problems and prospects of poer industry in bangladesh

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Course Title: Business Communication

Course Code: BUS 2112

Submitted To:

Md. Kaium Hossain

Assistant Professor

School of Business & Economics (UIU)

Submitted by:

Name ID Section

Fyaz Mahbub Rohan 114 121 025

E

Sudip Kumar Biswas 114 122 015

Md. Musfiqul Islam 111 091 405

Md. Arif Jamal 111 122 284

Al Hakim 111 123 236

Submission Date: 22thJanuary 2014


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Letter of Transmittal

January 22, 2014

Md. Kaium Hossain

Assistant Professor

School of Business & Economics

United International University (UIU)

Dhanmondi, Dhaka- 1209

Subject: Request for accepting the report.

Dear Sir,

We would like to draw your kind attention that we are submitting our report

about the Problems & Prospects of Power Industry in Bangladesh. We

have tried our best to prepare this report which has fulfilled our requirements.

We believe that all these ideas from this report will help us in our future

practical life.

We will be highly grateful to your honors if you would kindly accept our

report and obliged thereby.

Thanking you,

On behalf of

The entire group member

_________________

Fyaz Mahbub Rohan


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III

Executive Summary

The report analyzes the problems and prospects of power industry in Bangladesh. It

finds out the present scenario of the industry. It includes the government vision and

future plans regarding the industry. The report also gives the information the public

and private companies producing power. The report gives some information about

owner wise power generation, power generation units (Fuel Type Wise), maximum

power generation etc.

The report includes a SWOT analysis of the power industry of Bangladesh. In the

SWOT analysis it tells the most important strengths, weaknesses, opportunities and

threats of the industry. By doing the analysis this report provides the most valuable

part of this study. This analysis will be helpful to understand the prospect of the

industry.The report includes the problems like corruption, unskilled people, decreasing supply

of natural gas. It also includes prospects like nuclear plant, solar plant, and joint

venture with India etc.

Lastly, the report gives a brief recommendation and conclusion. The

recommendations provided in the report would be helpful to solve problems. By

implementing the recommendation the government can make the power industry an

efficient industry to facilitate the overall development of the country.


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Table of Contents

Serial No. es ription Page No.

Letter of Transmittal II

Executive Summary III

Chapter One

Introduction

1.1 Introduction 2

1.2 Origin of the Report 3

1.3 Purpose of the Report 3

1.4 Objectives of the Report 3

1.5 Methodology of Data Collection 3

1.6 Limitations of the Study 3

Chapter Two

Industry Overview

2.1 Power Industry of Bangladesh 5

2.2 Power Generation 2013 7

2.3 Power Sector Structure

2.4 Office of the Electrical Advisor & Chief Electric Inspector

and Energy Monitoring Unit

7

2.5 Power Cell 7

Power Generation Companies

2.6 Public Power Generation Companies 8

2.6.1 Bangladesh Power Development Board (BPDB) 8

2.6.2 Ashuganj Power Station Company Ltd (APSCL) 8

2.6.3 Electricity Generation Company of Bangladesh Ltd 8

2.6.4 Rural Power Company Ltd (RPCL) 8

2.6.5 North-West Power Generation Company Ltd 9

2.7 Private Power Generation Companies 9

2.7.1 Orion Group 9


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2.7.2 Summit Power Limited 10

2.7.3 Khulna Power Company Ltd (KPCL) 11

2.7.4 GBB Power Ltd (GBBPOWER) 11

2.7.5 Barakatullah Electro Dynamics Ltd. (BEDL) 112.8 Owner wise Power Generation (01-01-2014 to 15-01-

2014)

12

2.9 Power Generation Units (Fuel Type Wise) 26

2.10 Maximum Generation of January 2014 27

2.11 Daily Generation Report 15/01/2014 27

2.12 SWOT Analysis 33

Chapter Three3.1 Problems of Power Industry in Bangladesh

3.1.1 Spend a Lot of Time to Complete the Tender Process 39

3.1.2 Decreasing Supply of Natural Gas 39

2.1.3 Capital Intensive Industry 39

3.1.4 Energy Infrastructure 39

3.1.5 Lack of Necessary Maintenance and Rehabilitation of Old

Power Plants

40

3.1.6 Dependency on Single Energy (gas) and Entity for

Electricity Generation

40

3.1.7 Huge System Losses 40

3.1.8 Delays in Completion of New Plants 40

3.1.9 Small Reserve of Oil and Coal 40

3.1.10 Increasing Price of Raw Material 41

3.1.11 Corruption in Power Sector 41

3.1.12 Setting Wrong People in Power Sector Management 42

3.2 Prospects of Power Industry in Bangladesh

3.2.1 Joint Venture with India 43

3.2.2 Nuclear Power Plant 43

3.2.3 Prospects of solar power 43

3.2.4 Wind Power Projects 46


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3.2.5 Hybrid Projects 47

3.2.6 Micro/Mini Hydro Projects 47

3.2.7 Power Sector Future Rolling Plan 47

3.2.8 Power Industry Development Plan 48

3.2.9 List of projects that will be implemented by 2014 48

3.2.10 List of projects that will be implemented by 2015 49

3.3 Findings 50

Chapter Four

Conclusion & Recommendations

3.1 Conclusion 52

3.2 Recommendations 52

References 54


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1.1 Introduction:

Bangladesh's energy infrastructure is quite small, insufficient and poorly managed.

The percapitaenergy consumption in Bangladesh is one of the lowest (136kWH)in

the world. Noncommercial energy sources, such aswood fuel,animal waste,andcrop

residues,are estimated to account for over half of the country's energy consumption.

Bangladesh has small reserves of oil and coal, but very large natural gas resources.

Commercial energy consumption is mostlynatural gas (around 66%), followed byoil,

hydropower andcoal.

Electricity is the major source of power for most of the country's economic activities.

Bangladesh's installed electric generation capacity was 8525 MW in 2013;[1] only

three-fourth of which is considered to be available. Only 40% of the population has

access to electricity with a per capita availability of 136 kWh per annum. Problems in

the Bangladesh's electric power sector include corruption in administration, high

system losses, and delays in completion of new plants, low plant efficiencies, erratic

power supply, electricity theft, blackouts, and shortages of funds for power plant

maintenance. Overall, the country's generation plants have been unable to meet

system demand over the past decade.

1.2 Origin of the Report:

This report has been prepared to make a study on the Problems & Prospects of

Power Industry in Bangladesh as a part of the fulfillment of Business

Communication course.

The report was prepared under the supervision of Md. Kaium Hossain, assistant

professor of School of Business and Economics of United International University.We are very much thankful to him for assigning us such types of project work

1.3 Purpose of the Report:

The study attempted to understand the problems facing power industry and

their prospects.

1.4 Objectives of the Report:

To know the Problems of Power Industry in Bangladesh
http://en.wikipedia.org/wiki/Energyhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Capitahttp://en.wikipedia.org/wiki/Energy_consumptionhttp://en.wikipedia.org/wiki/KWHhttp://en.wikipedia.org/wiki/Wood_fuelhttp://en.wikipedia.org/wiki/Animal_wastehttp://en.wikipedia.org/wiki/Crop_residuehttp://en.wikipedia.org/wiki/Crop_residuehttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Hydropowerhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Electricity_sector_in_Bangladesh#cite_note-1http://en.wikipedia.org/wiki/Electricity_sector_in_Bangladesh#cite_note-1http://en.wikipedia.org/wiki/Electricity_sector_in_Bangladesh#cite_note-1http://en.wikipedia.org/wiki/Electricity_sector_in_Bangladesh#cite_note-1http://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Hydropowerhttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Crop_residuehttp://en.wikipedia.org/wiki/Crop_residuehttp://en.wikipedia.org/wiki/Crop_residuehttp://en.wikipedia.org/wiki/Animal_wastehttp://en.wikipedia.org/wiki/Wood_fuelhttp://en.wikipedia.org/wiki/KWHhttp://en.wikipedia.org/wiki/Energy_consumptionhttp://en.wikipedia.org/wiki/Capitahttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Energy


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To know the Prospects of Power Industry in Bangladesh

To know about power industry in Bangladesh

To analyze the strengths, weaknesses, opportunities and threats of the

industry.

To make some recommendations.

1.5 Methodology of Data Collection:

For smooth and accurate study every person has to follow some rules &

regulation. The study inputs were collected from one source.

Secondary Sources: This report does not use any primary data; rather it uses

secondary data to conduct the research. Newspapers, Articles, ADB (Asian

Development Bank) repots and different websites were used as the sources of data.

