Urgent actions needed to boost power generation
Sunday, 5 April 2009
Shahiduzzaman Khan
COUNTRY'S power supply situation has turned critical despite allout government efforts to improve it. In order to continue irrigation for Boro crops, power supply is being diverted to the harvested fields by stopping supply to some of the fertiliser factories. There is no improvement in the city power supply situation. Severe loadshedding has stalled up normal life and businesses. Everyday, there is a shortfall of over 2000 megawatt (MW) of electricity in the city. State minister for power claimed that power generation has now reached 3800MW from 3200 MW.
According to reports published in the media last week, Finance Minister AMA Muhith ruled out the possibility of improving the country's power supply situation within the next three years. Earlier, it was anticipated that the power supply situation would improve in a couple of years.
The government's plan to install new gas-fired power plants in the country to solve nagging electricity crisis has fallen flat due to perennial gas supplies. Despite supplying of gas exceeding the field's production capacity, the power plants having the generation capacity of 650 MW -- almost 20 per cent of the country's total generation -- remain idle for long due to gas shortage. Unless the government takes major policy decisions like emphasising coal or nuclear power production within a short time, the already unbearable power loadshedding that is hitting the economy and lifestyle very hard will go beyond any solution. Most of the country's power plants run on gas.
The gas situation is so bleak that Petrobangla has been declining confirmation of gas supply to a number of upcoming large power projects. In a paper submitted to the prime minister, Petrobangla even recommended discouraging use of gas for power generation as it can be generated using alternative resources like coal.
Although Petrobangla approved gas supply to Bibiyana 450 megawatt power project, the Power Development Board (PDB) cannot confirm gas supply to the much older 450 MW Sirajganj power project till 2012. For now it can only confirm gas supply to 150 MW Sylhet, 150 MW Bhola and two 150 MW Siddhirganj power projects. In addition, Petrobangla flatly refused to supply gas to Phase- 3 Meghnaghat 450 MW project, 150 MW Sikalbaha, 240 MW Dhaka North and 150 MW Khulna power projects. Lack of gas supply to the power plants is already forcing the PDB to refrain from generation of around 600-700 MW power. This is adding to loadshedding because of inadequate power plants in the country.
In an apparent move to solve the nagging power crisis, Prime Minister Sheikh Hasina called for tapping surplus electricity from neighbouring countries like Bhutan, India, Nepal and Myanmar in the wake of its growing demand. Addressing the officials of Power and Energy Ministry at the secretariat last week, she said the electricity crisis must be solved as soon as possible, and viewed that regional cooperation can be an effective way of an immediate solution.
Referring to various initiatives taken in the neighbouring countries to set up new power plants, especially hydroelectric ones, she suggested seeking out if the neighbours have surplus electricity that can be imported for an immediate remedy. She deplored that billions of taka had been allocated for the power sector during the BNP-Jamaat regime, but the nation got nothing out of the public money. The Prime Minister said Bangladesh has the scope and potential for producing necessary electricity. To make that happens, the country needs only initiatives. She underscored the need for setting up coal-fired power plants and one plant in Bhola district, as gas has been found there, from which electricity can be supplied to the southern part of the country.
Laying emphasis on renewable energy resources, Hasina said the fountains that flow downhill in Chittagong and Sylhet districts as well as waterbodies like haors and baors can be used for producing hydroelectricity. Besides, solar and wind energy can be effective alternative sources to produce electricity. The present government has already withdrawn all taxes from the solar energy system. Such energy can be used in offices, educational institutions and hostels in urban areas on a large scale.
Experts in a recent roundtable discussion recommended a seven-point action plan to implement in 30 days for an immediate remedy to the nagging power crisis. The plan includes closing of shopping centres by 7.0pm, introducing separate holidays for industries in different areas, restricting power supply to neon signboards, mandatory use of generators to operate air-conditioners by individual high-rise buildings, rationing of gas to industries including fertiliser, ensuring installation of rental power plants by June this year, and mass campaign for public awareness.
The roundtable also adopted a medium-term action plan for implementation in six months, and a long-term action plan for implementation within 2014. The medium-term plan includes rehabilitation of old power plants, setting up two emergency furnace-oil based 100-MW power plants in Chittagong and Khulna, WASA's mandatory operation of pumps through own generators, and finalising coal policy to promote coal-based power plants in the country.
