Relevant issues of power sector development
Tuesday, 13 April 2010
A S M Alamgir Kabir
Electricity is an essential ingredient for socio-economic progress and qualitative improvement of people's lifestyle. The power sector is working tirelessly for ensuring reliable power supply commensurate with a rapidly rising demand.
Advancement in the power sector in one year
The installed capacity of electricity in January 2009 was 5450 megawatt. But actual production was 3500 megawatt.
During the first year of the present government, 531 megawatt of electricity has been added by launching new power plants (including commissioning and test runs). As a result, installed capacity has risen to 6000 megawatt. Because of the worsening of gas crisis, actual production stood at 3750 megawatt in January, 2010. Production of 4500 megawatt electricity would have been possible if there was no gas crisis.
Present status of power generation and distribution
The power generation capacity derated is at present 5425 megawatt. Of this, production capacity in the public sector is 3438 megawatt, while it is 1987 megawatt in private sector. Current demand for electricity is 4500 megawatt, which will rise to 5800 megawatt next summer. At present, reliable capacity of production ranges between 3800 megawatt and 4500 megawatt. The record of maximum production till now has been 4296 megawatt (on 28 September 2009). Demand for electricity is rising at a rate of 8% on an average.
Future plans for increasing power generation
In the backdrop of present gas shortage, installations of power plants run by imported coals and liquefied natural gas in future are being considered now. The government has taken up a plan for 'limited gas, coal, oil and liquefied gas' based power generation instead of the previous 'adequate gas' based ones.
The government has undertaken massive programmes for filling the gap between demand and supply of power in the backdrop of a failure in the past to set up new power plants for keeping pace with the rising demand for electricity.
Swift initiative: For very swift implementation considering the availability of primary fuel, establishment of oil (diesel and furnace oil) based 530 megawatt capacity rental power plants are now under process. Agreements for generating 265 megawatt power have already been signed under this initiative.
Short-term initiative: Steps have been taken for setting up 820 megawatt capacity oil (furnace oil) based power plants in the public sector for execution within June, 2011. Of these, the cabinet committee on purchase has already approved establishment of five power plants having a total capacity of 350 megawatt. Besides, plans have been approved for constructing two 100 megawatt capacity peaking plants in the private sector at Kaliakoir and Savar.
Mid-term initiative: Work has started on setting up 300-450 megawatt plants Bibiana, 150-225 megawatt plants at Bhola and 300-450 megawatt combined cycle power plants a Meghnaghat in the private sector, which will be implemented within the next three to five years. A notable initiative under this plan-category is setting up of 2,600 megawatt capacity efficient power plant based on imported coal within the year 2014-15.
If these initiatives are implemented on time, then the country will be able to free itself form the horror of power-crisis by the year 2013. For implementing these projects US $7.0 billion will be required where the power sector will require US$ 10 billion in next five years. Three road shows were organised recently in London, Singapore and New York for attracting investments. A huge response was observed among investors during these events.
Long-term initiative: Atomic energy generated and coal based big Power Plan will be established in the long-run.
Renewable energy-based power generation
Work has already started for setting up 100 to 200 megawatt capacity wind-driven power plant and 9 to 14 megawatt solar power plants under the Renewable Energy Policy-2008.
Inter-state exchange of power
Plans have been taken up under the preview of international trade to import power from the north-eastern region of India, Bhutan and Nepal in future, including 250-500 megawatt electricity from India's West Bengal. It will be possible to launch this import/export programme within 2012 after installing 125 kilometre long 400 KV transmission line.
Energy-saving measures
Staggered holiday are being continued in industrial establishments. Programme for keeping shopping malls and markets closed after 8 pm at night has been implemented. Steps have been taken, for installing energy-saving bulbs in all government and autonomous bodies. Around 10 million efficient CFL bulbs are being given to electricity subscribers free of charge. All government, semi-government and autonomous bodies have been instructed to keep the temperature of their air-conditioners at 24 degree Celsius or above and users are being encouraged to switch off their ACs during peak hours. Directives have been issued to officers and employees for not wearing suits in public and private offices during March-November period. Daylight Saving Time (DST) system has been introduced for the first time in Bangladesh between 19 June and 31 December 2009, by advancing the clock by one hour.
As a result of these initiatives demand for power has decreased by 900 megawatt.
Irrigation management
Management measures have been taken to ensure uninterrupted power supply for irrigation pumps from 11 pm at night to 7 am in the morning during the irrigation season. Steps have been taken for sustained supply of power for irrigation pumps through load-shedding (if needed) in urban areas during off-peak hours (from 11 pm at night to 5 pm the after noon).
System loss: System loss in the power sector is currently (2009 final year) 14.6%, which was over 30% even a decade ago.
Tariff
The Power Development Board has to incur a loss of 0.29 taka per unit in case of bulk sales, as the production cost is higher compared to sales price. The sales price of electricity need to be enhanced in order to sustain the programme for increasing power generation. A step by step increase in price is justified in order to make it tolerable for the subscribers.
At present, 47 per cent of the country's population has come under the purview of electricity coverage. Around 75 million people remain outside this coverage, and the remaining 70 million do not get reliable electricity supply. Percapita power generation in the country is currently 184 kilowatt hour, which is very low compared to other countries of the world. In this backdrop and in accordance with its Vision-2021, the government has undertaken massive programmes for increasing power generation in order to bring dependable power supply to the doorsteps of the whole population by keeping it within their purchasing power.
