Analysis on electricity crisis and

government steps toward the eradication

of it

Prepared By
MD. Shahinul Islam
ID No. : M-073752
Major: Finance
Program: MBA

Department of Business Administration

International Islamic University Chittagong (IIUC)
Summer 2013

This OCP Report is submitted for the partial fulfillment of the Degree
Masters of Business Administration (MBA) with major in Finance

Supervised By
Md. Shariful Haque
Associate Professor
Department of Business Administration, IIUC

Prepared By
MD. Shahinul Haque
ID No. : M-073752
Major: Finance
Program: MBA

Internship Duration: September 8 - November 22, 2013

Date of Submission: November22, 2013

Department of Business Administration

International Islamic University Chittagong (IIUC)
Summer 2013

LETTER OF SUBMISSION
November 22, 2013
Md. Shariful Haque
Associate Professor and Internship Supervisor
MBA Program
International Islamic university Chittagong, Dhaka Campus

Sub: Submission of OCP report.

Dear Sir,
It is my pleasure to submit my OCP report on Analysis on electricity crisis
and government steps toward the eradication of it and for your kind
consideration. This job is assigned to me to fulfill the partial requirement of
MBA program.
The report contains a comprehensive study on the Present Situation of Energy
of Bangladesh & Government Steps in eradicating the deficiency of Energy
crisis. It was a great pleasure for me to have the opportunity to work on the
above mentioned subject. I have tried my level best to come out with a good
one.
Please feel free to contact me if you have any inquiries. I would be very happy
to provide you with any clarification regarding this report.
Would you please kindly accept my paper and oblige me thereby.
Thank you.
Sincerely yours,

Md. Shahinul Islam

ID: M-073752
Major: Finance

LETTER OF SUBMISSION
November 22, 2013
The Coordinator
MBA Program
International Islamic university Chittagong, Dhaka Campus
Sub: Submission of OCP report.
Dear Sir,
It is my pleasure to submit my OCP report on Analysis on electricity crisis
and government steps toward the eradication of it and for your kind
consideration. This job is assigned to me to fulfill the partial requirement of
MBA program.
The report contains a comprehensive study on the Present Situation of Energy
of Bangladesh & Government Steps in eradicating the deficiency of Energy
crisis. It was a great pleasure for me to have the opportunity to work on the
above mentioned subject. I have tried my level best to come out with a good
one.

Please feel free to contact me if you have any inquiries. I would be very happy
to provide you with any clarification regarding this report.
Would you please kindly accept my paper and oblige me thereby.
Thank you.
Sincerely yours,

Md. Shahinul Islam

ID: M-073752
Major: Finance

Acknowledgement

I would like to thank The Almighty Allah for giving me the opportunity to
successfully complete my OCP report.
I have prepared my OCP report on Analysis on electricity crisis and
government steps toward the eradication of it. I tried my best to get this
paper ready to the required standard.
I would like to thank my OCP program supervisor Md Shariful Haque, Associate
Professor, IIUCDC for his prudent guidance and instruction that enabled me to
accomplish the internship report successfully.

Table of Content

Chapter 1
1.0
0
1.1
1.2
1.3
1.4
1.5
1.6

INTRODUCTION
Background of the Report
Objectives
Scope
Sources of Information
Methodology
Limitations:

Chapter 2
2.00
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09
2.10
2.11
2.12
2.12.1
2.12.2
2.12.3
2.12.4
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21

PRESENT SITUATION OF ELECTRICITY OF

BANGLADESH
Introduction
Background of Bangladesh
Sources of Energy
In the view of Bangladesh
Current Situation of Electricity Demand, Generation and
Load Shedding
Maximum Demand for Electricity by Different Zones
Relationship between GDP and Generation of
Current situation and future projection of electricity
demand & supply
Maximum Demand for electricity by different zones
Consumption of Electricity by category
Relation between GDP and electricity Generation
Relation between GDP and electricity Generation
High Gas Dependency
Improper Privatization Policy
Lack of timely Implementation of Allocated Money
Political Reason
The objectives of the revised National Energy Policy (NEP)
Present power situation in Bangladesh
Load Management System using GIS Technology
New generation plan of government
Full supply capacity in Bangladesh
Power system reliability
Power Generation Scenario in Bangladesh
New generation future plan of government
Transmission plan

Page
Numb
er
10
10
11
11
11
12
13
Page
Numb
er
15
15
15
16
17
18
19
19
19
21
22
23
24
24
25
25
25
26
26
27
29
31
31
32
33
35

2.22
2.23
2.24
2.25

Power Distribution Plan

Achievements
Distribution Projects
Owner wise generation

2.26
2.27
2.28

Achievements till September 2013

Future programs
System Loss

Chapter 3

41
42
42
50
53
54
55
Page
Numb
er

3.00
3.01

Recommendation
Perfect Estimation of future need

57
57

3.02
3.03

57
57

3.04
3.05

Alternative Source of Energy

Effective long term plan to meet future Demand
Government should go to other country for electricity
Generation
Making Corruption free sector

3.06
3.07

Removing the system loss

Government Can concentrate more on Coal based plant

57
58

3.08
3.20

Awareness of the population

Conclusion

58
58

3.30

BIBLIOGRAPHY

60

57
57

ABSTRACT

Electricity, the most usable form of energy, is one of the most important
issues for the economic development of a country. The projection of demand
for electricity is an integral part of the planning process as it enables the
decisions-makers on the regarding matter. This study investigates the
possible pattern of electricity scenario in the near future.
A Developing nation like Bangladesh requires uninterruptable Energy Supply
for industrial, Agricultural growth. Without uninterruptable Electricity supply
we cannot even think of being Developed nation. Many parts of the country
did not get the Electricity coverage yet. Due to Load shedding our Irrigation is
been interrupted as a result it effect badly in production in agricultural sector
as well as in our GDP. We become badly dependent on import; it creates more
import pressure and deficit in foreign currency. In case of industry sector
heavy weight machine are being used, which requires uninterruptable
electricity supply for keeping production level up to the mark. Readymade
garments industry cannot meet there expected production which causes
delay in shipment. Country loses their export contract. Many Factories has
been closed due to insufficient supply of electricity.
Government has made successful record in Electricity generation in last five
years. Government has taken many steps in development of electricity
generation which is mainly based on temporary basis. Quick rental cannot be
the solution of electricity for long run. Government should take more
initiatives for long run and keep moving economic cycle towards the
developed nation. Government should have to take decision in such way that
the nation could meet the future demand of electricity.

Chapter Name: Introduction

1.0

INTRODUCTION

OCP program is a prerequisite for acquiring MBA degree. Before completion of

the degree, a student must undergo the internship program. Internship program
is a perfect blend of the theoretical and practical knowledge. As the classroom
discussion alone cannot make a student perfect in handling the real business
situation, therefore it is an opportunity for the students to know about real life
situation through this program. Industrial companies around the globe are
continuously searching for extreme quality and innovation since their only
product is highly sophisticated and directly related to the alleviation of human
sufferings. The report on Analysis on electricity crisis and government
steps toward the eradication of it and it was approved by academic
supervisor Md. Shariful Haque, Associate Professor,

Department of

Business Administration, International Islamic University of Chittagong .

1.1. BACKGROUND OF THE REPORT

This report is an Internship report prepared as a requirement for the completion
of the MBA Program of International Islamic University Chittagong (IIUC). The
primary goal of internship is to provide an on the job exposure to the student
and opportunity for translations, and research institutions as well as in
development projects.
The report titles Analysis on electricity crisis and government steps
toward the eradication of it. is a collaboration representation of my
Internship Program. The report topic was assigned by the respectable
supervisor of the host organization and was approved by the faculty supervisor
to satisfy both organizational requirements as well as the fulfillment of
internship program. This report has been prepared under both of their direct
supervision.

1.2. OBJECTIVES
As a business expectative of future, we should have to gather experience
beside our survey. We should not concern our lesion only in classroom but to
implement it in practical life that will help us in our future life .A clear objective
help in preparation of well decorated report in which other take the right type of
decision .So, we identifying objectives is very much important.

1.3. SCOPE
The study would focus on the following areas:

Electricity generating scenario of Bangladesh

Performance Evaluation of Government to removal of this crisis.

1.4

SOURCES OF INFORMATION

Information collected to furnish this report is both from primary and secondary
sources.
The primary sources are:

Face to face conversation with Engineers of this sector

Relevant file study as provided by different Organization

The secondary sources are:

Information published in BPDC website.

Different journals and Report published in Website.

Annual Reports of BPDC.

1.5. METHODOLOGY
Type of Research:
This report is a descriptive type of research in nature and it administered by
collecting both primary and secondary data. The author has tried to use both
the primary and secondary sources of collecting information and some are to
make the report presentable with as fewer abstractions possible.
Sources of data:
In order to attain the objective of the study in this report all- necessary
information are prepared by collecting both primary & secondary sources of
data.
Primary sources:
Primary data collected directly to solve the customer problem through face-toface interaction. It is the systematic collection of information directly from
respondents using survey. Several sources of data collection are used to make
this report. The source of data are

Face to face conversation with Engineers of this sector

Relevant file study as provided by different Organization

Secondary sources:
Some secondary data collected to make the report more concrete. These data
has been collected from different books, web site, Annual report of BPDC and
combination of all these sources; such as

Books

Journals

Information published in BPDC website.

Different journals and Report published in Website.
Annual Reports of BPDC.

1.6 LIMITATION:
Though I tried my level best to produce a comprehensive and well-organized
report on Analysis on electricity crisis and government steps toward
the eradication of It, some limitations were yet present there:
i.

A period of twelve week was not sufficient to collect and understand

the insights of whole Scenario of Electricity generation, Distribution &
Evolution.

ii.

Government policy did not permit to disclose various data and

information related to this context.

iii.

Recent data and information on different activities of Government was

unavailable.

iv.

Lack of sufficient privileges

CHAPTER NAME: Present Situation of Electricity of

Bangladesh

2.01 INTRODUCTION
Bangladesh's energy infrastructure is quite small, insufficient and poorly
managed. The per capita energy consumption in Bangladesh is one of the
lowest (136 kWH) in the world. Noncommercial energy sources, such as wood
fuel, animal waste, and crop residues, are estimated to account for over half of
the country's energy consumption. Bangladesh has small reserves of oil and
coal, but very large natural gas resources. Commercial energy consumption is
mostly natural gas (around 66%), followed by oil, hydropower and coal.
Electricity is the major source of power for most of the country's economic
activities. Bangladesh's installed electric generation capacity was 8525 MW in
2013; only three-fourth of which is considered to be available. Only 40% of the
population has access to electricity with a per capita availability of 136 kWh per
annum. Problems in the Bangladesh's electric power sector include corruption
in administration, high system losses, and delays in completion of new plants,
low plant efficiencies, erratic power supply, electricity theft, blackouts, and
shortages of funds for power plant maintenance. Overall, the country's
generation plants have been unable to meet system demand over the past
decade.

2.02 BACKGROUND OF BANGLADESH:

Bangladeshs Ministry of Power, Energy, and Mineral Resources (MPEMR)
controls the power sector in Bangladesh. This is done primarily through the
Power Division and Power Cell, which were created in 1998 with a mandate of
managing, regulating, and leading reforms in the power sector. Generation and
distribution activities have been opened to foreign and private sector
involvement, although both sectors remain dominated by state-owned entities.
In 1996 the government issued the "Private Sector Power Generation Policy of
Bangladesh" and began to solicit proposals from independent power producers
(IPPs) in hopes of easing the countrys electricity supply shortage. Several IPPs
broke ground on new power stations after 1996, and more recently Bangladesh
has attracted large investment proposals. In May 2005, U.S.-based Vulcan
Energy signed a memorandum of understanding (MOU) with the government of
Bangladesh for the construction of $1.6 billion in gas, coal, and fertilizer
projects that would bring an additional 1,800 MW in generating capacity online.
In addition to large IPP projects, in April 1998, Bangladesh adopted a "Small
Power Generation Policy," which encourages development of small local
generation projects of up to 10-MW in capacity in underserved areas. The
country has an active rural electrification program, which is supported by the
$280 million loan package from the ADBs Power Sector Development Program
(PSDP) initiated in 2003.Apart from the above data, Alternative Power

Generation Systems have been in great demand in the Bangladesh Industry

and there remains a tremendous growth potential in this sector.