1.6 Limitations of the Study:

Though I have given utmost effort to prepare this report still there are some

limitations of the study. The main constrain of the study was the insufficiency of

primary data. For this reason, I was not able to collect the updated information and

strategy of the government.


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2.1 Power Industry of Bangladesh:

The Government of Bangladesh through the Ministry of Energy and Mineral

Resources (MEMR)] bears overall responsibility for the power sub-sector in

Bangladesh. Consumption of commercial energy per head in Bangladesh is one of the

lowest in Asia, if not the world. A lack of commercially priced sources of electricity

has been a major factor in deterring foreign investment hindering GDP growth. Per-

capita generation of electricity was 110 kWh in 1997/98, according to Bangladesh

Economic Survey, Ministry of Finance (2000). With about 22% of households

receiving electricity, most commercial energy is consumed by industrial and

residential customers. Frequent power failures due to inadequate maintenance

continue to disrupt industrial production, water supplies and irrigation. In 2000, thecurrently installed capacity of public power plants as listed by the World Bank, is

3,300 MW, though actual daily generating capacity is often reduced to 2,400 MW,

against a total daily demand of 2,675 MW to 2,725 MW. This usually results in

extensive load shedding, which has now become a factor of daily life in Dhaka. The

situation is worse outside the capital city. In 1999, there were some recorded 1,690

hours of load shedding. There is considerable foreign investor interest in the power

sector. Contracts for four barge mounted power plants (BMPPs) with a total capacity

of 470MW have already been signed and several other contracts are in the pipeline. A

total of US$750 million of FDI in this sector is expected in the next three years,

reflecting principally the external financing of imported power plants and auxiliary

equipment. The estimated capital requirement for the power sector during the next

five years is $5-6 billion. Since the Government of Bangladesh cannot finance the

power system's expansion and development programs from their own resources, they

are now seeking multilateral and bilateral assistance, as well as private sector

investments for adequate and sustainable development of the power sector. The Power

Development Board's Master Plan stipulates raising present generation capacity from

2900 MW to 10,000 MW by 2015. As part of the plan, about 2000 MW of power

generation capacity is expected to be added by 2005 at a cost of $1.2 billion through

foreign investment by Independent Power Producers (IPPs). At the suggestion of the

Infrastructure Investment Facilitation Center (IIFC), the Government has recently

agreed to license privately owned remote area power supply.


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2.1.1 Vision, Mission Statement and Major Functions

Vision

To provide access to affordable and reliable electricity to all by the year 2020.

Mission Statement

Ensure uninterrupted and quality power supply for all by 2020 through improvement

ingeneration, transmission and distribution systems.

Major Functions

All activities related to power generation, transmission and distribution;

Manage all matters and policies related to the Power sector;

Expand, rehabilitate and modernize power generation, transmission and

distribution services in line with the increasing national demand and prepare

action plans and programs accordingly;

Encourage private and joint venture investment in the Power sector in addition

to the government investment;

Improve the standard of living of the rural poor through rural electrification

and the introduction of renewable energy;

Monitor revenue earnings and commercial activities.

2.2 Power Generation 2013:

Public Private Power Import

2013 662 692 500

0

100

200

300

400

500

600

700

800

MW

Sector

2013 Power Generation

2013


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2.3 Power Sector Structure:

Power Division is responsible for formulating policy relating to power and supervise, control

and monitor the developmental activities in the power sector of the country.

To implement its mandate the Power Division is supported by a number oforganizations, related with generation, transmission and distribution. The

organizational linkage is as follows:

2.4 Office of the Electrical Advisor & Chief Electric Inspector andEnergy Monitoring Unit:

The office of the Electrical Advisor and Chief Electrical Inspector (EA & CEI) is

established, in order to ensure proper control and safety of life and property in the

generation, transmission and distribution of electricity. Main responsibility of this

office is to inspect installations, substation and lines and grant license for high tension

and medium tension consumers. Besides, it issues license to electrical contractors,

engineers and electricians. Energy Monitoring Unit is a sub-unit under this office. Theobjective of EMU is to ensure efficient use of energy in industries and to induce

energy conservation.

2.5 Power Cell:

Power Cell was established in 1995 to assist Power Division in order to design,

facilitate and monitor reform measures in power sector. It acts as Think Task to

Power Division. Since inception, Power Cell has played vital role in reforming and

unbundling the sector, private power generation, power tariff evaluation and


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establishing regulatory commissions. Power Cell is headed by a Director General,

appointed by the Govt. and assisted by three Directors.

Power generation Companies

2.6 Public Power Generation Companies:

The following government entities are involved in generation of power:

2.6.1 Bangladesh Power Development Board (BPDB)

Bangladesh Power Development Board was established in 1972 as a public sector

organization to boost the power sector. BPDB is the authority for planning,

construction and operation of power generation throughout Bangladesh and for

distribution in urban areas.Besides its own generation, BPDB purchases power from

other generating companies and sells to its consumers and other distribution

companies. BPDB consists of a chairman andsix members appointed by the Govt.

2.6.2 Ashuganj Power Station Company Ltd (APSCL)

Ashuganj Power Station owned by APSCL is the second largest power station in the

country. At present, the total capacity of its 8 units is 642 MW. It fulfills about 15%

of loadsthroughout the country. APSCL is a public limited company registered under

companiesAct. It was incorporated on 28 June 2000.

2.6.3 Electricity Generation Company of Bangladesh Ltd (EGCB)

Electricity Generation Company of Bangladesh Ltd (EGCB) is incorporated with

Register of Joint Stock Companies on February 16, 2004. It has existing power plants

at two sites, namely Siddirganj 210 MW Power Station and Haripur 100 MW Power

Station (to be over hundred soon). One unit of 2x120 MW peaking power plant is

launched on February 2010. EGCB Board of Director consists of Chairman and nine

members.

2.6.4 Rural Power Company Ltd (RPCL)

Rural power company Ltd is the first Bangladeshi Independent Power Producer (IPP).RPCL is registered as a public limited company under companies Act and is


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incorporated on 31 December 1994. Its entire equity investment is mobilized locally.

Rural Electrification Board (REB) owns 20% share and rest 80% owned by 9 Palli

Biddyut Samity (PBS). Mymensingh Power Station (MPS) is one of its power

generation plants with capacity of 210 MW power. This company has a plan to

establish some other installations to different parts of the country.

2.6.5 North-West Power Generation Company Ltd (NWPGCL)

North-West Power Generation Company Ltd (NWPGCL) is an enterprise of

Bangladesh Power Development Board, intends to establish three power plants at

different locations in North-Western Zone of Bangladesh. Its vision is to generate

more electricity to meet the present shortfall and the growing future demand of

electricity in the country. Present demand at north western zone is 900 MW. Present

generation capacity is 600 MW. Proposed power plant of NWPGCL is:

a) Sirajgonj 150MW peaking power plant project-Expected to be commissioned

by December 2011.

b) Khulna 150MW peaking power plant project-Expected to be commissioned by

December 2011.

c)

Bheramara 360MW Combined Cycle Power Development Project- Expectedto be commissioned by September 2015.

2.7 Private Power Generation Companies:

The following government entities are involved in generation of power

2.7.1 Orion Group:

a) IEL Consortium & Associates Ltd: IEL Consortium & Associates Ltd

(IEL) recognizes the challenge the country faces in delivering reliable,

dependable electricity at most competitive pricing. It commits to make a

role-play with a single focus on delivering reliable and affordable electricity

across the country. With customer focused approach, it is poised to engineer,

develop, construct, own & operate small to large power plants with diverse

fuel choices to adapt to an increasingly competitive market environment.

IEL has been awarded to implement a 100 MW HFO Power Plant on quick

rental basis in Meghnaghat, Dhaka with machineries and equipments


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supplied by Wartsila Finland OY. IEL Consortium & Associates Ltd. is a

power company responsible for the operation of electric power plants for

local consumption. The power generated from the power plant will be

supplied to Bangladesh Power Development Board (BPDB) which is the

main customer of the company.

A 100 hour reliability test was successfully completed on 7th of May and

currently the IEL Power Plant is running in full capacity contributing 105

MW to the national grid.

b) Dutch Bangla Power & Associates Ltd:Dutch Bangla power & Associates

Limited, a 100 MW HFO based rental Power Plant, situated in Siddirganj,

Narayanganj has signed contract with BPDB to produce electricity and

supply to national Grid starting from mid April, 2011. Orion Pharma holds

60% of equity share of the said company. The land has already been

procured, civil construction work of the project is in progress and the

company is optimistic about the supply of power to national grid by the

respective time line. The tentative costs of the project stand at Tk 614 Crore.

