BANGLADESH NEWS
The government is planning to install 27 more fuel oil-run power plants even after rising oil prices forced it to shut many similar plants down.
The Awami League-led government had built 24 fuel oil-run rental and peaking power plants to meet growing demand since it took the office 2009, but costlier fuel oil pushed the operation costs to a point where the government had to close most of them.
Official estimates put the supply shortage from the national grid at 700 megawatt on average every day against demand.
Experts believe the government should focus on gas and coal-based power plants and ease the pressure on the fuel oil-based power plants.
Prime Minister Sheikh Hasina's Power and Energy Advisor Dr Tawfiq-e-Elahi Chowdhury told : "There has been little progress on the excavating coals from the mines. The productivity of gas has increased but not sufficient to meet the demand."
"That's why the government is planning to build new fuel oil-based power plants."
He averted a direct answer as to what are the government's plans if another round of fuel price hike were to throw the power sector into deeper financial crisis. "That's why some of the plants have duel fuel (oil and gas) system to run."
State Minister for Power Mohammad Enamul Haque said, "There has been no positive progress on the coal issue. The coal policy will be finalised soon. Initiatives have been taken to dig some new wells for gas."
He said the government was working to resolve the problems surrounding fuel for the power plants.
Power Development Board (PDB) Chairman ASM Alamgir Kabir told : "We buy power at a high cost and we have to sell at a low cost after subsidising."
"We have had asked for Tk 64 billion from the government as subsidy in the current fiscal year, but we received Tk 43 billion until January this year."
Kabir said this fund crunch led to the problems in the power generation. "That's why we are trying to offset the shortage by shutting down the active power plants or decreasing the generation rate."
"In total, Tk 350-400 million is needed on a daily basis to run all the power plants. Of them, Tk 230-250 million is needed only to run the fuel oil-based plants. Rest of the money goes to the gas and coal-run power plants," he elaborated.
The government is now planning to build 27 more fuel oil-based power plants between 2012 and September, 2014 with a combined capacity of 2,545 megawatts.
The power plants to be built in the private sector this year include a 50MW one at Dhaka's Gabtoli and two power plants having capacity of 108MW and 52MW at Basila, Keraniganj in Dhaka, 108MW peaking power plant in Jamalpur, 95MW peaking power plant in Khulna, 108MW power plant in Patenga in Chittagong, 108MW power plant in Rajshahi, 52MW power plants each in Homna in Comilla and Kaathpotti in Munshiganj, 108MW power plant in Tangail and 50MW power plant in Narayanganj.
They are expected to come on stream this year, as well.
The power plants which are expected to be commissioned under the public sector by 2013 include 150MW each Khulna, Gazipur (Badda) and Chittagong (Shikalbaha) power plants, Chapainawabganj 100MW power plant while the private sector ones are Comilla (Jangalia) 50MW power plant, Narayanganj (Gagannagar) 102MW power plant, 50MW each Dhaka (Nababganj), Munshiganj, Manikganj, Kishoreganj (Bhairab) and Satkhira power plants, Meghnaghat 220MW power plant, Kaliakoir 149MW peaking power plant and Keraniganj 150MW power plant.
The government is also scheduled to set up two more power plants by 2014 – the first one under the public sector at Shikalbaha in Chittagong with a 75MW capacity and the second one under private management at Meghnaghat with a 115MW capacity.
Of the 27 power plants, 14 are furnace oil-based while the remaining 13 are duel-fuel (furnace oil/gas) power plants. Though there is gas supply for these power plants, they are to depend on furnace oil.
The PDB officials say that the production at the power plants could be suspended if the financial crisis did not end. For that reason, the government will have to pay 'captive charge' for the power plants as per the agreements.
Currently, the PDB pays Tk 2 as charge for each megawatt of electricity, meaning the government will spend millions on this head.
Professor Ijaz Hossain of the Department of Chemical Engineering at Bangladesh University of Engineering and Technology (BUET) told he saw no immediate resolution to the energy crisis.
But, he said, the government will increase subsidies to cut power outages in the next year ahead of the 2014 parliamentary elections.
Besides the gas-based power plants, the energy expert underscored the need for setting up coal-based power plants in future.
Economist Anu Mohammad said: "The crisis would have not become so acute had the government planned to set up gas-based 'base-load' power plants by reducing the dependency on furnace oil after it took office. Such new initiatives that the government has taken at the fag end of its tenure would add plunge the power sector into further disarray."
