t transmission distribution t&d - keystone · role of each entity in t&d. 1.2.2...
TRANSCRIPT
31
1.2 TRANSMISSION & DISTRIBUTION (T&D)
1.2.1 Introduction
In Bangladesh, electricity transmission is carried out by one sole entity - The Power Grid Company of
Bangladesh Ltd. (PGCB). Three parties are responsible for Distribution: (i) the Bangladesh Power
Development Board (BPDB): responsible for distribution of power in district towns (ii) the Rural
electrification Board (REB): responsible for distribution of power in rural areas through 70 rural
electric cooperatives (PBS) and (iii) Three Public Limited distribution companies – the Dhaka Power
Distribution Company (DPDC), the Dhaka Electric Supply Company (DESCO) responsible for power
distribution in Dhaka Metropolitan and Naryanganj, and the Western Zone Power Distribution
Company Ltd, (WZPDCL), which covers the Khulna and Barisal Divisions.
The entire sector is regulated by the Power Division, Ministry of Power, Energy & Mineral Resources
and the statutory Bangladesh Energy regulatory commission i.e. the BERC. This chapter outlines the
role of each entity in T&D.
1.2.2 Transmission Sector: Power Grid Company of Bangladesh Ltd. (PGCB)
In Bangladesh the electricity transmission system (lines, grid substations and national load dispatch
centre) is managed by the Power Grid Company of Bangladesh Ltd. (PGCB), a public limited
company. Prior to its formation, the Bangladesh Power Development Board (BPDB) managed power
generation, transmission systems, and distribution throughout Bangladesh. PGCB was established in
November, 1996 as a fully BPDB owned company under the Power Sector Reform Program of the
Government. The Government of Bangladesh decided to offload 25 percent of its shares i.e. a total
of 91,08,940 Nos. of shares (BDT 100 each) through the Stock Exchanges under the Direct Listing
system in order to bring public participation and more accountability into the company’s activities.
PGCB was listed on October 2006 at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE). Offloading of shares started on October 2006.
PGCB was formed under the restructuring process of the Power Sector in Bangladesh with the
objective of bringing private sector-like efficiency, including the establishment of higher
accountability and dynamism in accomplishing its goals. PGCB is mainly concerned with the
operation, maintenance and development of the power transmission system all over Bangladesh.
The expansion of the grid network, including the installation of new transmission lines and grid
substations are its assigned prime responsibility. After the formation of this company the
transmission systems were gradually handed over to PGCB from BPDB. On December 2002 PGCB
took over full responsibility of the total transmission system of Bangladesh.
PGCB receives power from BPDB and private sector power generation companies and transmits the
electricity to BPDB, REB and 3 other distribution companies. The power generated by different
power plants all over the country is evacuated and transmitted through PGCB's integrated grid
system by 230 kV and 132 kV transmission lines and substations. Currently, 400 kV transmission lines
are under construction to expand the transmission network in the country between Aminbazar and
Meghnaghat. There are two types of substations in the transmission facility. There were six 230/132
kV substations and sixty three 132/33 kV substations when PGCB took over from BPDB and the
32
Dhaka Electric Supply Authority (DESA). In 1996 when PGCB was formed, the total length of 230 kV
and 132 kV lines were 838 Circuit km and 4755 Circuit km respectively which increased to 1144
Circuit km and 4962 Circuit km respectively by the 2000-2001 fiscal year.
At present there are 2647.3 Circuit km of 230 kV lines and 6015 Circuit km of 132 kV lines
throughout Bangladesh under PGCB (total 8662.3 Circuit km). From the table below it can be seen
that in 2011 amongst the two types of substations, there are thirteen 230/ 132 kV substations with
the capacity of 7225 MVA and eighty one 132/33 kV substations with the capacity of 10492 MVA.
Therefore, the total current substation capacity is 17,717 MVA. The Transmission Network is
summarized below.
Table 1.2.1: PGCB Transmission Network
Transmission Line as on June, 2011
230 kV 2647.3 Circuit km
132 kV 6015 Circuit km
Substations as on June, 2011
230/132 kV 13 Nos: 7225 MVA
132/33 kV 81 Nos: 10492 MVA
Present Manpower on 31 May , 2011 1992
Source: PGCB
The PGCB grid network throughout the country is illustrated in Figure 1.2.1 on the next page.
Additionally, the PGCB has been using an optical fiber network, that is the optical ground wire
(OPGW) parallel to its over-head transmission lines to establish a digital communication system to
improve the control and monitoring of the transmission system. This optical fiber network is also
used by the telecommunication and IT networks of the country.
1.2.2.1 National Load Despatch Center (NLDC)
The National Load Despatch Center ensures economic and efficient electricity generation and
despatch depending on real-time demand by maintaining generation-demand balance. M/S Areva
T&D, France were awarded the contract to build the necessary infrastructure, which includes
procurement and installation of equipment required for Supervisory Control and Data Acquisition
(SCADA) system, EMS, communication system, fiber optic cable, civil works for control center and
upgrading old Central Load Despatch Centre (CLDC) as back up control center. In total, 113 remote
terminal units (RTUs) (present capacity of NLDC is 128) are installed in 102 power stations and
substations to send data to the control center and to allow for remote control of substations. A total
of 2500km ground wire on existing transmission line was replaced by Optical Ground Wire (OPGW).
Another new 2000 km OPGW was installed for new projects since 2000.In total a communication
network spread over 4500 kilometers of OPGW (optical ground wire) connecting the NLDC with
power stations and substations. Communication system provides voice and data communication.
Old Power Stations and substations continue to have power line carrier (PLC) based
telecommunication in addition to new OPGW and multiplexer based communication.
33
Figure 1.2.1: PGCB Area Coverage
Source: PGCB
M/S AECOM (previously Maunsell), New Zealand was the consultant to PGCB in the project.
The total expenditure incurred for constructing NLDC, including consultancy services, was USD 37.44
million. The major activities of the NLDC include:
i) Generation Economic Management
Preparation of economic order of generators
Load Forecasting
Unit Commitment
Generation planning & schedule preparation
Economic Dispatch
Optimal Hydro Dispatch
34
System control by maintaining load-generation balance
Load Shedding and Restoration
Maintenance Outage Co-ordination, Schedule, Pre-generation Dispatch
Energy Accounting
Operational record keeping
Monthly operational report
Monthly interruption report
Communication Network Supervision and Transmission
ii) Network Security and Analysis
Network Topology
State Estimation
Operator Load flow
System Security Monitor
iii) Generation Control and Dispatch
Automatic Generation Control: There is a provision for Automatic Generation Control (AGC)
of generators from NLDC. However, owners of Power Stations i.e. BPDB, IPP’s etc. have not
agreed to allow NLDC to control generation directly from NLDC. Therefore, generation
control is presently done by Power Stations themselves but as per instructions of NLDC.
Though the main function of NLDC is to ensure economic electricity generation and despatch and
maintain generation-demand balance, in recent past due to deficit in generation, load balance is also
maintained by the load management of NLDC which included, among others, load shedding. Load
shedding is done following a predetermined policy approved by top management and NLDC
allocates load to different distribution agencies following this policy.
National Load Despatch centre works together with four Area Load Despatch centre situated in
Dhaka, Chittagong, Khulna and Bogra. Area Load Despatch centre mostly coordinates with
Distribution entities.
1.2.2.2 East-West Interconnection
Most of the electricity generation capacity of the country is located in the eastern region, mainly due
to the proximity to available of gas reserves. Of the total installed generation capacity, 6613 MW is
located on the eastern side of the Jamuna river and the remaining 1866 MW on the western side. An
East-West interconnector of 400 MW was introduced to transfer any surplus electricity from the
Eastern side to the Western side. A second East-West interconnector of 1000 MW capacity was also
added in 2009. Together with the old interconnector and currently a combined capacity of 1400
MW, there is no transmission constraint in transferring surplus electricity from the eastern regions
to the western regions.
