Power Sector of Bangladesh

[CaPtAiN_pLaNeT]

Govt plans to double power
price by 2013
Manjurul Ahsan

Front Page

The government is planning to double the price of electricity in six phases, once every six months, by 2013.
Power Development Board general manager Abduhu Ruhulullah told New Age that the PDB had been planning to raise the bulk rate of electricity to Tk 4.68 from Tk 2.12 for each unit in six phases by 2013 to achieve the break-even.
The plan envisages raising the rate at which PDB would sell electricity to the distribution companies which in turn would increase the price the consumers have to pay.
The phased price hike reflects the policy, the government set out in the annual budget it adopted in June.
The government’s objective is to bridge the gap between the cost of production by state owned PDB and the price at which it sells electricity.
The World Bank has been putting pressure on successive governments to raise the power tariff to do away with the need to subsidise the PDB.
On November 4, the PDB sought the permission of the Bangladesh Energy Regulatory Commission for raising electricity price in the first phase.
BERC expects to finalise the recommendation relating to the first increase by early January, and place it for a public hearing before taking the final decision.
Though PDB is by far the country’s biggest power producer, it also buys electricity.
Taking into consideration both its own production cost and the price at which it buys electricity from the private sector, to break even PDB would need to sell each unit to the distribution companies at an average rate of Tk 2.72.
But PDB sells electricity to the distribution companies at an average price of Tk 2.12 a unit.
This results in a loss of about Tk 1,000 crore, requiring the government to subsidise it from the public exchequer.
According to senior PDB officials, unless the price was increased the overall gap would grow three fold to Tk 3,000 crore by the end of the next year when the more expensive oil and diesel fired power plants would come into production. In the first phase, PDB wants to raise the price at which it sells electricity to distribution companies by 12 per cent.
It would require the distribution companies to raise the price for the consumers by 9 to 10 per cent.
PDB also sought permission to reduce the low rate power tariff slab for the poor from 100 units to 50 units.
If allowed, the poor would get less of electricity at concessional rate.
A PDB official, speaking on condition of anonymity told New Age that if allowed, PDB would be able to start selling electricity to the distribution companies at Tk 2.65 per unit, up from Tk2.10, early next year.
In five subsequent phases, PDB wants to increase the price to Tk 4.68 by 2013.
The distribution companies would have to adjust the retail prices for the consumers accordingly, the PDB official said.
As a result of the decision it took to buy electricity from private rental power plant owners soon after coming to power, the Awami League led government has been under pressure to increase the price of electricity.
The government awarded contracts to private companies to install four diesel fired power plants to produce 350 MW of electricity and 11 furnace oil fired power plants to generate another 1,055 MW.
The average production cost would be Tk 14 per unit for the diesel fired power plants and Tk eight for the furnace fired power units.
The increasing electricity costs left the government with no option but to go for raising the price of electricity, said university professor and economist Anu Mohammad.
He, however, criticised the government’s policy for solving the country’s power criis.
The power sector, he said, must be under government ownership to provide electricity to the consumers at cheaper rates.
He said that by following the prescriptions of the World Bank and the Asian development Bank, successive governments in Bangladesh allowed the private sector an increasing role in electricity generation resulting in increased production cost.
Frequent increases in electricity price, said Anu Mohammad, would raise the cost of living, create instability in the market and at the same time reduce people’s access to electricity.
Ijaz Hossain, who teaches in BUET, told New Age that that the government had no choice but to depend on the private sector for furnace oil and diesel fired power generation as a stop gap arrangement.
This arrangement should not continue for more than three years, otherwise, he said, electricity would be unaffordable for the government as well as the consumers.
Yusuf Hossain, the chairman of BERC, told New Age that the regulatory commission was working on the proposal sent by PDB.
But he would not share what could be the increased price of electricity for the consumers.
He said that for taking a decision the commission was considering the affordability of the consumer, efficiency of electricity generation, ransmission and distribution, real production cost and some other factors.
He said that the opinions of stake holders would be sought at a public hearing.
The government increased the price of electricity for the distribution companies thrice over the last seven years.
It increased the retail price for the consumers in 2008 and again in March, 2010.

 

[CaPtAiN_pLaNeT]

GE Power Build-Up Helps Ease Bangladesh’s Severe Energy Shortage

http://www.vadvert.co.uk/business/5...esh%E2%80%99s-severe-energy-shortage.html

Victoria Chelsea on 12 6, 2010

HOUSTON, TEXAS— Responding to severe power shortages in Bangladesh triggered by increased industrial and domestic demand, GE (NYSE: GE) announced it has won a contract to supply the country with four gas turbine rental units that will begin generating commercial power in the first quarter of 2011.

The gas turbine units will help to close an energy gap where only 40 percent of Bangladesh’s 156 million citizens has access to electricity.

The rental project will be the first installation of GE’s TM2500 aeroderivative gas turbines in Bangladesh.

The Bangladesh Power Development Board awarded Max Power, a local power utility, the contract to rent four GE units, which will burn natural gas and generate a total of 76 megawatts (MW) of electricity. The new power will be used to support the immediate residential, industrial and agricultural needs of the Ghorasal region. While natural gas shortages in some regions of Bangladesh have contributed to the country’s power crisis, Ghorasal is located close to the Titas gas field and serves as a hub for natural gas transmission.

“The Quick Rental Power Plant at Ghorasal will immensely help the population of Bangladesh in reducing the frequent load shedding and power outages,” said Sufian A. Khondker, PhD., department head, water resources engineering for Max Power.

“Frequent load shedding and power outages are adversely affecting the day-to-day life of the Bangladesh population as well as the operation of major industries,” Khondker said. “In addition, GE’s TM2500 gas turbine portable units are considered one of the most environmentally friendly power plants. Compared with HSD (high speed diesel) or HFO (heavy furnace oil), the gas-fueled power plant will have lower emissions of certain air pollutants. This 75-MW rental power plant at Ghorasal will help alleviate the sufferings of the population of Bangladesh caused by power outages and bring about great benefits in reducing load shedding.”

A portable version of GE’s well-proven LM2500 aeroderivative gas turbine, the TM2500 can be easily transported by ship, plane or truck and can be quickly installed on site. Offering 10-minute startup capability, each TM2500 unit is capable of producing more than 20 megawatts of power on short notice.