2.03 SOURCES OF ENERGY IN BANGLADESH:

As of 2011, 79 natural gas wells are present in the 23 operational gas fields
which produce over 2000 millions of cubic feet of gas per day (MMCFD). It is
well short of over 2500 MMCFD that is demanded, a number which is growing
by around 7% each year. In fact, more than three-quarters of the nations
commercial energy demand is being met by natural gas. This influential sector
caters for around 40% of the power plant feedstock, 17% of industries, 15%
captive power, 11% for domestic and household usage, another 11% for
fertilizers, 5% in compressed natural gas (CNG) activities and 1% for
commercial and agricultural uses.
CNG is substituting more that USD 0.8 billion worth of foreign exchange
annually and is also used in most vehicles on the road. In addition to CNG,
Liquefied Petroleum Gas (LPG) is also demanded at around 0.1 million tons. The
nation furthermore demands 3.5 million tons of oil imports in addition to almost
2 million tons of diesel to feed oil-based power plants being planned and built
all around the country. The additional petroleum and coal imports are causing a
disruption in the GDP by as much as 2% annually. The new purchases are
affecting improvement initiatives in other sectors causing reduced export
earnings and curtailing employment opportunities. This massive failure in the
energy sector is mostly attributed to prolonged negligence, inappropriate
implementation, inefficiency and lack of planning. To make matters worse,
natural gas reserves are expected to expire by 2020. The only coal mine of the
country is in the development stage, the reserve of which is also expected to
dry up anywhere from 75 to 80 years after the start of their operations.
Efforts to develop an open-pit coal mine in Phulbari, Dinajpur District, have met
with large, violent protests in 2006 because of feared environmental effects,
and six people were killed and hundreds injured. At the time, the government
closed the project, for which it was working with Asia Energy (now Global Coal
Resources). It was encouraged in December 2009 to re-open it by the United
States ambassador in private communication. In October 2010 protesters make
a week-long march from Phulbari to Dhaka against the mine; a coalition of other
groups protested at a Global Coal Resources meeting in London.
SOME OTHER ALTERNATIVE SOURCES OF ENERGY OF BANGLADESH:
The Government of Bangladesh have some alternative source of energy plan
which has been disclosed in the below.

1 )The renewable Energy process of Bangladesh:

The renewable energy policy of Bangladesh is a set of policies and

programs set by the Government of Bangladesh to reach national goals in the
field of renewable energy in the country.
Various government regimes have drafted such policies to supplement the
Electricity sector in Bangladesh. The country faces mismanaged distribution
and supply of electricity which is why it faces up to 2000 megawatts of
electricity shortage. This has forced hundreds of manufacturing firms across the
country to shut down taking a toll on the national GDP.

2) The Nuclear Power Plant:

Bangladesh plans to set up the 1,000 MW power plant, the Ruppur Nuclear
Power Plant at Rooppur, Pabna district 200 km (120 mi) northwest of the capital
Dhaka, by 2018In February 2011, Bangladesh reached an agreement with
Russia to build the 2,000 megawatt (MW) Ruppur Nuclear Power Plant with two
reactors, each of which will generate 1,200 MW of power. The nuclear power
plant will be built at Ruppur, on the banks of the Padma River, in the Ishwardi
subdistrict of Pabna, in the northwest of the country. The RNPP is estimated to
cost up to US$2 billion, and start operating by 2021.The inter-governmental
agreement (IGA) was officially signed on 2 November 2011.
On 29th May, 2013 Bangladesh's prime minister declared that a second nuclear
power plant will be constructed in an inland river island in southern region of
the country.

2.04 IN VIEW OF BANGLADESH ASPECT:

Bangladesh faces massive electricity shortages that have hit its booming textile
industry, with generation of 3,000 megawatts at peak times still 2,000
megawatts short of actual demand. Last year, violence over power cuts in a
northern Bangladesh town left at least 20 people dead in clashes between
police and farmers who had demanded increased power supply for irrigation.
The country's military-backed government, which took over in year after an
emergency was imposed and elections cancelled over vote-rigging allegations,
has made tackling the power crisis one of its top priorities. The World Bank in
July last year estimated that Bangladesh needed 10 billion dollars in investment
for its electricity supply in the next decade. Access to electricity in Bangladesh
is one of the lowest in the world; coverage today stands around 30% of the
total population. However the rural areas of Bangladesh, Renewable Energy
Policy of Bangladesh October, 2002 where 76% of the populations live, are
seriously deprived of the electricity facility. Larger energy supplies and greater
efficiency of energy use are thus necessary to meet the basic needs of a
growing population. It will therefore, be necessary to tap different sources of
renewable energy and to use them in an efficient manner for the benefit of the
people. For this, renewable energy development program will be taken in the

areas where potential renewable energy resources are available considering

economical & technical viability and keeping in view the Environmental Quality
Standard (EQS). Plant location, size and design will be considered on the basis
of available energy resources of the area and efficient conversion of energy will
be given preference. Priority will be given to the rural areas where national grid
expansion is expensive. This will reduce the pressure on the demand of
commercial power supply and will help to avoid costly grid expansion and will
also keep environment pollution free. Government of Bangladesh will take
challenges to electrify the whole country within the year 2020. But, major
electrification through grid expansion is not a viable option for most part of
Bangladesh in the foreseeable future mainly due to inaccessibility and low
consumer density. It is established fact that renewable energy is
environmentally sustainable, socially acceptable and economically viable option
in the off-grid locations. So, to fulfill the GOBs noble vision of universal
electrification, renewable energy sources will have to take vital role for off-grid
electrification.
Access to electricity in Bangladesh is one of the lowest in the world-coverage
today stands at less than 20% of the total population; consumption of power is
also meager, only about 110 kWh per capita per annum. Shortage of power
supply, at times very acute and unreliable, has constrained economic growth.
The lost output is, according to some estimates, as high as one percent of the
GDP. This is critical because the foregone economic growth could have taken
Bangladesh beyond the threshold of 6-7% of GDP growth rate that many
policymakers think could make a significant and sustained dent on poverty.
Moreover, availability of power is one of the important prerequisites for
attracting domestic and foreign investment on manufacturing industry and
services; it significantly influences social and human development. Demand for
access to power, which is the most popular in rural area, aptly sums up its
overall benefits. Thus, providing access to affordable and reliable electricity to
the majority of the people of Bangladesh by 2020 is a fitting national goal to
usher the next millennium. Fortunately for us, the gas resource of Bangladesh,
one of the cleanest and efficient fuels for power generation, provides a special
window of opportunity.

2.05 CURRENT SITUATION AND FUTURE PROJECTION OF ELECTRICITY

DEMAND
The average maximum demand for electricity was 3970 MW in 2007
which has increased to 4833 MW in 2011 (May, 2011) with an average
increasing rate of 216 MW per annum. Under the business as usual
scenario, the average demand might stand at 5696 MW by 2015. On the
other hand, the average generation was 3378 MW in 2007 which has
increased to 4103 MW in 2011 (May, 2011) with an annual average
increasing rate of 181 MW. Continuation of this rate indicates that the
average generation would be 4828 MW by 2015 which is far away from the
vision of 11500 MW generations by 2015. Additionally, the average load
shedding has been increased to 656 MW in 2011 (May, 2011) with an
average increasing rate of 35 MW per year from 2007. If this increasing rate

remains the same, the average load shedding might be stood at 795 MW by
2015. The lower increasing rate of generation (5.37 percent) than that of the
demand (5.43 percent) has accelerated the rate of load shedding which has
increased at a rate of 6.72 percent per annum during the same period.
2.6 MAXIMUM DEMAND FOR ELECTRICITY BY
DIFFERENT ZONE
The scale of demand for electricity is going up. It varies according to
different zones of the country. The east zone is more developed and
industrial than the west zone. This causes the difference in the demand
between the two zones. The demand for electricity in east zone is much
higher (more than double) than that of the west zone. In east zone, the
demand for electricity has increased with a rate of 18.3 percent per year
between 2000-01 and 2008-09. However, in the west zone, this increasing
rate was 9.1 percent during the same time period.
Except 2005-2006, almost all the times after 2001-02, the consumption
pattern of electricity at the domestic level increased with a decreasing rate.
The same result is also found in the case of the commercial services.
However, in the industrial services and in other services, the consumption
pattern has also increased with a decreasing rate from 2003-04 except in
the year 2005-06. The consumption rate of electricity of all the service
categories was highest in the year 2005-06. The annual rate of increase
between 2000-01 and 2007-08 was highest at commercial services which
was 15.6 percent, followed by domestic services (13.8 percent),
industrial services (13.3 percent) and other services (6.4 percent).

2.07 RELATION BETWEEN GDP &GENERATION OF

ELECTRICITY
A decreasing rate of electricity generation has resulted in the lower GDP
growth (Figure 4). The current GDP growth of 6.66 percent might be the
result of comparatively higher growth rate of electricity generation (6.19
percent). The average GDP between 2007 and 2011 was 6.22 percent
whereas the average generation of electricity was 3748 MW. Under the
business as usual scenario, if an arbitrary calculation is made, it is
observed that 603 MW generation of electricity might be required for the
growth of one percent GDP.

2.08 CURRENT SITUATION AND FUTURE PROJECTION OF ELECTRICITY

DEMAND, GENERATION AND LOAD SHEDDING
The real demand for electricity could not be met due to the shortage of
available generation capacity. A good number of generation units have

become very old and have been operating at a much-reduced capacity. As a

result, their reliability and productivity are also poor. Beside this, due to the
shortage of gas supply, some power plants are unable to utilize their usual
generation capacity. Therefore, there is an increase in the load-shedding
over the years. The average maximum demand for electricity was 3970 MW
in 2007 which has increased to 4833 MW in 2011 (May, 2011) with an
average increasing rate of 216 MW per annum. Under the business as usual
scenario, the average demand might stand at 5696 MW by 2015. On the
other hand, the average generation was 3378 MW in 2007 which
has
increased to 4103 MW in 2011 (May,2011) with an annual average
increasing rate of 181 MW. Continuation of this rate indicates that the
average generation would be 4828 MW by 2015, which is far away from the
vision of 11500MW generations by 2015. This increased demand over
generation has resulted in increased load shedding (Figure 2). Additionally,
the average load shedding has increased to 656 MW in 2011 (May, 2011)
with an average increasing rate of 35 MW per year starting from 2007. If this
increasing rate remains the same, the average load shedding might be stood
at 795 MW by 2015 (Figure 2).

Figure 2: Current Situation and Future Projection of Electricity

Demand, Generation and Load Shedding
60
00

R2 =
0.977
1

50
00

R2 = 0.9962

4000
3000
2000
R2 = 0.7187

10
00
0

2007 2008 2009 2010 2011**

2014*
2015*

2012*

2013*

Avg. Dem and (MW)

Avg. Generation (MW)
Avg. Load Shed (MW)
Linear (Avg.
Dem and (MW)) Linear (Avg. Generation
(MW))
Linear (Avg.
Load Shed (MW))
Authors calculation, based on the data collected from Power Division,
2011

It is also observed that the demand for electricity has been increased with a
rate of 5.43 percent per year whereas, the generation of electricity has been
increased with a rate of 5.37 percent per year between 2007 and 2011. The
lower increasing rate of generation (5.37 percent) than that of the demand
(5.43 percent) has accelerated the rate of load shedding which has been
increased at a rate of 6.72 percent per annum during the same period
(Figure 3).

Figure 3: Growth rate of Demand, Generation and Load

Shedding
8
6.72

7
6

5.43

5.37

Percent

5
4
3
2
1
0

Demand

Generation

Load Shed

Authors calculation, based on the data collected from Power

Division, 2011
2.09

MAXIMUM DEMAND FOR ELECTRICITY BY DIFFERENT ZONES

Planned and appropriate use of electricity is fundamental to the

economic progress of Bangladesh. The scale of demand for electricity is
going up. It varies according to the different zones of the country. The east
zone is more developed and industrial than the west zone. This has been
resulted in the different demand of electricity between these two zones
where, the demand for electricity in east zone is much higher (more than
double) than that of the west zone. In the east zone, the demand for
electricity increased with a rate of 18.3 percent per year between 200001 and 2008-09. However, in the west zone, this increasing rate was 9.1
percent during the same time period (Figure 4).

