Power : Strange delay in opting for the best option
Enayet Rasul | Thursday, 28 August 2008
The daily production of power in the country is far short of its effective total demand at around 5000 mw. Total production of power by the government's Power Development Board (PDB) being in the neighbourhood of some 3,200 mw or a little higher on average , creates a shortfall of some 1,800 mw to 2,000 mw on a daily basis.
But no headway appears to have been made in respect of fulfilling urgently the demands for power since the incumbent government took over some seventeen months ago amid raised expectation that it would surely apply all its might to solve the power problem which, together with reduced gas supply, are seen as the greatest obstacles to maintaining and increasing economic activities in the country. It was explained that government has been carefully taking steps for establishing new generation capacities in response to the prevailing crisis situation. But the capacities to be created over the medium and longer term can have nothing to do with relieving the harried consumers of power shortage, now.
Therefore, questions were asked with great eagerness whether anything can be done to increase power supply almost right away. It was found out at least a year ago that private power producers are there who use their capacities to generate power to run their own industries and services. But they use their capacities only partially. The private producers of power or captive power producers (CPPs) as they are called, can produce and send to the national grid some 300 mw of power immediately, according to reports.
Government also prepared a captive power policy for the purpose. But the reaction to it has been unfavourable as the offer of purchase price of power from the CPPs was substantially lower than the prices now paid to other independent power producers (IPPs). Not even the offer of a lower price for the gas to be used for making power by the CPPs , was on offer in the policy as inducement. Thus, it was no surprise that the CPPs did not come forward in a big way to sign deals with the government. The power ministry had a target of getting some 50 mw from the CPPs by June whereas it could obtain only 7 mw from them so far. It was reported that the ministry would consider a rethink of its policy and make a revised offer to the CPPs with incentives. This was not done. But why these delays and shortsightedness when with prompt and practical thinking and actions, some 300 mw could be easily added to the grid by now that would make a big difference for the better in power supply in these power starved conditions ?
The CPPs presently have a total generating capacity of some 1,300 mw and the bulk of it can be made readily available to the national grid. No new investments, time for establishment of power plants, etc., are required to get this power almost immediately. Why then this easy route is being spurned ? Permission was given to private bodies to set up ten small power plants within a time frame of at least eight months and these would supply about 200 mw to the national grid. But the deadline for the establishment of these plants has passed and these are yet to send any supply to the grid. But effective deals with the CPPs could fetch instant power by now and in greater amount. Thus, it should appear only pragmatic to press ahead with activities to get this power from the CPPs. Logically and in every other way, this would seem to be the highest priority to be able to address immediately and significantly the present power crunch.
Using of power saving devices comprehensively throughout the country can also lead to saving of some 700 mw of power. This amount of saved electricity can work wonders under the present acute load shedding operations . Why no moves are being taken to popularize the use of these devices is another enigma. Government on its own can set the trend by using such energy saving bulbs and other appliances in all its offices and establishments. Private businesses which are making or importing these special bulbs and equipment can be encouraged with special tax and duty concessions to help them to market their products at a lower price. Government should launch a regular publicity campaigns to increase their use and also should have other policies going to ensure full switching over to the energy saving devices in all spheres at the fastest.
But no headway appears to have been made in respect of fulfilling urgently the demands for power since the incumbent government took over some seventeen months ago amid raised expectation that it would surely apply all its might to solve the power problem which, together with reduced gas supply, are seen as the greatest obstacles to maintaining and increasing economic activities in the country. It was explained that government has been carefully taking steps for establishing new generation capacities in response to the prevailing crisis situation. But the capacities to be created over the medium and longer term can have nothing to do with relieving the harried consumers of power shortage, now.
Therefore, questions were asked with great eagerness whether anything can be done to increase power supply almost right away. It was found out at least a year ago that private power producers are there who use their capacities to generate power to run their own industries and services. But they use their capacities only partially. The private producers of power or captive power producers (CPPs) as they are called, can produce and send to the national grid some 300 mw of power immediately, according to reports.
Government also prepared a captive power policy for the purpose. But the reaction to it has been unfavourable as the offer of purchase price of power from the CPPs was substantially lower than the prices now paid to other independent power producers (IPPs). Not even the offer of a lower price for the gas to be used for making power by the CPPs , was on offer in the policy as inducement. Thus, it was no surprise that the CPPs did not come forward in a big way to sign deals with the government. The power ministry had a target of getting some 50 mw from the CPPs by June whereas it could obtain only 7 mw from them so far. It was reported that the ministry would consider a rethink of its policy and make a revised offer to the CPPs with incentives. This was not done. But why these delays and shortsightedness when with prompt and practical thinking and actions, some 300 mw could be easily added to the grid by now that would make a big difference for the better in power supply in these power starved conditions ?
The CPPs presently have a total generating capacity of some 1,300 mw and the bulk of it can be made readily available to the national grid. No new investments, time for establishment of power plants, etc., are required to get this power almost immediately. Why then this easy route is being spurned ? Permission was given to private bodies to set up ten small power plants within a time frame of at least eight months and these would supply about 200 mw to the national grid. But the deadline for the establishment of these plants has passed and these are yet to send any supply to the grid. But effective deals with the CPPs could fetch instant power by now and in greater amount. Thus, it should appear only pragmatic to press ahead with activities to get this power from the CPPs. Logically and in every other way, this would seem to be the highest priority to be able to address immediately and significantly the present power crunch.
Using of power saving devices comprehensively throughout the country can also lead to saving of some 700 mw of power. This amount of saved electricity can work wonders under the present acute load shedding operations . Why no moves are being taken to popularize the use of these devices is another enigma. Government on its own can set the trend by using such energy saving bulbs and other appliances in all its offices and establishments. Private businesses which are making or importing these special bulbs and equipment can be encouraged with special tax and duty concessions to help them to market their products at a lower price. Government should launch a regular publicity campaigns to increase their use and also should have other policies going to ensure full switching over to the energy saving devices in all spheres at the fastest.