Energy Crisis in Bangladesh

Short and Long Term Solutions

April 30, 2009

Compiled by Shawkat Haider

 Electricity Generation Worldwide

Current production costs :

1.76 cents per kWh for nuclear,
2.47 cents for coal,
6.78 cents for natural gas and
10.26 cents for petroleum.

Coal accounts for 39% of global energy

World Nuclear Association
IAEA.
 Electricity Generation in Bangladesh

Peak demand is catered by: Demand from:

Natural gas 85%
DESA, DESCO 1800MW
Liquid fuel 6.76%
Coal 5.41%
REB 2200MW
Hydropower 2.45% PDB itself 1500MW

1 TCF Coal (37MT) can produce 14000-94000 MW

1 TCF Gas can produce 22000 MW

3.5 barrels of oil = 17000 cubic feet gas = 1780 pound coal
(in terms of energy production)

Coal Mining Challenges in Bangladesh Khondkar Abdus Saleque, energybangla, April 2009
Solution lies in gas supply, Sharier Khan, The Daily Star
Dr. Khalequzzaman, The Daily Star
World Nuclear Association
 Energy Sector Snapshots

TOTAL INSTALLED CAPACITY 5453 MW (105 Unit) December - 2008

BPDB 3812 MW (59 Unit) December - 2008
IPP 1330 MW (39 Unit) December - 2008
SIPP & Rental 311 MW (7 Unit) December - 2008
Present generation capacity 4931 MW December - 2008
Current demand 5500 MW April- 2009
Average generation 3700-3800 MW April- 2009
Maximum generation in history 4146.9 MW April-2009
Load shedding 1000-1500 MW April-2009
Access to electricity 45% FY- 2008
Per capita generation 149 kWh FY- 2008

Distribution lines (33 KV & below) 47,479 Route KM FY-2007

Bangladesh power development board, BPDB; Power Cell, Energybangla

Power Sector Structure in Bangladesh
 Gas Sector Scenario in Bangladesh

Total recoverable gas : 21 TCF

(proven and probable)
Reserve remaining : 13 TCF

National demand of natural gas : 2200 MMCFD

Production capacity : 1880 MMCFD

Power sector requirement : 921 MMCFD

Power sector gets : 800 MMCFD

PetroBangla
Coal Mining Challenges in Bangladesh, Khondkar Abdus Saleque, Energybangla
 GAS PRODUCTON CAPACITY 2009
Capacity

Company Field Producing Wells (mmscfd)

1.BGFCL TITAS 14 405

BAKHRABAD 4 34

HABIGANJ 9 240

NARSHINGDI 2 35
Category Wise Gas
MEGHNA 1 0 Consumption (2007)
Sub Total 30 714

2.SGFL SYLHET 1 2

KAILASHTILA 6 97
Power 44%
RASHIDPUR 5 53 Fertilizer 13%
BEANIBAZAR 2 18 Captive Power 13%
Sub Total 14 170
Industrial 16%
3.BAPEX SALDANADI 2 11

FENCHUGANJ 2 32
Domestic 11%
Sub Total 4 43 Others 3%
SUBTOTAL (1+2+3) 48 927

CAIRN SANGU 6 35

JALALABAD 4 230 Titas Gas, Petrobangla

MOULOVIBAZAR 4 75

CHEVRON BIBIYANA 12 500

NIKO FENI 3 3

TULLOW BANGURA 2 100

Sub Total 31 943

TOTAL 79 1870

PetroBangla
 Coal Sector Scenario in Bangladesh

The total coal reserves in 5 coal fields

=
2.9 billion metric tons
=
energy equivalent to 67 TCF of gas

Only Baropukuria Coal Mine is operational from where 1.73 mill MT of coal has
been extracted up to December 2008 for 250MW power plant

Place/ Field (Discovery) Depth (Meter) Proven Reserve (Mill Ton)

Barapukuria, Dinajpur (1985) 119-506 390
Khalashpeer, Rangpur (1995) 257-483 143 (GSB), 685 (Hosaf)
Phulbari, Dinajpur (1997) 150-240 572
Jamalganj, Jaipurhat (1965) 900-1000 1050
Dighirpar, Dinajpur (1995) 327 200 (partly evaluated)
Petrobangla

Coal Mining Challenges in Bangladesh, Khondkar Abdus Saleque, April 26, 2009, Energybangla.com
Power Plant Status in Bangladesh

Years in operation No. of power Capacity (MW)

plants

40 + 7 140
31 - 40 6 318
21 – 30 26 1399
11 - 20 10 1113
01 - 10 50 2483
5453

Power Crisis: Issues and Challenges Md. Mizanur Rahman, March 26, 2009, Energybangla
Causes of Power Crisis

• The demand for around 5,500MW of electricity is not

met by an avg supply of only 3,800MW.

• High gas dependence. Many power plants are idle

due to shortage of gas supply and poor
maintenance.

• An inefficient transmission and distribution system

operated by state owned companies are the main
factor behind huge system loss (15-20%).

• Unprecedented delay in finalizing a coal policy. We

have a probable coal reserve of 3.3 billion tones,
which is around 5 times higher than our current
proven gas reserve in terms of its heating value.

