• Thursday, May 23, 2019

Pause in approval to new power plants likely: Existing plants may meet demand until 2030

Discussion in 'Bangladesh Defence Forum' started by Black_cats, May 15, 2019.

  1. Black_cats

    Black_cats SENIOR MEMBER

    Messages:
    3,262
    Joined:
    Dec 31, 2010
    Ratings:
    +0 / 4,582 / -4
    Pause in approval to new power plants likely
    Existing plants may meet demand until 2030
    M Azizur Rahman | Published: May 15, 2019 09:32:25 | Updated: May 15, 2019 09:51:08

    [​IMG]Picture used for illustrative purpose only

    The government is likely to stop giving permission to set up new power plants for now, considering that the existing plants are enough to meet the demand for power until 2030.

    A high-powered committee has recently recommended the pause in the approval process.

    The committee stated that the existing power plants, including those under construction, are enough to meet the country's electricity demand over the next one decade.

    The committee headed by state-run Power Cell Director General Mohammad Hossain revealed that the country's electricity demand would be around 29,619 megawatt (MW) by 2030 with the efficient use of energy.

    On the other hand, the Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) had projected the power demand at 40,000 MW by 2030.

    Currently, the country's overall electricity generation from a total of 127 power plants is hovering around 11,500 MW against their de-rated generation capacity of 17,701 MW.

    The government constituted the committee to assess the trend of the electricity demand and consumption scenario, as a substantial volume of electricity remained unused over the past several years and the authorities were counting capacity charge heavily.

    Due to low demand, the government has been keeping idle more than one-third of the country's overall electricity generating capacity consistently despite the rise in mercury and comparatively higher demand in Ramadan.

    "We have considered the current scenario in electricity consumption and assessed the growth prospects based on an efficient use of electricity," said Mr Hossain.

    Justifying the committee report, he said, "If we continue awarding approval to new power plants, the volume of surplus electricity would be enormous, for which extra payment would also have to be made."

    He, however, said the power plants which are under construction, have deals with stakeholders for implementation, or obtained letter of intent (LOIs) for implementation , would go ahead.

    If all the power plants, now in the pipeline, come on line, some 30,000 MW of electricity would be available with the national grid by 2030, said officials.

    However, power plants with 10,000MW generation capacity, now in operation, would retire by 2030, they added.

    Top officials of different state-run power entities, including Bangladesh Power Development Board (BPDB), Dhaka Power Distribution Company Ltd (DPDC), and the Rural Electrification Board (REB), are members of the high-powered committee.

    "We have already submitted the report to the Power Division," said Mr Hossain.

    "Seeing lower- than- expected consumption of electricity in the country, we have already stopped awarding approvals to new power plants," BPDB Chairman Khaled Mahmood told the FE.

    He said many power plants have already been asked to stop electricity generation to cope with the lower demand.

    According to the Power Division, the country's installed power generation capacity was 4,942 MW in 2009.

    The total power generation capacity, including that from the captive power plants, owned by industry owners, and renewable energy, has now reached 20,343 MW.

    Over the past one decade, the installed power generation capacity increased notably, as a significant number of power plants, mostly oil-fired ones, were set up during the period.

    Contracts on most of these power plants were awarded on the basis of unsolicited offers made taking advantage of the Speedy Supply of Power and Energy (Special Provision) Act,2010. The Act contains a provision for immunity to those involved in the quick-fix remedy.

    The government also allowed private entrepreneurs to go for duty-free import of furnace oil to run their power plants at a service charge of 9.0 per cent along with import cost as an incentive.

    When contacted, energy expert Professor Ijaz Hossain underscored the necessity of a sound and need-based projection of the country's electricity demand.

    The government should properly estimate electricity demand taking into consideration the country's 'seasonal' and 'daily' barriers, he said.

    Prof Hossain of Bangladesh University of Engineering and Technology (BUET) said over the past one decade the government awarded too many 'expensive' oil-fired power plants, which were not necessary.

    Extending the tenures of such oil-fired power plants was also a 'wrong' decision on the part of the government, he said.

    azizjst@yahoo.com

    https://thefinancialexpress.com.bd/trade/pause-in-approval-to-new-power-plants-likely-1557891145
     
    • Thanks Thanks x 1
  2. Baz

    Baz FULL MEMBER

    New Recruit

    Messages:
    80
    Joined:
    Mar 20, 2019
    Ratings:
    +0 / 56 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    These bureaucrats are the most useless you will find anywhere in the world. How did they come up with the demand projection? Do they have any statistical analysis? What about increase in population and our reliance on more and more electrical appliances? These people are fuckwits
     
    • Thanks Thanks x 4
  3. Bengal71

    Bengal71 BANNED

    Messages:
    1,000
    Joined:
    Sep 21, 2018
    Ratings:
    +1 / 1,164 / -10
    Country:
    Bangladesh
    Location:
    Australia
    Lol you are right. They are there in every country justifying their employment.
     
  4. TopCat

    TopCat ELITE MEMBER

    Messages:
    15,126
    Joined:
    Nov 20, 2008
    Ratings:
    +0 / 11,983 / -4
    Country:
    Bangladesh
    Location:
    Bangladesh
    Hmmm... there are already too many power plants in the pipeline.. Over saturation will make government to loos too much money as they have to pay for the idle power from the power plant.
     
    • Thanks Thanks x 3
  5. mmr

    mmr FULL MEMBER

    New Recruit

    Messages:
    30
    Joined:
    Oct 13, 2018
    Ratings:
    +0 / 39 / -0
    Country:
    Bangladesh
    Location:
    Canada
    Shinning example of incompetent BAL government and its cronies. Can't even estimate power consumption properly and now will keep running expensive Diesel power station maybe those power station own by BAL party people. More looting for them.
     
  6. bluesky

    bluesky SENIOR MEMBER

    Messages:
    6,556
    Joined:
    Jun 14, 2016
    Ratings:
    +4 / 7,231 / -6
    Country:
    Bangladesh
    Location:
    Japan
    With an assumed average 70% efficient rate the real output will be about (40,000 MW x 0.7) = 28,000 MW. Unless there are many more industries to consume a sizable quantity of power, this 28,000 MW capacity may suffice for the time being. However, the govt will certainly keep on watching the trend in industrialization and will do accordingly.

    Supplying power only to the households cannot be sustained in a poor country where households may not be able to support further investment in and production of power. Households usually use power after the evening and the factories by daytime.

    So, the power industry needs a huge number of corporate/industrial consumers to earn operating profits.