Figure 4: Growth Rate of the Demand for Electricity in Different

Zones between 2000-01 and 2008-09.

9.1

West Zone

18.3

East Zone

10

15

20

Percentag
e
Authors calculation, based on BBS, 2011 data

2.10 CONSUMPTION OF ELECTRICITY BY CATEGORY

The consumption pattern of electricity varies according to different
categories. The consumption of electricity at all categories has increased
every year (Figure 5). Except in the year 2005-06, almost all the times after
2001-02, the consumption pattern of electricity at the domestic level
increased with a decreasing rate. The same result is also found in the
case of commercial services. However, except in the year 2005-06, in
industrial services and other services, the consumption pattern has also been
increasing with a decreasing rate from the year 2003-04. The consumption
rate of electricity of all the service categories was highest in the year 200506 (Figure 5). The main reason for which the consumption pattern increased
with a decreasing rate is the lower generation of electricity over the
demand. Although, the consumption pattern of different sectors has
increased over the years but it was lower than that the expected (Figure 5).
The annual rate of increase between 2000-01 and 2007-08 was the highest
at the commercial services which was 15.6 percent, followed by
domestic services (13.8 percent), industrial services (13.3 percent) and
other services (6.4 percent).

10
0

12000

40

10000

30
Annual Growth Rate (%)

20

Consumption of Electricity (MKWH)

Figure 5: Consumption of Electricity by Category (MKWH) and their

Corresponding Growth Rate from 200001 to 2007-08

8000
6000

4000

-10

2000

-20
0

-30
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Note: MKWH = Million
Kilowatt Hours
Source: Authors calculation, based
on BBS 2011 data

2.11 RELATIONSHIP BETWEEN GDP AND GENERATION OF ELECTRICITY

The supply of electricity has a great positive impact on GDP and GDP is one of
the key indicators to measure the economy of a country. Power crisis is slowing
the pace of GDP growth rate. Therefore, it is to increase the GDP growth rate,
available supply of electricity should be ensured. The economy of Bangladesh
is mainly depending upon agriculture, industrial, commercial and other economic
development. On the other hand, these developments directly and indirectly
depend upon the fluent supply of electricity. A decreasing rate of electricity
generation has resulted in the lower GDP growth (Figure 6). The current GDP
growth of 6.66 percent might be the result of comparatively higher growth rate
of electricity generation (6.19 percent). The average GDP between 2007 and
2011 was
6.22 percent whereas the average generation of electricity was 3748 MW. Under
the business as usual scenario, if an arbitrary calculation is made, it is
observed that 603 MW generation of electricity might be required for the
growth of one percent GDP. Therefore, it is difficult to achieve the target of
seven percent GDP growth with the current generation of electricity within this

fiscal year (2011-12).

Figure 6: Relation between GDP growth and generation of

electricity growth
7
6

Percent

5
4
3
2
1
0
2006-07

2007-08

GDP Growth (%)

(%)

2008-09

2009-10

2010-11

Growth Rate of Electricity Generation

Source: Authors calculation, based on BBS 2011 data

2.12

CAUSES OF ELECTRICITY CRISIS

Although the government has taken several initiatives for reducing the
crisis of electricity, yet the crisis persists. This is mainly due to the problems
associated with high gas dependency, improper privatization policy, lack
of satisfactory and timely implementation of allocated money, political
reasons and over population.
2.12.1 HIGH GAS
DEPENDENCY
The most important reason at the moment is that the government is unable
to ensure the supply of natural gas, the main primary fuel which is used to
produce electricity. The Shortage of available gas supply creates a
struggling situation of electricity generation. Still, 83 percent of the total
electricity used to be generated by natural gas. Many power plants are idle
due to the shortage of gas supply. This has resulted in the lower
generation of electricity. On the other hand, unprecedented delay in
finalizing a coal policy makes it difficult to generate the expected level of

electricity. Government remains silent about the exploration and exploitation

of coal, which is cheaper and safer in generating electricity.

2.12.2 Improper Privatization

Policy
A good number of generation units in the public sector have become very
old and have been operating at a much reduced capacity. This is why the
government largely depends on rental, quick rental as well as independent
power producers (IPP). In April 2010, 40 percent electricity was generated by
private sector which has been increased to 44 percent by April 2011. Rental,
quick rental and peaking plants were under taken on a first-track basis to
address the nagging power crisis. But, second hand equipments and
machineries are mostly used in such plants, which will be less efficient and
the tariff will ultimately rise. Additionally, many of them are not in a position
to generate electricity till to date. Furthermore, there is a lack of
transparency. Tendering
persists
in
that
process.
Thus,
the
establishment and the timely commencing production of the major
segments of the power plant, contracted to be established on the quick
rental basis in the country are failing gradually. Thus it is not only causing
huge amount of financial loss to the national exchequer but also increasing
the sufferings of the citizen of the country. Moreover, all these quick rental
power plants are on short term basis. Here, the government has to face two
types of challenges. One is the higher subsidy due to the costly quick rental
power plants and the other is the lower production that is expected. The
government would be better off spending money on upgrading the existing
power stations.
2.12.3 LACK OF TIMELY IMPLEMENTATION OFALLOCATED
MONEY
The government has given highest priority to the development in the
power sector which has been reflected in the allocation of the annual
development programme (ADP). The total allocation in the power sector
was Tk. 7145.28 crore for the fiscal year 2011-12. Over the last few years
there was a significant gap between the allocation and the implementation
of ADP in the power sector. Considering the last fiscal year, it has been
observed that only 29 percent of the allocated ADP had been implemented
during the first eight months of that fiscal year. It means that another 71
percent have to be implemented within the next four months of that fiscal
year. When a huge amount of allocated money is required to implement,
there exist corruptions. That is why the lack of timely implementation has
reduced the proper development in the sector of electricity, in fact, in the
generation of electricity.
2.12.4 POLITICAL REASON
In Bangladesh, the governments come and go and the issue of electricity
remains a struggling one. The politicians are very much interested in
covering a lot of areas without thinking the existing generation in order to
win the mind of the voters. This may bear information about the huge
coverage of the electricity but in reality, it creates crisis. This type of politics
makes the crisis more acute.

There has been an increase in the demand for electricity in the recent
years as a result of industrial development and population growth. One of
the common matters in the country is over population, which creates a lot of
problem in the various development sectors. More population means more
consumption of electricity. Population is increasing but the generation of
electricity is not increasing as required. After all, there is an improvement in
the life style of the citizen in the country. With the improvement of the
peoples life standard, the demand for electricity has also increased. As the
generation has increased with a slower rate than that of the demand for
electricity, the crisis of electricity is on the rise

2.13 THE OBJECTIVES OF THE REVISED NATIONAL ENERGY POLICY.

To provide energy for sustainable economic growth so that the

economic development activities of different sectors are not
constrained due to shortage of energy.
To ensure optimum development of all the indigenous energy sources.
To meet the energy needs of different zones of the country and socioeconomic groups.
To ensure sustainable operation of the energy utilities
To ensure rational use of total energy sources.
To ensure environmentally sound sustainable energy development
programmes, with due importance to renewable energy, causing
minimum damage to environment.
To encourage public and private sector participation in the
development and management of the energy sector.
To integrate energy with rural development to boost rural economy.
To bring entire country under electrification by the year 2020.
To ensure reliable supply of energy to the people at reasonable and
affordable price.
To develop a regional energy market for rational exchange of
commercial energy to ensure energy security.

2.14 PRESENT POWER SITUATION IN BANGLADESH:

The installed generation capacity of Bangladesh was about 5,719 MW(Hydro :
4.19%, Steam Turbine : 48.03%, Gas Turbine 18.15%, Combined Cycle :
24.74%, Disel : 4.89% as on June 2009) from a meager 88 MW in 1960.
Electricity generation grew at about 7% p.a during last fifteen years compared
with average annual GDP growth rate of about 5.5%. The maximum generation
in FY 2009 was 4,462 MW against the forecast demand of 6,066 MW as per
update Power System master plan(PSMP-2006). The net energy generation
during FY 2009 total including independent power producer (IPP) but excluding
energy purchased by REB from private generation was about 25,622 Giga Watt
hours (GWh). The per capita electricity generation of Bangladesh is 183.74 kWh

in FY 2008-2009 which is still among the lowest in the world. About 47% of the
population has access to electricity which is also low compared to many
developing countries. This implies that there is a scope for significant growth in
power sector.
In the east zone, electricity generation was mainly done by indigenous gas
based power plants and a small percentage from hydro power plant. In the west
zone, imported liquid fuel, domestic coal and natural gas ware used for
generation of electricity. Law cost electricity generated in the east zone was
also transferred to the west zone through 230 kV East-West inter connector
(EWI). The energy transferred through EWI at the Ghorasal and Ashuganj end in
FY2009 was 2,548.99 GWh. The average feul cost per unit generation of
thermal power plants in the east and west zone under BPDB was BDT. 0.82/kWh
and BDT 3.87kWh respectively.
Bangladesh Government is committed affordable and reliable electricity to all
citizens by 2020 for the economic and social development. As per election
manifesto of the present government, electricity generation in the country
would be 7,000.00 MW by the year 2013, 8000 MW by the 2015 and 20,000
MW by the year 2021. Meanwhile, the government has declared its vision for
power sector to make the country free from load shedding beyond 2011 and to
make electricity available for all by the year 2020. In order to fulfill the vision,
additional 9,000 MW electricity will be required to be produced within nest 5
years under short, medium and long term out of which 5,400 MW would be
produced under private sector. Adequate transmission and distribution facilities
would also be developwd to get access to the electricity. Estimated total
investment US$ of 9.5 bilion would be required all together for generation ,
transmission and sictribution of power. In fact power sector reforms started in
late 70s through the creation of REB. However as part of reform programs,
following activities have been done so far.
Policies are as describe:

National Energy Policy in 1996

Private Sector Power Generation Policy in 1996.
Policy Guidelines for Small Power Plants in Private Sector in
1998.
Vision Statement and Policy Statement on Power Sector
Reforms in June 2000.
Energy Regulatory Commission Act. 2003

Sector Restructuring are as describe:

Creation of PGCB & DESCO in 1996

Corporatization of Ashuganj Power Station in 2002.
Creation of West Zone Power Distribution Company in 2003.
Energy Regulatory Commission States Functioning in 2004.

Approval to Convert BPDB into a holding Company in January

2004.

2.15 LOAD MANAGEMENT SYSTEM USING GIS TECHNOLOGY:

The supply of electricity and access to it has great impact on the national
economy. Only about one third of the countrys population has access to
electricity. The demand of electricity is also increasing at about 8% per year.
The average generation of electricity is about 3000 MW compared to average
demand of 4400 MW. Temporary operational failure of power stations add to the
shortage and make the situation more difficult. The crisis of electricity become
most critical at dry season during the irrigation season. At the beginning of next
irrigation season, the Government of Bangladesh wanted to use the generated
electricity for the most betterment of the country. A meeting was held chaired
by the Secretary, power division with all the agencies involved in power
generation and distribution to address the up coming crisis period in a planned
way. CEGIS was instructed to provide assistance for preparing the plan by
analysis historical demand and irrigation data and develop a decision support
system for optimal allocation of power to fulfill the Government objectives.
The major constraints of the Bangladesh power sector improvement is high
accounts receivable, high nontechnical and commercial loss, inability to service
debt, lack of
resources for expansion and major maintenance, lack of
commercial orientation and inefficient management. Inadequate supply, poor
maintenance and poor planning because of weak finances have resulted in low
availability of state-owned power plants, serious transmission and distribution
bottlenecks and equipment failures. In order to understand and visualize the
issues concerning load management an its distribution, it is felt necessary to
use GIS based Load Management System.
The demand of Electricity is not constant. It varies over time and location based
on the peoples activity. Demand also varies over the year for irrigation and
summer. Irrigation activity does not start simultaneously in all part of the
country. Similarly commercial demand varies over the period of the day. If such
factors are not included in the allocation of electricity it cannot be rationalized.
Since the resource is limited, a rational approach has to be established to
priorities between demands to address the most critical needs that would have
more contribution to the national growth.
Power Cell initiated a program called GIS based Load Management System to
improve the total system for efficient and optimal allocation of the available
power supply. GIS integrated different levels of information on supply and
demand form concerned departments, which will enable to address

management issues within the power sector and visualize the improvement
against the measures taken up by the management.
Opportunities in the Power and LNG Sector:
2010 IPP round:
Bangladesh, with a history of successful IPP programmes, has announced plans
to install around 4000MW of new generating capacity on a build-ownoperate
(BOO) basis and one LNG terminal of around 3.5 MT near Chittagong on a buildown-operate-transfer (BOOT) basis by 2015. Towards this end, Bangladesh
Power Development Board (BPDB) has recently issued Pre Qualification
documents for several power projects.

