Inefficient power plants escalate cost, fuel wastage
Staff Correspondent | Published: 02:09, Aug 20,2017
The average efficiency of the power generation units established in public and private sectors is 8-13 per cent less than the standard causing escalation of power generation cost and wastage of fuel.
Energy expert M Tamim on Saturday revealed the findings at a seminar hosted by Forum for Energy Reporters Bangladesh at Bidyut Bhaban on Energy Tariff and National Economy.
State minister for power, energy and mineral resources Nasrul Hamid, Bangladesh Energy Regulatory Commission member Md Mizanur Rahman, Power Development Board chairman Khaled Mahmud, power cell director general Mohammad Hossain, Consumers Association of Bangladesh adviser M Shamsul Alam and Centre for Policy Dialogue research director Khondaker Golam Moazzem addressed the seminar.
In his keynote, Tamim, also former interim government chief adviser Fakhruddin Ahmed’s special assistant, showed that the average efficiency of the power plants in public sector was 31.6 per cent against 45 per cent expected efficiency mainly because of age-old power plants matured for phasing out one or two decades ago.
The average efficiency of the power plants of independent power producers was 41.6 per cent against 50 per cent expected efficiency and the rental suppliers was 36.1 per cent against 40 per cent expected efficiency, he said.
Neither the state minister nor the power board chairman replied to Tamim’s question why inefficient power plants were allowed to be installed by the private companies.
Tamim said that the inefficient power generation units were wasting fuel and escalating the average power generation cost.
He also said that the captive power generators installed at industrial
units were running at 30 per cent efficiency against 40 per cent expected efficiency.
The speakers discussed the potential impacts of large-scale import of Liquefied Natural Gas to meet the country’s growing demand.
Energy commission member Mizanur Rahman said that price hikes in supplied natural gas for CNG filling stations and industrial units to accommodate expensive LNG were not justified as their current prices now had parity with the import cost of LNG.
The gas price should be increased for power stations as the current price was even less than half of the current supply cost, $2.20 per thousand cubic feet, he said, adding that the blended supply cost of natural gas would be increased by 54 per cent if 500 million cubic feet gas supply came from imported LNG.
The government plans to import LNG to increase gas supplies by 1,000mmcfd by 2018.
In his keynote, Tamim also suggested that measures should be taken to improve power supply infrastructures of the Rural Electrification Board to reduce system loss to 9 per cent from 11 per cent as the board supplied 40 per cent of total electricity and caused a huge loss in power distribution.
http://www.newagebd.net/article/22369/inefficient-power-plants-escalate-cost-fuel-wastage