cabinet submission for mpemr

8/2/2019 Cabinet Submission for MPEMR

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CABINET SUBMISSION

POWER DIVISION

MINISTRY OF POWER, ENERGY AND MINERAL RESOURCES.

GOVERNMENT OF THE PEOPLES REPUBLIC OF BANGLADESH

NAZWA WARDA BINTAY SALIM

SEP: 706. 2nd APRIL 2012.


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Confidential Document Submitted To

The Honourable Minister of The Peoples Republic ofBangladesh: His Excellency- Mr. Enamul Haque, STATE

MINISTER FOR MINERAL POWER ENERGY AND RESOURCES.

Key Issue

How Renewable Energy Policies can be developed For A

Greener Economical Bangladesh.


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BACKGROUND- Previous Electricity Consumption and

Production in Bangladesh

Electricity - production by source:

fossil fuel: 93.7%

hydro: 6.3%

nuclear: 0% (UNTIL RECENTLY)

other: 0% (2001)


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BACKGROUND

Arising Concerns NOW!

1. The rapid growth in powerconsumption in Bangladesh is driven by

industrialisation and growing number

of consumers having access to

electrical/electronic devices.

2. Between 2000 and 2015, the number

of people whose power consumption is

growing faster than per-capita GDP will

double, from 2.5 billion to over 5

billion!


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Over the last couple of

decades, the amount of energy

people use (red line), their

economic activity (green line),the electricity they use (black

line), the world's population

(yellow line), and their carbon

dioxide emissions (blue line)have all increased inexorably.

BACKGROUND - Runaway world?


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Potentials of Solar -PV, Wind and Biomass

Solar Electrification can be used in:1. Schools, Community centers, religious institutions, local business

organizations.

2.Cyclone Shelters.(more than 1000 at present in our country)

3. Remote Communications, Railway Signalling, operating computers,

operating water pumps for irrigation.

Wind Energy: is site (geographically) and also season specific.

Biomass can be used for:

1. Bio-mass gasification: power for small rural industries & households.2.Biomass briquetting for cooking and artisan usage.

3.Improved stove. (potential is right now more than 25 million)


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Proposed Policy Objectives:

The objectives of the proposed policies are:

to harness the potential of RE,

dissemination of RE technologies,

facilitate both public and private investment in this

sector, and

increase energy supplies to substitute indigenous

non-renewable energy.


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Proposed Policy Goals: To make electricity available in remote areas by solar home systems (SHS) by 2020.

Improve living-standard, increase income by making room for new-generationemployment.

To increase the supply of power by installing on-shore wind turbines by 2020.

To explore the potential of municipal wastes to generate electricity as bio-fuels.

Create enabling environment and legal support to encourage the use of renewable energy.

Promote clean energy for CDM.

Promote appropriate, efficient and environment friendly use of renewable energy with

proper training facility .

Achieve the targets for developing renewable energy resources to meet 10 percent of the

total power demand by 2018 and 15 percent by 2022.


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Proposed Policy 1: Institutional Arrangement -

SERDI

An institution, Sustainable Energy Research andDevelopment Institute (SERDI).

SERDI Board will comprise of representatives ofstakeholders from different business community,

academics and/or representative from GOs and

NGOs, and financial institutions andimplementing agencies like: IDCOL, GS etc.


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Training & Capacity Development by SERDI

1. Training for local technicians, in-house staff bothhome and abroad should be carried to develop theminto both successful technical and socially ethicalengineers.

2. Training for local technicians should be arranged sothat cost effective and efficient after sales service isavailable at the doorsteps of rural clients.

3. Training of users should be performed so that theycan take effective care of their renewable energysystems.


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Resources, Technology and Program Development by SERDI

SERDI in conjunction with MPEMR shall be responsible for setting priorities for RET

development and program implementation.

Electricity generated from renewable energy projects, both in public and private sectors

may be purchased by power utilities or any consumer through mutual agreement (less than

5 MW).

In addition to electricity generation, renewable energy for solar heating and biogas or

other means like cooking etc shall be developed.

SERDI will encourage HR development and local production of renewable energy

equipment, facilitate and monitor quality of renewable energy equipment, and will assist

to setup quality control laboratory to test the renewable energy equipment.

For large biomass electricity projects (>1 MW) the project developer must demonstratethat the biomass is being sustainably harvested and that no adverse social impact will

result from that development.

Production and use of bio-fuels may be encouraged in limited scale without jeopardizing

the existing crops.


