New captive plants may add 1100MW power to nat'l grid
Sunday, 22 July 2007
FE Report
Installation of new units in the existing captive power plants is likely to offer relief as the caretaker government is struggling to augment electricity supply within a shortest possible time.
Sources said the government might get electricity of up to 1100 megawatt (MW), of which 300 MW will be added before the next summer and 800MW by the next one year, from the captive plants if new power units are installed there.
The captive power owners will be able to provide electricity at the earliest as the necessary infrastructure like land and gas connections are already there, they said.
But the irrational tariff offer coupled with higher gas prices is hindering the government plan to augment the country's electricity generation through purchase of electricity from the captive plants, it is alleged.
Currently, the Bangladesh Power Development Board (BPDB) and the Independent Power Producers (IPPs) are purchasing gas at Tk 2.61 per cubic metre, while the gas rate for the captive power plants is Tk 3.73 per cubic metre.
Failing to entice the CPP owners to sell electricity at the current rate of Tk 2.12 per kilowatt hour (per unit) the Power Division, however, recently placed a proposal to the Council of Advisers for revising the existing Captive Power Policy (CPP) with an enhancement of electricity tariff by a maximum of five per cent as compensation for the cost involved in transmitting electricity into the national grid.
The Power Division wants the generators to be installed by the captive plants should be of special design, a captive power plant owner said.
But the proposed hike in tariff structure for the captive power plants is inadequate compared to the transmission cost of electricity from captive plants to national grid, he said.
"The costs for stepping up of electricity from captive plants to national grid is around Tk 25 million for generation of 1.0 MW power," a senior official of Siemens told the FE echoing the views of the captive power plant owners.
"The CPP was adopted in February last by the incumbent caretaker government with a target to purchase 50 MW of electricity from the captive power owners by June last," a senior Power Division official said.
But the division failed to get adequate response from the captive plants due to the discrepancy in the policy.
Initially, the power division hoped that the captive power plant owners would provide their 'surplus' electricity.
But the captive power plant owners do not have significant surplus electricity for supplying to the national grid.
Besides, the existing gas tariff structure for the captive power plants is also discouraging them to provide electricity to the national grid, it is alleged.
Currently, the Bangladesh Power Development Board (BPDB) and the Independent Power Producers (IPPs) are purchasing gas at Tk 2.61 per cubic metre, which is Tk 1.12 less than the purchasing rate of the captive power.
The captive power plants are purchasing gas at Tk 3.73 per cubic metre from the government.
The total generation of electricity by captive power units is currently over 1,300 MW across the country, mostly generated by textile industries.
Installation of new units in the existing captive power plants is likely to offer relief as the caretaker government is struggling to augment electricity supply within a shortest possible time.
Sources said the government might get electricity of up to 1100 megawatt (MW), of which 300 MW will be added before the next summer and 800MW by the next one year, from the captive plants if new power units are installed there.
The captive power owners will be able to provide electricity at the earliest as the necessary infrastructure like land and gas connections are already there, they said.
But the irrational tariff offer coupled with higher gas prices is hindering the government plan to augment the country's electricity generation through purchase of electricity from the captive plants, it is alleged.
Currently, the Bangladesh Power Development Board (BPDB) and the Independent Power Producers (IPPs) are purchasing gas at Tk 2.61 per cubic metre, while the gas rate for the captive power plants is Tk 3.73 per cubic metre.
Failing to entice the CPP owners to sell electricity at the current rate of Tk 2.12 per kilowatt hour (per unit) the Power Division, however, recently placed a proposal to the Council of Advisers for revising the existing Captive Power Policy (CPP) with an enhancement of electricity tariff by a maximum of five per cent as compensation for the cost involved in transmitting electricity into the national grid.
The Power Division wants the generators to be installed by the captive plants should be of special design, a captive power plant owner said.
But the proposed hike in tariff structure for the captive power plants is inadequate compared to the transmission cost of electricity from captive plants to national grid, he said.
"The costs for stepping up of electricity from captive plants to national grid is around Tk 25 million for generation of 1.0 MW power," a senior official of Siemens told the FE echoing the views of the captive power plant owners.
"The CPP was adopted in February last by the incumbent caretaker government with a target to purchase 50 MW of electricity from the captive power owners by June last," a senior Power Division official said.
But the division failed to get adequate response from the captive plants due to the discrepancy in the policy.
Initially, the power division hoped that the captive power plant owners would provide their 'surplus' electricity.
But the captive power plant owners do not have significant surplus electricity for supplying to the national grid.
Besides, the existing gas tariff structure for the captive power plants is also discouraging them to provide electricity to the national grid, it is alleged.
Currently, the Bangladesh Power Development Board (BPDB) and the Independent Power Producers (IPPs) are purchasing gas at Tk 2.61 per cubic metre, which is Tk 1.12 less than the purchasing rate of the captive power.
The captive power plants are purchasing gas at Tk 3.73 per cubic metre from the government.
The total generation of electricity by captive power units is currently over 1,300 MW across the country, mostly generated by textile industries.