1.2.2.3 Grid Connection with India
At present, the construction of a 30km 400 kV double circuit transmission line and two 500MW sub-
stations at Bheramara (back to back 400 kVHVDC) in Bangladesh and Bahrampur in West Bengal,
35
India are underway. When completed it is expected that Bangladesh will import about 250MW of
power from India. There is also a plan of constructing a 13km 230kV double Circuit transmission line
between Comilla North s/s in Bangladesh & Panatona in Tripura, India. However, this has not been
finalized with India as of yet.
1.2.3 Distribution Sector
The PGCB supplies electricity to the distribution entities, which include: the Rural Electrification
Board (REB), the BPDB, the Dhaka Power Distribution Company (DPDC), the Dhaka Electricity Supply
Company (DESCO) and the West Zone Power Distribution Company (WZPDC).
The table below presents the number of distribution lines and the capacity of substations by each of
the distribution entities.
Table 1.2.2: Lines and Substation Data of 5 of the Distribution Companies
Quantities REB DPDC DESCO WZPDC BPDB Total
Line (km) 218,881 505 3,100 8,915 46,599 278,000
Substation (MVA) 3,993 1,554 1,078 2,136 2,754 11,515
Source: Keystone Databse
DPDC and DESCO distribute electricity within the nation’s capital, Dhaka, they receive 42 percent of
the electricity from the PGCB. REB provides electricity to the rural areas of Bangladesh and receives
the most i.e. 40 percent of the transmitted electricity. WZPDC covers the West Zone of Bangladesh
and receives 6 percent of electricity. BPDB receives 23 percent of electricity and also distributes
electricity to many rural areas and parts of the country that are not covered by the other companies.
The market share of electricity of the distribution companies is illustrated in the following figure.
36
Figure 1.2.2: Electricity distribution by Company
Source: “Energy Sector: Challenges of Adding New Capacity” by M. Fouzul Kabir Khan
1.2.4 End-Users of Electricity
Consumers for Distribution mainly consist of Domestic (46 percent) and Industrial (39 percent) users.
Other users include the Commercial and the Agricultural segments. The following chart looks at the
breakdown of electricity used by each consumer category.
Figure 1.2.3: Number of Consumers by Consumer Category
Source: “Energy Sector: Challenges of Adding New Capacity” by M. Fouzul Kabir Khan
However, the breakdown of electricity changes when looking at the number of consumers receiving
electricity. The two charts below show the number of consumers to whom electricity is distributed
to by the distribution company and the consumer segment.
37
Figure 1.2.4: Energy Sales by Utilities and Consumer Category
Source: “Energy Sector: Challenges of Adding New Capacity” by M. Fouzul Kabir Khan
Domestic consumers i.e. 83 percent of electricity consumers, account for 46 percent of electricity
sales; 2 percent industrial consumers purchase 39 percent of electricity; and commercial and
agricultural consumers use 12 percent and 2 percent respectively. Based on the energy sales, REB
still dominates with 40 percent of energy sales, followed by BPDB (23 percent), DPDC (20 percent),
DESCO (11 percent), and WZPDCL (6 percent) respectively.
The figures also show the rural-urban difference in electricity use. Rural customers are located
mainly in the REB and WZPDCL areas. While together, they account for 75 percent of the consumers;
their share in energy consumption is limited to 46 percent. Predominantly urban consumers of
DESCO and DPDC, 10 percent of the consumers, use 31 percent of electricity.
1.2.5 Policies, Regulations and Regulators
BERC is the authority in charge of setting price of electricity at all the levels of the power sector from
generation to end users. Accordingly, BERC is responsible for setting the retail tariffs for BPDB, REB
and the distribution companies in consultation with all the relevant stakeholders. The retail tariff
structure has been changed several times in the last five years. The following table 1.2.2 depicts the
historical changes in the retail tariff structure. In February 2011, BERC increased the average retail
electricity tariff by 5 percent to BDT 4.16. Again in December 2011, the price of per kilowatt hour
electricity rose by 13.24 percent to BDT 4.71 in the first phase of a two-stage increment, which will
again increase by 7.09 percent on February 1, 2012 taking the average per unit price to BDT 5.02.
No. of Consumer by Utilities
BPDB
16%
DPDC
6%
DESCO
4%
REB
69%
WZPDCL
5%
No. of Consumer by Consumer Category
Dom
83%
Agri
2%
Ind
2%
Others
1%
Com
12%
38
Table 1.2.2: Historical Changes in the Retail Tariff in the Past 5 Years
Consumer Category
Range
BDT/Kwh (March 2007)
BDT/Kwh
(March 2010)
BDT/Kwh
(February 2011)
BDT/Kwh (December
2011)
BDT/Kwh (February 2012)
Domestic
Category-A
000-100 KWh 101-400 KWh 401 & above for all units in
KWh
2.50 3.15 5.25
2.60
3.30
5.65
2.60
3.46
5.93
2.73
3.81
6.88
2.87
4.04
7.43
Agricultural Pumping
Category - B
Flat
1.93
1.93
1.93
2.03
2.13
Small Industry
Category-C
Flat
Peak Off peak
4.02 5.62 3.20
4.35
5.95
3.50
4.56
6.24
3.67
5.27
6.75
4.41
5.67
6.90
4.86
Non- Residential Category-D
3.35
3.35
3.35
3.52
3.69
Commercial Category-E
Flat
Peak Off peak
5.30 8.20 3.80
5.58
8.45
4.05
5.85
4.25
8.87
6.80
9.31
5.23
7.33
9.66
5.88
Medium Voltage 11 KV General Category-F
Flat
Peak Off Peak
3.80 6.73 3.14
4.17
7.12
3.43
4.37
7.47
3.60
5.14
7.55
4.40
5.55
7.60
4.86
Extra High Voltage 132 KV General
Category-G-2
Flat 2300-0600 hrs 0600-1300 hrs 1300-1700 hrs 1700-2300 hrs
2.82 1.49 2.48 1.66 5.52
3.10
1.63
2.72
1.82
5.94
3.25
1.71
2.85
1.91
6.23
4.59
4.04 (Off Peak)
6.90 (Peak)
5.02
4.86 (Off Peak)
7.60 (Peak)
High Voltage
33 KV General Category-H
Flat
Peak Off Peak
3.58 6.45 3.03
3.92
6.82
3.33
4.11
7.16
3.49
4.88
7.34
4.30
5.28
7.44
4.78
Street Lights & Pump
Category-J
3.86
3.98
4.17
4.90
5.28
Source: BPDB
PGCB charges a transmission fee i.e. the wheeling charge which was decided by the GoB (BERC was
not formed at that time). From January 2003 the Government has set a transmission tariff at the rate
of BDT 0.1768/ kWh for the 132 kV level. This rate was set by taking into consideration of factors
such as: (i) Net energy transmission (ii) Administrative Cost ( Personnel to Office expenses) (iii)
Repair and Maintenance Cost (iv) depreciation (v) Interest and also allowing a 10 percent return on
net fixed assets and a 3.5 percent allowance for transmission loss.
Initially, PDB and DESA were the only consumers using power at 132 kV level. From January 2004 the
Government has issued a new directive by which distribution companies and Palli Biddyut Samity
(PBS) have started taking transmitted power at the 33 kV level for which a 1 percent additional tariff
was allowed to account for 132/ 33 transformer losses.
39
In April, 2004, the transmission tariff was increased by BDT 0.05/ kWh and the tariff has become BDT
0.2268 at the 132 KV level and BDT 0.2291 at the 33 KV level.
In addition to this wheeling charge, the distribution entities have to pay to BPDB according to the
bulk tariff fixed by BERC. The historical change in this bulk tariff in the last five years is shown in the
Table 1.2.3. In February 2011, bulk tariff was increased by 11 percent, which was again increased by
6.66 percent to BDT 2.80/ kWh in August 2011. Recently, BPDB has again increased the average bulk
tariff to BDT 3.27/kWh (4.3 cents). The bulk tariff will rise a further 14.37 percent to BDT 3.74/kWh
from February 1, 2012.
