% of worldwide electricity consumption.
The Commission will develop a report by 2025 that includes a description of the environmental and climate impact of new technologies in the crypto-asset market, as well as potential policy options that could help mitigate adverse impacts on the climate of technologies used in the crypto-asset market.
Given the current energy crisis and the heightened risks for the coming winter, the Commission urges Member States to implement targeted and ambitious measures to lower the electricity consumption of crypto-asset actors, in line with the proposed Council Regulation on an emergency intervention to address high energy prices. In case, there is a need for load shedding in the electricity systems, the Member States must also be ready to stop crypto-assets mining. In the longer-term perspective, it is also crucial to put an end to tax breaks and other fiscal measures benefitting crypto-miners currently in force in certain Member States.
In addition, the Commission will also cooperate internationally and build on the technical expertise of standardisation bodies to develop an energy-efficiency label for blockchains.
4. How is the Commission promoting investments in smart grid development and related digital solutions?
Significant progress has already been made in digitalisating the energy sector: 51% of all EU households and SMEs are equipped with smart electricity meters. EU digital and energy policies, such as the Renewable Energy Directive, the Energy Performance of Buildings Directive and the Data Act, already guide digitalisation of energy as issues like security, privacy and consumer protection cannot be left to the market alone and its proper implementation is key. But there is still a significant way to go before achieving a fully smart and flexible environment.
In order to reach the Fit for 55 and REPowerEU objectives for renewables and energy efficiency, it is estimated that about EUR 584 billion of electricity infrastructure investments are needed between 2020 and 2030, in particular in the distribution grid. Investments in digital solutions such as grid optimisation at distribution level will help reduce further capital expenditure on enhancing the existing grid infrastructure, allowing for a faster deployment of electric cars, decentralised renewables, heat pumps and other technologies – due to reuse of existing infrastructure.
To increase the efficiency and smartness of the grid for the benefit of the energy system as a whole, the Commission will support closer cooperation between the EU Transmission System Operators (TSOs) and the distribution grids operators (DSOs) to create a virtual model of the European electricity grid.
To guide investment, the Commission will also support the European Union Agency for the Cooperation of Energy Regulators (ACER) and the national regulatory authorities (NRAs) in their work to define common smart grid indicators and related objectives that would contribute to this goal. This will allow NRAs to monitor smart and digital investments in the electricity grid annually as of 2023 and measure progress towards the creation of the digital twin of the grid.
5. How will the Action Plan address cybersecurity ?
Ensuring cybersecurity of a digitalised energy system is a key component of the Action Plan. Digitalisation can deliver a strong contribution to the EU’s energy security and climate goals, by making our energy system more efficient, more flexible and more resilient. But it also brings along new challenges related to the cybersecurity of our European energy infrastructure and the reliability of its electricity grid, access to and sharing of data, data protection and privacy. More decentralised and digitalised production and consumption of energy together with connected devices increase the “attack surface” of the entire energy system, thus increasing the cyber-related risks.
The EU has a systemic approach to strengthen the cybersecurity of energy networks, combining measures that are specific to the energy sector with the cross-sectoral cybersecurity framework. The revised Network and Information Security Directive – the so-called NIS2 – has been agreed by the co-legislators and will be formally adopted shortly. It defines the energy sector as one of the EU’s critical infrastructures and lays down provisions for cyber-security on national capabilities and crisis response, risk management and cooperation and information exchange. In consultation with NIS Cooperation Group, ENISA, as well as other relevant stakeholders, the Commission will identify the specific ICT services, systems and products that might be subjected to coordinated risk assessments with priority. Particular attention will be paid to risks in the renewable energy and grid supply chain, including offshore wind.
Resilience tocybersecurity-risks in the electricity systemwill be further increased by a Delegated Act in the form of the network code on sector-specific rules for cybersecurity aspects of cross-border electricity flows.
Upon completion of the legislative proposals of the gas and hydrogen networks, the Commission may also look to propose to adopt specific Delegated Acts on the cybersecurity for these sectors.
The Commission is also issuing today a Recommendation to enhance the resilience of critical energy infrastructuresagainst possible physical, cyber or hybrid attacks. These measures are in addition to the recent proposal for a new Cyber Resilience Act.
6. What funding opportunities will be available for reaching the goals set in the plan?
The following EU funding instruments can play a strategic role to fast-forward the twin transition:
The Horizon Europe 2021-2027 programme can support initiatives to enhance interoperability, engage consumers in the new energy market and pilot energy data spaces. In the 2023-2024 programme, the Commission intends to launch a flagship initiative to support digitalisation of the energy system.