“GE is constantly striving to develop innovative technology that can address our customers’ dynamic energy and water needs. Our ability to deliver these rental units and get them operating quickly is a key to meeting Bangladesh’s urgent power requirements,” said Darryl Wilson, vice president—aeroderivative gas turbines for GE Power & Water. “We’re confident that our TM2500 technology can play a significant role in helping to alleviate the severe power needs facing the people in the Ghorashal region of Bangladesh.”

About GE

GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company’s website at www.ge.com.

GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $40 billion, GE Energy www.ge.com/energy is one of the world’s leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy—GE Power & Water, GE Energy Services and GE Oil & Gas—work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

 

[CaPtAiN_pLaNeT]

Bangladesh announces power sector deregulation


(AFP) – 10 hours ago

DHAKA — Bangladesh has announced a sweeping deregulation scheme for its power sector in a bid to ease the country's crippling electricity shortages, a senior government official said.

Foreign investors will now be allowed to set up power plants without winning a government contract and to sell on the national grid, Toufique-e-Elahi Chowdhury, energy advisor to Bangladesh's prime minister, said late Wednesday.

"We hope billions of dollars will now be invested by local and foreign entrepreneurs. This will boost electricity supply and foster industrialisation. It will also help us trim power shortages to zero by 2013," he told AFP.

The government will buy 30 percent of the power produced by private companies and allow them to use the national grid to sell the rest of their electricity directly to consumers, at government-determined rates, he said.

Analysts welcomed the move, saying the current bidding process takes months, is often tainted with graft and favours incompetent firms with ties to the government.

The deregulation follows growing demand from the business community, particularly in the garment sector, to fix the country's power crisis.

Bangladesh's exports have been growing at a record 35 percent a month in the first five months of the fiscal year, which starts in July, driven by garment exports.

Garment industry bodies say the country's factories are flooded with orders they cannot accept due to productivity limits imposed by constant power cuts.

Bangladesh has long suffered severe power outages because of demands from its fast-growing economy. The power shortfall is especially acute in the hot summer months from April to October.

Years of under-investment mean Bangladesh's power plants generate around 4,000 megawatts of electricity a day, while demand totals 6,000 megawatts -- a figure growing by 500 megawatts a year due to rapid industrialisation.

 

[akash57]

IAEA to assist in Rooppur plant

Dhaka, Dec 13 (bdnews24.com)—The International Atomic Energy Agency (IAEA) has promised to assist Bangladesh in building the Rooppur Nuclear Power Plant.

IAEA director general Yukia Amano gave the assurance during a meeting with prime minister Sheikh Hasina at her official residence, Ganabhaban, on Monday evening.

Her spokesperson Abul Kalam Azad briefed journalists following the meeting.

He said that they also discussed various issues including water management, power and climate change during the meet.

A memorandum of understanding was signed regarding the Rooppur project between Russia and Bangladesh during the prime minister's recent visit to the country.

The proposal to build the power plant was approved in the parliament on Dec 9 last year.

Science and information technology minister Yafes Osman, ambassador at large M Ziauddin and principal secretary M A Karim were present at the meeting.

IAEA to assist in Rooppur plant | Bangladesh | bdnews24.com

 

[CaPtAiN_pLaNeT]

Balance of power demand and supply by 2013: Muhith

Thursday, 12.09.2010, 09:09am (GMT)

Dhaka: Finance Minister of Bangladesh AMA Muhith is hopeful of balancing the power demand and supply by 2013 The minister expressed his hopefulness while addressing the inaugural ceremony of the National Electricity Week (NEK) held at the Bangabandhu International Conference Center (BICC) in the city Wednesday.


He said: “It will not be possible to ensure 9000 MW of electricity before 2015 when we may not be in power.”


He said the government would enact a coal policy by June next year for
extracting coal to support the power generation and industrial sector in proper
manner.
The country has been facing shortage of primary fuel though there is huge
quantity of coal which cannot be extracted due to lack of a policy, he said.
Muhith sought support of all to face the power crisis saying it's a national problem.


Dr. Tawfiq-e-Elahi Chowdhury, Power and Energy Adviser to the Prime Minister, said: “The sector is now progressing through a crisis. If we altogether can implement the projects as per our planning with newer technology, we will be able to solve the problem.”


The Power Division Secretary Abul Kalam Azad said they would try to observe
December 7 as the National Electricity Week and Day in future.


State Minister for Energy and Power Mohammad Enamul Haque, Additional Secretary Tapash Kumar Roy, Power Development Board (PDB) chairman ASM Alamgir Kabir and Rural Electrification Board (REB) chairman Bhuiyan Shafiqul Islam also spoke at the function.



Meanwhile, the National Electricity Week is being observed across the Bangladesh in a bid to create mass awareness in curbing misuse of electricity.

Different kind of rallies, exhibitions, cultural shows, essay competitions for students and other events were organised across the country on the first day of the week and it will continue nest days.

 

[CaPtAiN_pLaNeT]

Govt Should Set up Online Audit System to Estimate Power Loss

Tuesday, 12.07.2010, 11:27pm (GMT)

Dhaka: Experts have opinioned that the Bangladesh government should set up
online audit system that can allow the transmission and distribution companies
to know exactly the level of power loss in different parts of the system.

It will also help see whether there are any technical problems and identify
where power is being stolen from the lines.

All governments have failed to undertake proper audits of transmission and
distribution of power networks which will have enabled them to properly
understand the extent and causes of power loss, experts say.

Although some power companies have undertaken basic audits, these are alleged to
be highly unsatisfactory and are concerned more to hide what is going on than to
make the system transparent, claimed a Dhaka

Electricity Supply Company’s former board member. ‘The audits are not even able to identify how much power is lost at different parts of the distribution system,’ he said.

The reason that these companies ‘conduct audits themselves is so that they can hide the theft of power’, another expert says.

He says that although the government estimates that the loss of electricity
through inefficiencies in the distribution system is 20 per cent – he believes
from his research that it can be no more than 12 per cent, with at least 8 percent being the result of theft.

