Bangladesh Govt going for long term power & energy

Touching upon energy and power issues in his budget speech, the finance minister outlined a long-term vision to solve the gas and power crisis at present and in future, and as part of it proposed an allocation of Tk 4,310 crore for the sector in the next fiscal year (FY).

The allocation is 48 percent higher than that in the revised budget for the current FY.

The finance minister’s speech flashes the government’s consciousness about various issues related to energy, usually overlooked in the past. For instance, he talked about environment friendly energy technology, greater use of renewable energy like solar power, tapping coal in an environment friendly way, setting up a gas development fund for Bapex, conservation of energy and greater emphasis on partnership between private and public sectors.

AMA Muhith also tabled government plans to import gas from neighbouring countries through pipelines on the basis of mutual cooperation.

He adds, “We are continuing dialogue with our neighbouring countries to import power for mitigating the power crisis on a short term basis.”

He declined to give a definitive deadline for building a nuclear power plant but said the government plans to implement a 1,000 megawatt nuclear power plant in Rooppur with self-finance.

The government is seriously considering using coal along with gas for power generation, Muhith said. “We shall set up coal fired power plant using environment friendly technology for extraction of coal. If required, coal may be imported to run these power plants.”

He said the government is also considering importing environment friendly energy technology in the “context of current level of environmental degradation”.

To enhance capacity of the national oil and gas exploration company Bapex, the government is considering setting up a gas development fund. Bapex’s Shahbajpur gas field in Bhola is ready to supply 45 million cubic feet per day (mmcfd) gas for a 250 MW power plant proposed to be built there.

The country’s gas reserve is depleting. The proven reserve now is 7.3 trillion cubic feet (tcf) while probable reserve is 5.5 tcf more. This situation demands that the country must find new gas fields or face diminishing gas supply from 2011. For this, it is important to take up on-shore and offshore exploration for new reserves.

The government is also looking into the prospect of viable extraction of coal at deeper layers. “A time-befitting energy and coal policy is nearing finalisation,” he mentioned.

To ensure energy security, the government is working for a three-fold increase in oil refinery capacity.

Muhith pointed out that when Awami League came to power, it was aware of a huge gap between demand and supply, but it was not aware that the snag is not only in the supply of gas and generation of power but also in the transmission of power. There had been ’serious neglect’ to taking up new initiatives regarding known gas fields.

As a result, the present government has been compelled to set up “expensive dual-fuel power plants that can use diesel or furnace oil and also gas,” the finance minister said.

“Only 45 percent of our entire population have access to power. Currently our per capita power consumption is only 172 kwh, which is 325 kwh in Sri Lanka, 408 kwh in Pakistan and 665 kwh in India.”

Against the average power demand of 5000 MW at present, the existing power plants can generate only3800 MW, he said. “We are determined to take appropriate steps to increase power generation assuming its demand to be 20,000 MW by 2021.”

This year additional power will be generated by four projects under public sector and 440 MW by 11 projects under private sector. The bidding process for building 450 MW Bibiyana power plant is underway.

“If we go ahead as planned, we hope that by 2013, 2810 MW of power will be produced through 13 projects under public sector and another 1,350 MW through three private sector projects,” the minister said.

The government is also working for efficiency enhancement of management and efficient use of power. During the boro season this year, the government through load management diverted 300 MW power for irrigation to achieve bumper boro harvest.

“We have taken up a Tk 105 crore project to produce energy saving bulbs. Once this project is implemented, there will be a saving of 350 MW electricity,” Muhith said.

For transmission-distribution of power, the government has a three-year plan. An additional 837 km power grid line, 17 sub-stations and 15,000 km distribution line will be built.

The country now produces 20 MW power from renewable energy, mainly in rural areas. Now the government is taking initiatives for use of solar energy and biogas technology also in urban areas.

To address gas issues, the government plans to drill in 2009-11 period five development wells, four work-over wells and four production wells to get an additional 208 mmcfd. Offshore exploration will start soon.