Addressing the issue of getting power quickly
Muzaffar Hossain | Friday, 1 August 2008
If all goes well as planned, power production consistent with demand and even some surplus may be possible by the year, 2015. But establishment of power plants after planning, land acquisition for the purpose, fund mobilisation, etc., involves a time-consuming process. That's why the question, asked frequently even by experts, is whether it's possible to immediately add some power to the national grid.
A semblance of sufficiency in power production is so much needed to maintain the tempo of current levels of production in various economic sectors and to give power connections to new enterprises which are coming up. Indeed, the current year's growth projection of the economy at 7.0 per cent is crucially dependent on augmentation of power supply that cannot wait.
Among several solutions, suggested in the face of the power crunch, was such as buying power from neighbouring countries. But the idea hit snags when they indicated that they may not have the surplus power to sell or laying transmission infrastructure would require considerable investment and time to get the supply from across the borders. Renting of movable power plants was also considered. Analysis of all possible ways of getting ready power for the grid showed that the best possible way to get it would be tapping the generation potentials of captive power producers (CPPs). Industries in different sectors established CPPs to have their own power generation over the years in the face of worsening power supply from the public sector.
Much of the combined generation capacity of the existing CPPs, estimated at some 1300 mw, remains unutilised. The industries owning them are, therefore, in a position to generate a surplus after meeting their own needs to feed the national grid. It would involve no new investments in machines, equipment or land. By offering a reasonable incentive price or supplying gas to the CPP owners at 'subsidised' rates to help reduce power production costs, the government can get as much as 500 mw in a month or two.
The government is buying power from other independent power producers (IPPs) at a price, which is substantially higher than what was offered to the owners of the CPPs. This is indeed a puzzling. The government is not exploiting the potential at hand to augment power supply. The government policy is demotivating or discouraging the owners of the CPPs to go for the surplus production. Only a conducive policy can change the scenario.
The news that tendering process has started for the setting up of some rental power plants to supply some 260 mw to the grid by 2008 only increases the concern. Reportedly, the rental plants would be set up and operated, mostly by foreign firms. The tariff of these barge- or skid-mounted plants are expected to be very high. In 1997, the Power Development Board (PDB) hired such plants, incurring a staggering cost of Taka 13 billion a year. The rented power plants will not supply power readily like the CPPs. Besides the supply would be about half the amount of power compared to what the CPPs can generate, that too at significantly higher costs. The eagerness to go ahead with the rented power plants scheme is bewildering.
A recent credible study showed that nearly 800 mw of electricity can be saved by using energy saving bulbs and devices, which would cost only Taka 1.75 billion. Why don't we go all-out for this option, instead of the more expensive rented power plants?
A semblance of sufficiency in power production is so much needed to maintain the tempo of current levels of production in various economic sectors and to give power connections to new enterprises which are coming up. Indeed, the current year's growth projection of the economy at 7.0 per cent is crucially dependent on augmentation of power supply that cannot wait.
Among several solutions, suggested in the face of the power crunch, was such as buying power from neighbouring countries. But the idea hit snags when they indicated that they may not have the surplus power to sell or laying transmission infrastructure would require considerable investment and time to get the supply from across the borders. Renting of movable power plants was also considered. Analysis of all possible ways of getting ready power for the grid showed that the best possible way to get it would be tapping the generation potentials of captive power producers (CPPs). Industries in different sectors established CPPs to have their own power generation over the years in the face of worsening power supply from the public sector.
Much of the combined generation capacity of the existing CPPs, estimated at some 1300 mw, remains unutilised. The industries owning them are, therefore, in a position to generate a surplus after meeting their own needs to feed the national grid. It would involve no new investments in machines, equipment or land. By offering a reasonable incentive price or supplying gas to the CPP owners at 'subsidised' rates to help reduce power production costs, the government can get as much as 500 mw in a month or two.
The government is buying power from other independent power producers (IPPs) at a price, which is substantially higher than what was offered to the owners of the CPPs. This is indeed a puzzling. The government is not exploiting the potential at hand to augment power supply. The government policy is demotivating or discouraging the owners of the CPPs to go for the surplus production. Only a conducive policy can change the scenario.
The news that tendering process has started for the setting up of some rental power plants to supply some 260 mw to the grid by 2008 only increases the concern. Reportedly, the rental plants would be set up and operated, mostly by foreign firms. The tariff of these barge- or skid-mounted plants are expected to be very high. In 1997, the Power Development Board (PDB) hired such plants, incurring a staggering cost of Taka 13 billion a year. The rented power plants will not supply power readily like the CPPs. Besides the supply would be about half the amount of power compared to what the CPPs can generate, that too at significantly higher costs. The eagerness to go ahead with the rented power plants scheme is bewildering.
A recent credible study showed that nearly 800 mw of electricity can be saved by using energy saving bulbs and devices, which would cost only Taka 1.75 billion. Why don't we go all-out for this option, instead of the more expensive rented power plants?