2.7.2 Summit Power Limited (SUMITPOWER) and Summit Purbanchol

Power Company Limited (SPPCL):

Summit Purbanchol Power Company Limited (SPPCL), sponsored by Summit

Group and a subsidiary of Summit Power Limited (SUMITPOWER), is one of

the leading Bangladeshi Independent Power Producer (IPP) in Bangladesh in

private sector providing power to national grid. SPPCL was incorporated in

Bangladesh on August 15, 2007 as a Private Limited Company. On November

2005, SUMITPOWER listed its share in both Dhaka Stock Exchange and

Chittagong Stock Exchange. Now it has been operating 11 plants situated in

different areas of the country through own operations and three other

subsidiaries. At the beginning of 2013 one of its subsidiaries named Summit

Purbachol Power Company Limited (SPPCL) has listed its share in both

Dhaka Stock Exchange and Chittagong Exchange.


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2.7.3 Khulna Power Company Ltd (KPCL):

Khulna Power Company Ltd (KPCL) is the first Independent Power Producer

(IPP) in the country. It commenced full commercial operation on October 13,

1998 and since then it has been supplying uninterrupted reliable power to the

national grid. The formation of KPCL Project was initially sponsored by

Summit Group and United Group along with their foreign partner El Paso

Corporation (El Paso), USA, one of the worlds largest and most diversified

natural gas exploration and pipeline companies and Wrtsil Corporation

(Wrtsil), Finland, a leading power plant manufacturer of the world.Khulna

Power Company Ltd. has one subsidiary company named as: Khanjahan Ali

Power Company Ltd.

2.7.4 GBB Power Ltd (GBBPOWER):

GBBPOWER is another IPP in Bangladesh incorporated on October 17, 2006

as a private company to supply power to the national grid. The company was

awarded a contract on June 17, 2007 to set up a 20 MW gas power plant at

Bogra to produce electricity and sell the generated power to BPDB. In 2008,

the company was converted into Public Limited Company and started its

commercial operation on June 17, 2008. After July, 2009, total of 23.26 MW

of capacity commissioned for natural gas based electricity production. In

2011, GBBPOWER generated total gross electricity of 11 KV or 172.423

MWH. This company has no subsidiary in operation, thus total capacity

relative to other power generating company listed here is insignificant.

2.7.5

Barakatullah Electro Dynamics Ltd. (BEDL):

Barakatullah Electro Dynamic Limited (BEDL) is a joint collaboration of local

and a group a Non Resident Bangladeshi (NRB) entrepreneur. BEDL is the

only private sector power generating company developed by a group of NRB

investors. The company was incorporated in Bangladesh on 26 June, 2007 as a

Private Limited Company. On June, 2008 it was converted into Public Limited

Company. Company profile is given below:


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2.8 Owner Wise Power Generation (January 01, 2014 to January 15,

2014:

Daily Generation 01/01/2014 to 15/01/2014 (All)

Owner Name Derated Capacity (MW) Day Peak (MW) Eve. Peak (MW)

Daily Generation of 01/01/2014

PDB 3502.00 1118.00 1660.00

SBU,PDB 223.00 102.00 128.00

EGCB 622.00 0.00 0.00

APSCL 684.00 389.00 398.00

IPP 1515.00 976.00 1188.00

SIPP,PDB 110.00 80.00 90.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 145.00 161.00

Q.Rental 3 Years 100.00 13.00 81.00

QRPP(5yrs) 200.00 37.00 115.00

Other 800.00 636.00 609.00

RPP (3 Yrs.) 1063.00 445.00 578.00


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QRPP (3 Yrs.) 416.00 59.00 209.00

RPP (15 Yrs.) 169.00 61.00 129.00

Total 9652.00 4061.00 5346.00


PDB 3502.00 1097.00 1590.00

SBU,PDB 223.00 80.00 153.00

EGCB 622.00 0.00 0.00

APSCL 684.00 398.00 401.00

IPP 1515.00 1054.00 1142.00

SIPP,PDB 110.00 88.00 91.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 154.00 156.00

Q.Rental 3 Years 100.00 13.00 81.00

QRPP(5yrs) 200.00 16.00 189.00

Other 825.00 572.00 620.00

RPP (3 Yrs.) 1063.00 242.00 679.00

QRPP (3 Yrs.) 416.00 147.00 263.00


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RPP (15 Yrs.) 169.00 122.00 156.00

Total 9677.00 3983.00 5521.00


PDB 3502.00 1064.00 1430.00

SBU,PDB 223.00 80.00 128.00

EGCB 622.00 0.00 0.00

APSCL 684.00 402.00 398.00

IPP 1515.00 1032.00 1203.00

SIPP,PDB 110.00 59.00 89.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 90.00 133.00

Q.Rental 3 Years 100.00 11.00 100.00

QRPP(5yrs) 200.00 16.00 115.00

Other 825.00 570.00 642.00

RPP (3 Yrs.) 1063.00 193.00 516.00

QRPP (3 Yrs.) 416.00 23.00 173.00

RPP (15 Yrs.) 169.00 31.00 155.00


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Total 9677.00 3571.00 5082.00


PDB 3502.00 1077.00 1526.00

SBU,PDB 223.00 103.00 128.00

EGCB 622.00 0.00 0.00

APSCL 684.00 397.00 390.00

IPP 1515.00 982.00 1249.00

SIPP,PDB 110.00 92.00 65.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 139.00 160.00

Q.Rental 3 Years 100.00 14.00 100.00

QRPP(5yrs) 200.00 16.00 156.00

Other 825.00 624.00 641.00

RPP (3 Yrs.) 1063.00 352.00 618.00

QRPP (3 Yrs.) 416.00 23.00 184.00

RPP (15 Yrs.) 169.00 134.00 154.00

Total 9677.00 3953.00 5371.00


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PDB 3502.00 1015.00 1340.00

SBU,PDB 223.00 110.00 135.00

EGCB 622.00 0.00 0.00

APSCL 684.00 410.00 457.00

IPP 1515.00 971.00 1097.00

SIPP,PDB 110.00 11.00 91.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 46.00 146.00

Q.Rental 3 Years 100.00 12.00 47.00

QRPP(5yrs) 200.00 16.00 97.00

Other 825.00 615.00 678.00

RPP (3 Yrs.) 1063.00 102.00 496.00

QRPP (3 Yrs.) 416.00 5.00 209.00

RPP (15 Yrs.) 169.00 27.00 155.00

Total 9677.00 3340.00 4948.00



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PDB 3502.00 960.00 1411.00

SBU,PDB 223.00 105.00 152.00

EGCB 622.00 0.00 0.00

APSCL 684.00 460.00 460.00

IPP 1515.00 954.00 1191.00

SIPP,PDB 110.00 92.00 92.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 142.00 161.00

Q.Rental 3 Years 100.00 12.00 98.00

QRPP(5yrs) 200.00 59.00 188.00

Other 825.00 637.00 683.00

RPP (3 Yrs.) 1063.00 390.00 615.00

QRPP (3 Yrs.) 416.00 125.00 264.00

RPP (15 Yrs.) 169.00 153.00 154.00

Total 9677.00 4089.00 5469.00


PDB 3502.00 1068.00 1580.00


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SBU,PDB 223.00 105.00 129.00

EGCB 622.00 0.00 0.00

APSCL 684.00 455.00 461.00

IPP 1515.00 854.00 1139.00

SIPP,PDB 110.00 91.00 93.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 154.00 142.00

Q.Rental 3 Years 100.00 0.00 97.00

QRPP(5yrs) 200.00 55.00 173.00

Other 825.00 579.00 654.00

RPP (3 Yrs.) 1063.00 418.00 570.00

QRPP (3 Yrs.) 416.00 114.00 253.00

RPP (15 Yrs.) 169.00 152.00 153.00

Total 9677.00 4045.00 5444.00


PDB 3502.00 1073.00 1617.00

SBU,PDB 223.00 112.00 149.00


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EGCB 622.00 0.00 0.00

APSCL 684.00 465.00 471.00

IPP 1515.00 932.00 1209.00

SIPP,PDB 110.00 68.00 82.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 120.00 152.00