2.16 NEW GENERATION PLAN OF THE GOVERNMENT:

Power is the precondition for social and economic development. But currently
consumers cannot be provided with uninterrupted and quality power supply
due to inadequate generation compared to the national demand. To fulfill the
commitment as declared in the Election Menifesto and to implement the Power
Sector Master Plan 2010, Government has already been taken massive
generation, transmission and distribution plan. The generation target upto 2016
is given below (MW).

YEAR (MW)
Sector
Public
Private
Quick
Rental
Total:

BELOW THE CHART:

201
0
255
27
250

201
1
851
105
1238

201
2
838
1319
-

201
3
1040
1134
-

201
4
1270
1053
-

201
5
450
1900
-

201
6
1500
1300
-

Total

775

219
4

215
7

217
4

232
3

235
0

280
0

14,77
3

6204
7081
1488

POWER GENERATION UNITS (FUEL TYPE WISE):

Installed Capacity of BPDB Power Plants as

Unit Type
Capacity(Unit)
Coal
250.00
MW
F.Oil
110.00
MW
Gas
5086.00
MW
HFO
335.00
MW
HSD
682.00
MW
Hydro
230.00
MW
Total
6693.00
MW

on April 2012
Total(%)
3.74 %
1.64 %
75.99 %
5.01 %
10.19 %
3.44 %
100 %

Installed Capacity of BPDB Power Plants:

Derated Capacity of BPDB Power Plants as on April 2012

Unit Type
Capacity(Unit)
Total(%)

Coal
F.Oil
Gas
HFO
HSD
Hydro
Total

200.00
85.00
4651.00
248.00
657.00
220.00
6061.00

MW
MW
MW
MW
MW
MW
MW

3.3 %
1.4 %
76.74 %
4.09 %
10.84 %
3.63 %
100 %

Derated Capacity of BPDB Power Plants:

2.17 FUEL SUPPLY CAPACITY IN BANGLADESH:

Presently,
natural gas is the only significant of commercial energy in
Bangladesh., while sustained energy supply is a prerequisite for economic
development current information indicates that the existing gas reserves will be
able to meet the gas demand at 7% per annum up to 2016 through with the
present production capacity it cannot meet the existing demand. As such there
exists a demand and supply gap. The demand would reach to 5.6 billion cubic
feet by 2025. As the current reserves 12 trillion cubic feet would be unable to
meet the increasing demand, there will be a requirement of investment of over
US$ 9.00 billion exploration, development and transmission network expansion
by 2025. The current average daily gas production is about 1970 MMCF against
actual demand of 2200 MMCF resulting deficit of around 230 MMCF per day.
About 3.30 billion tones of coal reserves comprising 5 deposits (118-509
meters) are extractable at present while one deposit may not be viable for
extraction by present days technology due to greater depth (640-1158 meters)

. Only deposit (Barapukuria) has been developed and coal in being extracted
mainly for one thermal power plants.
2.18 POWER SYSTEM RELIABILITY:
In Bangladesh today, the power system in unreliable. Often, not enough
generation is available to serve demand. BPDB sheds load by disconnection
distribution circuits on a rotating basis throughout the country. It is clear the
more generation must be built to supply customers demand. A key question is
how much generation is enough to supply customer demand with appropriate
reliability. In the demand forecast, we ignore the need for operating reserves
and the changes that some of the installed generation would not be available
due to schedule unscheduled maintenance outages. These outages keep any
individual unit out of service from 10-25% or more of the time. Thus, the power
system needs substantially more then projected demand to meet actual
demand. Units experience random forced outages at rates of 10-15% of the
time. Typically, power system operators do not schedule outages during times
when peak time demand is likely to occur. Thus, the forced outages become the
dominate factors.
However , there is very small changes that all units will be out of services at
the time of peak demand., leaving the system unable to meet all demand. No
matter how many units are installed, there will always be some changes that
enough units will be forced out of service that the system is unable to meet all
demand. As more units are added, the changes of this occurring becomes very
small, but they are never zero. As such actual installed capacity should be
higher than the projected demand.
2.19 POWER GENERATION SCENARIO IN BANGLADESH:

Severe power crisis compelled the Government to enter into contractual

agreements for high-cost temporary solution, such as oil based rental and
public sector peaking power plants on an emergency basis. This has resulted
tremendous fiscal pressure. With a power sector which is almost dependent on
natural-gas fired generation (89.22%), the country is confronting a
simultaneous shortage of natural gas and electricity. Nearly 800 MW of power
could not be availed from the power plants due to shortage of gas supply. Other
fuels for generating low-cost, base-load electricity, such as coal, or large
hydropower, are not readily available and Government has no option but to go
for fuel diversity option for power generation.
When the present Government assumed the charge, the power generation was
3200 - 3400 MW against national demand of 5200 MW. In the election
manifesto, government had declared specific power generation commitment of
5000 MW by 2011 and 7000 MW by 2013.

To achieve this commitment, in spite of the major deterrents energy crisis and
gas supply shortage, government has taken several initiatives to generate
7,000 MW by 2013 and 13,000 MW by 2018, which are close to the
commitment in the election manifesto. 4432 MW of power (as of September,
2013) has already been added to the grid within three years time. The
government has already developed Power system Master Plan 2010. According
to the Master Plan the forecasted demand would be 19,000 MW in 2021 and
34,000 MW in 2030. To meet this demand the generation capacity should be
39,000 MW in 2030. The plan suggested to go for fuel-mixed option, which
should be domestic coal 30%, imported coal 20 %, natural gas (including LNG)
25%, liquid fuel 5%, nuclear, renewable energy and power import 20%. In line
with the Power system Master Plan 2010, an interim generation addition plan
up to 2018 has been prepared, which is as follows:
Plants Commissioned During 2009 September 2013
YEAR

2009
(MW)

Public
Private
356
Q. Rental
Total
356

2010
(MW)
255
270
250
775

2011
(MW)
800
125
838
1763

2012
(MW)
607
44
300
951

2013
(MW)
587

587

TOTAL
(MW)
2249
795
1388
4432

Calendar Year Wise Generation Addition program (From 2013 to

2018)
In MW
YEAR
Public
Private
Power
Import
Total

2013
(MW)
662
692

2014
(MW)
604
1366

2015
(MW)
1837
1097

2016
(MW)
1510
638

2017
(MW)
00
1271

2018
(MW)
1320
00

500
1854

TOTAL
(MW)
5933
5064
500

1970

2934

2138

1271

1320

11,497

Government has taken short, medium and long term plan. Under the short term
plan, Rental Power Plants will be installed using liquid fuels/gas and capable to
produce electricity within 12-24 months. Total 1653 MW was installed by this
time from rental power plants.
Under the medium term plan, initiatives have been taken to set up power
plants with a total generation capacity of 11,497 MW. The plants are mainly
coal based, some are gas and oil based. In the long term plan, some big coal

fired plants will be set up, one will be in Khulna and other will be in Chittagong,
each of having the capacity of 1300 MW. Some 300-450 MW gas based power
plants will be set up in Bibiana, Meghnaghat, Ashugonj, Sirangonj and in
Ghorashal. If the implementation of the plan goes smoothly, it will be possible
to minimize the demand-supply gap at the end of 2015
Government has already started implementation of this plan. Total 38,229
Million-kilowatt hour (MkWh) net energy was generated during 2012-13. Public
sector power plant generated 47% while private sector generated 53% of total
net generation. The share of gas, hydro, coal and oil based energy generation
was - 78.12%, 2.34%, 3.02% and 16.51% respectively. On the other hand, in
FY 2011-12 35,118 million-kilowatt hour (MkWh) net energy was generated i.e.
electricity growth rate in FY 2013 was 8.86% (In FY 2013
2.20 NEW GENERATION FUTURE PLAN OF THE GOVERNMENT:
In order to develop the Bangladesh power sector, a Power Sector Master Plan
(PSMP) was in place in 2005. The PSMP 2005 was mainly based on gas with the
perception that Bangladesh has abundance of gas reserve. But the reality is
reverse, as such even the existing gas based power plants could not be
operated due to the shortage of adequate gas pressure and gas reserve is
alarmingly depleting. Meanwhile, the government has declared its vision 2021
to provide electricity for all. To accommodate the changed scenario and the
govt.'s vision 2021, a new PSMP 2010 has been undertaken considering coal as
dominant primary fuel for the attainment of stable power supply up to the year
2030 in consideration of the diversification of fuel resources. The PSMP 2010
has been developed with the technical assistance of JICA and has been
approved by the government after a thorough sector experts review and
stakeholders consultations. The Study reveals that in order to attain a 8% GDP,
the electricity demand would be 34,000MW by the year 2030.

The PSMP 2010 includes an optimum power development plan and

identification of the potential power plant sites based on the fuel diversification
study. It has been developed with fundamental conditions of the development
e.g. demand forecast, procurement of primary energy resources, optimum
power development plan, future optimum power supply structure including the
positioning of gas-fired power plants, and so on. The fundamental objective is
also to attain stable power supply by achieving the 3Es i.e, Economic Growth,
Energy Security and Environmental Protection simultaneously. The government
of Bangladesh set the maximum target to reduce poverty as soon as possible
by achieving high economic growth, which could be achieved through a stable
and
efficient power system.
Considering the fuel diversification issue, the
fuel composition ratio would be coal 50%
imported coal), natural gas 25% (including
nuclear including renewable and cross-border

PSMP
(30%
LNG),
trade,

2010 aims to acquire the

domestic coal and 20%
5% liquid fuel and 20%
thus prioritizes the use of

domestic primary energy sources. However, in this case domestic energy

supplies are not enough to fulfill the rapid demand growth for electricity and
natural gas, it would be necessary to tap into other power sources from abroad.
To achieve the best mix of energy supply including imported resources, it would
be required to use economical and stable power source in consideration of
environmental protection. Especially coal will be an important resource as the
primary energy supply in Bangladesh hereafter, due to i) its price stability and
lower volatility compared with oil and natural gas, ii) longer reserve production
ratio compared with oil and natural gas, and iii) wide spread availability
throughout the world and is expected to be supplied stably. In order to achieve
the above target the PSMP 2010 addressed the following issues:
(1) Construction of imported coal power station
(2) Introduction of LNG facilities
(3) Construction of the oil fired power station
(4) Import the electricity generated by hydro power from the neighboring
countries or joint development
(5) Introducing a high efficient power supply and lowCO2 emission technology
(6) Improving 10 points thermal efficiency on average

In line with the apparent curtailment of natural gas production, the

improvement of gas utilization efficiency has become an urgent matter. To
prioritize gas supply for higher efficiency power plants is very much required in
order to improve the effectiveness of gas utilization in the whole power sector.
Therefore, during the construction of a new power station, including the
demolishment of the old power station, power expansion planning and system
operation planning will be implemented in comprehensive consideration of the
stability, environment and economies of scale in line with the introduction of
the worlds class efficient combined cycle power station, and high efficiency
and low carbon emission thermal power technology. Therefore PSMP 2010 has
stressed the need of the followings:
(1)
(2)
(3)
(4)

Higher efficient gas power station

Development of domestic coal power station
Reviewing O&M scheme
Energy conservation, Demand side management