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Proposed Policy 2a: Wind-Turbine ProjectSylhet, where tea is manufactured and are exported

worldwide is an ideal place of choice.

As an expansion and improvement to this project

there are areas like: Chittagong Hill-tracks and the

Suburbs which are perfect locations for implementing

Wind Energy Programme.

Feasibility study on generating wind power in the

vast coastal areas ofKutubdia, Kuakata should also becarried out to find out the data for wind mapping for

future prospects.

Benefits

With zero greenhouse gas emissions released during generation, wind

energy is sustainable and clean.

And with the cost of wind power decreasing nearly 90 percent since the

1980s, it is also an increasingly affordable and stable energy source, not

subject to the price volatility of fossil fuels.


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Proposed Policy 2b:Wind-Solar Project

Benefits:

Hybrid power plants is believed to have profound

applications in both rural and urban electrification, for

street lighting, water pumps, mobile phone and

communication towers.

The annual average temperature in Cox's Bazar

remains at about a maximum of 35 C and a minimumof 16.5 C which are perfect for wind-solar hybrid

system management program facilitation.

The city is a huge attractive spot of tourism and the

electricity generated through the solar-wind program

will be greatly helpful in managing the tourism andhotel industry within the Beach-Area.


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Proposed Policy 2c: HYBRID Project

Instead of the coal-poweredgeneration plant, which the

Government proposed earlier, the

Wind-Solar Hybrid in Sunderbans

would be a much environmentallyfriendly approach to gain long-term

eco-efficiency with less/no impact

on global warming and not

disturbing animal/human habitat.


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Proposed Policy 3a: Expansion to the Existing Hybrid

(Solar-Wind) Power Station at Saint Martins Island

SOLAR (Solar Panel by Evergreen Solar Power Limited) and WIND

(Wind turbines by Southwest Wind power) Hybrid Project

Components Price in Ca $ (approx) Price in BDT (approx)Solar Array (5000 Watt in total)

(Using 150 Watt Panel with $1.75/

Watt)

9,000 738,000

Wind Generator (15,000 Watt in

total)42,500 34,850,000

Power Conditioning Equipment 20,000 1,640,000

Power Storage Equipment 30,000 2,460,000

Security Equipment 20,000 1,640,000

Wiring and Connectors 5,000 410,000

Labour 15,000 1,230,000

Total Project Budget 1, 41 500 11,603,000


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Proposed Policy 3b: FIT

In the long-run the project can be expanded andFIT program can be initiated.

'Feed-In-Tariff' will be paid at a premium rate paidfor clean generation of power.

Essentially, a utility company like: BPDB will payelectricity generators from the hybrid a higheramount as an incentive to move towards greenerenergy production.


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Proposed Policy 4: Diversification and scaling Up of GS

Activities jointly collaborated by SERDI

GTCs technicians along with the Training Committee of SERDI may jointly

create and report to the Ministry of Energy semi-annually concerning

prospective or probable energy projects in near future.

GS will also use the GTCs along with SERDI to train women members

from the user households.

SERDI with GS may collaborate together to enhance more on women

empowerments.


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Proposed Policy 5: IRE and its Future Improvement

Measures to be undertaken by GOB

a) Special/Extra Economic Allocation and a Regulatory Instrumentation Committee isformed within IRE.

b) Post-Graduate Students should have an opportunity for getting the required funding

from the government in the form of scholarship/ grant to carry on their research

procedures.

c) Affiliation and correspondence have to be developed within and outside the country

boundary with correlated organizations and carry on research for future improvements.

d) Financial Support or Assistance is to be provided on a yearly basis for recognizing the

private sector organizations who are doing research in collaboration with IRE, and awardsof excellence are specified to them as a means of national encouragement to renewable

energy resource utilization and management.


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Benefits (Economic, Environmental and Social)

The projects would not only have a positive impact on thecarbon foot-print of the country, but the most significantimplication will take place at the local level, in the form ofimproved health, more reliable water supplies, and greateropportunities to improve livelihoods and promote truly

sustainable development.

At the same time it will bless the rural people in the areawith the blessing of electricity who are totally cut-off fromthe national grid and help in their better economical

developments in the long-run.

It will also promote high employment rates to theyoungsters of the next generation.


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Possible Adverse Effects

It is assumed and observed that there are

almost no possible adverse effects from

RET though some detailed investigations

need to be done for on-shore wind-turbine

programs before they are taken into hands.