The writer is Chairman, Bangladesh Power Development
Electricity is an essential ingredient for socio-economic progress and qualitative improvement of people's lifestyle. The power sector is working tirelessly for ensuring reliable power supply commensurate with a rapidly rising demand.
Advancement in the power sector in one year
The installed capacity of electricity in January 2009 was 5450 megawatt. But actual production was 3500 megawatt.
During the first year of the present government, 531 megawatt of electricity has been added by launching new power plants (including commissioning and test runs). As a result, installed capacity has risen to 6000 megawatt. Because of the worsening of gas crisis, actual production stood at 3750 megawatt in January, 2010. Production of 4500 megawatt electricity would have been possible if there was no gas crisis.
Present status of power generation and distribution
The power generation capacity derated is at present 5425 megawatt. Of this, production capacity in the public sector is 3438 megawatt, while it is 1987 megawatt in private sector. Current demand for electricity is 4500 megawatt, which will rise to 5800 megawatt next summer. At present, reliable capacity of production ranges between 3800 megawatt and 4500 megawatt. The record of maximum production till now has been 4296 megawatt (on 28 September 2009). Demand for electricity is rising at a rate of 8% on an average.
Future plans for increasing power generation
In the backdrop of present gas shortage, installations of power plants run by imported coals and liquefied natural gas in future are being considered now. The government has taken up a plan for 'limited gas, coal, oil and liquefied gas' based power generation instead of the previous 'adequate gas' based ones.
The government has undertaken massive programmes for filling the gap between demand and supply of power in the backdrop of a failure in the past to set up new power plants for keeping pace with the rising demand for electricity.
Swift initiative: For very swift implementation considering the availability of primary fuel, establishment of oil (diesel and furnace oil) based 530 megawatt capacity rental power plants are now under process. Agreements for generating 265 megawatt power have already been signed under this initiative.
Short-term initiative: Steps have been taken for setting up 820 megawatt capacity oil (furnace oil) based power plants in the public sector for execution within June, 2011. Of these, the cabinet committee on purchase has already approved establishment of five power plants having a total capacity of 350 megawatt. Besides, plans have been approved for constructing two 100 megawatt capacity peaking plants in the private sector at Kaliakoir and Savar.
Mid-term initiative: Work has started on setting up 300-450 megawatt plants Bibiana, 150-225 megawatt plants at Bhola and 300-450 megawatt combined cycle power plants a Meghnaghat in the private sector, which will be implemented within the next three to five years. A notable initiative under this plan-category is setting up of 2,600 megawatt capacity efficient power plant based on imported coal within the year 2014-15.
If these initiatives are implemented on time, then the country will be able to free itself form the horror of power-crisis by the year 2013. For implementing these projects US $7.0 billion will be required where the power sector will require US$ 10 billion in next five years. Three road shows were organised recently in London, Singapore and New York for attracting investments. A huge response was observed among investors during these events.
Long-term initiative: Atomic energy generated and coal based big Power Plan will be established in the long-run.
Renewable energy-based power generation
Work has already started for setting up 100 to 200 megawatt capacity wind-driven power plant and 9 to 14 megawatt solar power plants under the Renewable Energy Policy-2008.
Inter-state exchange of power
Plans have been taken up under the preview of international trade to import power from the north-eastern region of India, Bhutan and Nepal in future, including 250-500 megawatt electricity from India's West Bengal. It will be possible to launch this import/export programme within 2012 after installing 125 kilometre long 400 KV transmission line.
Energy-saving measures
Staggered holiday are being continued in industrial establishments. Programme for keeping shopping malls and markets closed after 8 pm at night has been implemented. Steps have been taken, for installing energy-saving bulbs in all government and autonomous bodies. Around 10 million efficient CFL bulbs are being given to electricity subscribers free of charge. All government, semi-government and autonomous bodies have been instructed to keep the temperature of their air-conditioners at 24 degree Celsius or above and users are being encouraged to switch off their ACs during peak hours. Directives have been issued to officers and employees for not wearing suits in public and private offices during March-November period. Daylight Saving Time (DST) system has been introduced for the first time in Bangladesh between 19 June and 31 December 2009, by advancing the clock by one hour.
As a result of these initiatives demand for power has decreased by 900 megawatt.
Irrigation management
Management measures have been taken to ensure uninterrupted power supply for irrigation pumps from 11 pm at night to 7 am in the morning during the irrigation season. Steps have been taken for sustained supply of power for irrigation pumps through load-shedding (if needed) in urban areas during off-peak hours (from 11 pm at night to 5 pm the after noon).
System loss: System loss in the power sector is currently (2009 final year) 14.6%, which was over 30% even a decade ago.
Tariff
The Power Development Board has to incur a loss of 0.29 taka per unit in case of bulk sales, as the production cost is higher compared to sales price. The sales price of electricity need to be enhanced in order to sustain the programme for increasing power generation. A step by step increase in price is justified in order to make it tolerable for the subscribers.
At present, 47 per cent of the country's population has come under the purview of electricity coverage. Around 75 million people remain outside this coverage, and the remaining 70 million do not get reliable electricity supply. Percapita power generation in the country is currently 184 kilowatt hour, which is very low compared to other countries of the world. In this backdrop and in accordance with its Vision-2021, the government has undertaken massive programmes for increasing power generation in order to bring dependable power supply to the doorsteps of the whole population by keeping it within their purchasing power.
The writer is Chairman, Bangladesh Power Development