The long-term plan envisages setting up a number of power plants within 2014. These include 300-MW Siddhirganj power plant, 150-MW Sirajganj, 150-MW Khulna, 150-MW Chandpur, two 100-MW coal-based power plants in Chittagong and Mongla, and setting up a 600-MW nuclear power plant. It also urged the government to initiate a move to set up a 2,000-MW nuclear power plant in future. Urgent action is required to get the long-mired Rooppur nuclear power plant (NPP) off the ground and on line by 2016. It is possible to commence the construction of the plant by 2011.
According to the Power Ministry sources, five power generation projects were taken by the erstwhile 4-party alliance government a few years back, but bureaucratic tangle delayed their implementation process. These projects would have the capacity to produce about 1,175-mw of electricity, an amount the country presently needs to get over the ongoing power crisis.
Statistics says, when the Awami League government left power in June 2001, the country was generating 3,033 MW power against a demand of around 3,394 MW. But the situation nose-dived in the five-year rule of BNP. In 2006, the country's power generation hovered around 3,300 MW at the maximum, and sometimes dipped to 2,700 MW. But the demand has soared up to 5,200 MW. The demand-supply disparity widened mainly because the government, despite its failure to implement new power projects, doubled the rural power supply network. This massive expansion of network has financially benefited only the electricity pole suppliers -- who are basically some political bigwigs, and the ruling party lawmakers aimed at taking political leverage of bringing power distribution lines to their constituencies.
There is no denying that the country's power sector is in a very bad shape due to rampant corruption, which is badly affecting private sector growth and investment climate. The World Bank (WB) recently warned that the country's future growth might slow down if the problems in the power sector could not be resolved urgently. The WB, which has taken a tough stance on governance and corruption, said its future assistance will depend on the improvement of governance that includes reducing corruption.
There is a need for a short-term solution of the problems of power and energy sector on the priority basis. It is also an urgent necessity to improve image of the power and energy ministry with all their activities. Side by side, the government should also take adequate preparations to implement long term power projects, that include a nuclear power plant. The government also needs to approve national coal policy for speedily extract the mineral resource. In case the existing gas reserve depletes fast, the government may resort to the last option of gas import to produce electricity when there would be no other options left.
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szkhan@thefinancialexpress-bd.com
COUNTRY'S power supply situation has turned critical despite allout government efforts to improve it. In order to continue irrigation for Boro crops, power supply is being diverted to the harvested fields by stopping supply to some of the fertiliser factories. There is no improvement in the city power supply situation. Severe loadshedding has stalled up normal life and businesses. Everyday, there is a shortfall of over 2000 megawatt (MW) of electricity in the city. State minister for power claimed that power generation has now reached 3800MW from 3200 MW.
According to reports published in the media last week, Finance Minister AMA Muhith ruled out the possibility of improving the country's power supply situation within the next three years. Earlier, it was anticipated that the power supply situation would improve in a couple of years.
The government's plan to install new gas-fired power plants in the country to solve nagging electricity crisis has fallen flat due to perennial gas supplies. Despite supplying of gas exceeding the field's production capacity, the power plants having the generation capacity of 650 MW -- almost 20 per cent of the country's total generation -- remain idle for long due to gas shortage. Unless the government takes major policy decisions like emphasising coal or nuclear power production within a short time, the already unbearable power loadshedding that is hitting the economy and lifestyle very hard will go beyond any solution. Most of the country's power plants run on gas.
The gas situation is so bleak that Petrobangla has been declining confirmation of gas supply to a number of upcoming large power projects. In a paper submitted to the prime minister, Petrobangla even recommended discouraging use of gas for power generation as it can be generated using alternative resources like coal.
Although Petrobangla approved gas supply to Bibiyana 450 megawatt power project, the Power Development Board (PDB) cannot confirm gas supply to the much older 450 MW Sirajganj power project till 2012. For now it can only confirm gas supply to 150 MW Sylhet, 150 MW Bhola and two 150 MW Siddhirganj power projects. In addition, Petrobangla flatly refused to supply gas to Phase- 3 Meghnaghat 450 MW project, 150 MW Sikalbaha, 240 MW Dhaka North and 150 MW Khulna power projects. Lack of gas supply to the power plants is already forcing the PDB to refrain from generation of around 600-700 MW power. This is adding to loadshedding because of inadequate power plants in the country.