The Digital Europe Programme will be pivotal in kick-starting the deployment of the common European energy data space building on the results of the Horizon Europe-funded projects that demonstrate solutions for this data space. It will also fund the newly established European Cybersecurity Competence Center and the Network of National Coordination Centers.
Connecting Europe Facility grants can be used to support some cross-border smart grid projects being identified as Projects of Common interest (PCIs). .
National Recovery and Resilience Plans are tools through which Member States can channel funding into the digitalisation of the energy sector.
The LIFE Clean Energy Transition (CET) sub-programme supports the development of smart energy services’ solutions to empower citizens and communities in the energy system.
Cohesion Funds can also be used by Member States, regional and local authorities to target the digital transformation across sectors, including energy, with a particular focus on smart energy systems and smart grids.
The Commission calls on Member States to increase their R&I support for the testing and piloting of digital technologies in the energy sector and promote cooperation between digital and energy stakeholders through the national R&I programmes.
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The whole of Europe is suffering as a result of the energy crisis. For European countries, this is more than an economic crisis, it’s an existential crisis. Affected by the energy crisis and inflation, Europe has entered an era of soaring energy prices. High energy prices are lashing European industry, forcing factories to cut production quickly. Half of Europe’s aluminum and zinc production has been forced to stop, according to Eurometaux, Europe’s metals trade association. In July, the seasonally adjusted industrial production fell by 2.3% in the euro area, compared with June 2022. By comparing the electricity prices of European countries, it is found that the electricity prices in many European countries, including Germany, France, Spain and the U.K., have risen several times compared with last year. As a result, the cost of living for ordinary people has greatly increased.
As of Oct.24, the fluctuation of electricity prices in European countries the previous day. Source: euenergy.live
After the Nord Stream’s explosions, Energy crisis hits Europe’s largest economy more than expected
Germany is the economy most at risk of gas shortages due to its reliance on Nord Stream 1 and lack of alternatives. German economy stagnates with 0% growth in Q2，inflation has soared to double digits for the first time since the Second World War. Considering the impact of global supply chain disruptions, geopolitical uncertainty, and continued rising energy prices, Germany’s economy will fall into recession, shrinking 0.4% in 2023.
The recent attack on the part-German-owned Nord Stream gas pipelines connecting Russia to Germany is a problem that cannot be ignored. Many experts agree that sabotage of the pipeline could be an act of the U.S.. The U.S. has historically seen the Nord Stream gas pipelines as an extension of Russian influence over Europe through Germany. This is clearly not a conspiracy theory. The U.S. aims to replace Russian gas by exporting its own gas to Europe. After the Nord Stream pipelines was bombed, Europe will inevitably increase its dependence on US energy, which will benefit the U.S.. But the U.S. actions weaken Germany.
Let’s look at the whole of Europe, experts have warned that some gas producers such as the U.S., Canada and Qatar may not be able to completely replace Russia as a supplier to Europe in the mid-long term. If that is the case, high gas prices in Europe could last into 2024, potentially permanently hurting European manufacturing.
Can the U.S. help Europe out of the Energy crisis
What the U.S., as an ally of Europe, has done in this energy crisis? Although the Biden administration has promised to send more gas to Europe, the U.S. can only provide limited help. Given the current state of energy infrastructure, supply growth has peaked in the near future. It’s hard to deny that the U.S. is clearly benefiting from the European energy crisis in general. The U.S. is exporting gas to Europe at high prices, French President Emmanuel Macron recently couldn’t help but complain that US gas is too expensive. With the U.S. unable to guarantee European gas demand and preferential prices, the explosion of the Nord Stream pipelines has made Europe even worse, and may completely cut off Europe’s retreat.
Global inflation, the Fed’s interest rate hike and balance sheet shrinkage have heightened the risk of recession in the world economy, especially in Europe. If European countries can no longer find a solution to the energy crisis, recession will be a sure thing.
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The government has created a roadmap to address various risks and problems that may be associated with future climate change in order to demonstrate its commitment to achieving net zero emissions (NZE) by 2060. The government is putting into practice five main principles in pursuit of the zero-emission target: increasing the use of new renewable energy (NRE), reducing the use of fossil fuels, promoting electric vehicles in the transportation sector, increasing the use of electricity in homes and businesses, and utilizing Carbon Capture and Storage (CCS).
Due to the gap between the 2025 roadmap and the actual situation, the commitment to achieve net zero emissions is currently insufficient. The percentage of new and renewable energy, which is projected at 23 per cent in the 2025 roadmap released by the Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral/ESDM), has only achieved 12 per cent in actual utilization. As a result, careful and comprehensive preparation is required to be able to completely abandon fossil fuels or non-renewable energy sources. This can be caused by a number of factors, including the laws and regulations currently in place that govern new and renewable energy or RUU EBT, which has not been able to establish a strong, comprehensive legal basis and guarantee legal certainty.