The PSMP 2010 also recommends the development of following infrastructure

to cope up with the enhanced power system:
(1)
(2)
(3)
(4)
(5)

Construction of deep sea port

Improvement of the power transmission system
Enhancement of gas transmission line
Construction of fuel center
Strengthening the domestic waterway

(6) Strengthening the railway system

The PSMP 2010 recommends revising the tariff structure to recover
maintenance costs and future investment for plant and equipment due to the
fact that the current tariff does not envisage funding for neither appropriate
maintenance nor future system expansion. While the prevailing tariff policy
adheres to the cost reflection, it has also been recommended that the power
development surcharge into the power tariff be introduced for the purpose of
funding the development of the power system and/or energy saving projects.
PSMP 2010 recommends to promote private investment and develop an
environment that allows private funding and to create an effective and efficient
competitive power market in order to make the power sector more effective
and efficient.
The aggregated investments for the development of the generation,
transmission and related facilities are found to be at Taka 4.8 trillion (US$ 69.5
billion). The annual average of the investment amounts to Tk 241 billion (US$
3.5 billion).
The government fully recognizes the fact that public sector investment alone is
not sufficient to achieve its target and has aimed at mobilizing resources from
the private sector investments. The government has been promoting the
development of infrastructure through the promotion of Public-Private
Partnership (PPP) as the policy to develop public services via private sector
investment.
The Master Plan as a whole, requires an annual allocation of Tk 241 billion and
the amount calculated for future availability covers only 51% of the total
requirement, while the remaining 49% has yet to be identified in its funding
source. It is imperative that the funding source needs to be expanded and
efforts should be made to increase the funding volume from each of the
funding sources to fill the gap.
In addition to what has been described of the conventional Sources of funds,
funding can be sought to the mechanisms such as Global Environment Facility
(GEF) and Clean Development Mechanism (CDM) established for protection of
the global climate.
The present government after assuming the power in early 2009, has started
tackling the problems in the power sector through immediate, short, medium
and long term plan while launching a road-show to induce the private sector to
invest in Bangladesh power sector. These events are demonstrating the
government positive attitude, commitment and willingness to confront power
sector issues. Such changes of the government attitude are acknowledged to
have drawn positive responses from private investors. It is imperative to
capture the momentum, which has already been created at this moment, and
thus needs to keep up for creating a solid path for development.

The PSMP 2010 is of the opinion that each of the aforementioned constraints
needs to be addressed and measures need to be implemented for
improvement, revision, and alleviation and strengthening for making an
investment decision by an investor.
2.21 TRANSMISSION PLAN:
Power Grid Company of Bangladesh Ltd. (PGCB) is responsible for operation,
maintenance and development of transmission system all over the country.
Presently power generated in various power plants in Bangladesh is transmitted
to the national grid through 230 kV and 132 kV transmission lines. In 1996
when PGCB was formed, the total lengths of 230 kV and 132 kV line was 8,500
ckt km. In FY 2011 length of 230 kV and 132 kV transmission lines stood at
8,662 ckt km. The total length of the OPGW installed in the transmission line
from 1996 to June, 2007 was 2200 km. This has been increased to 4200 km up
to June, 2010 after completing the NLDC project. This shows that the major
parts of the country are covered by the PGCB optical fiber network.

Transmission Projects of PGCB

Govt. has undertaken a massive plan to strengthen the transmission system
and fulfill the future demand of electricity with the aim of reaching electricity to
all by 2020.

Major Upcoming Transmission Projects

1. Comilla-Meghnaghat-Haripur 230 kV Transmission Line.

2. Turn in and out of existing Ghorasal-Haripur 230 kV Line at Rampura.
3. Hasnabad-Aminbazar (Savar)-Tongi and Haripur-Meghnaghat 230 kV
Transmission Line.
4. Rampura-Gulshan 132 kV Double ckt Cable Line.
5. Khulna Central-Khulna South Double ckt 132 kV Transmission Line.
6. Khulna 230/132 kV Substation.
7. Barapukuria 230/132 kV Substation.
8. Extension of Joydebpur 132/33 kV Substation with GIS Bay.
9. Natore-Rajshahi 132 kV Single Circuit Transmission Line with PGCBs own
financing.
10.
Barapukuria-Rangpur and Barapukuria-Saidpur 132 kV Transmission
Line.
11.
Ashuganj-Sirajganj 230 kV line & Sirajganj switching station.
12.
Construction of Joydevpur-Kabirpur-Tangail 132 kV double circuit
Transmission Line.
13.
Khulna-Ishurdi & Bogra-Barapukuria 230 kV double circuit
Transmission Line.
14.
Bogra 230/132 kV S/S.
15.
Third 230/132 kV Transformer (225 MVA) each at Haripur,
Aminbazar & Rampura.
16.
Sirajganj-Bogra 230 kV Transmission Line.
17.
Sirajganj-Baghabari-Ishurdi 230 kV Line.
18.
Baghabari 230/132 kV S/S.
19.
Gallamari 132/33 kV GIS S/S.
20.
Naogaon-Niamatpur 132 kV Transmission Line.
21.
Niamatpur 132/33 kV S/S.
22.
Shahjibazar-Ashuganj 132 kV Transmission Line.
23.
Installation of 450 MVAR Capacitor Banks at 132 level in eight S/Ss.
24.
Aminbazar-Savar 132 kV Transmission Line.
25.
Savar 132/33 kV S/S.
26.
Magura 132/33 kV S/S.
27.
Jhenaidah-Magura 132 kV Transmission Line.
28.
Jhenaidah- Chuadanga 132 kV Transmission Line
29.
Naogaon-Joypurhat 132 kV Transmission Line
30.
Thakurgaon-Panchagar 132 kV Transmission Line
31.
Joypurhat 132/33 kV S/S

32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.

Panchagar 132/33 kV S/S

Chuadanga 132/33 kV S/S
Daudkandi 132/33 kV S/S
Brahmanbaria 132/33 kV S/S
Megnaghat S/S to Megnaghat Rental PP.
Shiddhirganj to Siddhirganj Dutch Bangla PP.
In-out at Ashuganj-Shahjibazar 132kV line to B.Baria.
In-out at Haripur- Daudkandi 132kV line to Meghnaghat.
In-out at Meghnaghat-Comilla(N) 132kV line to Daudkandi
Goalpara-Khulna (c) 132 kV U/G Cable.
Noapara PP to Noapara Ss.

To strengthen the transmission system in order to evacuate the already

planned generation the following projects are under implementation

On going Projects:

Sl
Name of the Project
No.

Construction and Extension of Grid

Substations including Transmission
line facilities (Phase-1)
Implementation Period : 2005-06 to
2011-12

Three Transmission
Line.
Implementation Period : 2006-07 to
2010-11

Meghnaghat-Aminbazar 400 kV
Transmission Line (Phase1).
Implementation Period: 2006-07 to
2011-12

Physical
Physical
Target up Progress Financing
to June-11 up to June- Status
11

88.78%

ADB, JBIC &

Bangladesh
Govt.

100.00%

ADB &
Bangladesh
Govt.

39.58%

ADB &
Bangladesh
Govt.

Aminbazar-Old Airport 230 kV

Transmission Line and Associated
60.30%
Sub-Stations. Implementation Period :
2006-07 to 2011-12

60.30%

ADB &
Bangladesh
Govt.

Transmission Efficiency improvement 30.75%

63.60%

kfW &

87.46%

100.00%

33.08%

through Reactive Power

Compensation at Grid Substations
and Reinforcement of Goalpara
Substation. 2007-08 to 2011-12

Bangladesh
Govt.

Siddhirganj-Maniknagar 230 kV
Transmission line with associated
30.57%
substations. August, 2009 -Dec, 2011

29.39%

ADB &
Bangladesh
Govt.

Bibiyana-Kaliakoir 400kV &

Fenchuganj- Bibiyana 230 kV
Transmission line Project.
Implementation Period: 2010-11 to
2012-13

10.00%

EDCF &
Bangladesh
Govt.

400kV Grid Interconnection between

Bangladesh (Bheramara) and India
(Baharampur) Project.
15.00%
Implementation Period: 2010-11 to
2011-12

15.00%

ADB &
Bangladesh
Govt.

Bibiyana-Comilla (North) 230kV

Transmission Line Project.
Implementation Period: Oct.2010 to
Dec, 2012

32.25%

Bangladesh
Govt.

10.00%

Bank Loan

20.55%

8.00%

Barisal-Bhola-Borhanuddin 230kV
Transmission Line.
10
10.00%
Implementation Period: March, 2011
to Sep, 2012

The following projects are under active consideration of PGCB in the Govt.s
Prioritized Investment Plan as shown in.
Planned Project

Sl
No.
1

Name of the Project

(Implementation Period)

Present Status (Upto June, 2011)

Brahmanbaria-Nabinagar-Narsingdi DPP prepared and sent to Power Division

132 kV Double Circuit Transmission on 09/11/2011. Project evaluation meeting
Line. (Sep, 2011 Sep, 2013).
held on 23/02/2011. As per suggestion of
the above meeting DPP reviewed and sent

to Power Division

RPCL Mymensingh-Tangail via

Pre-DPP sent to planning Commission from
Ghatail 132 kV double circuit
Power Division. Route survey is underway
transmission line and four new
132/33 kV substations (Sherpur,
Kulaura, Sunamganj, Sylhet (South))
with interconnecting line. (2011-12
to 2013-14)

Eight new 132/33 kV S/Ss with

DPP prepared and sent to Power Division
Interconnecting 132 kV line. (2011- on 12/12/2010. Project evaluation meeting
12 to 2012-13)
held on 23/02/2011. Proposed for JICA
funding

Hathazari-Sikalbaha- Anowara &

Hathazari- Rampur 230kV
Transmission line. (2012-13 to
2014-15)

Aminbazar-Maowa-Mongla 400 kV & Pre-DPP approved in principle and send to

Mongla- Khulna (S) 230kV
ERD for sourcing fund on 09/09/2010. WB
Transmission line. (NG3) (2011-12 is funding the F/S. RFP for F/S issued to six
to 2014-15)
short listed firm on 25th Aug, 2011

Anowara Meghnaghat 400 kV

Transmission line (NG4). (2011-12
to 2014-15)

Pre-DPP submitted and sent to planning

commission for approval on 13/06/2010.
DPP under preparation. Proposed for JICA
funding.

Pre-DPP Approved in principle and send to

ERD for sourceing fund on 13-10-2010. WB
is funding the F/S. RFP for F/S issued to six
short listed firm on 25th Aug, 2011.

Ishurdi-Rajshahi 230kV Transmission Pre-DPP approved in principle on

Line. (2011-12 to 2013-14)
27/09/2010. Awaiting for financing.

Construction of 230/132kV
Substation at Shyampur, Jhenaidah
Pre-DPP submitted
(Or Jessore), Bheramara and Sripur.
(2012-13 to 2014-15).

Enhancement of Capacity of Grid

Substations and Transmission line
(Phase-I). (2012-13 to 2014-15)

Pre-DPP prepared and sent to power

Division on 24-04-2011. DPP submitted to
power division on 25 Aug, 2011.

Chandraghona- Rangamati10 Khagrachari 132kV Transmission

Line. (2012-13 to 2014-15)

Pre-DPP submitted. Awaiting for financing.

Khulna(s)-Barisal (N) 230kV

11 Transmission line project. (20142015 to 2016-17)

Pre-DPP under Preparation

Ruppur-Bheramara-Zajira 400kV
12 Transmission line. (2014-15 to
2016-17)

Pre-DPP under Preparation

Ashuganj-Joydebpur 400kV
13 Transmission line. (2014-15 to
2016-17)

Pre-DPP under Preparation

Electricity interconnection between

14 Tripura and Eastern Region of
Pre-DPP submitted for approval
Bangladesh. (2011-12 to 2012-13)
Goalpara-Bagerhat 132kV 2nd
15 Single Circuit Transmission line.
(2011-12 to 2012-13)

PCP prepared & will be submitted to PGCB

board for

2.22 POWER DISTRIBUTION PLAN

Because of major reforms, restructuring and corporatization process of
Bangladesh power sector, a number of distribution entities were formed with
the objective of bringing commercial environment including increase of
efficiency, accountability and dynamism with the aim of reaching electricity to
all citizens by 2021.
In order to increase and improve power generation and customer service with
an aim to bring a greater mass under electrification, major integrated power
distribution programs have been undertaken. Presently the following five
organizations are responsible for the distribution of power:
1.
2.
3.
4.
5.