Table 1.2.3: Historical Changes in the Bulk Tariff in the Past 5 Years
Consumer Category
Range
BDT/kWh
(March 2007)
BDT/kWh
(February 2011)
BDT/kWh
(August 2011)
Category-G-1
DPDC -132KV -33KV
2.7575 2.7825
2.9410 2.9680
Category-I-1
REB 1)132KV 2)33KV -Economically insolvent -Economically solvent
2.34 2.05 2.39
2.7575 2.4745 2.7825
2.9410 2.6395 2.9680
Category-I-2
DESCO -132KV -33KV
2.34 2.39
2.7575 2.7825
2.9410 2.9680
Category-I-3
WZPDCL -132KV -33KV
2.34 2.39
2.7575 2.6415
2.9410 2.8175
Category-I-4
Distribution Of BPDB -132KV -33KV
2.34 2.39
2.7575 2.6710
2.9410 2.8490
Category-I-6
Distribution Company in Future -132KV -33KV
2.34 2.39
2.7575 2.6710
2.9410 2.8490
Source: BPDB
BERC is also the authority for setting and monitoring the quality and safety standards of all practices
involved in the construction, commissioning and operations of power plants. In short, its goals
include promoting investment in the energy and power sector by creating a level playing field,
ensuring a reasonable return on investment, rationalizing the cost structure and helping mediate
dispute settlements.
The Power Division oversees administrative activities including appointments of the PGCB Board of
Directors and the top management. The Power Division also reviews and approves development
projects. All purchases made by PGCB are guided by Public Procurement (PPR) Act of 2006 and the
2008 amendments. In the case of foreign aid projects, donor guidelines are followed.
The Power Division also oversees administrative activities including appointments of top
management of BPDB, REB, and Board of Directors and top management of the power distribution
40
companies. The Power Division also reviews and approves development projects. All purchases
made by distribution entities are also guided by PPR Act 2008. In the case of foreign aid projects,
donor procurement guidelines are followed.
1.2.6 Equipment Suppliers in T&D
The main components for the transmission network include: Transformers, Transmission lines and
Switchgears. At present two voltage levels, 230 KV and 132 KV are used in Bangladesh’s transmission
network. Thus the transformers used are of 230/132 KV and 132/33 KV voltage ratings. Transformers
are mainly procured on a turnkey basis depending on the necessity of building a new substation or
upgrading existing substation projects. The procurement of transformers might also occur separately
if they are required urgently for substations in operation.
All procurements are done through International Competitive Bidding (ICB) following the PPR Act of
2008. PGCB has specific guidelines for selecting turnkey contractors that they put in the tender
documents detailing the technical conditions, general experience and specific experience required of
the contractor. It has been observed in the past that the prices of equipments or transformers from
USA/European factories are higher than those from Indian/Chinese factories. This discourages the
USA/European turnkey contractors to participate in the international bidding alongside with
Indian/Chinese contractors.
A French company, M/S Areva constructed the National Load Drspatch Centre (NLDC) of Bangladesh.
All the software for EMS were also supplied by Avera. In the case of digital energy meters EDM,
Sweden, Landys Gear, Germany and CWE, USA are the major suppliers for the PGCB.
The distribution network uses very similar equipment to the transmission sector, but of lower
voltage ranges and capacities. The transformers are of 33/11 KV and 11/.4 KV. For the last five to six
years, the key suppliers/ bidders of transformers were CCC, China; GIETC, China; Heavy Electric,
India; CGL, India etc. Some parts of the transformers such as the OLTC (On load tap charger) and
protection devices are procured from European and US companies including MR, Germany, Alstom
UK, ABB Switzerland, SEL USA etc. Key meter suppliers in the distribution sector are Secure Meters,
India, L&T, India, EDMI, Singapore, Landys Gear, Singapore, Shanghai Meter, China, Fae, Brazil and
Dengly, China. The methods of purchasing these equipment include open tendering, limited
tendering, two-stage tendering, single stage two envelope tendering, request for quotations, direct
procurement and request for proposals.
Additional details of equipment supply in the T&D sector are provided in the in-depth analysis.
1.2.7 Future Investment & Opportunities
PGCB has prepared an outline of at least 15 projects that are to be completed by 2017 to upgrade
and expand the transmission network throughout the country. Eight of the projects are scheduled to
be finished by 2012-13. These include both construction of new transmission lines and new
substations in different areas to reduce the shortage of electricity supply. There will also be
construction of grid interconnection with India’s Tripura to purchase electricity for the eastern
region of Bangladesh. There are combinations of short-term and long-term projects that will
construct new substations and new transmission lines all over Bangladesh.
41
At present the distribution entities have a total distribution line of 278,000 KM serving over 12
million customers. This sector suffers a system loss of 12.75 percent. To reduce the system loss and
to expand and improve the distribution network BPDB, REB, DPDC, DESCO and WZPDC have
currently several ongoing projects. By 2013-14 BPDB will construct new distribution lines and new
substations in all divisions of Bangladesh. REB has the target to connect at least one million new
customers by 2012-13. DPDC has 14 planned projects which will increase substation capacity, build
new substations, ensure quality power supply, rectify system loss, and provide better service to a
wide range of customers. In the meantime DESCO will work to connect at least 600,000 new
customers in Dhaka and they will also install new prepaid meters all over Dhaka.
Additional details of future expansion plans in the T&D sector are provided in the in-depth analysis.
224
CHAPTER 7: TRANSMISSION AND DISTRIBUTION
The Power Division under the MPEMR manages the electricity sector. The power generated by the
BPDB and its generation subsidiaries, the IPPs, is supplied through the PGCB’s power transmission
facilities to the distribution utilities. In the capital city of Dhaka, DPDC and DESCO are responsible for
the electricity supply to retail consumers. In other urban cities, the BPDB, the WZPDCL, and in rural
areas the REB supply electricity to retail consumers.
7.1 Background and Recent Trends
7.1.1 Transmission sector
In the early 1960s the first high voltage double circuit transmission line (132 kV) was built from
Kaptai to Shidhirgonj (near Dhaka). There were substations (132/32 kV) at Chittagong, Feni and
Comilla. This transmission line facilitated the transfer of power from the newly built Kaptai Hydro
Station (80 MW) (commissioned in 1962) to Chittagong, Feni, Comilla and Shidhirgonj. Another 132
kV transmission line was also built from Shidhirgonj to Ullon, Dhaka. With the help of this
transmission line and several other 33 kV lines, power was supplied from Shidhirgonj to the Dhaka
area (in addition to the power received from Kaptai, power was also generated at the Shidhirgonj 30
MW power station). These transmission lines were followed by the Sylhet- Shahjibazar- Ashugonj-
Ghorashal- Shidhirgonj transmission lines, which connected the newly built Shahjibazar Power
Station (1968), the Ashugonj Power Station (1970) and the Ghorashal Power Station (1974). The
liberation war (1971) delayed the commissioning of the Ghorashal power station. At that time the
Goalpara- Bheramar-Ishordi 132 kV transmission line was built; however it was gradually extended
up to Thakurgaon. This line connected the Goalpara and Bheramara power stations to the load
center on the western side of the Jamuna river. Following 1971 newly built power stations and a
number of different load centers were connected to the Eastern Grid (on the Eastern side of Jamuna
River) and the Western Grid (on the Western side of Jamuna River) by new T/Ls.
In 1981 the first 230 kV transmission line from Ghorashal to Ishurdi inter-connecting the eastern and
the western grid was commissioned. This line was initially energized at 132 kV. During the 1980s
high capacity generation units were added to the Ghorashal and Ashugonj Power Stations. To
transmit power from these power stations, new 230 kV transmission lines were built between
Ghorashal – Ashuganj and Ghorashal- Tongi. At the same time the first east west interconnector was
energized at 230 kV.
In the nineties, a 230 kV transmission line from Raujan to Hatazari was commissioned to transmit
power from the Raujan Power Station. In 2000, the Hatazari to Comilla North T/L was commissioned.
The Ashuganj- Comilla and the Ghorashal- Haripur 230 kV transmission lines were commissioned few
years earlier. These T/L constituted the backbone of the 230 kV lines of the eastern grid.