In order to achieve energy independence and security and support sustainable national development, the national energy policy is meant to serve as a guideline for national energy management. The National Energy Policy (Kebijakan Energi Nasional/KEN), which was created by the National Energy Council (Dewan Energi Nasional/DEN) and approved by the President as Government Regulation (Peraturan Pemerintah/PP) Number 79 of 2014 concerning National Energy Policy, includes the 2025 road map. The NRE composition targets of 23 per cent in 2025 and 31 per cent in 2050, as well as the target for annual electricity consumption per person of 2,500 kWh in 2025 and 7,000 kWh in 2050, are the three points in the PP.
Although Indonesia has a 442 gigawatt potential for renewable energy, only 8.8 gigawatts were actually used in 2018. During the DEN Anugerah Webinar on October 20, 2022, in Jakarta, Satya Widya Yudha, a member of the National Energy Council (DEN), stated that fossil energy in the form of oil and natural gas is still needed for the optimization of the NRE mix as a transitional fuel and as a supporting fuel for NRE plants. Carbon Capture and Storage (CCS) technology, which can reduce greenhouse gas emissions from operations involving fossil fuels, is the technology being sought in the transition process. This indicates that fossil energy will continue to have a role in the transition to NRE through technological advancements made in geothermal, hydro, and wind power facilities, among others.
Also in accordance with Satya, the intermittent or discontinuous energy integration makes the usage of NRE less than ideal. When the amount of sunshine declines or diminishes, solar power plant (PLTS) power likewise declines. Similar to this, when the unpredictable water discharge prevents the water turbine from maximizing the use of hydraulic power, the issue of developing NRE is not resolved by the extensive use of geothermal or geothermal energy. Because of its numerous volcanoes, Indonesia actually contains a lot of geothermal potentials that, if properly utilized, might allow it to produce electricity the whole day long.
These conditions will certainly provide economic opportunities both regionally and globally with the decline in the price of EBT electricity production and the scarcity of fossil fuels that can be utilized at high prices. In order to achieve a zero-emission future, the electricity mix that uses NRE as the primary source of energy supply needs to be encouraged, especially in the electricity sector. Indonesia is estimated to need as much as 37 billion US dollars or equivalent to Rp 568 trillion if it has to stop 118 coal-fired power plant operations in the country. In fact, 60 per cent of Indonesia’s electricity sector is still produced from coal (PLTU) with 250,000 people working in the industry.
However, considering that a number of regions still rely on local revenue from the oil and gas sector and state assets in the steam power plant (PLTU) business are quite high, the process of Indonesia’s energy transition to NRE is overall rather problematic. Indonesian employees are among the lowest prepared in Southeast Asia for the NRE sector, far below Singapore, Malaysia, Thailand, and Singapore. The energy transition, however, still requires a continual process and takes a number of factors into consideration.
Additionally, the news of the carbon tax’s postponement, which was actually implemented in 2021 in article 13 of Law No. 7/2021, which states that the carbon tax goes into effect on April 1, 2022, may be violated by this postponement. It shows that the government is not serious about this energy transition. Supposedly, the distribution of revenue from the coal carbon tax can aid in the development of NRE technology in Indonesia so that the mobility of fossil fuels has a constructive effect for the sake of NRE readiness in Indonesia. Although the use and capital of fossil fuels are still necessary for Indonesia’s energy transition, there has not been any serious effort to figure out how to do so up until this point.
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With the aim of increasing bilateral trade and mutual economic cooperation, special attention must be paid to the ‘Middle East’. Bangladesh seeks cooperation in at least 12 sectors from the top ten countries of the Arab world or the Middle East to overcome the ongoing power and energy crisis, the impact of the Russia-Ukraine war and the financial loss of the epidemic corona. One of these is the power and energy sector.
Maximum emphasis has been placed on easy terms of investment and energy imports from the Middle East in this sector. In addition to this, the government is interested in new manpower exports and product exports to collect remittances, one of the sources of foreign exchange. A meeting of Bangladesh-Saudi Arabia Joint Commission (JC) has been called in Riyadh, Saudi Arabia by the end of this month.
Looking ahead to that meeting, Saudi Arabia wanted to know what kind of cooperation Bangladesh wants to increase bilateral trade. The Economic Relations Department (ERD) will present an outline of economic cooperation and investment at the JC meeting itself.