Bangladesh Power Development Board (BPDB)

Rural Electrification Board (REB)
Dhaka Power Distribution Company (DPDC)
Dhaka Electric Supply Company (DESCO)
West Zone Power Distribution Company (WZPDC)

2.23 ACHIVEMENTS
The government has been extremely successful to enhance and increase the
performance of the distribution entities due to continuous monitoring and
evaluation. The distribution entities have also taken various steps to improve
the electricity distribution system, heighten consumer satisfaction, and
decrease the overall system loss.
2.24 DISTRIBUTION PROJECT
To increase power generation as well as to improve customer service and bring
more people under electrification, integrated power distribution programs have
been undertaken. Up to June 2011, about 1.25 crore consumers are connected
with electricity by construction of 278,000 kilometer distribution lines. Nearly
80,000 new consumers will be connected through different projects within 3/4
years. However major power distribution expansion projects of five different
entities are mentioned below in Table.
Table: List of Projects

Name of Projects

Project
Completio cost
n Date
(Crore
Tk.)

Project objective

2013-14

637.76

12,466 new connection will

be provided by construction
and renovation of
distribution line &
substations

1088.00

10,384 new connection will

be provided by construction
and renovation of
distribution line &
substations

BPDB
1. Power Distribution
System Development,
Mymensingh Zone

2. Power Distribution
System Development,
Chittagong Zone

2013-14

3. Power Distribution
System Development,
Comilla Zone

2013-14

756.00

60,000 new connection will

be provided by construction
and renovation of
distribution line &
substations

4. Power Distribution

2013-14

410.00

69,000 new connection will

System Development,
Sylhet Zone

be provided by construction
and renovation of
distribution line &
substations

5. Power Distribution
System Development,
Rangpur Zone

710.00

77,100 new connection will

be provided by construction
and renovation of
distribution line &
substations

693.00

33,009 new connection will

be provided by construction
and renovation of
distribution line &
substations

6. Power Distribution
System Development,
Rajshahi Zone

2013-14

2013-14

Total (BPDB)

4295.00

REB
1. 10 lakh new connection 2012-13

348.00

10 lakh new connection

2. RE upgradation
project(Rajshahi, Rangpur, 2012-13
Khulna & Barisal)

1322.00

Substation & line

upgradation

3. RE Expansion Dhaka
Division-1

2012-13

498.00

4. RE Expansion
Chittagong-Sylhet Division- 2012-13
1

498.00

5. RE Expansion Rajshahi2012-13
Rangpur Division-1

407.00

6. RE Expansion Barisal
Division-1

268.00

2012-13

Total(REB)

4100 kM line construction

4500 kM line construction

3400 kM line construction

2500 kM line construction

2993.00

DPDC
1. Development of new

2011-12

434.00

Substation upgradation

132/33 kV & 33/11kV

substation
2. Rehabilitation and
Augmentation of
distribution network

Distribution line upgradation

2011-12

Total(DPDC)

169.00

603.00

DESCO
1. Strengthening of
distribution network

2011-12

486.00

2. Upgrading & Expanding

Distribution System in
2011-12
Gulshan

595.00

Total(DESC)

11081.00

Distribution network
upgradation
Distribution system
upgradation

WZPDC
1. 21 Districts Power
Distribution Projects

2012-13

Total(WZPDC)
Achievement at a glance:

469.00

Upgradation of distribution
network and substation

469.00

Total Distribution Lines

: 278,000 KM

Total Consumers

:12.5 million

Irrigation Consumer

: 2.77 Lac

Access to electricity

:50%

Distribution Loss

: 12.75%

Accounts Receivable

: 2.22 Equivalent months

Power System Interface Meter

At present the government has taken massive measures to reduce system loss
and increase customer satisfaction. Under this project 409 interface meters
have been installed at all generating stations throughout the country and
Dhaka distribution zone and transmission network at 230KV, 132KV and 33KV
level. All the meters are connected with the main server which is located at
Bidyut Bhaban (13th floor), Dhaka. Energy inflow/outflow, demand, voltage,
current, power factor, meter tempering etc. may be known from the main
server. BPDB, REB, DPDC, DESCO and WZPDC have individual workstation and
can read data at some level. The interface meters have been used as billing
meters. This will be extremely beneficial for the energy auditing system.
Operators performance will also be enhanced significantly and accountability
and transparency will be established in the energy auditing system.
Remote Area Power Supply System (RAPSS)
The government has already crossed some prominent hurdles in this
challenging field. But our country still faces power shortages and that is the
reason the GoB has set a target for providing electricity to all citizens by 2021.
This electrification target is unlikely to be met by grid expansion alone, as rest
of the populations live in remote areas which are far away from existing grid
line and sometimes isolated from the main land.
Considering this over arching goal, the government has identified private sector
participation as an important requirement. Since power system development is
highly capital- intensive, the government encourages private sector investment
to implement RAPSS. Under the RAPSS concept, private investor will be given
an area (the RAPSS Area) for the development, operation and maintenance of
the electricity distribution and retail supply system, including generation as a
utility for a period of 20 years. The government has taken initiatives to
establish solar mini-grid for remote off-grid area under RAPSS where grid
expansion is not planned for the next 15 to 20 years. Our government has also
declared fiscal incentives as enjoyed by Independent Power Producer (IPP).
Pre Paid Meter
With an aim to improve operational efficiencies, reduce financial risks and
enhance customer services, BPDB had decided to install nearly 46,000 pre
paid meter in Chittagong, Bogra, Sylhet and Sirajgonj area. DESCO has installed
another 10,000 pre-paid meters in Uttara, Tongi and Gulshan area. The
introduction of pre paid meters, has reduced system loss and improved power
distribution significantly. Due to the success of the pre paid meter, the
government has planned to install this system all around the country.

Present Installed Generation Capacity (MW) as on November, 2013.

Public Sector

Installed Generation Capacity (MW)

BPDB

4186

APSCL

777

EGCB

622

NWPGCL

300

RPCL

77

Subtotal

5,962(58%)

Private Sector
IPPs

1330

SIPPs(BPDB)

99

SIPPs(REB)

226

15 YR. Rental

167

3/5 YR. Rental

1929

Power Import

500
Subtotal

4251(42%)

TOTAL

10,213

AXIMUM DEMAND SERVED FAR

6675 MW

TRANSMISSION LINES (230 kV)

3020 Ckt. K.M

TRANSMISSION LINES (132 kV)

6302 Ckt. K.M

GRID SUB-STATION CAPACITY

(230/132 kV)

7525 MVA

12-07-2013
FY-2013
FY-2013
FY- 2013

GRID SUB-STATION CAPACITY

(132/33 kV)

11,717 MVA

DISTRIBUTION LINES (33 kV &

BELOW) (only BPDB)

34,827 K.M

CONSUMER NUMBER

26,53,946

FY- 2013
FY-2013
FY-2013

FUEL ACHIEVEMENT:
DAILY GENERATION:
Daily Generation 30/11/2013 to 30/11/2013 (All)
Power Station Name

Derated
Day Peak
Capacity(Unit)

Eve Peak

Daily Generation of 30/11/2013

a) Ghorasal ST 1, 2

78.00

MW

95.00

MW 95.00

Ghorasal ST :Unit-3,

180.00

MW

110.00 MW 110.00 MW

Ghorashal ST 4

180.00

MW

180.00 MW 180.00 MW

Ghorashal 100

100.00

MW

35.00

MW 99.00

MW

Ghorrashal ST 5

190.00

MW

0.00

MW 0.00

MW

Ghorashal ST 6

190.00

MW

0.00

MW 0.00

MW

Ghorashal 45 MW

45.00

MW

46.00

MW 46.00

MW

Ghorashal MAX

78.00

MW

80.00

MW 80.00

MW

Horipur SBU GT 1,2,3 60.00

MW

0.00

MW 0.00

MW

Horipur NEPC

110.00

MW

47.00

MW 95.00

MW

Horipur P. Ltd CCPP

360.00

MW

344.00 MW 355.00 MW

Meghnaghat P.Ltd
CCPP

450.00

MW

455.00 MW 453.00 MW

Meghnaghat IEL

100.00

MW

76.00

MW 76.00

MW

MW

Madanganj 102 MW

100.00

MW

81.00

MW 96.00

MW

Karanigonj

100.00

MW

45.00

MW 90.00

MW

Narshingdi

22.00

MW

16.00

MW 16.00

MW

Shiddirganj ST

150.00

MW

105.00 MW 95.00

MW

Siddirgonj GT 1,2

210.00

MW

0.00

MW 0.00

MW

Siddirgonj 100 MW

96.00

MW

0.00

MW 52.00

MW

Dutch Bangla 100

MW

100.00

MW

77.00

MW 100.00 MW

DPA Power 50 MW

50.00

MW

0.00

MW 47.00

MW

Horipur EGCB 360MW 412.00

MW

0.00

MW 0.00

MW

Summit Power
(Dhaka)

146.00

MW

98.00

MW 95.00

MW

Gazipur RPCL

52.00

MW

0.00

MW 52.00

MW

Tongi GT

105.00

MW

0.00

MW 0.00

MW

Chittagong
180.00
RaozanST(Gas):Unit-1

MW

0.00

MW 0.00

MW

Raozan 25MW

MW

9.00

MW 26.00

MW

Chittagong
180.00
RaozanST(Gas):Unit-2

MW

0.00

MW 0.00

MW

Kaptai Hydro:Unit1,2,3,4,5

220.00

MW

28.00

MW 128.00 MW

Shikalbaha ST

40.00

MW

0.00

MW 0.00

MW

b) Shikalbaha
Peaking (GT)

150.00

MW

0.00

MW 0.00

MW

Hathazari

98.00

MW

0.00

MW 98.00

MW

Shikalbaha(Energis)

0.00

MW

0.00

MW 0.00

MW

Dohazari Sangu

102.00

MW

0.00

MW 102.00 MW

Julda

100.00

MW

90.00

MW 91.00

MW

Malancha, Ctg. EPZ

(United)

0.00

MW

3.00

MW 4.00

MW

Barabkunda (Regent) 22.00

MW

8.00

MW 8.00

MW

a) Ashuganj ST Unit
-1,2

110.00

MW

0.00

MW 55.00

MW

b) Ashuganj ST 3

140.00

MW

100.00 MW 100.00 MW

Ashugonj ST 4

150.00

MW

150.00 MW 150.00 MW

Ashugonj ST 5

140.00

MW

100.00 MW 100.00 MW

c) Ashuganj CCPP-

91.00

MW

0.00

25.00

MW 0.00

MW

146MW
d) Ashuganj 50 MW

53.00

MW

15.00

MW 15.00

MW

Ashuganj (Precision)

55.00

MW

56.00

MW 57.00

MW

Ashuganj (Aggreko)

80.00

MW

78.00

MW 82.00

MW

Ashuganj Midland

0.00

MW

51.00

MW 28.00

MW

Ashugonj Up-53 MW

51.00

MW

49.00

MW 49.00

MW

Brahmanbaria
(Agrico) (Gas)

70.00

MW

70.00

MW 71.00

MW

Daudkandi 50 MW

52.00

MW

0.00

MW 50.00

MW

Chandpur CCPP

163.00

MW

0.00

MW 0.00

MW

Feni (Doreen)

22.00

MW

17.00

MW 0.00

MW

Feni, Mahipal
(Doreen)

11.00

MW

8.00

MW 8.00

MW

Jangalia (Summit)

33.00

MW

33.00

MW 34.00

MW

Summit Power,
Comilla

25.00

MW

22.00

MW 20.00

MW

RPCL,CCPP,
Mymensingh

197.00

MW

97.00

MW 149.00 MW

Tangail (Doreen)

22.00

MW

19.00

MW 20.00

MW

Fenchuganj CCPP-1
(Gas)