After PGCB was formed in 1996, it started construction of a 230 kV backbone line for the western
grid (Khulna- Ishurdi- Bharabari- Shirajganj- Barapukuria). New 230/132 kV substations were
constructed at Aminbazar and Rampura to feed bulk power to the Dhaka area. The Meghnaghat-
Haripur- Amin Bazar and the Amin Bazar- Tongi 230 kV T/Ls were constructed to transmit power
from IPP power stations at Haripur & Meghnaghat and also to feed the Amin Bazar 230/132 kV
225
substation. Between 2002 and 2005 all the above mentioned T/Ls and Substations were
commissioned.
In 2008, a second east-west inter connector was commissioned connecting the Ashuganj Substation
and the Shirajganj switching station. From this period till today many other 132 kV lines and
substations were commissioned to feed more load centers, while at some other substations
capacities were increased.
As the acquisition of land is becoming difficult, particularly in city areas, the PGCB has started the
construction of Gas Insulated Substations (GIS) with the extension of the Jaydebpur 132/33 kV
substation using GIS units (2006) and commissioning the Gulshan (132/33 kV) GIS substation (2006).
Another GIS was built in Gallamari, Khulna. There are also 230/132 kV GIS substations in the old
airport area (Agargaon, Dhaka) along with three other 132/33 kV GISs in the Dhaka area.
With the increase of load demands as well as power generation capacities, the PGCB has now
started the construction of 400 kV transmission lines. The first 400 kV double circuit T/L between
Aminbazar and Meghnaghat is expected to be commissioned (initially at 230 kV) in 2012-2013.
Another 400 kV transmission line from Bibiayanabazar to Kaliyakar, with 400/230/132 kV substations
at Kaliyakar is planned to facilitate transmission of power from the under construction IPP power
stations at Bibiyana bazar which are expected to be commissioned during the later parts of 2012-13.
Table 7A.1 of Appendix 7A shows the details of the ongoing projects in the transmission sector being
implemented by the PGCB which are expected to be completed within next two years. The
objective/ benefit of these projects as well as number of sub-stations with the number and capacity
of Transformers for each substation are also shown in the table.
7.1.2 Distribution Sector
Though the Power Grid Company of Bangladesh Ltd. (PGCB) is the sole electricity transmission entity
in the country, there are five entities that actually distribute this electricity. They include: (i) the
Bangladesh Power Development Board (BPDB), distribution of power in district towns; (ii) the Rural
electrification Board (REB) responsible for distribution of power in rural areas through 70 rural
electric cooperatives (PBS); (iii) the Dhaka Electric Supply Company (DESCO), responsible for power
distribution in North Dhaka Metropolitan area; (iv) Dhaka Power Distribution Company (DPDC),
responsible for South Dhaka Metropolitan area and Narayanganj; and (v) the Western Zone Power
Distribution Company Ltd, (WZPDCL), which covers the Khulna Division, the Barisal Division and the
greater Faridpur District.
With the addition of additional power generation and transmission facilities all the distribution
utilities have already started various projects for power transmission to their customers. BPDB has
undertaken the ‘Town Power Distribution Project’ in Rajshahi, Pabna, Sirajgonj, Bogra, Joypurhat,
Gaibanda, Nilphamary, Dinajpur, Thakurgaon and Rungpur districts during the 2003-04 period. BPDB
has reported a 87.05 percent completion rate of these projects as of February 2011.
In addition, BPDB has undertaken two power distribution system projects for the ‘Emergency
Rehabilitation & Expansion of Urban Areas’ in its Chittagong and Northern Zones in July 2008. BPDB
has completed 46.18 percent and 35.73 percent of these projects respectively as of February 2011.
226
A list of BPDB’s ongoing projects along with their implementation time and present status is given
below:
Table 7.1: BPDB Ongoing Distribution Projects
Sl.
No
Name of the Project Implementation Time Present Status
01. 10-Town Power Distribution Project (2nd Revised)
(Rajshahi, Pabna, Sirajgonj, Bogra, Joypurhat, Gaibanda,
Nilphamary, Dinajpur, Thakurgaon, Rungpur)
Original: 2003-04 To 2007-08 Revised: 2003-04 To 2009-10
87.05 percent up to
February 2011
02. Emergency Rehabilitation & Expansion of Urban Areas
power Distribution system under Chittagong Zone
(2nd Revised)
01-07-2008 To
30-06-2011
46.18 percent up
to February 2011
03. Emergency Rehabilitation & Expansion of Urban Areas
power Distribution system under Northern Zone (2nd
Revised)
09-07-2008 To
30-06-2011
35.73 percent up
to February 2011
04. Central Zone Power Distribution Project Mymenshingh 01-12-2009 To
31-06-2013
11.00 percent up
to February 2011
05. Renovation & Augmentation of Distribution Lines &
11/0.4 KV S/S under Sixth Zone of BPDB
01-07-2010 To
31-12-2011
21.00 percent up
to February 2011
06. Pre-payment Metering Project for Distribution Southern
Zone Chittagong (Phase-1)
01-01-2009 To
31-12-2010
0.42 percent up to
February 2011
07. Greater Chittagong Power Distribution Project, SCADA
Rehabilitation
01-01-2009 To
31-12-2011
33.00 percent up
to February 2011
Source: BPDB
There are also five ongoing distribution projects under REB, which has the total estimated cost of
357.11 million USD. The detailed list is given in the following table.
Table 7.2: REB ongoing distribution projects
Sl.
No.
Name of the Project Estimated Cost (in MUSD)
1 28 Nos. 132/33 KV Grid S/S 86.69
2 419 KM 132/33 KV X-mission Line 32.58
3 28 Nos. 132/33 KV Poer X-former (Augmentation) 42.97
4 33 KV line with required equipment(6666) 178.37
227
Sl.
No.
Name of the Project Estimated Cost (in MUSD)
5 38-Set 33KV River crossing 16.5
Total 357.11
Source: REB
DESCO has also started several projects for upgrading and expanding their distribution systems by
strengthening DESCO’s Electric Distribution Network. These projects are expected to cost
approximately USD 171 million.
DESCO’s Upgrading & Expanding Distribution System project in the Gulshan Circle area mainly
includes constructions of 33/11 KV (GIS) substations, installation of 33 KV UG Cables as source lines
for new Substations and the installation of HT/LT Composite Distribution lines. This project is
funded by the GoB, ADB and DESCO itself. The estimated cost of this project is USD 80 million with
an expected implementation in June 2012.
DESCO has also undertaken its own ‘Electric Distribution Network Strengthening’ project that mainly
includes the construction of 33/11 KV (GIS) substations, installation of 33 KV UG Cable as source
lines for new Substations and the installation of HT/LT Composite Distribution lines. The project was
funded by the GoB, ADB and DESCO itself. The estimated cost of this project is USD 66 million with
an expected implementation in June 2013.
The construction, augmentation and rehabilitation of eight 33/11 KV (GIS) Sub-stations of DESCO is
an own-financed project of DESCO. It includes: Construction of 33/11 KV (GIS) Substations in
Agargoan, Banani, Niketon, Purbachal and Mirpur-6 and the rehabilitation & reinforcement of the
33/11 KV (GIS) Substations at the Digun, Joarshahara and Tongi areas. The estimated cost of this
project is USD 24 million with an expected implementation in June 2013.
The Construction of a Central Warehouse building project of DESCO at Mirpur is estimated at cost of
total USD 1.2million and this project has an expected implementation in December 2012. The
following table summarizes DESCO’s ongoing projects:
Table 7.3: DESCO Ongoing Projects
Sl.
No.
Name of the
Project
Procurement of the project Implementati
on Period
Estimated
Cost (in
million BDT)
1 Upgrading &
Expanding
Distribution
System in
Gulshan Circle
i) Construction of 33/11 KV (GIS) Substations.
ii) Installation of 33 KV UG Cable as source line for new
Substation
iii) Installation of HT/LT Composite Distribution line
iv) Installation of 11 KV UG Cable
June 2012 5949.00
Fund :
DESCO, GOB
& ADB
228
Sl.
