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Supplying primary energy like gas, coal or fuel is a must for ensuring power supply. Fuel oil in Bangladesh is totally dependent on import. So, oil-based power generation is not possible in the country. Then remain gas and coal. The government should increase gas production by exploring new fields. At the same time, initiatives should be taken now for coal production. Otherwise, installing coal-based power plants will not be possible. If energy supply is not ensured, the country might have power plants but not energy to run the units. The comments came from M Khijir Khan, the Acting Chairman of Bangladesh Power Development Board (BPDB). Energy & Power Editor Mollah Amzad Hossain talked to him on various aspects of the energy sector. Following are the excerpts:
EP: We are having initiatives. Where are the results?
KK: Increasing power generation overnight is not possible. For this we have to give enough time. Completing a 10-day task in five days is not possible in this sector.
EP: But, there are allegations that in Bangladesh decisions are not taken in right time. So, the suggestion is that there must be a timeframe.
KK: See, there is no requirement of giving a new timeframe. The PPR guideline of 2003 has the timeframe of the projects… from formulating to its implementation. If the timeframe could be maintained, though it’s very tough to maintain, there will be no question of delay.
EP: Many steps have been taken after the departure of four-party government for power sector development. What’s the achievement?
KK: When I took over the generation had come down to 2,400 MW. We could raise it to 3,500 MW through various measures. Now we are working on rental and small power plants project. I believe, if we could implement the project the generation in next summer will stand at 4,200 MW. However, still there will be deficit.
EP: Does your statement mean the Fenchuganj 90 MW plant will not come into generation by next summer? What’s about Siddhirganj 240 MW peaking plant?
KK: Fenchuganj will be generating by next summer. But, generation from Siddhirganj will be possible in 2010. What’s the benefit of bringing the plants into generation if there is no assurance of gas supply.
EP: It is said that there is no problem regarding gas supply. All problems have been resolved with production from Bibiyana gas field.
KK: The statement is not correct. We had 1,000 MW less generation this year for gas crisis. The situation has improved following production from Bibiyana. Still, the problem is not over totally. Still, we’ve gas problem in Chittagong region. That’s the reason the PDB has been generating less than the capacity in Chittagong. Gas problem is there in Ashuganj and Ghorashal. The Petrobangla has categorically said that they will not be able to supply gas for any new plant in next four years.
On the other hand, we are experiencing problem in only coal-based power plant of the country. The Petrobangla is not being able to supply adequate coal. The situation compelled us to import coal from India.
EP: So, do you think instead of installing new plants in time the challenge now is ensuring supply of gas and coal for the plants?
KK: I think so. We’ve to ensure energy supply before finalizing any plan for increasing electricity generation. If we can’t do so the plan to set up new plants will backfire.
EP: And that’s why you are planning to set up a 700 MW plant at Bibiyana?
KK: It’s a madness. We are not doing anything into it, I don’t know who are planning so. It’ll be easier to get gas if we set up a plant over there, but there is no transmission system for evacuating a single megawatt electricity from Bibiyana. This kind of thought will not bring any result in improving the country’s power situation.
EP: It’s being said that the selected bidder of Chandpur plant has lost interest. What’s the reality?
KK: It’s true. They had become the lowest bidder long ago. As time passed, the price has increased. So, they lost interest to carry out the task in lower rate. We are trying to bring them back. However, I’m not optimistic because they want increase in the rate. The existing procedures don’t permit it. If we go for re-tender, the rate will be higher than that of offered by them.
EP: You mentioned about serious gas shortage in Chittagong region. Then what’s the fate of Shikalbaha 150 MW and 250 MW plants?
KK: We need time for the guideline we’ve to follow. We will be able to save time if plants are set up under government-to-government agreement. That’s why the PDB made such a proposal to the ministry.
EP: We know about some new IPPs. What’s the progress?
KK: The Power Cell has been working on it. I can’t give elaborate idea about the IPPs. However, so far what we knew that the progress is not remarkable. If works for Meghnaghat 2nd phase starts, it will come into generation in 2010. The project is yet to complete the financial closing. However, Meghnaghat-1 showed timely completion of a project is possible despite delayed financial closing.
EP: Experts say that lack in continuation of works pushed the power sector into its present state. How can we come out of it?
