To export or not to export coal
Thursday, 11 June 2009
IT is otherwise hard to endorse a proposal favouring export of coal from the Barapukuria coalmine when the country faces critical problems of energy supplies. The rationale for export of coal is, indeed, difficult to appreciate because the same energy input can better be used for domestic purposes. It is not logical for an energy-starved country like Bangladesh to export one of its cheap sources of fossil fuels. But, according to a report published in this daily last Monday, the government is considering the export-option not under normal circumstances. The state-owned Barapukuria Coalmining Company Ltd (BMCL) has sought the approval of the energy ministry to export coal as its coal yards are now overflowing with the mineral. Unless the large stockpile of coal is cleared gradually, the BMCL would be forced to shut down its production soon.
The reason for the large stockpile of coal, according to the FE report, is the massive fall in demand for the mineral from the local consumers, the lone state-owned coal-based power plant located at the Barapukuria coalmine mouth and the brick manufacturers across the country. It is quite natural for the brickfield owners to refrain themselves from buying coal during rainy season. But the root cause of the problem lies in the 250-megawatt (MW) power plant that is, reportedly, operating at one-third of its generation capacity. The plant was designed to consume two-thirds of the daily production-3000 to 3500 tonnes, of the Barapukuria coalmine. The power plant that was installed taking supplier's credit from China started limping soon after its going into production in the late 2005. This has led further aggravation of the nagging power problems. Its normal operation has been plagued with technical glitches. Here, there are ample reasons to question the quality of the machinery installed at the plant by the contractor concerned.
The current power supply situation demands prompt action on the part of the power ministry to ensure utilisation of the full capacity of Barapukaria coal-based power plants. Otherwise, the plant might turn fully inoperative soon. Actually, the situation prevailing in the power plant in question smacks of indifference and incompetence of the authorities concerned. Besides, despite a yawning gap between demand for, and supply of, electricity, the government in the past did not attach the much-needed importance to the use of coal for generation of power. Everyone concerned seemed preoccupied with the idea of setting up gas-based power plants, which, too, did not materialise due to foot-dragging by the decision makers. With gas reserves now drying up fast, the prospect of installing gas-based large power plants has become uncertain.
The reality has eventually dawned on the authorities that coal holds the key to augmenting power. And this is evident from the inclusion of two large coal-based power plants in the budget for the next fiscal. The government desires to implement the power plants at an estimated cost of Tk 6.21 billion through the private-public partnership (PPP). Some government leaders have already made it a point that, if necessary, coal would be imported to run power plants. Why should a country, which is otherwise rich in quality coal deposits, import coal? Instead, the government should take immediate steps to make the Barapukaria coalmine fully operational on a sustainable basis, announce sooner than later the much-awaited coal policy and award contracts to competent foreign companies to extract coal from the Phulbari coalmine. The solution to the problem of deepening power crisis, understandably, lies in the installation of more and more coal-based power plants. If the government can ensure uninterrupted supply of coal at an affordable price and offer the right kind of incentives, many private sector entrepreneurs might be interested to set up coal-based power plants.
The reason for the large stockpile of coal, according to the FE report, is the massive fall in demand for the mineral from the local consumers, the lone state-owned coal-based power plant located at the Barapukuria coalmine mouth and the brick manufacturers across the country. It is quite natural for the brickfield owners to refrain themselves from buying coal during rainy season. But the root cause of the problem lies in the 250-megawatt (MW) power plant that is, reportedly, operating at one-third of its generation capacity. The plant was designed to consume two-thirds of the daily production-3000 to 3500 tonnes, of the Barapukuria coalmine. The power plant that was installed taking supplier's credit from China started limping soon after its going into production in the late 2005. This has led further aggravation of the nagging power problems. Its normal operation has been plagued with technical glitches. Here, there are ample reasons to question the quality of the machinery installed at the plant by the contractor concerned.
The current power supply situation demands prompt action on the part of the power ministry to ensure utilisation of the full capacity of Barapukaria coal-based power plants. Otherwise, the plant might turn fully inoperative soon. Actually, the situation prevailing in the power plant in question smacks of indifference and incompetence of the authorities concerned. Besides, despite a yawning gap between demand for, and supply of, electricity, the government in the past did not attach the much-needed importance to the use of coal for generation of power. Everyone concerned seemed preoccupied with the idea of setting up gas-based power plants, which, too, did not materialise due to foot-dragging by the decision makers. With gas reserves now drying up fast, the prospect of installing gas-based large power plants has become uncertain.
The reality has eventually dawned on the authorities that coal holds the key to augmenting power. And this is evident from the inclusion of two large coal-based power plants in the budget for the next fiscal. The government desires to implement the power plants at an estimated cost of Tk 6.21 billion through the private-public partnership (PPP). Some government leaders have already made it a point that, if necessary, coal would be imported to run power plants. Why should a country, which is otherwise rich in quality coal deposits, import coal? Instead, the government should take immediate steps to make the Barapukaria coalmine fully operational on a sustainable basis, announce sooner than later the much-awaited coal policy and award contracts to competent foreign companies to extract coal from the Phulbari coalmine. The solution to the problem of deepening power crisis, understandably, lies in the installation of more and more coal-based power plants. If the government can ensure uninterrupted supply of coal at an affordable price and offer the right kind of incentives, many private sector entrepreneurs might be interested to set up coal-based power plants.