90.00

MW

73.00

MW 74.00

MW

Fenchuganj CCPP2(New)

104.00

MW

90.00

MW 90.00

MW

Fenchuganj (BEDL)

51.00

MW

39.00

MW 44.00

MW

Fenchuganj Prima 50
MW

44.00

MW

37.00

MW 40.00

MW

Hobiganj
(Confidence-EP)

11.00

MW

6.00

MW 7.00

MW

Shajibazar GT Unit-8,
66.00
9

MW

63.00

MW 63.00

MW

Shajibazar 86 MW

86.00

MW

75.00

MW 75.00

MW

Shajibazar - 50 MW

50.00

MW

46.00

MW 48.00

MW

Sylhet 150MW

142.00

MW

108.00 MW 137.00 MW

Sylhet GT (Gas)

20.00

MW

20.00

MW 20.00

MW

Sylhet 50 MW

50.00

MW

40.00

MW 41.00

MW

Sylhet 11 MW

10.00

MW

8.00

MW 8.00

MW

Bheramara GT (Unit-

46.00

MW

0.00

MW 0.00

MW

1,2,3)
Bheramara

105.00

MW

0.00

MW 12.00

MW

a)Khulna ST 110 MW

55.00

MW

55.00

MW 60.00

MW

HVDC C/B.
Interconnector

500.00

MW

0.00

MW 0.00

MW

b)Khulna ST 60MW

30.00

MW

0.00

MW 0.00

MW

KPC, Khulna

110.00

MW

5.00

MW 90.00

MW

KPCL Khulna (New)

115.00

MW

16.00

MW 115.00 MW

Khulna 150 MW

150.00

MW

0.00

MW 105.00 MW

Faridpur

54.00

MW

0.00

MW 41.00

MW

Gopalganj 110 MW

109.00

MW

0.00

MW 91.00

MW

Noapara (105MW)
Quantam

101.00

MW

0.00

MW 0.00

MW

Noapara (40MW),KZA 40.00

MW

28.00

MW 40.00

MW

Khulna 40 MW

40.00

MW

0.00

MW 0.00

MW

Khulna 55 MW

55.00

MW

0.00

MW 31.00

MW

Barisal Diesel(HSD)

0.00

MW

0.00

MW 0.00

MW

Barisal GT 1& 2

32.00

MW

0.00

MW 0.00

MW

Bhola Venture

33.00

MW

0.00

MW 0.00

MW

a)Baghabari GT 1

71.00

MW

72.00

MW 72.00

MW

b)Baghabari GT 2

100.00

MW

95.00

MW 105.00 MW

Baghabari 50 MW

52.00

MW

0.00

MW 40.00

MW

Baghabari Westmont

70.00

MW

0.00

MW 0.00

MW

Bera 70 MW

71.00

MW

0.00

MW 63.00

MW

Amnura 50 MW

50.00

MW

0.00

MW 42.00

MW

Khtakhali NPS 50MW

50.00

MW

8.00

MW 50.00

MW

Katakhali PPP 50 MW 50.00

MW

0.00

MW 36.00

MW

Sirajganj 150 MW

150.00

MW

115.00 MW 116.00 MW

Santahar 50MW

50.00

MW

0.00

MW 46.00

MW

Bogra GBB

22.00

MW

21.00

MW 21.00

MW

Barupukuria ST 1

100.00

MW

0.00

MW 0.00

MW

Barupukuria ST 2

100.00

MW

80.00

MW 77.00

MW

Bogra 20 MW

20.00

MW

13.00

MW 13.00

MW

Summit
Powser(Ullapara)

11.00

MW

8.00

MW 8.00

MW

Rangpur GT (HSD)

20.00

MW

0.00

MW 0.00

MW

Syedpur GT
20MW(HSD)

20.00

MW

0.00

MW 0.00

MW

Thakurgaon 47
MW((RZ)

47.00

MW

0.00

MW 11.00

MW

Total

9599.00 MW

4014.0
5609.0
MW
MW
0
0

2.25 OWNER WISE GENERATION:

Owner Wise Daily Generation Report

Owner Name

Derated Capacity
(MW)

Day Peak
(MW)

Eve. Peak
(MW)

Daily Generation of 30/11/2013

PDB

3502.00

1016.00

1682.00

SBU,PDB

223.00

167.00

217.00

EGCB

622.00

0.00

0.00

APSCL

684.00

365.00

420.00

IPP

1464.00

1015.00

1337.00

SIPP,PDB

110.00

85.00

70.00

RENTAL(3 yrs) 33.00

0.00

0.00

SIPP,REB

215.00

150.00

146.00

Q.Rental 3
Years

100.00

81.00

96.00

QRPP(5yrs)

200.00

153.00

176.00

Other

800.00

118.00

225.00

RPP (3 Yrs.)

1061.00

570.00

746.00

QRPP (3 Yrs.)

416.00

151.00

346.00

RPP (15 Yrs.)

169.00

143.00

148.00

Total

9599.00

4014.00

5609.00

MAXIMUM GENERATION:

Maximum Generation (MW) of 2013

Da Januar Februar
Septemb
March April May
June
July
August
y y
y
er
4616.0 4640.0 5329.0 5625.0 5982.0 5721.0 6150.0 6620.0
1
6045.00
0
0
0
0
0
0
0
0
4668.0 4859.0 5709.0 5826.0 6223.0 5953.0 6285.0 6538.0
2
5646.00
0
0
0
0
0
0
0
0
4601.0 4896.0 5731.0 5659.0 6176.0 6139.0 6303.0 6454.0
3
5953.00
0
0
0
0
0
0
0
0
4576.0 4964.0 5779.0 5666.0 5586.0 6185.0 6576.0 6577.0
4
5801.00
0
0
0
0
0
0
0
0
4581.0 5321.0 5865.0 5937.0 5523.0 6131.0 6406.0 6550.0
5
6098.00
0
0
0
0
0
0
0
0
4529.0 5482.0 5904.0 6092.0 5037.0 6415.0 6344.0
6
6259.00
0
0
0
0
0
0
0
4574.0 5589.0 5743.0 5836.0 5542.0 5986.0 6416.0 6168.0
7
5941.00
0
0
0
0
0
0
0
0
4549.0 5105.0 5556.0 5828.0 5434.0 6303.0 6213.0 5841.0
8
5997.00
0
0
0
0
0
0
0
0
4524.0 5259.0 5614.0 5810.0 5723.0 6245.0 6369.0 5671.0
9
6219.00
0
0
0
0
0
0
0
0
4478.0 5421.0 5637.0 6082.0 5863.0 6300.0 6409.0 5576.0
10
6219.00
0
0
0
0
0
0
0
0
4460.0 5573.0 5737.0 6195.0 4915.0 6387.0 6640.0 5609.0
11
6029.00
0
0
0
0
0
0
0
0
4473.0 5487.0 5859.0 6251.0 5608.0 6212.0 6675.0 5658.0
12
6072.00
0
0
0
0
0
0
0
0
4588.0 5665.0 5808.0 6314.0 6170.0 6283.0 6555.0 5916.0
13
6211.00
0
0
0
0
0
0
0
0
4582.0 5606.0 5900.0 6115.0 6106.0 6082.0 6461.0 5932.0
14
6232.00
0
0
0
0
0
0
0
0
4646.0 5187.0 6080.0 6261.0 6087.0 6434.0 6580.0 5944.0
15
6246.00
0
0
0
0
0
0
0
0
4637.0 5549.0 5781.0 5008.0 5215.0 6325.0 6564.0 5856.0
16
6125.00
0
0
0
0
0
0
0
0
4605.0 4093.0 5238.0 5875.0 5806.0 6258.0 6601.0 5955.0
17
6135.00
0
0
0
0
0
0
0
0
4641.0 5279.0 5970.0 6051.0 5882.0 6181.0 6600.0 5494.0
18
6190.00
0
0
0
0
0
0
0
0
4655.0 5480.0 5858.0 5813.0 5935.0 6072.0 6506.0 5671.0
19
6100.00
0
0
0
0
0
0
0
0
4739.0 5486.0 5709.0 5984.0 5789.0 6217.0 6472.0
20
0
0
0
0
0
0
0
4703.0 5009.0 5826.0 5769.0 5972.0 6099.0 6402.0 5860.0
21
5843.00
0
0
0
0
0
0
0
0
4698.0 5169.0 5752.0 5870.0 5817.0 6159.0 6474.0 6100.0
22
5821.00
0
0
0
0
0
0
0
0

Octobe Novemb Decemb

r
er
er
5846.0
5483.00
0
6001.0
5851.00
0
6021.0
6031.00
0
5888.0
5922.00
0
5910.0
5872.00
0
6039.0
5905.00
0
6172.0
5933.00
0
6170.0
5431.00
0
6027.0
5911.00
0
5857.0
5703.00
0
5958.0
5749.00
0
5942.0
5750.00
0
6422.0
5740.00
0
5753.0
5729.00
0
5521.0
5271.00
0
5118.0
5780.00
0
5212.0
5722.00
0
5152.0
5702.00
0
5800.0
5674.00
0
5587.0
5691.00
0
5581.0
5741.00
0
5741.0
5264.00
0

Maximum
Maximum
Maximum
Maximum
Maximum
Maximum
Maximum

generation
generation
generation
generation
generation
generation
generation

in
in
in
in
in
in
in

2013
2012
2011
2010
2009
2008
2007

:
:
:
:
:
:
:

6675.00 MW as on 12/07/2013
6350.00 MW as on 04/08/2012
5174.00 MW as on 23/11/2011
4698.5 MW as on 20/08/2010
4296 MW as on 18/09/2009
4036.7 MW as on 19/09/2008
4130 MW as on 17/09/2007

Maximum generation in history : 6675.00 MW as on 12/07/2013

Power Sector Updates
Situation in 2009 (at the time of assumption of power of the present
government):
On 6th January, 2009 power generation was 3267 MW against national demand
of 5200 MW.
Commitment in power sector as per Election Manifesto:
To raise the power generation up to 5000 MW by 2011 and 7000 MW by 2013.
Plan of the government:
In spite of financial constraints and gas supply shortages, the government
designed a strategy to overcome the crisis and at the same time meet the ever
increasing demand for power. It launched immediate, short, medium and long
term programs to increase power supply through introduction of fuel mix (gas,
coal, liquid fuel, nuclear energy and renewable), demand side management,
energy efficiency and conservation. After assessing the latest demand, the
government has revised its targets for increasing power generation. The yearwise details of the additional power generation programs, both in public and
private, are listed below:
Plants Commissioned During 2009 September 2013

YEAR

2009
(MW)

Public
Private
Q. Rental

356

2010
(MW)

2011
(MW)

2012
(MW)

2013
(MW)

TOTAL
(MW)

255

800

607

587

2249

270

125

44

795

250

838

300

1388

Total

356

775

1763

951

587

4432

Calendar Year Wise Generation Addition program (From 2013 to 2018)

In MW
TOTAL
YEAR

2013
(MW)

2014
(MW)

2015
(MW)

2016
(MW)

2017
(MW)

2018
(MW)

(MW)

Public

662

604

1837

1510

00

1320

5933

Private

692

1366

638

1271

00

5064

Power
Import

500

Total

1854

1097

500
1970

2934

2138

1271

1320

11,497

2.26 Achievements till September 2013:

57 plants with a capacity of about 4,432 MW have been commissioned, 33
plants with a capacity of 6,569 MW are under construction. 19 projects with a
capacity of about 3,974 MW are under tendering process and 9 plants with
capacity of 3,542 MW are at initial stages.
Access to electricity has been raised from 47% to 62% (including RE) and per
capita electricity generation improved dramatically (from 220 kWh to 321
kWh). 3.45 million people have newly been connected and System
loss(distribution) reduced from 15.67% to 12.03%.
Highest generation so far was 6675 MW recorded on 12/07/2013 and it is
increasing gradually;
With proper load management, irrigation for agriculture has been being given
the fullest support which contributed to bumper harvests during the last crop
seasons.
Government has prepared the Power System Master Plan 2010 (PSMP 2010).
According to the PSMP 2010 the estimated demand for power would be 19,000
MW in 2021 and 34,000 MW in 2030;

