Production of coal-based electricity and industrial development
Friday, 30 April 2010
Abul Quasem Haider
In Bangladesh, the scarcity of electricity has turned worse with the demand rising every day. We have been facing shortfall in electricity generation over the years. Currently, annual demand for electricity is 6,000 megawatt. But the production is just 3,800 megawatt.
Meanwhile, the demand for gas, which is widely used to run power plants, is rising compared with its production. The industrial production in the country has been badly affected due to the shortage of gas. We do not have the necessary electricity for 15 to 18 hours in a day in the major industrial areas such as Dhaka, Chittagong, Gazipur, Tangail. As a result, the industrial production has fallen. Export has also declined. Heavy industries, especially the spinning mills, dyeing mills and steelmills, have been facing an adverse situation. For the lack of electricity and gas, industrial investment from home and abroad has dropped alarmingly. In our country most of the large industrial concerns are dependent on gas. As a result of gradual decrease in gas production, the government had to stop the operation of many electricity production plants. The government is now seriously considering to introduce coal-based electricity as an alternative to gas-based ones.
The present government is concerned with the problems of production of not only gas-based electricity but also of coal-based electricity. It is a very good sign that the government is considering establishment of coal-based electricity production plants. Different sources have been disseminating news that the government is planning to establish four electricity production plants by the year 2014. The government has decided to establish a new company called the Coal Power Generation Company Ltd. (CPGCL). With a view to establishing the same, the government has prepared an estimated budget of about Tk20 billion. In order to establish such a coal-based plant, about six million tonnes of coal will be required.
The government apparently views the shortage of electricity as alarming. This realisation has evidently prompted the government to actively consider the option of establishing coal-based electricity production plants. On 11 January 2010, Secretarial Committee on Administrative Development has given its approval to CPGCL. CPGCL will work under the Bangladesh Power Development Board (BPDB). With a view to establishing four coal-based electricity production plants, the government has primarily selected Chittagong, Mongla, Jajira of Mawa and Meghnaghat.
An eight-member BPDB delegation went to India last year in order to gain knowledge on establishing coal-based electricity production plants. The team will go to China soon for gaining further experience. At present, many companies from home and abroad are interested in establishing coal-based electricity production plants under public-private partnership (PPP).
We have two coal-based electricity plants in Dinajpur. In this zone, the government may consider establishing two more coal-based units under the same management. This would be easier, faster and more economic. Besides, the CPGCL will start running its operation after the due approval from the cabinet and it will take at least two to three years to establish all the coal-based plants.
The main cause for the recession in the country's industrial sector is the gradual decrease in the supply of fuel and gas, and consequently of electricity. So, the establishment of efficient and cost-effective coal-based electricity generation plants is a priority issue for the government.
(The writer is founder chairman of Eastern University & former vice-president of FBCCI)
In Bangladesh, the scarcity of electricity has turned worse with the demand rising every day. We have been facing shortfall in electricity generation over the years. Currently, annual demand for electricity is 6,000 megawatt. But the production is just 3,800 megawatt.
Meanwhile, the demand for gas, which is widely used to run power plants, is rising compared with its production. The industrial production in the country has been badly affected due to the shortage of gas. We do not have the necessary electricity for 15 to 18 hours in a day in the major industrial areas such as Dhaka, Chittagong, Gazipur, Tangail. As a result, the industrial production has fallen. Export has also declined. Heavy industries, especially the spinning mills, dyeing mills and steelmills, have been facing an adverse situation. For the lack of electricity and gas, industrial investment from home and abroad has dropped alarmingly. In our country most of the large industrial concerns are dependent on gas. As a result of gradual decrease in gas production, the government had to stop the operation of many electricity production plants. The government is now seriously considering to introduce coal-based electricity as an alternative to gas-based ones.
The present government is concerned with the problems of production of not only gas-based electricity but also of coal-based electricity. It is a very good sign that the government is considering establishment of coal-based electricity production plants. Different sources have been disseminating news that the government is planning to establish four electricity production plants by the year 2014. The government has decided to establish a new company called the Coal Power Generation Company Ltd. (CPGCL). With a view to establishing the same, the government has prepared an estimated budget of about Tk20 billion. In order to establish such a coal-based plant, about six million tonnes of coal will be required.
The government apparently views the shortage of electricity as alarming. This realisation has evidently prompted the government to actively consider the option of establishing coal-based electricity production plants. On 11 January 2010, Secretarial Committee on Administrative Development has given its approval to CPGCL. CPGCL will work under the Bangladesh Power Development Board (BPDB). With a view to establishing four coal-based electricity production plants, the government has primarily selected Chittagong, Mongla, Jajira of Mawa and Meghnaghat.
An eight-member BPDB delegation went to India last year in order to gain knowledge on establishing coal-based electricity production plants. The team will go to China soon for gaining further experience. At present, many companies from home and abroad are interested in establishing coal-based electricity production plants under public-private partnership (PPP).
We have two coal-based electricity plants in Dinajpur. In this zone, the government may consider establishing two more coal-based units under the same management. This would be easier, faster and more economic. Besides, the CPGCL will start running its operation after the due approval from the cabinet and it will take at least two to three years to establish all the coal-based plants.
The main cause for the recession in the country's industrial sector is the gradual decrease in the supply of fuel and gas, and consequently of electricity. So, the establishment of efficient and cost-effective coal-based electricity generation plants is a priority issue for the government.
(The writer is founder chairman of Eastern University & former vice-president of FBCCI)