Government of Bangladesh

BANGLADESH RENEWABLE ENERGY DEVELOPMENT PROGRAM

On behalf of Bangladesh Delegation:

Al Mudabbir Bin Anam

Deputy Director (Sustainable Energy), Power Cell, Power Division

07 November 2011, Beijing

Bangladesh Power Sector Overview

Bangladeshs Power Sector: At a Glance (FY 2011)

Electricity Growth Generation Capacity Total Consumers Transmission Lines Distribution Lines Per Capita Generation Access to Electricity : 7.20 % in FY-2011 (Av. 7 % since 1990) : 6984 MW (Sept., 2011) : 12.5 Million : 8,600 km : 2,78,000 km : 252 kWh (incl. Captive) : 50 %

Estimated Demand Supply Gap up to 2016 (Calendar Year)

January, 2011
16000 14000 12000 10000 8000 6000 4000 2000 0 2010 2011 2012 2013 2014 2015 2016

Max.Demand with DSM (In April)

Dependable Capacity (End of Dec)

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Power System Master Plan (up to 2030)

PSMP 2010 : Long term planning up to 2030 Study completion: February 2011 Findings:
- Generation capacity requirement by 2021: 24,000 MW - Generation capacity requirement by 2030: 39,000 MW - Coal based generation capacity by 2030: 20,000 MW - Coal and Nuclear for base load power requirement - Renewable Energy for balancing the gap - Cross Boarder Trade with neighboring countries

Existing Renewable Energy Development Framework

RENEWABLE ENERGY POLICY

Policy effective in 2009 Policy envisions:
- 5% of total power from renewable sources by 2015 - 10% of total power from renewable sources by 2020

Policy demands (as of June 2011 Program):

- 800 MW power from renewable by 2015 - 2000 MW power from renewable by 2020

A dedicated agency proposed: Sustainable Energy Development Authority (SEDA)

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Institutional Development Progress

Establishment of SEDA as the Nodal agency is underway Dedicated Wing has been set up at Power Division under leadership of Additional Secretary Sustainable Energy Unit has been set up at Power Cell, the technical arm of Power Division Dedicated Directorates have been set up at Utilities (PDB, REB)
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Renewable Energy Development Status

ACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENT

..(JUNE 11)
Category Solar Home System (SHS) Other Solar PV Applications (e.g. Markets, Office Buildings etc.) Roof-top Solar PV Systems of New Electricity Consumers Wind Energy Biomass based electricity Biogas based electricity Achievement 47 MW (1 Million Units) 1 MW 3 MW 2 MW 1 MW 1 MW

Total

55 MW

92% contribution is from solar PV Technology

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WIND POWER DEVELOPMENT PROGRAM

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Average Wind Profile

Source: NREL, Dhaka, 2010

Wind Potential Study under Plan

Wind Project : Parky Beach, Anowara, Chittagong Anowara,

Along the seashore Wind Potential: 177 W/m2 at 50 m Average Wind Speed 6.5 m/s at 50 m height Planned Capacity: 50-200 MW Implementation Authority: BPDB Implementation: BOO basis Road and Sea communication available Proposed Location for Wind Park No resettlement issues

Seaport Airport

WASTE POWER DEVELOPMENT PROGRAM

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Waste to Electricity Project Brief

Project Authority Raw Material Prospective Location Est. MSW requirement Exp. Electricity Generation Project Implementation

: Dhaka City Corporation : Municipal Solid Waste (MSW) : Matuail / Aminbazar under Dhaka District : 1000 Ton per day : 10 MW : BOO basis - Waste Supply Agreement with DCC
- PPA with BPDB/PGCB - with CDM Benefit

Project Tenure Prospective Technology Project Completion Period Progress so far

: 20 Years : Open (Incineration / Gasification) : 2 Years : Procurement is under way

SOLAR POWER DEVELOPMENT PROGRAM

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LIST OF SOLAR POWER PROJECTS UNDER PIPELINE

Type of Project Solar Thermal Power Plant Capacity 20 MW Impl. Private Sector BPDB BPDB BPDB BPDB BPDB REB PDB& c.corp. REB REB Location Bhaluka, Mymensingh Sullah, Sunamganj Rajshahi City Rajabarihat, Rajshahi Kaptai, Rangamati REB H/Q 6 City Corporations 8 PBSs 7 PBSs Major Source of Funding Private Sector (IPP basis) Climate Change Trust Fund Private Sector (IPP basis) Private Sector (IPP basis) Asian Development Bank GoB Asian Development Bank Climate Change Trust Fund KOICA

Grid Connected Solar PV 400 kW Power Plant 1 MW 3 MW 3 MW 5 MW Solar PV System Solar LED Street Light System. Solar Powered Irrigation Pump (each 14 kWp ) Solar Powered Irrigation Pump (each 8 kWp ) & SHS Solar-Wind Hybrid Power Plant 28 kW 225kW 280 kW 222 kW