A 2005 study by the power cell found that electricity theft resulted in a loss of Tk 800 crore, he said.
A professor identified three kinds of theft that could be properly identified if
there were effective audits - illegal connections, purchasing cheaper low load
connections while using high loads, and manipulating bills.

The World Bank report says that replacing these old power stations with state of
the art combined cycle gas turbines could almost double the amount of
electricity generated using the same amount of gas.

 

[CaPtAiN_pLaNeT]

Power to cost users, government more
M Azizur Rahman

Power to cost users, government more
Electricity is dubbed as the engine of growth for any country as it helps rapid industrialisation, accelerates the pace of socio-economic development and reduces poverty.

Like any other developing country around the globe electricity demand has been rising sharply in Bangladesh as the country's economy has been growing at an average rate of six per cent a year since 2003 outpacing the energy supply.

The country is now reeling under an acute electricity crisis coupled with low voltage and frequent disruptions resulting in slowing down business activity, fall of industrial output and ultimate sufferings of the people.

Country's overall electricity generation is now hovering around 3,700 megawatts against the demand for over 6,000 mw.

Inadequate steps from the government high-ups coupled with insufficient supplies of natural gas, the main fuel for the country's power generation, have been delaying installation of much-needed power plants for long.

Year's of apathy from the donor agencies in funding necessary power plants also aggravated the country's overall electricity crisis.

Nagging electrify crisis all over Bangladesh has recently become an issue of concern of the government as the power sector is deemed by critics as among the worst performing sector of the government in the past several years.

Demonstrations by people in front of state-run electricity offices in different areas protesting frequent electricity disruptions and load shedding has become rampant in the country especially in summer.

During the regime of the previous elected BNP government several demonstrators were killed in police firing when they were staging violent protests demanding regular supply of electricity at Kansat in Chapainawabganj district, some 300 kilometers northwest from the capital Dhaka, in April 2006.

Some demonstrators were also injured by police at Shanir Akhra under Jatrabari police station, some five kilometers away from the capital, when they were staging demonstration protesting frequent disruptions in electricity supply in May, 2006.

The protesters had assaulted the local Member of Parliament during the incident for, what the protesters said, his failure to ensure uninterrupted supply of electricity for the locals.

The incumbent Awami League led government, however, took the issue of augmenting electricity generation seriously and adopted short, term, medium and long term plans for electricity generation.

It has targeted to generate at least 5,000 mw of electricity by 2011 and 7000 mw by 2013.

The government has planned to add an additional 11,500 mw of electricity be 2015.

It has allowed building power plants by local and foreign firms on unsolicited proposals avoiding tendering process in an unprecedented move to face the country's worst-ever power crisis.

The government has also passed the Speedy Supply of Power and Energy (Special Provision) Bill -- 2010 offering blanket immunity to the personnel involved with electricity generation for two years.

The government has signed contracts for 32 electricity generation projects to add 2,791 mw of electricity to the national grid.

Out of 2,791 mw it has already implemented two projects commissioning 250 mw of electricity and the remaining 30 projects to generate 2,541 mw is under construction.

Besides, contracts for 24 more projects in public and private sectors to generate 3,840 mw of electricity would be signed within March 2011.

The government has resumed providing new electricity connections from November, after a halt for seven months, on priority basis putting solar panel installers on top of the precedence.

In its bid to quicken electricity generation the government has attached utmost priority to resolve power crisis on ad-hoc basis awarding high cost rental and quick rental power plants across the country.

The high-cost rental power plants is set to emerge as the country's single largest power plant category for electricity generation by 2011.

Expensive diesel and furnace-oil run rental power plant, which was nil until 2008, has already accounted for over one-third of the country's total power plants with the operation of 14 plants out of 40 operational plants.

A good number of gas-fired and oil-based power plants have been kept shut making room for operation high-cost private sector owned fuel-run power plants.

Some 15 more rental power plants will initiate electricity generation by 2011.

Currently the country has a total of 50 power plants but 40 of them are operational. Of the total plants 17 are owned by Power Development Board (PDB), 15 are rental power plants, nine are small independent power producers (SIPPs), six are independent power producers (IPPs) and two plants one owned by Electricity Generation Company of Bangladesh (EGCB) and another by Ashuganj Power Station Company Ltd (APSCL).

Electricity generation from the rental power plants is now hovering around 665 megawatts (mw), which is almost one-fifth of the country's overall electricity generation of around 3,500 mw.

Experts said the government's stance on allowing more rental power plants branding them as 'quick rentals' on the basis of negotiations with the sponsors bypassing competitive tendering process might impede the country's growing economy.

Although most of the rental power plants failed to generate electricity in time, the government's electricity generation augmentation drive riding on costly rental power plants might prove wrong in the long run, they feared.

Besides, the absence of any policy over rental power plants and their diversified tenure ranging from three years to 15 years might trouble the regulators in future, they added.

The multilateral donor agency, World Bank, has also expressed its concern over the government's higher expenditure to buy electricity from rental power plants and import necessary fuel.

The burden may restrict the country's economic growth in the range between 6.1 percent and 6.3 percent, said the Washington-based donor agency in its latest economic outlook.

Additional fiscal cost for fiscal year 2011 would be ranged between Tk 52 billion and Tk 56 billion, which is about 0.6 per cent or 0.7 per cent of the gross domestic product (GDP), the WB projected.

Average tariff rate for oil-fired rental power plants is around Tk 8.0 per unit (1 kilowatt hour), which is more than double than the tariff rate for gas-based power plants of Tk 3.0 per unit.

Although the government has awarded contracts to dozens of high-cost rental and quick rental power plants within months, it could not do much progress in awarding low-cost base-load power plants.

The government is at risk of providing hefty subsidy worth over Tk 150 billion by 2013 in power sector as it has focused electricity generation from high-cost diesel and furnace oil run power plants instead of conventional gas or coal.

The amount of subsidy will scale up further if the state-owned Power Development Board (PDB) fails to make an upward tariff adjustment by 12 per cent annually.

Currently, the government is giving PDB subsidy worth around Tk 10 billion annually.

But the government is ready to shoulder the huge financial burden, much higher than the present level, to implement a road-map to generate augmented electricity by 2015.