Q.Rental 3 Years 100.00 16.00 97.00

QRPP(5yrs) 200.00 16.00 171.00

Other 825.00 630.00 544.00

RPP (3 Yrs.) 1063.00 341.00 633.00

QRPP (3 Yrs.) 416.00 172.00 231.00

RPP (15 Yrs.) 169.00 61.00 151.00

Total 9677.00 4006.00 5507.00


PDB 3502.00 1080.00 1592.00

SBU,PDB 223.00 109.00 128.00

EGCB 622.00 0.00 0.00


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APSCL 684.00 471.00 508.00

IPP 1515.00 1025.00 1189.00

SIPP,PDB 110.00 87.00 89.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 153.00 146.00

Q.Rental 3 Years 100.00 13.00 97.00

QRPP(5yrs) 200.00 16.00 181.00

Other 825.00 532.00 462.00

RPP (3 Yrs.) 1063.00 380.00 613.00

QRPP (3 Yrs.) 416.00 171.00 354.00

RPP (15 Yrs.) 169.00 154.00 154.00

Total 9677.00 4191.00 5513.00


PDB 3502.00 1058.00 1494.00

SBU,PDB 223.00 110.00 149.00

EGCB 622.00 100.00 45.00

APSCL 684.00 499.00 483.00


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IPP 1515.00 997.00 1139.00

SIPP,PDB 110.00 78.00 89.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 129.00 124.00

Q.Rental 3 Years 100.00 16.00 60.00

QRPP(5yrs) 200.00 16.00 65.00

Other 825.00 559.00 658.00

RPP (3 Yrs.) 1063.00 117.00 396.00

QRPP (3 Yrs.) 416.00 0.00 239.00

RPP (15 Yrs.) 169.00 35.00 153.00

Total 9677.00 3714.00 5094.00


PDB 3502.00 1088.00 1507.00

SBU,PDB 223.00 80.00 153.00

EGCB 622.00 100.00 0.00

APSCL 684.00 491.00 499.00

IPP 1515.00 993.00 1205.00


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SIPP,PDB 110.00 90.00 87.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 98.00 146.00

Q.Rental 3 Years 100.00 15.00 100.00

QRPP(5yrs) 200.00 16.00 189.00

Other 825.00 583.00 617.00

RPP (3 Yrs.) 1063.00 221.00 630.00

QRPP (3 Yrs.) 416.00 149.00 243.00

RPP (15 Yrs.) 169.00 65.00 149.00

Total 9677.00 3989.00 5525.00


PDB 3502.00 1096.00 1661.00

SBU,PDB 223.00 103.00 153.00

EGCB 622.00 0.00 0.00

APSCL 684.00 493.00 493.00

IPP 1515.00 941.00 1119.00

SIPP,PDB 110.00 87.00 86.00


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RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 143.00 150.00

Q.Rental 3 Years 100.00 12.00 97.00

QRPP(5yrs) 200.00 40.00 188.00

Other 825.00 572.00 675.00

RPP (3 Yrs.) 1063.00 433.00 609.00

QRPP (3 Yrs.) 416.00 119.00 251.00

RPP (15 Yrs.) 169.00 145.00 138.00

Total 9677.00 4184.00 5620.00


PDB 3502.00 1002.00 1526.00

SBU,PDB 223.00 80.00 146.00

EGCB 622.00 0.00 28.00

APSCL 684.00 513.00 513.00

IPP 1515.00 1074.00 1241.00

SIPP,PDB 110.00 75.00 88.00

RENTAL(3 yrs) 33.00 0.00 0.00


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SIPP,REB 215.00 126.00 148.00

Q.Rental 3 Years 100.00 12.00 97.00

QRPP(5yrs) 200.00 16.00 189.00

Other 825.00 593.00 585.00

RPP (3 Yrs.) 1063.00 409.00 654.00

QRPP (3 Yrs.) 416.00 224.00 303.00

RPP (15 Yrs.) 169.00 116.00 152.00

Total 9677.00 4240.00 5670.00


PDB 3502.00 993.00 1411.00

SBU,PDB 223.00 107.00 157.00

EGCB 622.00 114.00 44.00

APSCL 684.00 507.00 507.00

IPP 1515.00 1023.00 1327.00

SIPP,PDB 110.00 49.00 60.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 100.00 135.00


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Q.Rental 3 Years 100.00 11.00 65.00

QRPP(5yrs) 200.00 16.00 176.00

Other 825.00 586.00 588.00

RPP (3 Yrs.) 1063.00 310.00 567.00

QRPP (3 Yrs.) 416.00 211.00 229.00

RPP (15 Yrs.) 169.00 54.00 153.00

Total 9677.00 4081.00 5419.00


PDB 3502.00 1039.00 1676.00

SBU,PDB 223.00 108.00 155.00

EGCB 622.00 178.00 89.00

APSCL 684.00 482.00 479.00

IPP 1515.00 864.00 967.00

SIPP,PDB 110.00 81.00 82.00

RENTAL(3 yrs) 33.00 0.00 0.00

SIPP,REB 215.00 130.00 143.00

Q.Rental 3 Years 100.00 49.00 97.00


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QRPP(5yrs) 200.00 189.00 195.00

Other 825.00 617.00 604.00

RPP (3 Yrs.) 1063.00 449.00 640.00

QRPP (3 Yrs.) 416.00 252.00 404.00

RPP (15 Yrs.) 169.00 145.00 146.00

Total 9677.00 4583.00 5677.00

2.9 Power Generation Units (Fuel Type Wise):

Installed Capacity of BPDB Power Plants as on January 2014

Unit Type Capacity(Unit) Total(%)

Coal 250.00 MW 2.44 %

FO 0.00 MW 0 %

Gas 6615.00 MW 64.59 %

HFO 1963.00 MW 19.17 %

HSD 683.00 MW 6.67 %

Hydro 230.00 MW 2.25 %

Imported 500.00 MW 4.88 %

Total 10241.00 MW 100 %

Derated Capacity of BPDB Power Plants as on January 2014

Unit Type Capacity(Unit) Total(%)

Coal 200.00 MW 2.07 %

FO 0.00 MW 0 %

Gas 6220.00 MW 64.28 %


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HFO 1876.00 MW 19.39 %

HSD 661.00 MW 6.83 %

Hydro 220.00 MW 2.27 %

Imported 500.00 MW 5.17 %

Total 9677.00 MW 100 %

2.10 Maximum Generation of January 2014

Maximum Generation of January 2014

Day 1 2 3 4 5 6 7

Gen(MW) 5346.00 5521.00 5082.00 5371.00 4948.00 5469.00 5444.00

Day 8 9 10 11 12 13 14

Gen(MW) 5507.00 5513.00 5094.00 5525.00 5620.00 5670.00 5419.00

Day 15 16 17 18 19 20 21

Gen(MW) 5677.00

Day 22 23 24 25 26 27 28

Gen(MW)

Day 29 30 31

Gen(MW)

2.11 Daily Generation Report 15/01/2014:

Owner Station NameDerated

Capacity(Unit)Day Peak Eve Peak

a) Ghorasal ST 1, 2 78.00 MW 87.00 MW 87.00 MW

Ghorashal ST 4 180.00 MW 180.00 MW 180.00 MW

Ghorasal ST :Unit-3, 180.00 MW 110.00 MW 110.00 MW

Ghorashal 100 100.00 MW 103.00 MW 102.00 MW


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Ghorrashal ST 5 190.00 MW 190.00 MW 190.00 MW