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Stakeholders in Support/ Opposition

a. For Energy Policy Formation (laws and rules): Notice and Comments (public

hearing/(s) and written comments) will be heard often after releasing proposed lawor rule.

b. Engage Stakeholder Group Representatives Prior to Issuing Draft Rule, Law, or

Plan: Less Formally As Advisory or Sounding Board. State/Federal agencies can

develop ideas and see what stakeholders agree and disagree on.

c. More Formally as Negotiating Group to Develop Proposed Rule, Law, or Plan

If Stakeholders agree, State/Federal agencies can issue it as its proposed rule, law or

plan.

d. For Energy Projects at Specific Sites

Notice and Comment (public hearing/(s) and written comments) will be taken into

considerations often after releasing draft Energy Impact Statement.


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Alternative Options

Current nuclear plants, though they promise a lowcarbon footprint, can be expensive and risky tointroduce in a densely populated country likeBangladesh with very limited safety.

The coal reserve in the country will be difficult toextract and use without assessing environmental andsocial impacts in the long run.

Besides, large-scale addition to hydroelectric capacityis unfeasible right now.


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Assumptions

It is assumed that GS and IRE will be obliged to participate informing the collaborative groups with the government andbring in developmental tools and models to contribute to thetotal economic enhancements.

Some projects defined above need experimental data and

data mapping for analyzing the cost-benefit analysis more intodetails.

Related Concerns

Recently a Committee/ Task Force has been formed by theMinistry of Energy to have a thorough and detailedinvestigations on the major sectors looking out for renewableenergy resources.


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Investment and Financial Implications by GOB

All renewable energy equipments and related raw materials exempted from

charging 15% VAT.

SERDI or power division of the MPEMR will fix up the acceptable mechanism toreach the benefits of tax exemption to end users.

A network of micro-credit support system will provide financial support for

purchases of renewable energy equipment.

SERDI will consider providing subsidies to utilities for installation of all

renewable/clean energy projects. Renewable energy project investors both in public and private sectors shall be

exempted from corporate income tax for a period of 5 years and it will be

extended periodically following impact assessment of tax exemption.

Foreign Direct Investors should be invited and encouraged to invest into the

projects mentioned above with mutual assistance.

A total of 50 core Taka (~CAD $ 6200,000) is tentatively estimated to invest into

the projects to be taken immediately at hands.


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Consultation Record

a. Data collection is done from different sources and review of relevantjournals/medias and documents.

b. Data validation has been done through cross checking and counter checking.

c. Feedback is taken through getting responses from related officials and focused

group discussions with stakeholders.

d. Discussion and feedback received from the Ministry of Environments, Home-

Affairs and Finance.

Issue of Separate Statutory Regulatory Order (SRO)

A separate SRO will be issued for private sector power plants so that the incentives

and concessions given under various regulations and directives are consolidatedand placed together in one document.


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Communications

THE ANNOUNCEMENT WILL BE MADE AT HOTEL SHERATON IN THE CAPITAL

ALONG WITH GROUPS OF SENIOR OFFICIALS FROM THE MINISTRY FOR POWER

ENERGY AND MINERAL RESOURCES OF THE PEOPLES REPUBLIC OF

BANGLADESH .

HIS EXCELLENCY- MR. ENAMUL HAQUE (STATE MINISTER FOR POWER ENERGYAND MINERAL RESOURCES OF THE PEOPLES REPUBLIC OF BANGLADESH), WILL

BE MAKING THE ANNOUNCEMENT ON THE 15TH OF JUNE 2012 OFFICIALLY

THROUGH LIVE TELECAST ON THE BANGLADESH NATIONAL TELEVISION (BTV) AT

7 PM SHARP.

AFTER THE ANNOUNCEMENTS ARE MADE THERE WILL BE A SHORT PRESS

RELEASE SESSIONS WITH THE MEDIA JOURNALIST AND RELATED STAKEHOLDERS

AT 9PM SHARP IN SHERATON BALL ROOM.


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Accuracy of Information and Right to Interpretation

(a) Section headings are for convenience only and shall not affectinterpretation of any section.

(b) In case of ambiguity with regard to interpretation of anyprovision of these Guidelines, GOB interpretation shall be

considered final.

(c) The consultation records with the BERC for which theproposals are being held is correct.

(d) Accurate tracking of the responses are also maintained withfull integrity and reliability.


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Ultimate goal of Bangladesh Energy Sector

According to the present Governments "Energy Challenges for

Bangladesh CREATE A Roadmap for Sustainable Energy

Solutions", Bangladesh aims to have a power generation capacity

of an additional 10,000 MW by 2022.


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Questions?

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