No.
Name of the
Project
Procurement of the project Implementati
on Period
Estimated
Cost (in
million BDT)
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
2 Strengthening
DESCO’s Electric
Distribution
Network
i) Construction 33/11 KV (GIS) Substations.
ii) Installation of 33 KV UG Cable as source line for new
substation
iii) Installation of HT/LT Composite Distribution line
iv) Installation of11 KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
June 2012 4859.20
Fund :
DESCO, GOB
& ADB
3 Construction,
augmentation
and
rehabilitation of
08 Nos 33/11 KV
(GIS) Sub-station
i) Construction of 33/11 KV (GIS) Substation at Agargoan,
Banani, Niketon, Purbachal and Mirpur-6
ii) Rehabilitation & Reinforcement of 33/11 KV (GIS)
Substation at Digun, Joarshahara and Tongi
June 2013 1770.00
DESCO Own
fund
Total 12578.2
Source: DESCO
DPDC’s five ongoing projects include: the reinforcement, renovation and augmentation of 33/11 kV
sub-stations project financed by ADB, development of new 132/33 kV and 33/11 kV sub-stations
project financed by ADB and KFW, procurement and installation of 132/33 kV 50/75 MVA
transformers financed by ADB, the upgrade of the Shyampur BSCIC 11 kV switching station financed
by ADB and the rehabilitation and augmentation of the distribution network of the DPDC financed by
the GoB. These projects are expected to cost approximately USD 56 million. The detailed statuses of
these projects are shown below:
Table 7.4: DPDC Ongoing Projects
Sl.
No.
Name of the Project Procurement of the
project
Implementation
Period
Estimated Cost (in
MBDT)
Comments
1 Reinforcement,
Renovation and
Augmentation of
Replacing of 19 nos. of
old 10/14 MVA X-mers
by 20/28 MVA X-mers
01/07/2006-
30/06/2011
1335.0576
(PA USD
12.811M)
210 MW capacity
increase in 33 KV
level
229
33/11 kV Sub-station
(ADB financed)
(GOB 438.2846)
2 Development of New
132/33 kV and 33/11
kV Sub-station
(ADB & KfW
financed)
Construction of 2 nos.
2X50/75 MVA ,
Construction of 5 nos.
2X20/28 MVA
01/07/2006-
30/06/2012
4246.155
(PA USD 36.773M)
(GOB 1772.02)
224 MW & 240 MW
capacity increase in
33 KV & 132 KV
level respectively
3 Procurement and
Installation of 132/33
kV, 50/75 MVA
Transformer Project
(ADB financed)
3 nos. 132/33 kV 50/75
MVA X-former.
01/09/2006-
30/06/2011
544.156
(PA USD 4.943 M)
(GOB 198.095)
180 MW capacity
increase in 132 KV
level
4 Up-gradation of
Shyampur BSCIC 11
kV Switching Station
to a regular 33/11 kV
Sub-station Project
(ADB financed)
2X20/28 MVA
Transformer
01/07/2006-
30/06/2011
184.809
(PA 1.787 M)
(GOB 59.699)
45 MW capacity
increase in 33 KV
level
5 Rehabilitation and
Augmentation of
Distribution Network
of DPDC
(GOB financed)
29 km 11kV line, 38 km
11.4 kV line & 73 km 0.4
kV line
01/01/2010-
30/06/2012
1690.712
(PA 0)
(GOB 1690.712)
Improve
Distribution
network. Ensure
Reliable Power
Supply
Total PA USD 56.314
Source: DPDC
In order to reduce system loss and increase consumer satisfaction through more accountability
measures, the WZPDCL was established and incorporated as a public limited Company on the
4th November, 2002 under the Companies Act 1994. It started operating from April, 2005 when it
signed Vendor Agreements (VA) & Power Sale Agreements (PSA) with BPDB.
The WZPDC has undertaken several projects which will cost approximately USD 76 million. Among
these projects, the Power Distribution Projects in the 21 districts will cost approximately USD 63
million and will be financed by the GoB and the WZPDCL. Another large project: a prepaid e-
metering System includes a total of 105,000 1-Phase and 10,000 3-Phase meters installations. This
project is expected to cost approximately USD 12 million. The detailed statuses of the ongoing
projects under the WZPDC are given in the following table.
230
Table 7.5: WZPDC Ongoing Projects
Sl.
No.
Name of the Project Procurement of the project Implementati
on Period
Estimated Cost
(in MBDT)
1 21 Districts Power
Distribution Project,
Financed by GOB &
WZPDCL
For 10 Nos. 33/11KV S/S 20 Nos. 5
MVA X-former,14 Nos 10/13.33MVA
X-former,63 KM 33 kV New line &
148Km Rennovation line,1210 Km LT
New & 1250 Km
Rennovation,1100Nos. 3-Phase
Distribution X-former
01/01/2011-
31/12/2013
4691.8
2 Prepaid e-metering
System
105000 Nos.1-Phase Meter,
10,000 Nos.3-Phase Meter
01/01/2011-
30/06/2014
885.5
3 Solar Energy
20 KW SOLAR PANEL AT WZPDC
OFFICE & SUB-STATION
2011-2014 10
4 SCADA SYSTEM
10 Nos Scada for 33/11 kV Sub Station
under WZPDCL
2012-2014 10.8
5 VIDEO CONFERENCING
SYSTEM
Installation of Video Conferencing
System
2012-2014 2
Total 5598.1
Source: WZPDC
7.1.3 Level of compensation in T&D
Transmission lines in Bangladesh are not long and series compensation has so far not been used.
Shunt compensation of 450 MVAR at the 132 KV level and 770 MVAR at the 33 KV level have so far
been installed at different grid substations. Another 500 MVAR at different grid substations are also
being installed. Installation of further shunt compensation units in next 3/4 years is not planned. A
list of Capacitor Banks already in operation at different grid circle is shown below in the Table 7.6.
Table 7.6: Grid Circle wise Capacitor Bank Information
Sl No. Circle Name At 33KV At 132KV
Capacity
(MVAR)
No Of
Units
Capacity
(MVAR)
No Of Units
01 Chittagong 220 44 45 1
02 Comilla 20 4 - -
231
Sl No. Circle Name At 33KV At 132KV
Capacity
(MVAR)
No Of
Units
Capacity
(MVAR)
No Of Units
03 Dhaka 185 39 180 2
04 Khulna 80 16 180 4
05 Bogra 265 53 45 1
Total 770 156 450 8
Source: PGCB
In the distribution sector only DESCO (60 MVAR) uses shunt compensation at their substations and
lines. Previously BPDB installed 170 MVAR shunt capacitors which are not presently operative. There
is no level of compensation in use in the other distribution companies’ substations. But at consumer
level the customer has to install shunt capacitors to improve its power factor according to the load.
The customer has to maintain a power factor of 0.9521 to get exemption from a penal tariff.
7.1.4 Technical and commercial losses in T&D
Energy losses occur in the process of supplying electricity to consumers due to technical and
commercial losses. The technical losses are due to energy dissipated in the conductors and
equipment used for transmission, transformation, sub- transmission and distribution of power.
These technical losses are inherent in a system and can be reduced to an optimum level. The
commercial losses are caused by pilferage, defective meters, and errors in meter reading and in
estimating unmetered supplies of energy.
Reasons for high technical losses
The following are the major reasons for high technical losses in our country: -
Inadequate investment in transmission and distribution, particularly in the sub-transmission and distribution sectors. Low investment has resulted in an overloading of the distribution system without commensurate strengthening and augmentation.
Haphazard growth of sub-transmission and distribution systems with the short-term objective of extension of the power supply to new areas.
Large scale rural electrification through long 11kV and LT lines.
Too many stages of transformations.
Improper load management.
Inadequate reactive compensation
Poor quality of equipment used in agricultural pumping units in rural areas, cooler air-conditioners and industrial loads in urban areas.