A senior PDB official said the board will have to count an additional subsidy of around Tk 15.60 billion in 2010, Tk 35.54 billion in 2011, Tk 65.78 billion in 2012 and Tk 39 billion in 2013 for operating these high cost oil-run power plants.

The subsidy amount has been calculated considering power tariff hike by 12 per cent every year.

If the government fails to raise the tariff every year the financial burden will romp up further, said the official.

The PDB currently incurs Tk 0.35 loss for every unit of power it sells to consumer against its average bulk power supply cost of Tk 2.80 per unit.

The PDB's average bulk power supply cost might double to over Tk 5.0 per unit (1 kilowatt-hour) by 2013 with the commissioning of new oil-fired power plants.

The board's average supply cost will soar to over Tk 4.0 per unit by 2010, Tk 4.92 by 2011-12 and Tk 5.0 by 2013 with the start of electricity generation from the high cost fuel-run plants.

Average power supply cost will fall again to Tk 4.5 per unit after 2013 when several gas and coal-fired power plants will start supplying and the life of some high-cost oil-fired power plants will expire.

The government, however, has moved afresh to hike the power tariff to contain mounting subsidy as the cost of electricity generation is skyrocketing with the installation of high-cost rental power plants to be generated diesel and furnace-oil run power plants.

The PDB has recently submitted a proposal to the power ministry for an upward power tariff adjustment.

The PDB would require an increase of 53 per cent in tariff from the current rate for 2011 alone to reduce the amount of subsidy.

In the year 2012 the power tariff requires to be hiked by 22 per cent compared to the previous year and in 2013 it should be 13 per cent higher, said the official.

Alternatively, the government can resort to making upward tariff adjustment by 12 per cent every year, the PDB proposed.

Power tariff was adjusted upward in March this year when Bangladesh Energy Regulatory Commission (BERC) hiked in electricity prices for all types of urban and commercial subscribers by six to seven per cent, on an average.

The BERC is now considering approving an upward power tariff adjustment further considering the issues electricity producers, suppliers and consumers.

Currently, the domestic consumers who consume electricity up to 100 units are paying Tk 2.60 per unit, subscribers using electricity between 101 and 400 units are paying Tk 3.30 per unit and those who consume over 400 units are paying Tk 5.65 per unit.

Flat rate for the consumers of small industries is Tk 4.35 per unit, while peak-hour electricity rate is Tk 5.86 per unit and off-peak rate is Tk 3.50 per unit.

Commercial consumers are now paying Tk 5.58 per unit as flat rate, Tk 4.05 per unit as off-peak rate and Tk 8.45 per unit as peak-hour rate.

Flat rate for the 11 kilo-volt (kV) consumers is Tk 4.17 per unit, while the off-peak-hour rate is Tk 3.43 per unit and the peak hour rate is Tk 7.12 per unit.

The flat electricity tariff for the consumers of 33 kV is now Tk 3.92 per unit, while the off-peak rate is Tk 3.33 per unit and peak hour rate is Tk 6.82 per unit.

Flat rate for 132 kV electricity consumers is now Tk 3.10 per unit. Meanwhile, electricity supply was inaugurated in Bangladesh in 1907.

During the period of partition of the Indian Sub Continent in 1947, the total generating capacity was 21 mw including 14 mw as captive generation in railway workshops, tea gardens etc.

Only 7 mw was available for public consumption distributed by 17 electricity companies that operated in seventeen districts of the then East Bengal.

By early 1950, all the power companies were gradually taken over by the government because they became bankrupt.

In 1958, the Water and Power Development Authority (WAPDA) was created to take over all the responsibilities for electricity generation and distribution.

After independence the Bangladesh government bifurcated the WAPDA.

The component related to generation, distribution and transmission of power was named Bangladesh Power Development Board in 1972 to operate as a vertically integrated public sector organisation.

The National Energy Policy of Bangladesh was adopted in 1995 for the overall development of the Energy Sector with special focus on public and private sector energy development, which is still in operation.

 

[CaPtAiN_pLaNeT]

Sunday, December 26, 2010Metropolitan

NTPC to finalise power projects in Bangladesh

BSS, New Delhi
National Thermal Power Corporation (NTPC) of India is expected to finalise its proposed 2,640 megawatt (MW) power projects in Bangladesh.

It is to be implemented in a joint venture with the Bangladesh Power Development Board (BPDB) at an estimated cost of Rs 13,200 crore, said media reports.

IJ Kapoor, director (commercial) of NTPC, said NTPC on Wednesday held a meeting with BPDB at New Delhi where both parties talked of implementing two 1,320 MW (each) thermal power projects at Khulna and Chittagong in Bangladesh.

Work on Khulna project would be taken up first, Kapoor added, saying, "The discussions today are on project implementation and certain things required to be done to meet the schedule."

"Though we are not doing the feasibility studies for any of the projects, Khulna is one which we are now taking up with the Bangladesh government," the Financial Express quoted Kapoor.

NTPC in August signed a memorandum of understanding (MoU) with BPDB to set up two coal-based power projects in the neighbouring country.

Meanwhile a high-level Bangladesh delegation are in the Indian capital to see the development of the projects that the two countries are likely to implement as per the Joint Communique signed between the two countries when Prime Minister Sheikh Hasina paid an official visit to Delhi early this year.

The delegation included Economic Affairs Adviser to Prime Minister Dr Moshiur Rahman and Foreign Affairs Adviser Dr Gawher Rizvi.

 

[eastwatch]

Sunday, December 26, 2010Metropolitan

NTPC to finalise power projects in Bangladesh

BSS, New Delhi
National Thermal Power Corporation (NTPC) of India is expected to finalise its proposed 2,640 megawatt (MW) power projects in Bangladesh.

Work on Khulna project would be taken up first, Kapoor added, saying, "The discussions today are on project implementation and certain things required to be done to meet the schedule."

"Though we are not doing the feasibility studies for any of the projects, Khulna is one which we are now taking up with the Bangladesh government," the Financial Express quoted Kapoor.

I wonder why Khulna and Chittagong. It is because India can easly ship its high asdh, high sulpher coal to these two places. I will prefer two power stations based on low sulpher, low ash BD coal.

India is taking an undue advantage because the BD govt is too eager to manage the power crisis.