• A lack of transparency in power generation

procurement and tendering in the past. Highly
inefficient decision making process

Maximizing Growth for Bangladesh: A Private Sector Vision, Ifty Islam, Asian Tiger Capital Partners
 Short Term Solutions

• Shutting down of all the government owned urea plants. This the only immediate source of
additional gas to be used for power generation. Most of these fertilizer factories use old fuel
inefficient process which already have outlived their effective economic life.

• Going for long term agreements to import urea right now as international price of urea is low.
The availability of urea must be assured but the price should be appropriate; a subsidy is
possible but undesirable. At least the subsidy should be linked to the price of rice.

• More Rental Power Plants need to be installed to overcome the short term power crisis.

• Reducing system loss in the power sector should be a priority as a reduction of 1% system
loss can save around 45 MW of power. The government should implement the merchant
power policy immediately

• The government can set up some small coal fired power plants and can import coal from
India on a temporary basis before developing our own coal mines

• Several large barge mounted power plants can be contracted on short term basis which can
supply additional 600 MW by the end of the year. This will ease the power crisis for a few
years while other fuel sources are developed and the required power plants constructed

Solving the energy crisis Salman F Rahman and Forrest Cookson

Maximizing Growth for Bangladesh: A Private Sector Vision, Ifty Islam, Asian Tiger Capital Partners
Power Crisis: Issues and Challenges Md. Mizanur Rahman, Energybangla.com
Bangladesh Power System Master Plan Review, Engr Khondkar Abdus Saleque, Feb 2009, Enerybangla.com
 Short Term Solutions

• Captive power generation by the private sector is around 1800-2000 MW; 20-25% of this
capacity remains unutilized which can be added to the national gridline. Provide incentive
to the standby captive generators to run their machine without taking power from grid.

The improvement of the gas pipelines and installation of compressors to increase pipeline
pressure - should be implemented immediately.

• Daylight energy saving. Changing the office timetable to 8 am - 2 pm can save more
electricity for using in the evening peak hours. 350 MW at Dhaka and Chittagong can be
saved daily

• Using energy efficient appliances and immediate removal of taxes on them

• Importing Liquefied Natural Gas (LNG) from gas exporting countries like Indonesia, Qatar
to meet urgent need

• Nation-wide power conservation awareness program

Solving the energy crisis Salman F Rahman and Forrest Cookson

Maximizing Growth for Bangladesh: A Private Sector Vision, Ifty Islam, Asian Tiger Capital Partners
Power Crisis: Issues and Challenges Md. Mizanur Rahman, Energybangla.com
Bangladesh Power System Master Plan Review, Engr Khondkar Abdus Saleque, Feb 2009, Enerybangla.com
 Mid to Long Term Solution

• Accelerate the exploration for gas. The recoverable proven remaining reserve of gas is
will start depleting after 2012. The maritime boundary dispute with India and Myanmar is a
major barrier to offshore gas exploration, and should be resolved as soon as possible.

• Petrobangla and EMRD must do everything possible to support Bapex to make it a self
reliant exploration company.

• Install new urea plants that are more gas efficient. As coal fired power plants come on
line in five years the gas can be sold to the urea factories enabling imports of urea to be
curtailed.

• Fast-track the development of Phulbari and other coal deposits and simultaneously build
large-scale coal-fired power stations. Gradually remove coal imports (currently about 5
mill MT) and supply ultimately 18 MMT to the power plants [enough for 6000 MWs].
Contract for 3 coal fired power plants each for 1000 MWs in about 4-5 years. When these
plants are available gas is switched to new efficient urea plants and peaking plants for the
power sector and for direct industrial use.

• Public private partnership should be highly encouraged. If needed, energy bond or levies
should be charged to raise funds.

Solving the energy crisis Salman F Rahman and Forrest Cookson

Maximizing Growth for Bangladesh: A Private Sector Vision, Ifty Islam, Asian Tiger Capital Partners
Power Crisis: Issues and Challenges Md. Mizanur Rahman, Energybangla.com
Bangladesh Power System Master Plan Review, Engr Khondkar Abdus Saleque, Feb 2009, Enerybangla.com
 Mid to Long Term Solution

• Government must encourage expansion of Solar, wind and bio fuel energy
generation. Efforts to use solar power on tall buildings, factories, rural areas
should be promoted with low cost loans while removing taxes on solar
equipment. Full potential of mini micro hydro generation must also be explored.
Energy from solid municipal waste in major cities can be possibility also.

• Nuclear energy is a long term solution with huge cost involvement of billion
dollar per 1000 MW plant, but essentially this would become a vital source with
highest durability and low unit cost of production.

• Many power plants set up in Ashuganj, Ghorashal, Shajibazar have outlived

their effective economic life. Further investment in those will be waste of money
and efforts. There has been considerable drainage of national resources in
maintenance of some plants. These can be replaced with fuel efficient modern
plants.

• A more efficient and faster procurement and tendering process should be

adopted for quicker implementation of any project.

Solving the energy crisis Salman F Rahman and Forrest Cookson

Maximizing Growth for Bangladesh: A Private Sector Vision, Ifty Islam, Asian Tiger Capital Partners
Power Crisis: Issues and Challenges Md. Mizanur Rahman, Energybangla.com
Bangladesh Power System Master Plan Review, Engr Khondkar Abdus Saleque, Feb 2009, Enerybangla.com