Reasons for commercial losses
Theft and pilferage account for a substantial part of the high distribution losses in Bangladesh. Theft
/ pilferage of energy is mainly committed by two categories of consumers i.e. non-consumers and
bonafide consumers. Antisocial elements avail unauthorized/unrecorded supplies by hooking or
232
tapping the bare conductors of L.T. feeder or tampered service wires. Some of the bonafide
consumers willfully commit pilferage by way of damaging and / or creating disturbances in
measuring equipment installed at their premises. Some of the modes for illegal abstraction or
consumption of electricity are given below:
Making unauthorized extensions of loads
Tampering the meter readings by mechanical jerks, placement of powerful magnets or disturbing the disc rotation with foreign matter.
Stopping the meters by remote control.
Willful burning of meters. Changing the sequence of terminal wiring.
Bypassing the meter.
Changing the C.T. ratio and reducing the recording.
Errors in meter reading and recording.
Improper testing and calibration of meters.
7.1.4.1 Losses in transmission sector
Transmission loss consists of only technical loss as there is no scope malpractice. Over the years the
transmission loss has come down from 3.44 percent in 2005-06 to 2.66 percent in 2010-11 with the
construction of more 230 kV transmission lines, the installation of more capacitor banks for shunt
compensation, replacing old transformers with higher capacity transformers and also with the
construction of new 132 kV lines. Metering systems have also greatly been improved by replacing
old meters with three phase four wire programmable digital meters which have also negated or
reduced the scope of malpractice. The meter readings for the energy transmitted are taken by
committees consisting of engineers from PDB, concerned Power Station personal and the PGCB.
Similarly energy received by the distribution companies is taken by committees consisting of
representatives of PDB, PGCB and concerned distribution agencies, which further safeguards
reduces the issue of malpractice.
The following table summarizes the transmission loss for the last five years.
Table 7.7: Technical Losses in Transmission Sector
Year Transmission loss (percent)
2010-2011 2.66
2009-2010 3.07
2008-2009 3.23
2007-2008 3.55
2006-2007 3.15
2005-2006 3.44
Source: PGCB
233
7.1.4.2 Losses in distribution sector
In the distribution sector the loss has also come down to less than 50 percent in the last ten years.
This is because of the planned expansion of the distribution lines, the introduction of efficient
metering system (prepaid meters, digital meters, AMI meters etc.) and improved billing and
collection efficiency.
The following table summarizes the distribution loss in the last 12 years.
Table 7.8: Losses in Distribution Sector
Fiscal Years System loss ( percent)
1999-2000 26.09
2000-2001 25.34
2001-2002 23.92
2002-2003 21.64
2003-2004 20.04
2004-2005 17.83
2005-2006 16.53
2006-2007 17.14
2007-2008 15.56
2008-2009 14.33
2009-2010 13.49
2010-2011 12.75
Source: Power Cell
The authorities want to reduce system loss by installing new digital meters, AMI meters and prepaid
meters. At the 33 KV level, the target is to reduce loss from 12.10 percent to 9.50 percent within the
next 5 years. In case of T&D, the target is to reduce system loss from 14.40 percent to 11.70 percent
gradually by the 2015-16 financial year. The following table summarizes the expected system loss in
the Transmission and Distribution sector.
Table 7.9: Target Loss in T&D Sector
Fiscal Years System loss (percent)
at 33 kV level
Transmission System
loss (PGCB)
Total T&D Loss
2011-2012 12.10 2.65 14.40
2012-2013 11.45 2.60 13.70
2013-2014 10.80 2.55 13.10
2014-2015 10.20 2.50 12.40
2015-2016 9.50 2.40 11.70
Source: Power Cell
234
7.1.4.3 Value of aggregated technical and commercial loss and the issue of theft
High technical losses (9percent) in the system are primarily due to inadequate investments over the
years for system improvement works, which have resulted in unplanned extensions of the
distribution lines, overloading of the system elements like the transformers and conductors, and a
lack of adequate reactive power support.
The commercial losses (currently 3.5percent) are mainly due to inefficient meter reading and billing
systems, theft & pilferages. This may be eliminated by improving metering efficiency, proper energy
accounting & auditing and improved billing & collection efficiency. Improving the accountability of
the personnel / feeder in-charges may help considerably in the reduction of aggregated technical
and commercial losses.
The following table summarizes the amount of technical and commercial losses in the past five
years.
Table 7.10: Historical Loss in the Distribution Sector
Organization Technical Loss Commercial Loss Total Loss
DESCO 8.86 0.00 8.86
DPDC 9.00 8.50 17.50
REB 9.00 5.40 14.40
BPDB 9.00 12.20 21.20
WZPDCO 9.00 2.50 11.50
Source: Power Cell
7.2 Policy, Regulation and Regulators
7.2.1 Regulatory product compliance
Products used must comply with relevant IEC standard or any other standard as mentioned in bid
document. Power Grid Company of Bangladesh (PGCB) is the only organization/utility/company
engaged in transmission sector requires license from Bangladesh Energy Regulatory Commission
(BERC). Also while undertaking new projects clearance certificate from Department of Environment
must be obtained. But license from Explosive authority/similar organization is not necessary.
Frequency allocation for wireless communication is to be obtained from Bangladesh
Telecommunication Regulatory Commission (BTRC).
Any imported T&D products that are sold in the local market must be certified by the Bangladesh
Standard Testing Institute (BSTI) under the Ministry of Industry. But in case of products that are
procured by the bidding procedures in the distribution sector BSTI certification is not needed.
Though there is no specific standard is mentioned in the bidding documents the products are always
checked to see whether they have any environmental and health hazards.
All the distribution entities follow International Electro technical Commission (IEC) and Institute of
Electrical and Electronic Engineering (IEEE) standards; moreover the REB also follows the American
235
National Standard Institute (ANSI) guidelines for purchasing all sorts of electrical equipment. All
distribution entities also look for ISO certified manufacturers.
7.2.2 Predominant maintenance philosophy
Preventive maintenance is the predominant maintenance philosophy in the transmission and
distribution sector of Bangladesh. The preventive maintenance schedule is drafted on the basis of
the manufacturer’s instruction manual and working experience. Condition monitoring is also in
practice which is based on operational data, periodical inspection, tests etc. However, breakdown
maintenance cannot be avoided altogether.
But due to a shortage of distribution substation capacity, it is very difficult to conduct scheduled
maintenance. Consequently, industries have adopted the break-fix maintenance philosophy. If the
substation has an excess capacity then the authorities opt for preventive maintenance.
7.2.3 Adoption rate for communication protocols
HART/FF/FDT protocols are not yet in use in transmission sector of Bangladesh. In every
Measurement Instrument the distribution entities use the communication protocols RS 285 and RS
485.
7.3 Nature of the Market
7.3.1 Market size of T&D sector
The transmission network in Bangladesh transmits power generated by Power Stations to the
distribution network. Total installed generation capacity connected to grid system at present is 8,033
MW (derated capacity 7,413 MW (BPDB Website 31st December, 2011)). However, the maximum
power generated is 5,244 MW (as of August 2011). This is excluding the captive generation by
industries which is estimated to be about 1,500 MW (installed capacity). Per capita consumption of
electricity is about 220 kWh per annum (with captive generation taking into account). It is estimated
that 50 percent of population is getting the facility of electricity. There will be an additional
generation capacity of 11606 MW by 2015 against the forecasted demand of 10283 MW (Power
system master plan 2010).
The existing Transmission network consists of following Transmission lines & Substations
1. Transmission line:-
A) 400 kV Transmission line length: 0 ckt.km B) 230 kV Transmission line length: 2,647.3 ckt.km
C) 132 kV Transmission line length: 6,015 ckt.km
2. Sub-station :-
A) 400/230 kV Substation Capacity: 0 B) 230/132 kV Substation Capacity: 7,225 MVA C) 132/33 kV Substation Capacity: 10,492 MVA
236
As per present planning Transmission network in 2015 will be as follows.