It is known that assistance will be sought from the Middle East to resolve the ongoing power and energy crisis. Frequent load-shedding and rising prices of all types of fuel have increased the cost of production in the country. Its biggest impact is noticeable in inflation. In addition to this, the majority of remittances come from Middle Eastern countries. Due to this reason, the stakeholders have urged to increase mutual economic cooperation and bilateral trade with the Middle East. More than 80 percent of the fuel oil used in Bangladesh is imported from some countries in the Middle East including Saudi Arabia.
Similarly, most remittances are being extracted by exporting unskilled manpower to Middle Eastern countries. Most of the fertilizers used in agricultural production are imported from the Middle East. But the economy of Bangladesh is under pressure due to the ongoing global crisis and the increase in dollar prices. Inflation is increasing.
In this situation, the dollar crisis and the increase in the price of all types of fuel are making it more difficult to maintain the continuity of production. As a result, there is increasing load shedding and disruption of production. Initiatives have been taken to increase mutual cooperation with Middle East countries to overcome the current situation. Bangladesh is dreaming of developing economic relations with the Middle East.
The government is preparing to attend the 14th JC meeting to be held in Riyadh, Saudi Arabia on October 30-31. Bangladesh will be represented in that meeting by high-level representatives of the Economic Relations Department of the Ministry of Finance. Before attending the meeting, ERD held several inter-ministerial meetings on the initiative of the Ministry of Finance.
In these meetings, economic relations with other countries of the Middle East, including Saudi Arabia, have been urged to be strengthened and bilateral trade increased. Besides, cooperation in 12 sectors will be sought from the Middle East. These include development of bilateral economic and trade relations, manpower, employment and consular, private aviation, tourism and cultural, investment, Abu Dhabi Development Fund, electricity, energy and mineral resources, information and communication technology sector, education, science and technology sector, marine environment. Cooperation in development, agriculture, healthcare and health education sectors and humanitarian and charitable assistance is one of them.
Saudi Arabia has already expressed its positive attitude towards increasing cooperation with Bangladesh. Not only that, Bangladesh-Saudi Arabia has signed several agreements and memoranda of understanding to increase bilateral trade and investment. In addition, bilateral trade and economic cooperation with Saudi Arabia will be increased with the United Arab Emirates, Qatar, Bahrain, Oman, Iraq, Kuwait, Lebanon, Egypt and Turkey.
An official letter has been given to these countries by the Commercial Counselor of Bangladesh Embassy abroad to increase bilateral trade and manpower export. Besides, the government has taken a special initiative from the Middle East Branch-1 of the Economic Relations Department (ERD). An outline in this regard will also be presented in the JC meeting to be held with Saudi Arabia. Bangladesh Investment Development Authority (BIDA) has a separate program around the Middle East.
Saudi Arabia has already been informed about ensuring one-stop service from the bidder’s side. ERD believes that if mutual economic cooperation with Saudi Arabia, the top country of the Arab world, increases, bilateral trade with other countries in the Middle East will also increase.
And for this reason, preparations are being made vigorously in front of the 14th JC meeting. A high-level delegation from Bangladesh is expected to participate in the meeting. In this regard, Finance Minister AHM Mustafa Kamal said that currently there is an excellent environment for investment in Bangladesh. There is considerable potential for investment on Public-Private Partnership (PPP) basis, particularly in major infrastructure, information technology, communication, agriculture, power and energy, medical sectors.
Middle East entrepreneurs including Saudi Arabia can take investment opportunities in those sectors if they wish. Professional, skilled, semi-skilled and unskilled manpower is still in great demand in the Arab world. Middle East countries can take huge manpower from Bangladesh if they want. He said that the country’s electricity and energy sector needs investment and cooperation from the Middle East, including Saudi Arabia. To deal with the ongoing crisis, the government will take the cooperation of Saudi Arabia and other countries in the power and energy sector.
According to Bangladesh Petroleum Corporation or BPC data, the country imports 6.5 million tons of fuel oil annually. Of that, 4 million tons of diesel is imported annually. More than 90 percent of vehicles in the transport sector in the country are dependent on fuel oil. Again, 34 percent of the power generation capacity depends on fuel oil.
For these fuels, we have to depend on Saudi Arabia and other countries in the Middle East. Bangladesh imports refined and crude fuel oil. The foreign companies supplying oil are Saudi Arabian Oil Company (Saudi Aramco) of Saudi Arabia, Abu Dhabi National Oil Company Limited (ADNOC) of the United Arab Emirates, Kuwait Petroleum Corporation (KPC) of Kuwait, Petco Trading Labuan Company Limited (PTCL) of Malaysia, Emirates National Oil of the United Arab Emirates. Company (Inc), China’s PetroChina (Singapore) Pte Ltd and Unipec (Singapore) Pte Ltd, Indonesia’s PT Bumi Siak Pusaku (BSP), Thailand’s PTT International Trading Pte Ltd, India’s Numaligarh Refinery Limited (NRL).