Government has already initiated different energy saving measures and

Demand-Side management program to save power and energy. One such
program is the distribution of energy efficient CFL free of cost. 10.5 million have
already been distributed through this program . Mass awareness raising
programs have been undertaken. Inclusion of energy efficiency in the school
curricula, essay competition amongst the school students on energy efficiency
issues , use of electronic and print media are some of them .
Considering the countrys future energy security and low-carbon emission
strategy, programs have been undertaken to promote use of renewable energy.
Government has formulated pro-investment policy to encourage private sector
investment in Renewable Energy (RE) Sector. Bangladesh has the fastest
growing Solar Home System (SHS) in the world with over one million homes
covered under the program being spear headed by IDCOL, a public
infrastructure financing entity. Other projects include: 1 MW solar hybrid system
along with 5 MW by diesel in Hatia island, 8 MW Solar PV plant in Kaptai, Solar
Street lights in six City Corporation areas, replacement of diesel irrigation pump
by Solar, 600 kW solar mini grid in a remote area Sullah, 11 KW solar power to
the CHT area, nearly 230 W solar power in Angorpota and Dahagram Chitmahal
Area. Solar PV with capacity of 21.2 KW at the Honble Prime Minister's office
has been installed as a demonstration project. Other line ministries have also
undertaken projects on solar lighting;
Sustainable & Renewable Energy Development Authority Act-2012 has been
enacted to set up nodal organization for renewable and energy efficiency
issues.
Customers can now pay utility bills on-line and through mobile phones which
have been hailed by the public.
2.27 Future programs:
With new generation addition, the total generation capacity would be about
16,500 MW by FY 2018. By that time some power plants will be derated,
contracts of some rental power plants will be over and the dependable capacity
would be around 13,000 MW.
Coal will be the dominating fuel in the future generation. Coal fire plants with
capacity of 1320 MW will be set up, in Khulna. The Khulna plant will be set up in
joint venture with BPDB of Bangladesh and NTPC of India. Besides, other coal
fired plants will be set up in different locations of Khulna, Chittagong, Matarbari
and Moheshkhali;
Transmission and distribution system will be improved accordingly in line with
generation increase;
The old plants will be rehabilitated phase-wise for energy efficiency and
reduction of emissions.

Sustainable & Renewable Energy Development Authority (SREDA),will

be operationalize and made functional by appropriate manning and providing
support as and when necessary. Another agency in the name of Bangladesh
Energy Research Council will be formed for R&D in power and energy sector;
100-200 MW power will be generated from wind. To explore the wind potentials
in Bangladesh, a number of wind mapping programs has been initiated in
coastal areas of the country. Along with wind mapping, a flag ship wind power
project with capacity of 15 MW will be implemented within 2 years;Recently
government has initiated 500 MW Solar Power Development Program in
response to ADBs plan for 3000 MW of solar power for member countries by
2012 (by bringing down capex to make it affordable). The plan envisages, with
the financial support promised by the ADB, provision of solar power in the
remote and hard to serve areas, community clinics, rural schools, unioninformation centers and irrigation pumps which would not only enhance quality
of life and productivity in the rural areas but also contribute to reduction of
infant and child mortality, improvement of maternal health, reduction of
malnutrition and empowerment of women which are included in MDGs.
Cross-border trading of 500 MW power with India will begin in October 2013.
Possibilities of trading of hydro power from Nepal, Bhutan and Myanmar are
being explored.
Human Resource Planning in line with Power Sector Master Plan 2010 is being
designed;
Extensive use of ICT will be made to improve the institutional capacity of the
power sector and service delivery to the customers;
Energy saving measures will be extended further. Smart pre-paid metering will
be introduced and will be expanded throughout the country. In the first phase
35,000 meters will be installed in one year and 2 million meters will be installed
within 2-3 years.
2.28 System Loss
System loss is one of the key performance indicators. To achieve desirable
performance and viability of the sector, there is no alternative to bring down
the system loss to an acceptable limit. Various measures like continuous
monitoring of the performance of the utilities, reforms & target-oriented
measures are underway to reduce the system loss. The system loss
(distribution) comes down to 12.03% this year as against 12.26% in previous
year.
Year wise System Loss Statistics

FY

BPDB REB

TRANSMISSIO
DESC WZPDC DISTRIBUTI N &
DPDC
O
O
ON
DISTRIBUTIO
N

2012-13

11.95 13.89
9.07% 8.44% 11.38% 12.03%
%
%

14.36%

2011-12

12.15 13.99
9.87% 8.52% 11.66% 12.26%
%
%

14.61%

2010-11

13.06 14.13 11.95

8.79% 11.67% 12.75%
%
%
%

14.73%

2009-10

13.11 14.81 13.38

8.86% 11.73% 13.49%
%
%
%

15.73%

2008-09

13.58 13.97 18.25

9.79% 12.22% 14.33%
%
%
%

16.85%

2007-08

14.39 14.73 18.44 10.91

13.04% 15.56%
%
%
%
%

18.45%

2006-07

16.58 12.38 20.44 13.44

14.72% 16.26%
%
%
%
%

20.25%

2005-06

19.06 12.98 20.13 16.20

16.21% 16.53%
%
%
%
%

21.25%

2004-05

20.00 13.78 21.94 16.64

19.04% 17.83%
%
%
%
%

22.79%

2003-04

21.33 15.60 25.62 19.24

22.72% 20.04%
%
%
%
%

24.49%

2002-03

22.35 17.33 27.97 21.06

%
%
%
%

21.64%

25.69%

2001-02

24.50 16.61 29.71 26.66

%
%
%
%

23.92%

27.97%

2000-01

26.11 18.08 27.77 29.86

%
%
%
%

25.34%

28.43%

1999-00 27.73 16.24 26.88 32.47

26.09%

31.60%

CHAPTER NAME: RECOMMENDATION & CONCLUSION

3.0 RECOMMENDATION:
After observation all information we can say Government has taken large
initiatives to eradicate the energy crisis of Bangladesh. Firstly, in past years
government was not concerned in the issue of Electricity which has created a
huge gap between the demand and supply in this area. This Gap creates load
shedding in for many years. On the other hand demand of electricity has rise
up in apex due to Socio Economic growth. Here is some recommendation to
strengthen more efficiency in energy generation.
3.01 Perfect Estimation of future need:
Perfect Forecasting is the key element in removal of the deficit of electricity
supply. A perfect estimation of demand will provide a target to set the perfect
supply plans to meet future possible need.
3.02 Alternative Source of Energy:
We should look for different other sources like solar, nuclear and windmill plants
which will diversify the energy supply and minimizes the risk of energy supply.
3.03 Effective long term plan to meet future Demand:
At present Government is concentrating on present need and trying heart and
soul to meet the demand. But the demand of electricity will rise soon as our
country is not yet been covered with electricity supply. Quick rental can meet
the present need but it cannot be useful for long run. It also creates import
pressure for foal. We have to take long term plan to future demand.
3.04 Government should go to other country for electricity Generation:
For electricity production Government can go neighboring country where water
resources are unused. Countries like Nepal, Bhutan have huge opportunity to
produce electricity plants. Government can go for negotiation to other country
regarding this issue.
3.05 Making Corruption free sector:
To ensure the efficiency in this sector, there is no option of being corruption free
because corruption is main element to destroy the Government initiatives.
3.06 Removing the system loss:
System loss also makes hamper in total production of electricity. Efficient work
force and efficient machines can ensure removal of system loss.

3.07 Can concentrate more on Coal based plant:

Bangladesh has huge coal resources which can be used in energy generation
instead of patrol gas based electric plant. It can provide economic benefit to
the nation.
3.08 Awareness of the population:
Awareness of the population is very significant to remove misuse of the
electricity. It will decrease unwanted use of electricity.
Conclusion
Providing access to affordable and reliable electricity to all citizens by
2021 is a befitting national goal of the government of Bangladesh. Despite
considerable trust on reducing the gap between the demand and supply of
electricity, a significant number of people still do not have access to
electricity. However, 49 percent of its population has access to electricity.
Therefore, it might be quite ambitious to provide affordable electricity
to all by 2021. Nonetheless, achieving such target within the time limit is
a fundamental challenge of the country without which, international
experience suggests, the human development, economic and employment
goals of the government may be hindered, where the gap between the
demand and generation of electricity is going on. Moreover, it might be
quite difficult to achieve the target if the government does not give top
priority on the regarding issue.
Over the years, the installed capacity has been increased with a decreasing
rate as compared to the year 2002-03. The similar result is also found in
case of the generation of electricity. It is also found that the increasing rate
of generation capacity is lower than that of the installed capacity. Therefore,
this higher increasing rate of demand for electricity over generation has
resulted in the higher rate of load shedding that has been increase with an
annual rate of 6.72 percent at the same time period (2007-2011). The
demand for electricity is not equally distributed according to different zones.
In the east zone, the demand for electricity has increased more than double
(18.3 percent) compared to west zone (9.1 percent) between 2000-01 and
2008-09. The consumption patterns of electricity by different categories also
differ. The relationship between the supply of electricity and GDP growth is
positive and significant. A decreasing rate in the electricity generation
has resulted in the lower GDP growth.
To achieve the target of electricity supply to all by 2021, the government

should have a look to ensure the proper implementation of the allocated

money in the regarding sector. Ensuring good governance is also required.
Separate allocation for the maintenance and modernization of age old
power plants is urgently needed. Due to the shortage of gas, the other
primary fuel for generating electricity that is coal, offers a safer and
cheaper prospects. However, the debate

about the method of mining coal makes the problem thorny. In addition,
the time that would be inevitably needed to exploit and to use the
plentiful coal deposit will create an unacceptable time-gap in solving
the power crisis with desirable speed.
It is pertinent to mention that theoretically, many of the strategic
documents and policy papers are sound and seems implementable, but
in reality, fails to do so because of poor implementation rate of
allocated money, corruption, lack of funds, poor monitoring and
evaluation and so on. The government needs to be creative in
renewing and revising strategic approaches to reduce the power crisis.
Therefore, provisions must be formulated for programme evaluation
and also for understanding the impacts of programmes. Findings are
needed to be scientifically utilized in developing suitable programmes
addressing the case reducing the crisis of electricity in Bangladesh.
Otherwise, the target of ensuring electricity to all by 2021 may
remain an elusive and a distant dream.

Page 69of 70

BIBLIOGRAPH
Y
Bangladesh Power Development Board (BPDB). 2010. Annual Report
2008-09. Dhaka, Bangladesh.
International Energy Agency (IEA). 2011. IEA Guide to Reporting Energy
RD & D Budget/Expenditure Statistics. 9 rue de la Federation, 75739
Paris Cedex 15, France.
Ministry of Finance. 2010, Towards Revamping Power and Energy
Sector: A Road Map, June
2010, Finance Division, Government of the Peoples
Republic of Bangladesh.
Ministry of Finance. 2011, Bangladesh Economic Review 2011, Dhaka:
Advisers Wing. Finance
Division, Government of the Peoples
Republic of Bangladesh.
Ministry of Finance. 2011, Power and Energy Sector Road Map: An
Update, June 2011, Finance
Division, Government of the Peoples
Republic of Bangladesh.
Ministry of Planning. 2011, Population & Housing Census, Preliminary
Results, July 2011, Dhaka: Bangladesh Bureau of Statistics (BBS),
Planning Division, Government of the Peoples Republic of Bangladesh.
Ministry of Planning. 2011, Statistical Pocket Book of Bangladesh 2010,
Dhaka: Bangladesh Bureau of Statistics (BBS), Planning Division,
Government of the Peoples Republic of Bangladesh.
Power Cell. 2006. Bangladesh Power Sector Data Bank. Dhaka,
Bangladesh. Retrieved from http://www.powercell.gov.bd/indexphp?
pageid=245
Shuvra, M. A., Rahman, M. M., Ali, A. and Khan, S. I. 2011.
Modelling and Forecasting Demand for Electricity in Bangladesh:
Econometrics Model. International Conference on Economics, Trade and
Development (IPEDR), Vol. 7, IACSIT Press, Singapore

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