Ghorashal ST 6 190.00 MW 0.00 MW 0.00 MW

Ghorashal 45 MW 45.00 MW 43.00 MW 46.00 MW

Ghorashal MAX 78.00 MW 62.00 MW 62.00 MW

Horipur SBU GT 1,2,3 60.00 MW 0.00 MW 0.00 MW

Horipur NEPC 110.00 MW 55.00 MW 95.00 MW

Horipur P. Ltd CCPP 360.00 MW 0.00 MW 0.00 MW

Meghnaghat P.Ltd CCPP 450.00 MW 453.00 MW 451.00 MW

Meghnaghat IEL 100.00 MW 89.00 MW 95.00 MW

Madanganj 102 MW 100.00 MW 49.00 MW 97.00 MW

Karanigonj 100.00 MW 40.00 MW 93.00 MW

Narshingdi 22.00 MW 15.00 MW 15.00 MW

Shiddirganj ST 150.00 MW 0.00 MW 0.00 MW

Siddirgonj GT 1,2 210.00 MW 178.00 MW 89.00 MW

Siddirgonj 100 MW 96.00 MW 0.00 MW 91.00 MW

Dutch Bangla 100 MW 100.00 MW 100.00 MW 100.00 MW

DPA Power 50 MW 50.00 MW 0.00 MW 50.00 MW

Horipur EGCB 360MW 412.00 MW 0.00 MW 0.00 MW

Summit Power (Dhaka) 146.00 MW 77.00 MW 88.00 MW

Gazipur RPCL 52.00 MW 0.00 MW 52.00 MW

Tongi GT 105.00 MW 0.00 MW 0.00 MW

Chittagong

RaozanST(Gas):Unit-1180.00 MW 0.00 MW 0.00 MW

Raozan 25MW 25.00 MW 0.00 MW 26.00 MW

Chittagong 180.00 MW 0.00 MW 0.00 MW


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RaozanST(Gas):Unit-2

Kaptai Hydro:Unit-1,2,3,4,5 220.00 MW 42.00 MW 76.00 MW

Shikalbaha ST 40.00 MW 0.00 MW 0.00 MW

b) Shikalbaha Peaking (GT) 150.00 MW 0.00 MW 0.00 MW

Hathazari 98.00 MW 0.00 MW 98.00 MW

Shikalbaha(Energis) 0.00 MW 0.00 MW 0.00 MW

Dohazari Sangu 102.00 MW 0.00 MW 102.00 MW

Julda 100.00 MW 90.00 MW 92.00 MW

Malancha, Ctg. EPZ (United) 0.00 MW 7.00 MW 17.00 MW

Barabkunda (Regent) 22.00 MW 10.00 MW 11.00 MW

a) Ashuganj ST Unit -1,2 110.00 MW 0.00 MW 0.00 MW

b) Ashuganj ST 3 140.00 MW 140.00 MW 140.00 MW

Ashugonj ST 4 150.00 MW 150.00 MW 150.00 MW

Ashugonj ST 5 140.00 MW 140.00 MW 140.00 MW

c) Ashuganj CCPP-146MW 91.00 MW 40.00 MW 40.00 MW

d) Ashuganj 50 MW 53.00 MW 12.00 MW 9.00 MW

Ashuganj (Precision) 55.00 MW 23.00 MW 25.00 MW

Ashuganj (Aggreko) 80.00 MW 36.00 MW 44.00 MW

Ashuganj Midland 51.00 MW 53.00 MW 54.00 MW

Ashugonj Up-53 MW 53.00 MW 30.00 MW 30.00 MW

Brahmanbaria (Agrico) (Gas) 70.00 MW 66.00 MW 72.00 MW

Daudkandi 50 MW 52.00 MW 0.00 MW 42.00 MW

Chandpur CCPP 163.00 MW 0.00 MW 0.00 MW

Feni (Doreen) 22.00 MW 22.00 MW 22.00 MW


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Feni, Mahipal (Doreen) 11.00 MW 5.00 MW 5.00 MW

Jangalia (Summit) 33.00 MW 24.00 MW 24.00 MW

Summit Power, Comilla 25.00 MW 20.00 MW 22.00 MW

RPCL,CCPP, Mymensingh 197.00 MW 158.00 MW 152.00 MW

Tangail (Doreen) 22.00 MW 20.00 MW 20.00 MW

Fenchuganj CCPP-1 (Gas) 90.00 MW 69.00 MW 73.00 MW

Fenchuganj CCPP-2(New) 104.00 MW 67.00 MW 88.00 MW

Fenchuganj (BEDL) 51.00 MW 42.00 MW 45.00 MW

Fenchuganj Prima 50 MW 44.00 MW 34.00 MW 35.00 MW

Hobiganj (Confidence-EP) 11.00 MW 10.00 MW 10.00 MW

Shajibazar GT Unit-8, 9 66.00 MW 67.00 MW 65.00 MW

Shajibazar 86 MW 86.00 MW 73.00 MW 72.00 MW

Shajibazar - 50 MW 50.00 MW 47.00 MW 47.00 MW

Sylhet 150MW 142.00 MW 48.00 MW 57.00 MW

Sylhet GT (Gas) 20.00 MW 21.00 MW 21.00 MW

Sylhet 50 MW 50.00 MW 41.00 MW 42.00 MW

Sylhet 11 MW 10.00 MW 8.00 MW 7.00 MW

Shahjahanulla 25mw 25.00 MW 10.00 MW 13.00 MW

Bheramara GT (Unit-1,2,3) 46.00 MW 0.00 MW 46.00 MW

Bheramara 105.00 MW 0.00 MW 0.00 MW

a)Khulna ST 110 MW 55.00 MW 0.00 MW 0.00 MW

HVDC C/B. Interconnector 500.00 MW 465.00 MW 344.00 MW

b)Khulna ST 60MW 30.00 MW 0.00 MW 0.00 MW

KPC, Khulna 110.00 MW 30.00 MW 47.00 MW


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KPCL Khulna (New) 115.00 MW 115.00 MW 116.00 MW

Khulna 150 MW 150.00 MW 0.00 MW 85.00 MW

Faridpur 54.00 MW 0.00 MW 47.00 MW

Gopalganj 110 MW 109.00 MW 85.00 MW 71.00 MW

Noapara (105MW) Quantam 101.00 MW 0.00 MW 0.00 MW

Noapara (40MW),KZA 40.00 MW 32.00 MW 32.00 MW

Khulna 40 MW 40.00 MW 0.00 MW 0.00 MW

Khulna 55 MW 55.00 MW 40.00 MW 43.00 MW

Barisal Diesel(HSD) 0.00 MW 0.00 MW 0.00 MW

Barisal GT 1& 2 32.00 MW 0.00 MW 15.00 MW

Bhola Venture 33.00 MW 0.00 MW 0.00 MW

a)Baghabari GT 1 71.00 MW 0.00 MW 0.00 MW

b)Baghabari GT 2 100.00 MW 108.00 MW 107.00 MW

Baghabari 50 MW 52.00 MW 0.00 MW 48.00 MW

Baghabari Westmont 70.00 MW 0.00 MW 0.00 MW

Bera 70 MW 71.00 MW 0.00 MW 71.00 MW

Amnura 50 MW 50.00 MW 0.00 MW 50.00 MW

Khtakhali NPS 50MW 50.00 MW 0.00 MW 50.00 MW

Katakhali PPP 50 MW 50.00 MW 0.00 MW 47.00 MW

Sirajganj 150 MW 150.00 MW 135.00 MW 145.00 MW

Santahar 50MW 50.00 MW 0.00 MW 46.00 MW

Bogra GBB 22.00 MW 22.00 MW 22.00 MW

Rajlanka 52MW 0.00 MW 0.00 MW 0.00 MW

Barupukuria ST 1 100.00 MW 0.00 MW 0.00 MW


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Barupukuria ST 2 100.00 MW 73.00 MW 80.00 MW

Bogra 20 MW 20.00 MW 14.00 MW 14.00 MW

Summit Powser(Ullapara) 11.00 MW 8.00 MW 8.00 MW

Rangpur GT (HSD) 20.00 MW 0.00 MW 20.00 MW

Syedpur GT 20MW(HSD) 20.00 MW 0.00 MW 18.00 MW

Thakurgaon 47 MW((RZ) 47.00 MW 0.00 MW 24.00 MW

Total 9677.00 MW 4583.00 MW 5677.00 MW


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2.12 SWOT Analysis:

By analyzing all the data I have collected and by analyzing various reports I have

made the following SWOT Analysis. This analysis contains the most featured

parameters of the power industry of Bangladesh.

Strengths

Government incentives

Bangladesh government has announced Fiscal incentives and incentives for foreign

investors to facilitate the investment in the power plants. Exemption from corporate

income tax for a period of 15 years has been announced for the investors. They are

also allowed to import plant and equipment and spare parts up to a maximum of ten

percent (10%) of the original value of total plant and equipment within a period of

twelve (12) years of commercial operation without payment of customs duties. For

foreign investors government announced tax exemption on royalties, technical know-

how and technical assistance fees. The foreign investors are also exempted from

paying tax on interest on foreign loans. They are also enjoying tax exemption on

capital gains from transfer of shares by the investing company.

Demand for electricity

The biggest strength of the power industry of Bangladesh is the high demand of

power within the country. As automation in businesses and industrialization is taking

place all over the country, the demand for power is also increasing at the same t ime.

Demand is also increasing with the improvement of living standard, increase of

agricultural production, development of existing industries as well as overall

development of the country. On the other hand, only 47% of people have access to

power in the country. So, government is also trying to increase the production of

power to ensure enough supply to the people. Government has a plan to ensure power

for all by 2021.