Apart from this, BPC also buys fuel oil through open tender. In other words, more than 80 percent of fuel oil is imported from Middle East countries including Saudi Arabia. Earlier in 2019, two agreements and four memorandums of understanding were signed with Saudi Arabia for the development of various sectors of Bangladesh, including the power and industrial sectors. These agreements and agreements were made in the presence of Prime Minister Sheikh Hasina in a ceremony organized at her office.
If these agreements are implemented, the country’s bilateral trade and investment with Bangladesh will increase. It is believed that both countries will benefit economically. Especially the ongoing crisis in the power and energy sector of the country will be removed. Besides, bilateral trade with Saudi Arabia also has great opportunities and possibilities.
In addition, Saudi Arabia’s state-owned oil company Aramco has already shown interest in building, operating and maintaining an oil refinery. It will cost 1.5 to 2 billion dollars. Saudi firm Engineering Dimension LLC is very enthusiastic about investing in Bangladesh.
The company is interested in investing in 7 projects and has pledged to invest around 1.685 billion dollars during the International Investment Conference held in Dhaka in November last year. Saudi Arabia’s investment in the power and energy sector is urgently needed at the moment. This issue should be given maximum emphasis in any forum discussion with the country.
Engineering Dimension is one of the companies that have shown interest in the construction of Dhaka East-West Elevated Expressway. Some Saudi investments are already in the pipeline. These include the development of Patenga Container Terminal with Red Sea Gateway Terminal in Public Private Partnership. Further Saudi investment will largely depend on how successfully the projects in the pipeline can be managed.
ACWA Power, an internationally renowned energy company, has expressed interest in investing around $600 million to build a 730 MW combined cycle power plant in Chittagong. Al-Fanar plans to invest $100 million to build a 100 MW IPP solar project in a joint venture. Al-Bawani is interested in investing about $10 million in the employment of skilled human resources for construction and engineering projects.
Bangladesh-Saudi Arabia joint commission meeting preparation.
Preparations for the 14th meeting of the Bangladesh-Saudi Arabia Joint Commission have started in full swing. The Economic Relations Department (ERD) of the Ministry of Finance prepared the working paper on behalf of Bangladesh. In the meeting to be held in Riyadh, Saudi Arabia on October 30-31, the cooperation of Saudi Arabia will be sought in the export of electricity, manpower, increasing the export of manufactured goods, export of halal products, especially fish and meat, export of agricultural processed products and fertilizer production.
Besides, Bangladesh has the opportunity to export clothes to other Middle East countries including Saudi Arabia. The entrepreneurs of the country’s garment sector have expressed their interest in this regard. Saudi Arabia will be requested to speedily implement the agreements made with Saudi Arabia at various times. In this context, Bangladesh has prepared for the Bangladesh-Saudi Arabia joint commission meeting.
Bangladesh has several bilateral trade investment agreements with Saudi Arabia. These agreements must be implemented now. It is reported that talks are going on between Petrobangla and Aramco regarding a liquefied natural gas (LNG) deal. This will solve the country’s LNG crisis. Besides, Eastern Refinery Unit-2 has sought Saudi Arabia’s cooperation in processing 3 million tons of crude palm oil per day.
If it is implemented, 68 thousand barrels of refined petroleum will be available. MoU will be signed between Bangladesh Power Development Board and world renowned ACWO Power. It is expected to make great progress in the renewable energy sector in the country. It has an agreement with Saudi Arabia to build a 100 MW Solar Independent Power Plant (IPP) and manufacture transformers and electrical components.
These agreements need to be implemented quickly. Meanwhile, 20 more Saudi Arabian companies have shown interest in investing in Bangladesh, said Foreign Minister Dr. AK Abdul Momen recently. After a recent meeting with a delegation of Saudi Arabia, he added, “We will give them all the facilities they need.” Both countries have much more to do in terms of trade and investment cooperation.
Besides, the country is also interested in investment on the basis of public-private partnership or PPP. Saudi Arabia will mainly invest in Bangladesh’s infrastructure, medical, tourism and other sectors. A memorandum of understanding has been signed with Saudi Arabia. Salman F Rahman, Adviser to the Prime Minister on Private Industry and Investment on behalf of Bangladesh, signed one such MoU a few months ago. However, countries of the Middle east especially Saudi Arabia’s investment in the power and energy sector is urgently needed at the moment.
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