Sarishabari, Jamalpur Private Sector (IPP basis)

1 MW

BPDB

Hatia Island

Asian Development Bank

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TOTAL (Est.) 35 MW

In-built Mechanism for Promotion of Solar Power

Government has a Directive on November/ 2010 to install roof-top solar panel as a pre-condition of getting new electricity connection for load demand of more than 2 kW Under this directive, nearly 1 MWp Solar PV Systems have been installed by June/2011 Study is underWAY to develop a business model for promotion of roof top solar solutions

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500 MW SOLAR POWER DEVELOPMENT MISSION

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AT A GLANCE
Largest ever Solar Power Development Program in Bangladesh Initiative of Power Division in collaboration with a number of government ministries and their agencies Strong involvement of private sector in implementation Completion by 2015 Planning to incorporate CDM benefits The Initial Idea had been presented at ADBs 3rd Asian Solar Energy Forum in Bangkok, 1-3 June 2011 Preliminary Program outline presented at ADBs Bangladesh Solar Energy Development Forum in Dhaka, 20 Sept., 2011
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TWO BROAD CATEGORIES PROGRAMME

- COMMERCIAL TYPE - SOCIAL SERVICE TYPE

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PROGRAM TARGET

Category Commercial Projects Solar Power

Status 340 MW

Social Solar Power Projects Total

160 MW 500 MW

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A. COMMERCIAL PROJECTS
Program 1 2 3 4 5 Solar Irrigation Pumps Solar Power Mini Grid System Solar Park at govt. and railway land Solar Power in Private Commercial and Residential Buildings Solar Power in Industries Total Capacity (MW) 150 25 135 10 20 340

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B. Social Projects
Program 1 2 3 4 5 6 Solar electrification in Rural Health Center Solar Electrification in Remote Educational Institutions Solar electrification at Union Information Centers Solar Home System in Religious Establishments Solar electrification at Remote Railway Stations Solar PV system in Government Offices Capacity (MW)
50 40

7
12 10 41

Total

160
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Investment Climate in Bangladesh Renewable Energy Development

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GROWTH IS REMARKABLY STABLE AGAINST ALL SHOCKS

Resilient growth despite regular political, environmental and external setbacks

7.0 6.3 5.9 6.0

Real GDP Growth (%)

6.6 6.0

6.4 6.2 5.7 6.0

5.4 5.0 4.6 4.9

5.2 5.3 4.9 5.3

5.0

4.6 4.4 4.1 3.3

4.0

3.0

2.0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Linear Trend line (Real GDP Growth)

Source: Bangladesh Bank

Existing Incentives from Government

-

Full/ Partial Duty exemption: Solar Panel Solar Panel manufacturing equipment LED Light Solar Operated Light Wind Power Plant Promotional Funds for Renewable Energy Projects through: Bangladesh Bank IDCOL Commercial Banks

Incentives as of Renewable Energy Policy

Electricity generated from Renewable Energy Projects (less than 5 MW) may be purchased by Power Utility or any Consumer through mutual agreement

- Renewable Energy Project Investors will be exempted from corporate income tax for a period of 10 years. - Renewable Energy Equipment and raw materials will be exempted from charging 15% VAT An incentive tariff may be considered for electricity generated from renewable energy sources which may be 10% higher than the highest price of electricity purchased by the utility from private generators.
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Incentives: Private Sector Power Generation Policy Tariff based bidding Payments under the PPA continue in the event of dispatch failure Sovereign guarantee from the Government for obligations of Government entities through Implementation Agreement (IA) Assistance in getting clearances from various agencies Exemption from corporate income tax for a period of 10 years.

Incentives: Private Sector Power Generation Policy Tax exemption and repatriation facilities on royalties, technical know how and technical assistance fees Avoidance of double taxation on the basis of bilateral agreements The Bangladeshi currency, Taka is freely convertible for FDI Plant and equipment (full value) and spare parts (10% of original plant cost) without payment of customs duties, VAT and any other surcharges. Repatriation of equity along with dividends.

MESSAGE FOR THE CHINESE PARTNERS OF DEVELOPMENT

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Renewable Energy development is a priority of Bangladesh Government on consideration of Energy Security, Environment and Climate Change Mitigation Private Sector has been recognized as the key partner in the development of Renewable Energy in Bangladesh Government is currently reviewing the existing incentive structure extended to private sector to make it more investment friendly for Renewable Energy Development. Government is keen on piloting most modern and efficient Renewable Energy Technologies from the world including best practices Chinese developers, investors, manufacturers, contractors are welcome to take part in renewable energy development of Bangladesh

Thank you
Further Information: Al Mudabbir Bin Anam @ dd.sus@powercell.gov.bd