Weaknesses

Decreasing supply of Natural Gas


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The only natural resource that Bangladesh has got enough is natural gas. But the

supply of natural gas is decreasing day by day. Although government is trying to lease

the gas blocs to the 46 foreign investors still the total supply of Natural Gas, Coal and

any other fossil fuels to the national grid is quite low and it is not sufficient to ensure

enough supply to the upcoming gas based power projects.

Capital Intensive Industry

Power industry is a capital intensive industry as a small power plant needs a huge

investment to establish and operate. SME based entrepreneurs cannot invest in this

industry due to its initial huge investment. Only investors with large capital or joint

ventures projects or foreign investors are coming to invest in power plants.

Energy infrastructure


And no initiative is taken to improve the infrastructure. With this type of poor

infrastructure it is quite difficult to reach the goal of the government to produce the

additional power in the coming years.

Lack of necessary maintenance and rehabilitation of old power

plants

Due to lack of necessary maintenance and rehabilitation of old power plants, it is not

possible to utilize the total installed capacity of the power plants. The shortage of

electricity can be from the load-shedding made during the peak demand of summer

which is about 1800 Megawatt each day. If all the existing plants could be maintained

properly the supply of electricity could have been more.

Dependency on single energy (gas) and entity for electricity

generation

In Bangladesh, commercial energy consumption is mostly natural gas (around 66%),

followed by oil, hydropower and coal. Power plants in Bangladesh are dependent on

gas significantly. On the other hand, 63% of total electricity is produced by public

sector and 37% is produced by private sector. Among the 63% production of publicsector 40% is produced by BPDB (Bangladesh Power Development Board) only.


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Participation of private sector

Investment or participation of private sector in electricity generation is at the

minimum. The private sector is producing only 37% of the total electricity production.

No new private investment is coming to this industry to increase the power

production.

Huge system losses

Shortage of electricity is not attributed to generation alone but transmission and

distribution are also responsible for the existing short fall. There is a huge amount of

system loss in the power production process. These system losses are also taking

place during the transmission and distribution of power.

Delays in completion of new plants

Delays in completion of power projects are very common in all power plants. The

projects cannot meet the deadline for its completion time. Hence, this delay leads to a

crisis in the production and distribution of power according to its demand and supply

within the required time.

Opportunities

Joint venture with India

Bangladesh is going to establish joint venture power plants with India especially with

its north eastern states. Indian govt. invites Bangladesh to invest in power sector in

joint venture basis which will increase both countries power generation. Bangladesh

government recently got an invitation from the state government of Tripura to invest

in a joint venture power plant from which Bangladesh will get 100 MW power in its

national grid.

Renewable energy

Bangladesh has great opportunity in using renewable power sources. Bangladesh has

15 MW solar energy capacities through rural households and 1.9 MW wind power in

Kutubdia and Feni. Bangladesh has planned to produce 5% of total power generation

by 2015 & 10% by 2020 from renewable energy sources like air, waste & solar


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energy. Using more renewable power sources will increase the total power

production.

Nuclear power plant

Bangladesh recently signed a contract to set up a 1,000 MW power plant at Rooppur,

200 km (125 miles) northwest of the capital Dhaka. After completion of this project

there will be an addition of 1,000 MW supply to the national grid. This project will

also attract other foreign investors to invest in nuclear power plants in Bangladesh

which ultimately increase the power production of the country.

Threats

Increasing price of raw material

The price of oil in the international market is increasing since the depression of 2009.

Recently the economic crisis in Europe and political instability of Middle East leads

the international market of oil towards an unpredictable situation. As oil is one of the

main raw materials for power plants and Bangladesh government imports most of

their oil from international market, the increasing price of oil in the international

market will be a treat for our power industry.

Political influence in the industry

The political influence is a treat for the power industry. In Bangladesh, there are

political influences in the bidding process of tender and even in the selection process

of Concern Company. Donor agencies withdraw their donation on the specific

projects due to the political influence. Sometimes the donors withdraw their donation

even in the last stage of selection process because of this political influence.

Small reserve of oil and coal

Most of the existing power plants are oil or coal based in our country although

Bangladesh has a very small reserve of oil and coal both offshore and onshore. From

this small reserve Bangladesh cannot get the enough supply of oil and coal for its

power plants. This small reserve could lead to a crisis of raw materials for the oil and

coal based power plants.


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Own Power Plants of Industries

Sometimes the big industries or business entities establishes own power plants for

their factories. The insufficient supply of power from the government leads them to

build up their own mini power plants. This tendency could be a treat for the typical

power producers of the country.


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3.1 Problems of Power I ndustry in Bangladesh

3.1.1 Spend a Lot of Time to Complete the Tender Process:

The Po wer Development Board (PDB) is facing serious problem to complete the

tender processes for the installation of two public sector power plants as the latest

tenders need to be scrapped for three other independent power plants because of

demands of bidders. As a result, the power projects 210MW plant in Khulna,

150MW plant in Sylhet and three 330MW-450MW independent power plants,

already seven to eight years behind schedule, will be getting further delayed.

3.1.2 Decreasing Supply of Natural Gas:

The only natural resource that Bangladesh has got enough is natural gas. But the

supply of natural gas is decreasing day by day. Although government is trying to lease

the gas blocs to the foreign investors still the total supply of Natural Gas, Coal and

any other fossil fuels to the national grid is quite low and it is not sufficient to ensure

enough supply to the upcoming gas based power projects.

3.1.3 Capital Intensive Industry:

Power industry is a capital intensive industry as a small power plant needs a huge

investment to establish and operate. SME based entrepreneurs cannot invest in this

industry due to its initial huge investment. Only investors with large capital or joint

ventures projects or foreign investors are coming to invest in power plants.

3.1.4 Energy Infrastructure:


And no initiative is taken to improve the infrastructure. With this type of poor

infrastructure it is quite difficult to reach the goal of the government to produce the

additional power in the coming years.

3.1.5 Lack of Necessary Maintenance and Rehabilitation of Old

Power Plants:

Due to lack of necessary maintenance and rehabilitation of old power plants, it is not

possible to utilize the total installed capacity of the power plants. The shortage of


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electricity can be from the load-shedding made during the peak demand of summer

which is about 1800 Megawatt each day. If all the existing plants could be maintained

properly the supply of electricity could have been more.

3.1.6 Dependency on Single Energy (gas) and Entity for ElectricityGeneration:

In Bangladesh, commercial energy consumption is mostly natural gas (around 66%),

followed by oil, hydropower and coal. Power plants in Bangladesh are dependent on

gas significantly. On the other hand, 63% of total electricity is produced by public

sector and 37% is produced by private sector. Among the 63% production of public

sector 40% is produced by BPDB (Bangladesh Power Development Board) only.

3.1.7 Huge System Losses:

Shortage of electricity is not attributed to generation alone but transmission and

distribution are also responsible for the existing short fall. There is a huge amount of

system loss in the power production process. These system losses are also taking

place during the transmission and distribution of power.

3.1.8 Delays in Completion of New Plants:

Delays in completion of power projects are very common in all power plants. The

projects cannot meet the deadline for its completion time. Hence, this delay leads to a

crisis in the production and distribution of power according to its demand and supply

within the required time.

3.1.9 Small Reserve of Oil and Coal:

Most of the existing power plants are oil or coal based in our country although

Bangladesh has a very small reserve of oil and coal both offshore and onshore. From

this small reserve Bangladesh cannot get the enough supply of oil and coal for its

power plants. This small reserve could lead to a crisis of raw materials for the oil and

coal based power plants.

3.1.10 Increasing Price of Raw Material:

The price of oil in the international market is increasing since the depression of 2009.

Recently the economic crisis in Europe and political instability of Middle East leads

the international market of oil towards an unpredictable situation. As oil is one of the


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main raw materials for power plants and Bangladesh government imports most of

their oil from international market, the increasing price of oil in the international

market will be a treat for our power industry.

3.1.11 Corruption in Power Sector:

Dishonest officials and employees of Power Development Board and similar agencies

are swindling around Tk1000crore annually from the power and energy sector under

the cover of system loss and using false vouchers against payment of utility bills.

The power sector is a hostage to rental and quick renal power plants at the moment, as

they are owned by business houses close to the government. They are swindling

several thousands crore taka annually. The entire power sector is suffering from huge

financial losses for paying against unutilized capacity of rental power plants.