KK: Look, continuous development of the energy sector is a concerted affair. Development of one area in the sector is not possible individually. For generating required power, we need adequate supply of gas and coal or fuel oils. The oil is totally import dependent. So, oil-based power plant is not possible in Bangladesh. Then remain gas and coal.
At first, gas. The government should go for new exploration without any delay for new gas production. At the same time, emphasis is being given to coal-based power plants. For this we need coal. If we don’t start now, setting up coal-fired plants will not be possible as per plan. So, I think the challenge is not setting up new plants, the challenge is ensuring energy for power generation. Otherwise, we might have new plants, but those will not run due to shortage of energy.
EP: The PDB is now a loss incurring organization. What’s your suggestion to strengthen its financial capacity?
KK: First of all, the PDB is not a loss making organization. The PDB has to sale 77 percent of its electricity at the price determined by the government. And rest 23 percent the PDB has been selling directly to the consumers. The problem is that the average cost of per unit electricity being available from the IPPs and the PDB itself is Tk 3.0, but the PDB is compelled to sale it at Tk 2.0 due to the tariff fixed by the government. It means the PDB has to count Tk 1.0 per unit.
On the other hand, DESA, DESCO and REB are making profits by getting electricity from us at a cheap price. On the other hand, DESA is not paying outstanding Tk 3,800 crore. Recently, they realized outstanding amount of Tk 500 crore and gave PDB Tk 225 crore. On the other hand, the PGCB is making profit after getting the transmission infrastructure of the PDB. On the other hand, the PDB officials are being compelled to serve at the same post with lower payment. In this situation, it’s up to you whether you would call the PDB a loss incurring organization or not.
EP: So, do you suggest a market-based power tariff? In that case the price of gas that the PDB gets from Petrobangla should also be market-oriented.
KK: There is no necessity of market-based tariff. In fact it’s a question that where the market price exists. You can’t call the electricity market in Bangladesh a market. The load pattern in Bangladesh suggests that the generation capacity should be 10,000 MW against the demand of 4,000 MW.
About second part of your question, I don’t find any wrong if a national company like Petrobangla supplies gas to another national company. Maintaining the existing status is better.
EP: You mentioned about load pattern. What’s it here in Bangladesh?
KK: Look, the pattern of electricity demand in Bangladesh is not similar to that in other countries of the world. The whole demand is only during 5 to 11pm. The average demand during other time of the day is one third. This compelled us to suspend the operation in many units. In a situation like this it’s a big challenge to make the country’s power generation profitable.
EP: So, you are saying that the demand of electricity during off-peak hours is one third. Then why the load-shedding in every alternate hours in the capital?
KK: The suspension of electricity supply is not only for generation shortage. There are many other factors, including low-voltage. The demand in entire country in the morning is 1,200 to 1,400 MW. There is a minimum level of every plant. When the demand decreases, either the plant becomes inoperative or we’ve to switch off it. Then starts the power shortage. On the other hand, the ratio varies from region to region. If the generation in the east is more it can’t be transmitted to the west for technical reasons.
We’ve to consider whether we’ll be able ensure uninterrupted power supply if the load pattern is not changed.
EP: The government is considering to set up more IPPs. How do you look at it?
KK: If a country has a single grid or there is a single buyer, the share of the IPPs should not be more than 23 percent of total generation. At present, it’s 30 percent in Bangladesh. It’s acceptable. But, there is apprehension of problem if there are not multi grids and multi buyer system and share of IPPs is raised.
EP: What’s about corporatization of the PDB?
KK: The consultants submitted report on the corporatization. But, the requirement is money for beginning the work. There is no allocation in the budget for it. I think the corporatization program must be carried out. However, it can’t proceed if the PDB is not empowered to take independent decision.
EP: The PDB has been working on renewables. We heard about some more plan. What’s the state of RE in the PDB?
KK: Only the PDB has introduced grid system solar power. We implemented the project in Thanchi. We are also successfully working on solar home system in Chittagong Hill Tracts.
The PDB has successfully implemented a micro hydro project in Barkal. Electricity is supply from it locally.
Already a wind center started work. There are huge potentials, but the PDB is not being allowed to run with the pace.
At present, we are working on wind power battery in Kutubdia. We hope that we’ll be able to implement more such projects in the coal if the existing project is successful.
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