 

[CaPtAiN_pLaNeT]

ITFC to provide $2bn in support of Bangladesh energy sector

ITFC to provide $2bn in support of Bangladesh energy sector | ITFC | AMEinfo.com

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, and the Government of Bangladesh took a step forward towards strengthening their working alliance, when they signed a memorandum of understanding at IDB headquarters in Jeddah.

The signed memorandum of understanding covers the 1432H (2011) financing and implementation plan to facilitate the utilization of $2 billion made available for the benefit of the Government of Bangladesh for the importation of crude oil and petroleum products.

Dr. Waleed Al-Wohaib, CEO of ITFC, received the senior level delegation from the People's Republic of Bangladesh at his office where he highlighted the long standing relations between ITFC and the Republic of Bangladesh.

In welcoming the delegation, Eng. Hani Salem Sonbol, Deputy CEO of ITFC said "Bangladesh is one of the major customers of IDB Group trade financing programs. Since 1397H, about $7.83bn has been approved to the Republic of Bangladesh and this represents about 21% of total trade financing approvals of IDB."

He went on to add " Since the launch of ITFC in Muharram 1429H (2008), the ITFC has approved 33 operations in favor of the Government of Bangladesh amounting to $2.56bn of which 12 operations valued at $880m were approved in 1431H."

From his part, H. E. Dr. Atiur Rahman, Governor of Bangladesh Bank, said" On behalf of the Government of Bangladesh, I would like to thank the IDB Group, represented by ITFC, for supporting the country during the difficult times of the global financial crisis."

"It is of utmost importance for the country to get its energy requirements met where ITFC plays a strategic role in this area enabling the country to keep and enhance its momentum of growth and development." he added.

The senior level delegation also included H.E Mr. Muhammad Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division, Ministry of Finance and the alternate IDB Governor for the Republic of Bangladesh, H.E Mr. Mohammad Mejbahuddin, Secretary, Energy and Mineral Resources Division, Mr. Syed Monjurul Islam, Additional Secretary, Finance Division, Ministry of Finance, Mr. Anwarul Karim, Chairman, Bangladesh Petroleum Corporation, Mr. ATM Mustafa Kamal, Joint Secretary (Admin & Middle East), Economic Relations Division, Ministry of Finance and Mr. Nazmul Ahsan, Senior Assistant Secretary, Energy and Mineral Resources Division.

 

[CaPtAiN_pLaNeT]

Power Division seeks Tk 1.34b more funds in revised ADP

Power Division seeks Tk 1.34b more funds in revised ADP


FHM Humayan Kabir

The Power Division has sought Tk 1.34 billion more funds, first time in history, from the government in addition to its Tk 49.95 billion existing allocations to implement development projects in the current fiscal, officials said Monday.

Power Division officials said they had sought Tk 51.29 billion fund in total from the Planning Commission in the upcoming Revised Annual Development Programme (RADP) to generate, transmit and distribute electricity.

"Usually our agencies request us to cut their allocation in the revised ADP. For the first time, they have demanded more fund than their original allocations," a senior Power Division official told the FE.

Following poor performance of the government agencies in executing the development projects under the current year's ADP, the Planning Commission is revising the ADP adjusting actual fund requirements of the spenders.

During July-October period of FY2011, the government agencies have spent only 14 per cent of its Tk 385 billion ADP outlay while the Power Division has executed only 9.0 per cent from its Tk 49.95 billion allocation to implement 40 projects.

The government framed Tk 385 billion ADP in the current FY2011 to implement some 916 projects in developing impoverished infrastructure and socio-economic condition of the people.

"We have sought Tk 1.34 billion extra funds in the revised ADP as we need more investment in generating power to meet the growing demand," the official said.

He said the additional funds will be spent to set up Tk 6.96 billion peaking power plants having a total of 820 megawatt (mw) capacity and upgrading distribution systems in seven divisions of the Rural Electrification Board (REB).

Admitting the additional fund proposal, a Planning Ministry official said, "We had doubt about the capacity of the agencies under the Power Division in spending the money they have sought."

The Power Division, second largest development fund spender, had implemented only 9.0 per cent, five per cent lower than the country's average 14 per cent ADP execution rate, projects during July-October period in the current fiscal, the official said.

Meanwhile the Power Division official said, "We are hopeful of utilising the entire proposed money in the current fiscal as we have different power generation and transmission schemes to boost the country's electricity supply."

The government is committed to generate 7,000 mw electricity by 2012 where it needs investment worth billions of dollars.

Bangladesh has severe power supply shortage as all the power stations can together supply nearly 4,000 mw a day against the demand for 5,500 mw.

The Planning Ministry official said they were reviewing the fund proposals of the Power Division. "After scrutiny, we will finalise a revised ADP allocation," he added.

 

[CaPtAiN_pLaNeT]

Bangladesh Sangbad Sangstha (BSS)

1131 MW added to national grid in two years


DHAKA, Jan 04 (BSS) – The present government has added 1131 MW power to the national grid after taking charge on January 6, 2009.

According to the official source, another 1350 MW from the quick rental power plants will be added to the national grid by April 2011.

Since the generation of electricity is not enough to meet the demand, the authority is handling the situation through different measures including load management, energy saving and gas rationing programmes. However, the gap between supply and demand of power exist and it varies from 1300 MW to 2000 MW.

A senior official of Bangladesh Power Development Board (BPDB) said 500 to 700 MW power could not be produced due to gas shortage while some power plants always remain inoperative because of rehabilitation and maintenance work which reduces power generation and supply further.

“Therefore, we actually shed or manage the peak hours demand by shedding 300 MW during winter and 800 MW during summer season,” the official said.

Though the gap between demand and supply of power remains high, yet it is a significant success to add 1131 MW to national grid in two years, he added.

BPDB chairman ASM Alamgir Kabir told BSS that the government has the plan to produce 2087 MW power more by 2012 and another 2000 MW by 2013.

By 2014, another 1670 MW and by 2015 about 3050 MW will be added to the national grid, he said. As per its election pledge, the present government has the plan to add 9,426 MW power to the national grid by 2015.

“We produce 300 MW from the quick rental, however, we already signed agreements with different bidders to install quick rental, rental, small IPPs and peaking power plants that would come into operation within next few years,” he said.

