State Minister for Power, Energy and Mineral Resources said that major policy decisions on energy sector development for ensuring national energy security should be taken within this year. He also stated that there was no benefit in keeping the valuable energy resources like coal underground. The State Minister made his observations at a seminar organised at Petrobangla on August 09, 2014.
Prime Minister's Energy Adviser Tawfiq Elahi Chowdhury disclosed in the seminar government's plan to enact a new law to legally compel all energy users to save energy resources by ensuring its efficient use to cope with the growing gaps between demand and supply of energy resources. The plan to stop energy supply to inefficient energy users was also advocated by the Adviser. Surely, energy saving is an important measure but the growing gaps between the energy demands and supply can not be secured only by energy saving. Moreover, energy saving and attaining energy efficiency also involve investments.
Petrobangla sources report that 37 per cent more gas has been supplied for power generation compared to the previous supply of the organisation. Still, part of the installed power generation capacity remains unutilised due to gas shortages. Natural gas traditionally serves as the major primary energy source for power generation in the country. The shortages of natural gas supply compels the government to rely more on imported fuel-based (mainly liquid petroleum) power generation. This leads to increased cost for power and lowering the efficiency of power plants.
In view of this, experts have been advocating for new capacity building for power generation on least cost capacity procurement to minimise the cost of power to the economy so that poverty reduction and competitiveness of the economy can be supported. For these reasons, several options for primary fuel development like coal, natural gas, nuclear power and liquid fuel should be urgently explored. A balanced mix of primary fuel-based power generation capacity development is also important. Unfortunately, the government's plan for Power System Master Plan 2010 (PSMP 2010) has been systematically sidelined by the implementing agencies. The PSMP has specifically recommended developing 50 per cent coal-based power generation capacity development in a phased manner by 2030 to meet the target generation capacity for power in the country and to consider the affordability of the majority of the consumers.
The August 12, 2014 meeting of the Executive Committee National economic Council (ECNEC), approved the construction project of 1,200 MW Matarbari (at Moheshkhali island of Cox's Bazar) imported coal-based power plant at a cost of $4.5 billion. The project includes approximately $3 billion as cost for the ultra super critical technology-based coal-fired power plant (expected thermal efficiency of 41 per cent) construction and for setting up of a deep sea coal terminal for facilitating import of coal, construction of high voltage power line to connect the power plant with the national grid, land resettlement and development of local infrastructure. Japan International Cooperation Agency (JICA) will provide $3.8 billion as soft loan for building the Moheshkhali coal power plant. Media report suggests that the plant will be fully operational in 2023 after completion of construction work and commissioning of the two-unit power plant. The first unit is expected to start power generation (600 MW) in 2018. The expected cost of per unit power generation from the power plant will be Tk 7.0 which is high in the present context.
Part of the increased cost for the coal-fired power is linked to the associated infrastructure building cost necessary for the power plant. As reported, the Matarbari coal fired power plant will include a 2-km long, 250m wide and 18m deep channel to be dug from the deep sea to allow the coal carrying vessels to enter into the power plant's jetty. Experts have been pointing out that the imported coal-based power development plan in our country is no way cheaper compared to the local coal-based (to be developed) power development option. One of the reasons for the cost enhancement is linked to the requirements for deep sea port development for coal import and handling.
The other imported coal-based power plant is planned to be built at Rampal, Bagerhat. The estimated cost for building the 1,300 MW coal fired power plant is $1.5 billion. The Rampal coal-fired power plant is still to arrange funds for implementing the project. But the power plant's estimated cost should include the cost for development of the deep sea port/coal handling facility at Akram point, coal jetty at the plant site, high voltage power line to connect the power plant with the national grid, dredging of Pashur river channel and maintenance cost as inseparable part of the project development cost.
There are more plans for building coal-fired power plants in the coast between Chittagong and Khulna for producing several thousand megawatt electricity. But all of these plants are to rely on imported coal. So far, specific source of coal supply and the cost remains unknown. Following the concrete example of the cost of Matarbari coal-based power plant, it is clear that imported coal-based power will be costly. Therefore, it will be wise to try to integrate coal import facilities for several coal-fired power plants. Also, the government should start large-scale coal mine development in the country to secure a balanced mix for primary energy supply for affordable power supply to the majority of the consumers.
The author, a mining engineer, writes on energy and environment. mushfiq41@yahoo.com
Large-scale coal mine development overdue
Mushfiqur Rahman | Published: August 17, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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