But the swindling of power sector due to system loss and grabbing money using false

payment vouchers of electricity, gas and fuel oil of Bangladesh Petroleum

Corporation bills is no less enormous, the sources said.

The swindling is going on almost unabated and the concerned sources in the Energy

ministry said the government is failing to stop it as several strong syndicates are

involved in the swindling and a section of dishonest senior officials are giving themshelter.

The sources said black cats are everywhere in the gas and power sector. They are

swindling around Tk 600 crore from power sector, besides around Tk 220 crore from

gas and Tk 156 crore from fuel oil. The overall swindling stands at over Tk 1000

crore annually, the sources said adding the financial losses in all three areas may

actually stand much more than that.

BPC officials told The New Nation on Monday that their real loss from misuse may

exceed Tk300 crore. They are adjusting the loss manipulating the weighing system of

the oil delivery, they said.

The system loss in the Power Development Board (PDBs) alone stands at around 15

per cent, of which 10 percent occurs at the generation, transmission and distribution

level. It is systemic loss and has nothing to do with swindling by dishonest syndicates.

But the remaining five percent of the system loss results from misuse of electricity

and electricity bills by dishonest employees and officials from field level to engineers


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and accountants. The government has lost around Tk 600 crore last year, the PDB

estimates said.

3.1.12 Setting Wrong People in Power Sector Management:

Government is taking unskilled people for public power industries. Some officials

take bribe to hire unskilled people. For this reason inefficient professionals failed to

make proper planning of power and energy projects, implement key projects on time

or manage maintenance and operation of generation, production, transmission and

distribution of power and gas supply. Wrong professionals misguided government

into making wrong planning of importing coal and LNG leaving our substantial coal

resources underground and making no sincere efforts of exploring huge untapped

petroleum resources at onshore frontiers and offshore.

3.2 Prospects of Power I ndustry in Bangladesh

3.2.1 Joint Venture with India:

Bangladesh is going to establish joint venture power plants with India especially with

its north eastern states. Indian govt. invites Bangladesh to invest in power sector in

joint venture basis which will increase both countries power generation. Bangladesh

government recently got an invitation from the state government of Tripura to invest

in a joint venture power plant from which Bangladesh will get 100 MW power in its

national grid.

3.2.2 Nuclear Power Plant:

Bangladesh recently signed a contract to set up a 1,000 MW power plant at Rooppur,

200 km (125 miles) northwest of the capital Dhaka. After completion of this project

there will be an addition of 1,000 MW supply to the national grid. This project will

also attract other foreign investors to invest in nuclear power plants in Bangladesh

which ultimately increase the power production of the country.

3.2.3 Prospects of solar power:

Solar power has a great future in Bangladesh. But its potentials are being put on a

hold from various factors. The rate of solar electrification is on the rise in Bangladesh.


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Every month more than 30,000 Solar Home Systems (SHS) are being installed in the

rural areas of the country. But this rate could be a great deal higher if the cost of

owning one SHS could be substantially lowered from its current price of the

equivalent of $ 300. Since this is a big price tag to be paid by an average rural

homestead, the consequences have been restricted ownership of SHS. However, the

ones who have set up SHS are also able to bear the costs gradually by paying through

installments.

But the faster rate of SHS ownership involves scaling down its purchase cost or

installation cost. And this can be done mainly through discouraging import of solar

panels and making them locally. But even the local manufacture of SHS will not quite

lead to relatively affordable costs of the same till the local makers are enabled to

decrease their production costs.

But importers still need to pay 40 to 50 per cent import duty on other components of a

panel. Clearly, there is a need to reduce to the reasonable minimum duties on the

components to cut costs in the installation and maintenance of solar power devices.

Bangladesh has one of the highest VAT/taxes on raw materials used by the solar

power industry. If VAT/ taxes are removed sufficiently, then it should become

possible to reduce the cost of a SHS by 40 per cent. If these costs are reduced, then

solar can become competitive with diesel generators. Government and people will

both benefit from not requiring the import of diesel to run irrigation pumps, less load

shedding and more productivity.

Feed in tariff policy had been very effective in promoting solar in most western

countries. India also has a feed in tariff policy. Under this policy, a solar-system

installer can sell electricity to the national grid at a slightly higher price. This will

encourage urban dwellers to install solar-systems and feed the extra electricity to grid

line. We can transform every urban building into a powerhouse through the effective

implementation of feed in tariff policy.

Solar electrification of rural areas where the greatest number of Bangladeshis has

their existence will effectively solve the problem of reaching of the blessing of

power to the greatest number of people at the soonest. The availability of power, of

course, will be a big boost in helping people to increase their income in many

different ways.


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Ongoing Projects

650 KWp (400 kW load) Solar Mini Grid Power Plant at remote Haor area of

Sullah upazila in Sunamgonj district under Climate Change Trust Fund

(CCTF) on turnkey basis.

8 MWpGrid Connected Solar PV Power Plant at Kaptai Hydro Power

Station,at Rangamati on turnkey basis.

3 MWpGrid Connected Solar PV Power Plant at Sharishabari, Jamalpur on

IPP basis.

30 MWpSolar Park Project adjacent to new Dhorola Bridge, Kurigram on IPP

basis.

Solar Street Lighting Projects in seven (7) City Corporations of the country.

Projects under Planning

Conversion of existing 37.5 kWp Solar System installed on the rooftop of

Bidyut Bhaban into 37.5 kWp Grid Tied Solar System

Conversion of existing 32.75 kWp Solar System installed on the rooftop of

WAPDA Bhaban into 32.75 kWp Grid Tied Solar System

Rehabilitation of 10 KWp Solar Power Plant at the Barkal upazilla sadar of

Rangamati district.

BPDB has planned to install Grid Connected Solar PV Power Plant on IPP

basis such as-

I. 1 MW Grid Connected Solar Power Plant at Regional Training Centre

(RTC), Rajshahi.

II.

500 kWp Grid Tied Solar System at 33/11 kV substation's compoundof former Hajigonj Electric Supply, Chandpur.

BPDB has planned to install Solar Mini Grid Power Plant on turnkey basis

under Climate Change Trust Fund (CCTF) at remote and inaccessible areas

such as-

I. 500 kW Solar Mini Grid Power Plant at Swandip Upazila of

Chittagong district.

II. 500 kWSolar Mini Grid Power Plant at Thanchi Upazila of Bandarban

district.


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BPDB has planned to implement Solar Park Projects on IPP/PPP basis under

the Roadmap of ADBs 500 MW Solar Power Mission such as-

I.

Rangunia 60 MW Solar Park Project on IPP basis at Karnafuli river

side, Rangunia, Chittagong

II. 40-45 MW Solar Park Project adjacent to Bangabandhu Bridge,Tangail

and Sirajgonj area.

III. 2-3 MW Solar Park Project adjacent to PGCB Grid Sub-station

compound, Ishwardi.

IV.

1-2 MW Solar Park Project adjacent to PGCB Grid Sub-station

compound, Jhenaidaha.

3.2.4 Wind Power Projects:

The potential of wind energy is limited to coastal areas, off-shore islands, rivers sides

and other inland open areas with strong wind regime. In order to generate electricity

from Wind Energy, BPDB installed 4x225 KW = 900 KW capacity grid connected

Wind Plant at Muhuri Dam area of Sonagazi in Feni.

Another project of 1000 KW Wind Battery Hybrid Power Plant at Kutubdia Island

was completed in 2008 which consists of 50 Wind Turbines of 20 kW capacity each.

Ongoing Projects

Repairing work of the existing 900 kW grid connected Wind Power Project at

Muhuri Dam of Sonagazi in Feni is going on.

Repair and operation & maintenance of the existing Kutubdia 1000 kW Wind

Battery Hybrid Power Project is underway

Steps have been taken to install 15 MW Wind Power Plant across the coastal

regions of Bangladesh after 1 year Wind Resources Assessment in Muhuri

Dam Area of Feni, Mognamaghat of Coxsbazar, Parky Beach of Anwara in

Chittagong, Kepupara of Borguna and Kuakata of Patuakhali. Wind Mapping

is going on at Muhuri Dam area of Feni and at Mognamaghat of Coxsbazar

by Regen Powertech Ltd. of India.


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Installation of Wind Monitoring Stations at Inani Beach of Cox'sbazar, Parky

Beach of Anwara, Sitakundu of Chittagong and at Chandpur under USAID

TA project is underway


BPDB has planned to implement 50-200 MW Wind Power Project at Parky

Beach area, Anawara in Chittagong on IPP basis.