The BPDB chairman said if Petrobnagla could supply adequate quantity of energy to run the power plants, then it would be possible to make country free from loadshedding by the end of 2013.

 

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Power, CNG may be costlier from Feb

Saturday, 01.01.2011, 02:27pm (GMT)

Dhaka: Electricity and CNG may be costlier from February next as Bangladesh Energy Regulatory Commission (BERC) is considering to dispose of two petitions from the government agencies seeking raise in the prices of both, official sources said.
Power Development Board (PDB) has submitted a petition to the regulatory body to increase the electricity tariff by 12 per cent every six months and while Petrobangla seeks raising the CNG price.
At present, average price of per unit (per kilowatt hour) of bulk electricity is Tk 2.37 while price of per unit (1 cubic metre) of CNG is Tk 16.75.
Both, the petitions remained pending with the BERC for public hearing before a final order is passed by the regulatory body.
For last one month, the BERC was unable to convene any meeting to set a timeframe for the public hearing because of ‘quorum’ problem.
BERC sources said three posts of the five-member commission remained vacant for long. But recently a member was appointed by the government to meet the minimum quorum of three members for a BERC meeting.

 

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Quest for energy fix
Experts suggest a blend of solutions; focus on new tech, alternative sources

Quest for energy fix

Saifur Rahman, director of Advanced Research

Institute, Virginia Tech, speaks at The Daily Star Leadership Colloquium on Alternative Energy and New Technology yesterday. Seated from left to right, Mohammad Farooque, Debapriya Bhattacharya, Mehdi Anwar and Ahmed Badruzzaman. Photo: STARStaff Correspondent

Energy experts have suggested Bangladesh could exploit an array of solutions including the use of new technologies and alternative renewable resources to maintain its gas reserve and ensure long-term energy security.

The country should utilise its coal resources in a way that benefits the people.

The observations came from a foreign and five non-resident Bangladeshi experts at the first-ever The Daily Star Leadership Colloquium on Alternative Energy and New Technology yesterday.

Bangladesh must conduct comprehensive cost-benefit studies to minimise social and environmental costs to achieve the goal. But such studies have not been carried out in Bangladesh, they said.

Reflecting the global trend, they made presentations on how Bangladesh could meet a large portion of its energy demands using solar, biomass, wind power, fuel cell technologies.

The experts said it would be more practical for Bangladesh to go for small-scale nuclear power plants instead of large ones that are costlier.

Dr Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue, moderated the colloquium at The Daily Star auditorium in the capital. The programme was sponsored by Summit, Bank Asia and Citi.

Dr Saifur Rahman, director of the Advanced Research Institute, Virginia Tech; Mohammad Farooque, senior vice-president of Fuel Cell Energy (FCE) Inc, USA; Dr Mehdi Anwar, professor at electrical and computer engineering department, University of Connecticut; and Ahmed Badruzzaman of Chevron Energy Technology Co spoke.

Dr Shams Siddiqi from California and Dr Avni Argun from Massachusetts Institute of Technology addressed the colloquium through video conferencing.

"Energy solution is a combination of all solutions. It is a combination of policy and pricing," said Dr Mehdi Anwar, professor at electrical and computer engineering department, University of Connecticut.

Speaking on "Energy Challenges for Bangladesh -- A Roadmap for Sustainable Energy Solutions", he said Bangladesh aims to have a power generation capacity of 14,000megawatt by 2020. This requires generating 1,000MW a year for the next nine years.

He said new and alternative energy sources and technologies are the answers. Large-scale solar plants are still too expensive, but small-scale local application is affordable in the context of Bangladesh.

Dr Mehdi Anwar said Bangladesh could opt for biomass, which is relatively inexpensive. Rice husks could be a good source of biomass.

He recommended that Bangladesh should go for short and long-term sustainable energy, water solutions and adaptive fuel switching, so that it does not have to depend on any particular source of energy.

The expert suggested partnership between the private sector, academia and the government to form ideas for energy generation.

"However, great technology is not the solution if it is not cost-effective," Anwar said.

On "Fossil Fuels Conservation by High Efficiency Power Generation and Utilisation", Mohammad Farooque, senior vice-president and discipline fellow of FuelCell Energy Inc, USA, said it is imperative to develop alternative energy resources and conserve the existing ones efficiently as energy reserves are depleting fast.

He said Bangladesh could try efficient technologies such as fuel cells developed from chemical energy stored in fossil fuels.

"But its cost is a key question," he said.

Fuel cell technologies, which have emerged as viable options for power generation, can ensure green power generation as well as conservation of water sources and saving of fuel up to 30 percent.

Planners in USA, Europe and Asia now strongly favour these technologies. Fuel cell solutions are available for applications -- from sub-kilowatt mobile to multi-megawatt grid-support -- in Japan, South Korea and USA, Farooque said.

Energy demand will grow and eventually threaten to exceed the supply in foreseeable future. Fuel conservation is a must to ensure energy security and lessen economic impacts of high energy costs, he noted.

On solar, wind and biomass technologies, Prof Saifur Rahman, director of the Advanced Research Institute, Virginia Tech, said many countries in Asia, Europe and North America had gone for wind and solar power to meet their increasing energy demands.

He said present global electricity generation from wind exceeds 150,000MW and countries like Germany, USA, Spain, China and India produce 10,000MW each from wind.

Even an oil rich nation like Kuwait aimed to meet a large part of its energy demands from renewable energy fearing its oil resources might not be enough to meet its domestic demand after 2020, the expert said.

Renewable energy sources can meet the demand for electricity in remote areas as well as large power plants, said Prof Saifur adding sources like the sun, wind, biogas and water extend the scope of using electricity by the disadvantaged.

“For Bangladesh, it's a question of survival,” he said referring to the country's energy issue.

In Bangladesh there are opportunities to install renewable energy solutions on rooftops in villages, develop multifamily solar panels, solar water pumping, localised grouping of electricity generation and photovoltaic power generation for national grid.

Dr Ahmed Badruzzaman, an energy scientist for Chevron Energy Technology Co, suggested better utilisation of natural gas, oil, nuclear and coal resources using the latest technology in Bangladesh.

He said the requirement of gas between 2004 and 2030 for a 7.1 percent growth was estimated at 35 TCF.