1. Transmission line:-
A) 400 kV Transmission line length: 1,400 ckt.km B) 230 kV Transmission line length: 3,018.3 ckt.km C) 132 kV Transmission line length: 6,445 ckt.km
2. Sub-station :-
A) 400/230 kV Substation Capacity: 5,360 MVA B) 230/132 kV Substation Capacity: 12,525 MVA C) 132/33 kV Substation Capacity: 12,457 MVA
In addition to power generated by the BPDB, it is also the single buyer of power generated by all
IPPs. Small IPPs, Rental P.S and Quick Rental P.S. sells to BPDB and the PGCB transmits power to the
distribution entities. PGCB also transmits power to distribution divisions of BPDB (who sell power
directly to consumers in places not covered by the distribution companies).
At present 50 percent of the population is covered by the national grid and there is a plan for full
coverage by 2021. Presently the transmission lines are (230 kV and 132 kV) 8,662 km long and
distribution lines (up to 33 kV) are 278,000 km long. The expected load addition up to 2021 is
approximately 20,000MW. As such, three times more distribution lines are required to distribute
20,000 MW i.e. 556,000 km extra distribution lines are needed by 2021. The supply plan of the
distribution entities are given in the distribution expansion plan table.
7.3.2 Market analysis of T&D products
7.3.2.1 Transformers for transmission (230/ 132 kV and 132/33 kV)
At present two voltage levels 230 kV and 132 kV, are in use in the Bangladesh transmission network.
Therefore, the transformers used are of 230/132 kV and 132/33 kV voltage ratings.
Transformers used in the system are of following capacity:
Table 7.11: Different Types of Transformer in the Transmission Sector
A. 230/132 kv B. 132/33 kv
3 phase 150 MVA
Single phase 75 MVA i.e. 3x75MVA
80/120MVA; 66/100MVA; 50/75MVA;
48/64MVA; 35/50MVA; 25/41MVA; 25/33MVA;
15/20 MVA
Source: Keystone Research
The capacities of the transformers of a new sub-station are determined on the basis of forecasted
demand of electricity for the next 5 years of the area to be served by that substation. When
transformers of an existing substation are fully loaded, it is replaced by transformers of a higher
capacity. Transformers thus relieved are shifted to another sub-station where lower capacity
transformers are already overloaded or almost fully loaded.
237
Transformers are procured against new sub-station projects or via the upgrade of old sub-station
projects. These projects are done on a turnkey basis. Sometime transformers are also procured
separately if urgently needed for sub-stations which are in operation.
All procurements are done through International competitive bidding (ICB) following the Public
Procurement Act 2006 (with its amendments). In case of the foreign aid projects, donors’ guidelines
are also followed.
PGCB selects Turnkey contractors through International competitive bidding (ICB) for project work
/large supply and generally follows some technical and nontechnical conditions, which are included
in the tender document. A Turnkey contractor/ Bidder must fulfill the following conditions:
General experience: Bidder should have construction project management experience of at least 1(one) turnkey project (contract amount should be similar to present contract) outside their own country within the last 10 (ten) years as of the date of opening of technical proposals. The experience should be supported by user’s certificates indicating their address, telephone & fax numbers and detail of projects.
Specific experience: Bidder must have the experience of the successful completion of at least 2 (two) similar or higher capacity projects including engineering, erection, testing and commissioning within the last 10 years as of the date of opening of technical proposals. The experience should be supported by user’s certificates in their letter head indicating address, telephone & fax numbers of the users and detail of projects.
Bidder must furnish copies of ISO 9001/1992 or equivalent certificates of proposed manufacturers of individual equipment.
Bidder must provide a supply record of at least 10 (ten) years of equipment of the proposed manufacturers.
The said equipment should in satisfactory service of similar or higher specification for a minimum of 3 years as of the date of bid opening. At least one evidence report from end users of satisfactory service should be mentioned as above. Evidence of satisfactory service shall be in the end user’s respective letter head stationary indicating address, telephone & fax numbers of the users.
The bidder should submit satisfactory type test certificates of all equipments except transformer’s from independent testing laboratory.
Typed test certificates or reports of Power Transformer shall be from independent testing laboratory or manufacturer’s own testing laboratory. Test carried at manufacturer’s own testing laboratory must have been witnessed by any one or more of the following persons:
• A representative from independent testing authority/laboratory • A representative from independent inspection agency • An employer’s representative
The bidder should provide(in case bidder himself is not manufacture of equipment) manufacturer’s authorization showing the bidder has been duly authorized by the manufacturer or producer of related plant and equipment or component to supply & install that item in employer’s country.
Only Tape changers manufactured by MR, Germany or ABB Sweden are accepted and it is specified
in tender document.
The prices of some of the HV Power Transformer purchased by PGCB against different
projects/supply through International Competitive Bidding (ICB) are given in the following table.
238
Table 7.12: Recent Purchase of HV Power Transformer
Name of
Project
Name of
Turnkey
contractor
Date of
contract
Name of
Manufacturer
Voltage
rating &
capacity
Unit Price
FOB CIF
Constructio
n &
Extension
of Grid
Substations
including
transmissio
n line
facilities
(Phase-1)
China National
Electric wire &
cable
corporation,
China
Lot-2 24
24.05.2009
Shandong Dachi,
China
132/33 kV,
25/41 MVA
USD
869,910
USD
915,146*
132/33 kV,
50/75 MVA
USD
869,910
USD
915,146*
ABB, INDIA Lot-3
21.12.2009
ABB, INDIA 132/33 kV,
25/41 MVA
___ Euro 600,752
ABB, INDIA Do ABB, INDIA 132/33 kV,
66/100 MVA
___ Euro 675,055
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
3x75 MVA
Euro
2,513,292
Euro
2,602,937
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
150 MVA
Euro
1,431,284
Euro
1,482,336
SiddhirganjManiknagar 230 kV Transmission Line
Consortium of
GS ,Korea &
Crompton
Greaves, India
Siddhirganj
S/S
Sept.,2010
Crompton Greaves
,India
230/132 kV,
225/300
MVA
___
USD
1,403,500-
Siddhirganj
Maniknaga
r 230 kV
Transmissi
on Line
JV of Shandong
Wuzhou
Electrical co. ltd.
& Shandong
Takaoi Power Co
ltd.
Maniknagar
S/S
Dec.,2010
Shandong Takaoi
Power Co ltd.
230/132 kV,
225/300
MVA
____
USD
1,176,591
Supply of
Transforme
rs
Crompton
Greaves, India
Crompton Greaves,
India
132/33kv
50/75MVA
____
USD
6,62,939-
Source: PGCB
*M/s China National Electric wire & cable corporation, China (CCC) quoted same price for
132/33kv, 25/41 & 132/33kv,50/75 Transformers.
It is observed that the price quoted by turnkey contractors for equipment/transformers for project
work are generally higher than the price quoted by contractors for supply of
equipment/transformers.
239
It is also observed price of equipment/transformers from European/USA manufacturing factories are
higher than those (with identical specification) manufactured in Indian/Chinese factories. For this
reason it is difficult to get European/USA manufactured equipment/for transformers through ICB
particularly when Indian/Chinese turnkey contractors participated in bidding.
It is necessary to have the approval of executive committee of the National Economic Council
headed by Prime minister through via the Planning commission for any project where government
financing is involved including for projects that have a foreign aid component. For evaluation of bids
received trough ICB, the concerned organization forms a Tender evaluation committee(TEC) which
include representatives of the Design, Project and Finance offices of the organization, two
representative of different ministries/ organizations and a consultant, if any. Therefore for Govt.
financed projects the Ministry of Power, Energy & Mineral Resources (MOPEMR), MO Planning, the
Planning commission all have influence with regard to the approval of the project. Concerned donor
agencies also have influence in case of a project with a foreign aid component.