In an apparent move to solve the nagging power crisis, Prime Minister Sheikh Hasina called for tapping surplus electricity from neighbouring countries like Bhutan, India, Nepal and Myanmar in the wake of its growing demand. Addressing the officials of Power and Energy Ministry at the secretariat last week, she said the electricity crisis must be solved as soon as possible, and viewed that regional cooperation can be an effective way of an immediate solution.
Referring to various initiatives taken in the neighbouring countries to set up new power plants, especially hydroelectric ones, she suggested seeking out if the neighbours have surplus electricity that can be imported for an immediate remedy. She deplored that billions of taka had been allocated for the power sector during the BNP-Jamaat regime, but the nation got nothing out of the public money. The Prime Minister said Bangladesh has the scope and potential for producing necessary electricity. To make that happens, the country needs only initiatives. She underscored the need for setting up coal-fired power plants and one plant in Bhola district, as gas has been found there, from which electricity can be supplied to the southern part of the country.
Laying emphasis on renewable energy resources, Hasina said the fountains that flow downhill in Chittagong and Sylhet districts as well as waterbodies like haors and baors can be used for producing hydroelectricity. Besides, solar and wind energy can be effective alternative sources to produce electricity. The present government has already withdrawn all taxes from the solar energy system. Such energy can be used in offices, educational institutions and hostels in urban areas on a large scale.
Experts in a recent roundtable discussion recommended a seven-point action plan to implement in 30 days for an immediate remedy to the nagging power crisis. The plan includes closing of shopping centres by 7.0pm, introducing separate holidays for industries in different areas, restricting power supply to neon signboards, mandatory use of generators to operate air-conditioners by individual high-rise buildings, rationing of gas to industries including fertiliser, ensuring installation of rental power plants by June this year, and mass campaign for public awareness.
The roundtable also adopted a medium-term action plan for implementation in six months, and a long-term action plan for implementation within 2014. The medium-term plan includes rehabilitation of old power plants, setting up two emergency furnace-oil based 100-MW power plants in Chittagong and Khulna, WASA's mandatory operation of pumps through own generators, and finalising coal policy to promote coal-based power plants in the country.
The long-term plan envisages setting up a number of power plants within 2014. These include 300-MW Siddhirganj power plant, 150-MW Sirajganj, 150-MW Khulna, 150-MW Chandpur, two 100-MW coal-based power plants in Chittagong and Mongla, and setting up a 600-MW nuclear power plant. It also urged the government to initiate a move to set up a 2,000-MW nuclear power plant in future. Urgent action is required to get the long-mired Rooppur nuclear power plant (NPP) off the ground and on line by 2016. It is possible to commence the construction of the plant by 2011.
According to the Power Ministry sources, five power generation projects were taken by the erstwhile 4-party alliance government a few years back, but bureaucratic tangle delayed their implementation process. These projects would have the capacity to produce about 1,175-mw of electricity, an amount the country presently needs to get over the ongoing power crisis.
Statistics says, when the Awami League government left power in June 2001, the country was generating 3,033 MW power against a demand of around 3,394 MW. But the situation nose-dived in the five-year rule of BNP. In 2006, the country's power generation hovered around 3,300 MW at the maximum, and sometimes dipped to 2,700 MW. But the demand has soared up to 5,200 MW. The demand-supply disparity widened mainly because the government, despite its failure to implement new power projects, doubled the rural power supply network. This massive expansion of network has financially benefited only the electricity pole suppliers -- who are basically some political bigwigs, and the ruling party lawmakers aimed at taking political leverage of bringing power distribution lines to their constituencies.
There is no denying that the country's power sector is in a very bad shape due to rampant corruption, which is badly affecting private sector growth and investment climate. The World Bank (WB) recently warned that the country's future growth might slow down if the problems in the power sector could not be resolved urgently. The WB, which has taken a tough stance on governance and corruption, said its future assistance will depend on the improvement of governance that includes reducing corruption.
There is a need for a short-term solution of the problems of power and energy sector on the priority basis. It is also an urgent necessity to improve image of the power and energy ministry with all their activities. Side by side, the government should also take adequate preparations to implement long term power projects, that include a nuclear power plant. The government also needs to approve national coal policy for speedily extract the mineral resource. In case the existing gas reserve depletes fast, the government may resort to the last option of gas import to produce electricity when there would be no other options left.
................................................................
szkhan@thefinancialexpress-bd.com