According to some estimates, an addition of up to 87 TCF including that from the offshore is possible using advanced technology.

He said the coal reserve in the country will be difficult to extract and use without assessing environmental and social impacts.

Besides, large-scale addition to hydroelectric capacity is unfeasible. Current nuclear plants, though they promise a low carbon footprint, can be expensive and risky to introduce in a densely populated country with limited safety, Badruzzaman said.

Even with the rapid growth in production of solar electricity, which is expected to reach 50 MW by 2012, it will be a mere fraction of the 8,500 MW the government anticipates generating by 2013, he said.

Bangladesh in the near future will have to rely on the merger of conventional energy sources -- marketed and traditional -- while it strives for renewable sources, the physicist said.

He said advanced exploration technologies could allow access to new oil-gas reservoirs that are complex, remote or located in ecologically sensitive areas.

CNG can facilitate transport of gas over large distances reducing the need for gas pipelines in a country crisscrossed by rivers or an expensive LNG infrastructure, Badruzzaman said.

Rapidly advancing small modular reactors would be more suitable for Bangladesh, both in terms of safety and economics, the expert noted.

From California, Dr Shams Siddiqi spoke about deregulated electricity market.

He suggested Bangladesh let gas prices reflect global trend, otherwise any renewable energy project would be disadvantaged due to subsidised natural gas and electricity prices.

“We need to introduce tax incentives to encourage renewable projects.”

Siddiqi also said Bangladesh must have premium electricity buy-back prices for electricity generated from renewable sources.

From MIT, Dr Avni Argun spoke on Highly Conductive Nanoassemblies for Clean and Sustainable Energy. Argun highlighted the commercialisation of alternative energy.

“Policy is important, of course. Renewable energy should be able to penetrate the free market. Long-term subsidisation and fundamental research are also important,” he said.

The Daily Star Editor and Publisher Mahfuz Anam said the newspaper organised the event to create a platform where NRB experts, national policymakers and private sector can share ideas and find solutions for various development issues of the nation.

The first colloquium focuses on alternative energy and new technologies because the energy crisis is a major issue for Bangladesh, he said. The Daily Star intends to hold a colloquium on different subjects every year.

He said ideas are generated and then fizzle out, but this colloquium is not a one-shot affair for The Daily Star.

“You have a constant partner in The Daily Star to push things forward,” he said to the audience in the afternoon session. “Partner with us, intellectually.”

“From now, The Daily Star will provide special space for energy efficiency,” Mahfuz Anam said.

---------- Post added at 11:23 AM ---------- Previous post was at 11:22 AM ----------

Focus on alternatives
Fuel cells, solar, wind can help attain energy security
Staff Correspondent

Energy experts yesterday vouched for alternative energy solutions in Bangladesh such as fuel cell, solar and wind power.

Four non-resident Bangladeshi energy experts yesterday talked about these green solutions at the The Daily Star Leadership Colloquium.

The Daily Star organised the event at its office to bring together major stakeholders from government, industry, academia, and resident and NRBs experts to discuss new ideas for the energy sector and practical innovative solutions to the country's energy crisis.

FUEL CELL
Environmentally friendly but still costly fuel cell power plants are becoming a choice for on-site power in the USA, Japan and South Korea, amid increasing demand for energy and growing public awareness for conservation.

The experts said a fuel cell operates like a battery but unlike a battery the cell does not exhaust or require recharging. It will produce energy in the form of electricity and heat as long as fuel is supplied.

Hospitals, hotels, universities and manufacturing facilities may run on fuel cell energy, they said.

Bangladesh should put in place a policy to use fuel cell energy as small-scale use is not financially viable, said Mohammad Farooque, vice-president of Connecticut-based FuelCell Energy.

A scheme known as feed-in tariff, which pays a premium price for renewable energy generators for producing green electricity, can be a way forward, he said.

The fuel cell products can be brought into Bangladesh through a partner here, Farooque said.

A fuel cell consists of two electrodes sandwiched around an electrolyte. Oxygen passes over one electrode and hydrogen over the other, generating electricity, water and heat.

The proton exchange membrane fuel cell (PEMFC) is one type. This fuel cell operate at relatively low temperatures and have high power density. Their output can vary quickly to meet shifts in power demand. This cell is suited for vehicles, which need a quick start up.

PEMFCs are the primary candidates for light-duty vehicles, buildings, and potentially for much smaller applications such as replacements for rechargeable batteries.

In his presentation, Farooque said the Japanese government is pursuing an aggressive programme to introduce residential fuel cells.

South Korea introduced a regenerative fuel cell (RFC) programme in 2010. RFCs are attractive as a closed-loop form of power generation. Water is separated into hydrogen and oxygen by a solar-powered electrolyser. The hydrogen and oxygen are fed into the fuel cell which generates electricity, heat and water.

Unlike wind and solar technologies, which generally have an overall availability of 35 percent, fuel cell products have an availability of about 95 percent.

Direct fuel cell products are the cleanest power with the highest efficiency, said Farooque, an expert in higher-efficiency power generation and utilisation. He put the efficiency rate at 50 percent.

Demand for energy will grow, threatening to exceed supply in future, Farooque said. He said fuel conservation is a must.

He said the cost of fuel cell power plants are declining while the grid power cost is increasing.

Industrial, agricultural plants and waste-water treatment facilities generate renewable biogas as part of their manufacturing process. Fuel cell power plants can harness the methane in this by-product and use the gas to power the system instead of natural gas, making it a renewable energy source.

Farooque said it is possible to generate 35 megawatts of power from wastes from different sources in Dhaka.

Based in Danbury, Connecticut, FuelCell Energy makes ultra-clean stationary fuel cell power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants, and with virtually no air pollution.

WIND POWER AND BIOMASS
The installation of wind mills and biomass plants for electricity generation would not be viable for the country as those can contribute very little to the national grid, said experts at the colloquium yesterday.

An expert argued that installation of the wind power plants in the country would not be feasible because Bangladesh mostly has flat terrains where flow of wind is not enough to produce adequate power for the energy hungry nation.

"In offshore areas, the installation of wind power plants is possible in a limited scale because wind is available there. But here the government's policies and support are essential," said Saifur Rahman, director of the Advanced Research Institute, Virginia Tech, USA.