Power Division and BPDB have primarily identified 22 potential sites for

Wind Resource Mapping in Bangladesh. Wind monitoring stations will be

installed at these sites for comprehensive Wind Resource Assessment (WRA).

BPDB has also plan to expand On-shore Wind Power Plants along thecoastline of coastal regions of Bangladesh.

3.2.5 Hybrid Projects:

Ongoing Projects

7.5 MW off Grid Wind-Solar Hybrid System with HFO/Diesel Based Engine

Driven Generator in Hatiya Island, Noakhali.


BPDB has planned to install 1 MW off Grid Solar- Diesel based Hybrid Power

Plant in Kutubdia Island.

3.2.6 Micro/Mini Hydro Projects:

Micro/ mini-hydro have limited potential in Bangladesh with exception of ChittagongHill Tracts region. A 50 kW micro-hydro plant was installed at Barkal Upazila of

Rangamati district in 2005.

Ongoing Projects

50-70 kW Mohamaya Irrigation-cum-Hydro Power Project at Mirersorai,

Chittagong.

Rehabilation of 50 kW Micro-Hydro Power Plant at Barkal Upazila of

Rangamati district.



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Micro-hydro power projects on the potential streams/charas/rivers of CHT

regions will be implemented after detail Feasibility Study.

3.2.7 Power Sector Future Rolling Plan:

Power is the pre condition for social and economic development. But currently consumerscannot be provided with uninterrupted and quality power supply due to inadequate generation

compared to the national demand. To resolve the present shortfall and to meet the increasing

demand for electricity, the government has taken an initiative to increase generation

(installed) capacity to 13735 MW by 2015. For this reason installation of new power plants

and the maintenance of the old power plants has been given highest priority.

3.2.8 Power Industry Development Plan:

In order to realize the governments vision to provide electricity to most of the

population at a reasonable price and to achieve overall socio-economic development

of the country, the government of Bangladesh has initiated a Power and Energy Sector

Development Roadmap (2010-2021) which targeted to produce 8,500 MW by 2013,

11,500 MW by 2015 and 20,000 MW by 2021. However, to ensure overall and

balanced development of this sector government has taken immediate plan (2010),

short-term plan (2011), medium-term plan (2012-2015) and a long-term development

plan (2016-2021). The plans have been developed based on a techno-economicanalysis and a least-cost option. These plans include balanced development in

generation, transmission and the distribution system to achieve a desired level of

reliability of supply. A summary of the development plan is given as follows:

Immediate plan (2010)

According to the immediate plan, short term implementable (six to twelve

months) liquid fuel based quick rental power stations will be established through

private sector. In the first phase, 3 power plants with a capacity of 360 MW each

are implementing in different places of the country and are expected to initiate by

2010. However, capacity of 1,000-1,200 MW quick rental power stations will be

expected to establish by 2010 and by early 2011. Meanwhile, power plant with a

capacity of 432 MW is implementing privately.

Short term plan (2011)


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According to the short-term plan, liquid fuel based 12-24 months of

implementable power stations will be established. However, government has

initiated to implement a power station with a capacity of 920 MW.

Midterm plan (2012-2015)

Under this plan, government has taken into account to establish 3 to 5 years of

implementable coil based power stations with a capacity of 2,600 MW to the total

capacity of 7,714 MW.

Long term plan

As of the Power and Energy Development Roadmap (2010-2021), government

expects to meet the desire destination (20,000 MW by the year 2021) through the

increment of 10% production per year to towards reaching the per capita

consumption to 600 Kw.

3.2.9 List of Projects that will be implemented by 2014:

Sl.

No.

Name of the Power

Station

Capacity

(MW)

Fuel

Expected

time of

Completion

Current

Status

Public Sector

1 Haripur 360 MW

CCPP (EGCB)

360 Gas June 2014 Evaluation

of PQ

underway

2 Bheramara 360 MW

CCPP (NWPGC)

360 Gas June 2014 Scrutiny of

DPP in the

Ministry

underway

3 Shidhdhirganj 450 MW

CCPP (EGCB)

450 Gas June 2014

Total 1170


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3.2.10 List of Projects that will be implemented by 2015:

Sl.

No.

Name of the Power

Station

Capacity

(MW) Fuel

Expected

time ofCompletion

Current

Status

PPP/IPP

1 Chittagong , PPP (Joint

Venture)/IPP

1300 Coal March 2015 Feasibility

study will

start soon

2 Khulna (South), PPP(Joint Venture)/IPP

1300 Coal March 2015 Draftcontract

with

NTPC

under

process

Total 2600


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3.3 Findings

Investment or participation of private sector in electricity generation is at theminimum.

Corruption is at higher level in this sector.

Huge amount of system loss in the power production process.

Delays in completion of power projects are very common in all power plants.

Unskilled people hired by government.

Government depend on single energy (gas) and entity for electricity generation

Solar setup cost is very high.

Inadequacy of supply of electricity compared to demand

Dependency on single energy (gas) for electricity generation

Shortage of electricity is not attributed to generation alone but transmission

and distribution are also responsible for the existing short fall

Limited use of renewable energy

Coal-based power plants using domestic and imported coal;

Bangladesh recently signed a contract to set up a 1,000 MW power plant at

Rooppur, 200 km (125 miles) northwest of the capital Dhaka. Signed a

contract with India for power import.

Some big projects are to be implemented in future.


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3.1: Conclusion

In conclusion, now we can say the power industry of Bangladesh has a lot of

opportunity although there are many obstacles present in the industry. If the

government can implement all the projects that are initiated to increase powerproduction then the industry could be a very effective industry for the country. As

development of business is very much dependent on the power industry, so if this

industry can reach to its maximum then other business sectors will also get the facility

of this development. Hence, the development of power industry is essential for the

development of business as well as the overall economic development of the country.

The goal of the government regarding this industry is optimistic and promising. If the

government reaches its goal then the industry will surely be an independent industrywhich will facilitate the development of the country. Finally, I can say that the

government and private sectors should take necessary actions to improve the power

industry of Bangladesh so that this industry can operate efficiently and facilitate the

national development of the country.

3.2: Recommendations

From the above report now I have a clear idea about the present situation of power

industry of Bangladesh. The power industry of Bangladesh has a lot of weaknesses

but at the same time it has a lot of opportunities also. The prospect of the industry is

positive. It is a promising industry. From my study on this industry, I recommend the

following for the betterment of the industry.

1. The government should enter joint venture projects with the government of

India and with other foreign investors.

2. Bangladesh government should encourage foreign investors by providing

more attractive incentives.

3. Bangladesh government should decrease the cost of solar power setup.

4.

Corruption will also decreased by government.

5. Illegal connections will be cut by power companies.

6.

The industry needs more private investors to facilitate the production. Giant

private business groups should enter in this industry.

7. Proper maintenance and rehabilitation of existing power plants is very

essential to increase the production.


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8. Other power producers except BPDB should involve more and increase their

production to reduce the dependency on BPDB.

9.

Bangladesh government should improve the energy infrastructure of the

country with the involvement of the private sector.

10.The government needs to improve the distribution and transmission network

of the country to ensure the best distribution and transmission process.

11.The tender and selection process for power producers need to be transparent to

get the loans of the donor agencies.

12.

Bangladesh government should ensure enough supply of gas and oil to the

power plants to increase the production.

13.The ongoing power plant projects must be finished to increase the production

and at the same time the upcoming projects must meet the deadline to reach

the estimated increase in production.


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ReferencesNewspapers

Star Business, The Daily Star

Prothom Alo

Websites

www.powercell.gov.bd.

www.bpdb.gov.bd.

www.wzpdcl.gov.bd

www.dpdc.org.bd

www.desco.org.bd

www.egcb.com.bd

www.apscl.com

www.pgcb.org.bd

www.reb.gov.bd

www.rpcl.org.bd

www.mof.gov.bd

Articles

Power and Energy Sector Development Roadmap (June 2010), Ministry of

Finance

Bangladesh Economic Review 2011(Bangla version)

Private Sector Power generation Policy of Bangladesh, Ministry of Power,

Energy and Mineral Resources

Reports

ADB (Asian Development Bank) Report on Power Industry of Bangladesh

http://www.bpdb.gov.bd/bpdb/index.php?option=com_content&view=article

&id=26&Itemid=24

http://empire-capital.org/power-sector-analysis-a-comparative-analysis-of-

five-energy-generating-companies/
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problems and prospects of poer industry in bangladesh

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