Bangladesh has adopted a master plan in the power sector with coal being a dominant source of primary fuel for the country's 50 per cent power generation by 2030, reports UNB.
The new strategy for the country's latest "Power System Master Plan 2010" has been prepared recently with the financial support and technical assistance from the Japan International Cooperation Agency (JICA).
Japan has been showing special interest in Bangladesh's development and has already financed a number of projects in the power and communications sectors.
Official sources said the country has chosen the coal as its prime fuel source after a comprehensive study conducted by JICA, which reveals that in the next decades only coal will be the available and reliable fuel source at stable and cheaper prices.
As per the Master Plan, the country's power generation will reach over 40,000 MW against a demand for 38,000 MW by 2030 where half the generation will come from domestic and imported coal-fired power plants.
The Master Plan says, "Especially coal will be an important source of the primary energy supply in Bangladesh due to its price stability and lower volatility compared with oil and natural gas, reserve-production ratio compared with oil and natural gas, and its widespread availability throughout the world, and it is expected to be supplied stably."
It also forecast that natural gas supply would drop after 2017 while coal supply would rise as an alternative source of natural gas. In the Master Plan, the target composition of power supply as of 2030 had been set at 50 per cent for domestic and imported coal; 25 per cent for domestic and imported (in the form of LNG) natural gas; and 25 per cent for other sources such as oil, nuclear power and renewable energy.
As part of the newly evolved strategy, the government has initiated a move to set up a number of coal-fired power plants in public and private sectors. Contracts have been signed by the government to award the projects to the sponsors and contractors for implementation.
These include a 1320 MW coal-fired plant at Rampal in Bagerhat, a 1320 MW plant at Patuakhali and another 1320 MW plant at Maheshkhali.