Saifur, a Bangladesh-born energy expert, said strong enough wind in Bangladesh is not available, as a result adequate power cannot be produced with this system to contribute in the national grid. The system might work in the offshore areas in smaller scale.

In his keynote presentation, Saifur Rahman said the total power generation from wind power plants was 1,80,000MW in 2010 which was only 10,000MW in 1997.

"So we should understand that the power generation from wind as an alternative energy has been getting popularity worldwide. Bangladesh can also try for setting up wind power plant at the offshore areas in small scale," he said.

The USA produced more than 35,000MW of electricity from wind power plants and both China and Germany produced more than 25,000MW power from wind power last year, he added.

Power generation from biomass would not be feasible in Bangladesh as this system would not be able to contribute much to the national grid, he said.

Moreover, biomass power plants by design are small and it can produce only for a small community, Saifur said.

He said there would be a fuel crisis for biomass power plants in Bangladesh because the raw materials for power production are used for other purposes. In Bangladesh cow dung, one of the major resources for biomass power plants, is used as fertiliser. Similarly, the rice husk is used as cooking fuel in the rural areas.

"So, this kind of alternative power system is also not feasible for the country. It has very little capacity to contribute to the national grid," he said.

SOLAR ENERGY
Saifur Rahman said historically, renewable energy sources have been in small scale, distributed to and close to people's habitat thus filling the need for on-site source of electricity.

He said while this market continues to grow in most developing and some industrialised countries, there is now a new market for large-scale non-hydro renewable energy sources in Asia, Europe and North America.

“In Bangladesh, the renewable energy sources account for a very small amount of global energy consumption. The country has set up thousands of solar power systems across the country but they are small scale and we have not moved beyond that.”

Saifur, however, said although solar power systems might not turn out the most effective solution for the whole country but it could be a good option for local solutions, which do not have access to the grid network.

“Solar cannot give you the grid solution but it can supply power to a significant extent,” he said.

Sixty-percent of the country's 165 million people do not have access to electricity.

Saifur said there could be product development beyond the use at village rooftops. Multi-family solar home-based electricity supply, solar water pumping, microgrid-multi-kW free standing grids, and photovoltaic power generation national grid are what Bangladesh Power Development Board is trying to do.

The expert said renewable energy sources could fill the need for both stand-alone remote area electricity needs, and large-scale central station power plants.

Small-scale renewable sources of electricity including solar, wind, biogas and small-scale hydro offer opportunities to provide electricity to the disadvantaged thus allowing them to benefit from lights, televisions, computers, internet, mobile phones, he said.

AFM Anwar, professor of electrical and computer engineering at University of Connecticut, USA, said Bangladesh has aimed at adding 4,000MW of electricity to the national grid by 2014. If solar power systems have to provide that then it will cost the country about $40 billion, which is not cost effective.

Ahmed Badruzzaman, a fellow of Chevron Energy Technology, said although there is a huge potential, solar power is not going to make any big difference.

 

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Move underway to popularise LPG
Duty rate may be revised

Move underway to popularise LPG

M Azizur Rahman

The government will encourage consumption of liquefied petroleum gas (LPG) instead of piped natural gas to ease the mounting gas crisis across the country, a senior government official said Saturday.

The energy ministry has already asked the LPG firms to increase their import of LPG to meet the gross mismatch between the demand for, supply of, piped gas, especially in households for cooking and light engineering workshops.

The government decision to encourage LPG use has come at a time when gas crisis turned acute and the urban residents are struggling for cooking due to insufficient gas supplies and drastic fall in gas pressure.

To cope with severe gas crisis the government has stopped giving new gas connections for over a year.

"Under the present context there is no alternative to encourage LPG use as gas pressure is falling sharply due to rapid growth of consumers," Petrobangla Chairman Dr Hussain Monsur told the FE.

He said the present gas pipeline infrastructure is not adequate to supply sufficient gas to the consumers.

Country's gas pipeline infrastructure was built at a time when the consumer base was very low, he said.

Since then gas pipelines were not expanded to feed the consumers with additional gas, the Petrobangla chairman said.

Officials said the government is also actively considering reduction of duties and taxes on import of LPG and LPG cylinders to boost import and expand its use to ease the mounting gas crisis.

At present the private importers have to pay 24 per cent import duty that includes - five per cent customs duty, 15 per cent value added tax, three per cent advance income tax (AIT) and one per cent pre-shipment inspection (PSI) charge - to import LPG cylinders.

The import duty on LPG is around nine per cent, which includes five per cent customs duty, three per cent AIT and one per cent PSI charge.

Currently the country consumes around 100,000 tonnes of LPG every year, mostly by the urban people in district towns and light engineering workshops.

The state-owned LPG producer supplies 20 per cent of the market need and private players import the remaining 80 per cent.

LPG marketing in Bangladesh was pioneered by state-owned Bangladesh Petroleum Corporation (BPC) in the late 1970s, but with the increasing demand in the mid-1990s the government allowed LPG imports and permitted private entrepreneurs to invest in LPG import, storage and bottling facilities.

BPC's subsidiary, Eastern Refinery Ltd and natural gas fractionation plant at Kailashtila in Sylhet are the source of indigenous availability of LPG in Bangladesh from where the combined output is around 20,000 tonnes per annum.

Anticipating huge LPG market in the country, several multinationals including leading local companies came forward and made investments in the import facilities, storage tanks and bottling plants during 1999 and 2001.

A number of private firms are now engaged in marketing of LPG in Bangladesh that include Totalgaz, Bashundhara, Kleenheat, Jamuna Spacetech and BOC.

Petrobangla sources said, the country has around 2.0 million domestic gas consumers who consume around 10 per cent of the total gas production and the annual growth rate of this consumption is also 10 per cent

If the piped natural gas, now being consumed in households, could be diverted to LPG form the government could generate around 2,000 megawatts of electricity out of the conserved gas, a Petrobangla study revealed.

At present electricity generation of around 800 mw is being hampered mainly due to gas crisis.

Besides, a number of industries are now out of operation due to gas supply shortfall.

The country now produces around 1,980 million cubic feet per day (mmcfd) of gas against the demand for over 2,500 mmcfd.