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ENERGY AND POWER. Bangladesh Development Forum 2010 DHAKA. 15 February, 2010. Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh. Energy & Power Sector at a Glance. Electricity Growth : 7.0 % Av. since 1990
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ENERGY AND POWER Bangladesh Development Forum 2010 DHAKA 15 February, 2010 Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh
Energy & Power Sector at a Glance • Electricity Growth :7.0 % Av. since 1990 • Present Generation Capacity : 5250 MW • Total Consumer : 11.5 Million • Transmission Line : 8,300 km • Distribution Line : 2,60,000 km • Distribution Loss : 14.6 % • Per Capita Generation : 220 kWh / annum • Access to Electricity : 47 % • Current Avg. Daily Gas Prod. : 1970 MMCF • Curr. Daily Actual Gas Demand : 2200 MMCF • Remaining Gas Reserve (P1+P2) : 12 tcf • Estimated Coal Reserve : 3.3 billion tons
Government's Vision • To make electricity available for all by the year 2020 • To ensure reliable and quality supply of electricity • To provide electricity at a reasonable and affordable price • Regional energy security through mutual cooperation • Diversification of energy source • Accelerated adoption of an environment friendly policy to harness coal resources 3
Major Policy Reforms in the Sector • National Energy Policy in 1996 • Private Sector Power Generation Policy in 1996 • Policy and Vision Statement in 2000 • Regulatory Commission Act in 2003 • Renewable Energy Policy in 2008 • Enhancement of Private Participation in Power Sector in 2008 • Updating of Energy Policy along with Coal Policy is being finalized • CNG opened to Private Sector 4
Envisaged Reform in the Sector • Rationalize Tariff • Strengthen BERC • Strengthen BAPEX • Strengthen Power Cell and Hydrocarbon Unit • Make SEDA functional to facilitate investment in renewable energy • Implement cross border power trading • Implement Power Sector Financial Restructuring & Recovery Plan • Introduce e-governance to ensure transparency and accountability • Petroleum Import and Distribution 5
Supply Status of Energy and Power A. Energy: B. Power: 6
Generation Addition Plan (as per PSMP) UNDER CONSTRUCTION Public Sector : 480 MW Private Sector : 272 MW Subtotal : 752 MW (Commissioning expected by March 2010) UNDER PROCUREMENT PROCESS Public Sector : 1720 MW Private Sector : 980 MW Subtotal : 2250 MW (Commissioning expected by FY11-FY13) COMMITTED Public Sector : 995 MW Private Sector : 450 MW Subtotal : 1445 MW (Commissioning expected by FY13-FY14) Total: 4897 MW 7
Activities and Plan to Mitigate this gap Energy Mid term: Additional 300 mmcfd by 2012 Drilling of 7 appraisal/ development wells Work over of 8 existing gas wells Drilling of 4 exploration wells DSM measures Long Term: Additional300-500 mmcfd by 2017 Drilling of 9 appraisal/ development wells Drilling of 4 exploration wells under offshore bidding 2008 Steps taken to establish LNG terminal 9
Activities and Plan to Mitigate this gap Power • Steps taken to add around 9000 MW to the grid • Reached understanding with India for cross border trade • Renewable energy development through strengthening SEDA • Development of new transmission facilities e.g. 400 KV lines, NLDC, shunt compensation project etc. • Development of distribution network • DSM measures 10
Under new initiative • Short term: 6-12 Months - Rental Plants (liquid fuel) : 530 MW • Medium term: 18-24 Months - Peaking Plants (liquid fuel): 820 MW • Long term: 3-5 years - Combined Cycle Plants: 1100 MW - Peaking Plant (Gas or dual fuel): 200 MW - Coal plants: 2000-2600 MW 11
DSM Measures to Reduce Demand • Shifting peak load by changing shop closer time reduce 350 MW demand • Staggering holiday: reduce 150 MW demand • Replacing ‘incandescent lamp’ by CFL: reduce 200 MW demand by June 2010 • Introduction of DST • Steps to reduce ‘air-conditioning’ load • Energy efficiency improvement program by enhancing ‘Energy Auditing’ • Ensuring efficient use of gas in all sector • Domestic use of gas would be gradually restricted and ultimately phased out by replacing it with LPG
Fuel Diversity in Power Generation : Existing Fuel Mix
Fuel Diversity • Establish LNG terminal project to import LNG • Installation of Mega Power Projects through imported coal • Ensure regional energy security through mutual cooperation and import of energy • Use of liquid fuel to mitigate demand within short period • Nuclear power plants for future base load • Renewable energy as alternative energy resources 15
Energy Pricing & Commercial Orientation • BERC is authorised to review and fix downstream price of energy products. • Refixation of gas price by BERC on 30 July 2009. • Gas Price increment : 10 -1 5 % • “Gas Development fund” created • Unbundling the entities of the energy sector • Energy entities are being operated on commercial basis. 16
Estimated Financing Requirement for new initiative Gen Projects
Estimated Total Investment Cost in next 5-6 Years Generation : 7,000 M US $ Transmission : 1,000 M US $ Distribution : 1,500 M US $ Total for Power : 9,500 M US $ LNG terminal : 320 M US $ 20-26 tcf Gas by 2025 : 7,700 M US $ Gas Transmission : 1,500 M US $ Total for Gas : 9,520 M US $
Current and Future Challenges • Sustained primary fuel supply: gas, coal and petroleum products • Financing capital intensive projects • Enhancing operational and financial efficiency and transparency • Improving sector efficiency by strengthening regulation capacity and ensuring good governance 21
Way Forward • Establish LNG terminal to mitigate present gas crisis • Strengthening of BAPEX • Accelerate exploration and production drilling • Develop cross border pipeline under PPP • Coal fired power generation under PPP to reduce burden on natural gas • Make SEDA functional to facilitate investment in renewable energy • Implement cross border power trading • Strengthen Power Cell and Hydrocarbon Unit • Implement Power Sector Financial Restructuring and Recovery Plan • Reduce extreme dependence on natural gas through diversification of energy 22
Areas of Cooperation • Continued funding, including technical assistance for public sector projects • Assistance in capital mobilization for private sector projects, particularly from IFIs • Continued technical support for energy sector reforms and restructuring • Exchange of information and experience, technical cooperation and human resource development 23
Conclusion • Government is committed to realize it’s ‘Vision’ • Government is committed to ensure transparency in the procurement process • Private Sector will play a key role to meet the challenge of huge amount of financing requirement • Continuous efficiency improvement ensuring good governance is key for sustainable development • Concerted efforts from all quarters can ensure affordable and quality power supply to the people of Bangladesh • Role of DPs is important