The power plants are generating a little over 5500 megawatts every day on average against a demand of 7500 megawatts.
The Awami League-led government had built 24 fuel oil-run rental and peaking power plants to meet growing demand since it took the office 2009, but costlier fuel oil pushed the operation costs to a point where the government had to close most of them.
Official estimates put the supply shortage from the national grid at 700 megawatt on average every day against demand.
Experts believe the government should focus on gas and coal-based power plants and ease the pressure on the fuel oil-based power plants.
Prime Minister Sheikh Hasina's Power and Energy Advisor Dr Tawfiq-e-Elahi Chowdhury told : "There has been little progress on the excavating coals from the mines. The productivity of gas has increased but not sufficient to meet the demand."
"That's why the government is planning to build new fuel oil-based power plants."
He averted a direct answer as to what are the government's plans if another round of fuel price hike were to throw the power sector into deeper financial crisis. "That's why some of the plants have duel fuel (oil and gas) system to run."
State Minister for Power Mohammad Enamul Haque said, "There has been no positive progress on the coal issue. The coal policy will be finalised soon. Initiatives have been taken to dig some new wells for gas."
He said the government was working to resolve the problems surrounding fuel for the power plants.
Power Development Board (PDB) Chairman ASM Alamgir Kabir told : "We buy power at a high cost and we have to sell at a low cost after subsidising."
"We have had asked for Tk 64 billion from the government as subsidy in the current fiscal year, but we received Tk 43 billion until January this year."
Kabir said this fund crunch led to the problems in the power generation. "That's why we are trying to offset the shortage by shutting down the active power plants or decreasing the generation rate."
"In total, Tk 350-400 million is needed on a daily basis to run all the power plants. Of them, Tk 230-250 million is needed only to run the fuel oil-based plants. Rest of the money goes to the gas and coal-run power plants," he elaborated.
The government is now planning to build 27 more fuel oil-based power plants between 2012 and September, 2014 with a combined capacity of 2,545 megawatts.
The power plants to be built in the private sector this year include a 50MW one at Dhaka's Gabtoli and two power plants having capacity of 108MW and 52MW at Basila, Keraniganj in Dhaka, 108MW peaking power plant in Jamalpur, 95MW peaking power plant in Khulna, 108MW power plant in Patenga in Chittagong, 108MW power plant in Rajshahi, 52MW power plants each in Homna in Comilla and Kaathpotti in Munshiganj, 108MW power plant in Tangail and 50MW power plant in Narayanganj.
They are expected to come on stream this year, as well.
The power plants which are expected to be commissioned under the public sector by 2013 include 150MW each Khulna, Gazipur (Badda) and Chittagong (Shikalbaha) power plants, Chapainawabganj 100MW power plant while the private sector ones are Comilla (Jangalia) 50MW power plant, Narayanganj (Gagannagar) 102MW power plant, 50MW each Dhaka (Nababganj), Munshiganj, Manikganj, Kishoreganj (Bhairab) and Satkhira power plants, Meghnaghat 220MW power plant, Kaliakoir 149MW peaking power plant and Keraniganj 150MW power plant.
The government is also scheduled to set up two more power plants by 2014 – the first one under the public sector at Shikalbaha in Chittagong with a 75MW capacity and the second one under private management at Meghnaghat with a 115MW capacity.
Of the 27 power plants, 14 are furnace oil-based while the remaining 13 are duel-fuel (furnace oil/gas) power plants. Though there is gas supply for these power plants, they are to depend on furnace oil.
The PDB officials say that the production at the power plants could be suspended if the financial crisis did not end. For that reason, the government will have to pay 'captive charge' for the power plants as per the agreements.
Currently, the PDB pays Tk 2 as charge for each megawatt of electricity, meaning the government will spend millions on this head.
Professor Ijaz Hossain of the Department of Chemical Engineering at Bangladesh University of Engineering and Technology (BUET) told he saw no immediate resolution to the energy crisis.
But, he said, the government will increase subsidies to cut power outages in the next year ahead of the 2014 parliamentary elections.
Besides the gas-based power plants, the energy expert underscored the need for setting up coal-based power plants in future.
Economist Anu Mohammad said: "The crisis would have not become so acute had the government planned to set up gas-based 'base-load' power plants by reducing the dependency on furnace oil after it took office. Such new initiatives that the government has taken at the fag end of its tenure would add plunge the power sector into further disarray."
The power plants are generating a little over 5500 megawatts every day on average against a demand of 7500 megawatts.