Generally in PGCB consultants were not engaged in the majority of projects. However the following
consultants were in engaged in few projects:-
a) M/s Mott McDonald, UK b) M/s Nippon-Koei, Japan c) M/s Fitchners ltd, Germany d) M/s AE Com (former/s Maun sell), New Zealand for NLDC project. e) Korean Electric Power co. ltd.(KEPCO),Korea
7.3.2.2 Transformers for distribution (33/11 kV and 11/.4 kV)
Initially the projects were financed by Official Development Assistance (ODA) from Japan and UK, the
equipment were procured mostly from UK and Japan. In the case of REB, as it was US financed; most
of its equipments were procured from US and Canada.
In case of ADB financed projects, the competition was open to all and all the entities followed PPR
2006 and PPR 2008 guidelines. In the case of open the tendering process, most of the equipment
were procured from China and India.
For the last five to six years the key suppliers/ bidders of transformers were CCC, China; GIETC,
China; Heavy Electric, India; CGL, India etc.
Some parts of transformers like OLTCs (On load tap chargers) and protection devices were procured
from European and US companies like MR, Germany; Alstom UK, ABB Switzerland, SEL USA etc.
Key customers are the different the distribution entities like BPDB, DPDC, DESCO, WZPDC and REB.
Of course, there are a few private customers; IPPs purchase the above items.
There are several methods of purchasing these transformers. These are open tendering, limited
tendering, two-stage tendering, single stage two envelope tendering, request for quotations, direct
procurement and request for proposals. In contrast to open tendering which is open for all
competitors, the limited tendering is open to only the parties who are invited to participate in it. In
the single step stage two envelopes tendering process the technical and financial proposals are
submitted separately in two different envelopes. For smaller purchases, the authorities use request
for quotations process and for procurement of intellectual and professional services they use the
request for proposals process. Direct procurement is used as sole source procurement in cases
240
where competition is considered inappropriate. As all the products are procured through these
methods the price is market driven.
7.3.2.3 Substation automation and protection
Sub-station equipment automation is designed and provided by concerned manufacturers or
Turnkey contractors. For standardization of operating performance, facilities and spare
requirements, the main protective relays manufactured by ABB (Switzerland/Sweden), Siemens
(Germany), and Areva (France) are used in the transmission network. More detail will be given in the
final report.
7.3.2.4 EMS/DMS/GIS software
M/S Areva, France constructed the National Load DispatchCentre in Bangladesh. All the software
including the software for EMS is supplied by M/S Areva, France.
ABB, Sweden constructed Supervisory Control and Data Acquisition (SCADA) for DPDC with the help
of SPIDER SCADA Software.
7.3.2.5 Meters/AMI
PGCB always purchases 3 phase 4 wire programmable digital energy meters with class of accuracy
0.2 for the transmission sector particularly for inter organizational metering. PGCB prefers meters
manufactured by EDM Sweden, Landys Gear Germany, and CWE USA. Supply of energy meters are
generally finalized during pre-contract negotiation meetings.
DPDC has been recently purchasing 3 phase 4 wire programmable digital energy meter (AMI/ AMR)
with class of accuracy 0.2 for the HT (11 kV) consumer. Key suppliers of these meters are: Secure
Meters, India; L&T, India; EDMI, Singapore; Landis+Gear, Singapore; Shanghai Meter, China; Fae,
Brazil; Dengly, China
7.3.2.6 Communication
Till 2000 PDB/PGCB were using power line carriers for internal communication and load dispatching,
but from 2000., OPGW were installed along with all new transmission lines and ground wires of
almost all old transmission lines were replaced by OPGW. A communication system using OPGW was
introduced.
At the initial stage, communication equipment manufactured by ABB were used. These were used till
the NLDC was constructed by Areva, France. All equipments, software, hardware for NLDC were
from Areva including communication systems. Now, the Areva and the ABB equipments/ software
are in use in the transmission system but in the future, communication systems compatible with the
NLDC software and hardware will be used.
The distribution entities use the available communication systems of Transmission network. Other
than that, wireless communication (Motorola Equipment) and PSTN/ cell phones are also used.
7.3.2.7 UPS
NLDC uses UPS supplied by Areva, France. Important sub-stations are provided with emergency
diesel generator sets.
241
7.3.2 Market analysis of monitoring and control solutions in T&D
Products of Bentley Nevada are not in use in transmission sector. However, it is learnt that
automated data acquisition, analysis and decision support system of Bentley Nevada is in use in
some of Gas Turbine Power Stations of BPDB. In addition Vibration monitoring & protection
instruments of Bentley Nevada are in use in many combined cycle & Gas Turbine Power Stations in
Bangladesh.
Measurement solutions, Inspection technologies, Dresser and Control solution products are not in
use in electric power transmission industry of Bangladesh.
7.3.4 Key Players
7.3.4.1 Transmission sector
The Ministry of Power, the Energy and Mineral resources (MPEMR) and the PGCB are the most
important players in the transmission sector. BPDB as the single largest electricity producer and
single buyer is also an important player. Distribution entities as receivers of electricity transmitted by
PGCB also play important roles.
The list of Turn Key Contractors who were awarded to different contracts to implement different
projects in transmission sector during last five years is given in the Table 7.12. The detailed list of
contract awarded to different vendor is given in Table 7B.1 of Appendix 7B. From the detailed list it
can be seen that Siemens, India (along with Siemens, Germany & Siemens, Bangladesh), China
National Electric wire & cable Import/ Export corporation, China (CCC) & ABB Ltd., India won
maximum numbers of contract in the substation side. The following table lists the major turnkey
contractors in the transmission sector:
Table 7.13: Turnkey Contractors in the Transmission Sector
Turnkey Contractors
1. Energypac, Bangladesh. 2. ABB Ltd., India 3. JV of Energypac, Bangladesh & ABB, India. 4. Basic Engg. Bangladesh 5. China National Electric wire & cable Import / Export
Corporation, China (CCC). 6. Siemens, India. 7. Consortium of Siemens, Germany, Siemens, India &
Siemens, Bangladesh 8. Consortium of Siemens, Germany & Siemens,
Bangladesh 9. HG Power, Malaysia. 10. Hyosung Corporation, Korea.
11. Consortium of Hyosung Corporation & Samsung Corporation
12. JV of Samsung & Handbeak co. ltd., Korea 13. KEC , India. 14. Crompton Greaves, India (CGL). 15. Consortium of GS E&C,Korea & Crompton
Greaves, India. 16. Consortium GS &E C 17. JV of Shandong Wuzhou Electrical co. ltd. &
Shandong Takaoi Power Co ltd. China. 18. Marubeni, Japan 19. Cobra Instalaciones Y Servicios S A, Spain 20. Jyuoti Structure Ltd., India 21. Sanergy, Iran
Source: Keystone Study
Although, there are no dominant player in Transmission line construction, M/S H.G. Power, Malaysia
won highest number contract .ide. Overall, it is observed that Indian companies dominate the list of
vendors. It needs to be mentioned that although M/S H.G. Power, Malaysia registered in Malaysia,
the company is in Indian ownership.
242
Indian & Chinese manufacturers dominate the list of manufactures of different equipment &
materials. This is due to fact that they are near to Bangladesh & prices are more compatible in
comparison to manufacturers of other countries particularly European countries. However, Circuit
Breakers manufactured by Areva Germany, Siemens Germany & ABB Sweden are also supplied.
Bibyana-Kaliakor 400 kV Transmission line and Kaliakor 400/230kV & 400/132 kV Substations are
financed by EDCF, Korea and being a tied loan the most of the equipment/materials to be supplied in
this projects are from Korea.
Before 2005, the situation was a bit different. At that time most of the manufacturers from India &
China didn’t qualify to supply equipment & materials due to lack of operational experience
particularly in 230 kV system. However, with passage of time they gained the required operational
experience and became qualified to supply equipment/materials to Transmission sector.
The main protective relays manufactured only by ABB (Switzerland/Sweden), Siemens (Germany),
and Areva(France) are used in transmission network for better co-ordination and to facilitate
standardization of operating performance & spare requirements.
The following table lists major manufacturers of equipment, which were supplied by the Turnkey Contractors of Substation:
Table 7.14: Manufacturers of Substation Equipment
Product Type Products Manufacturers
Transformers
400/132 kV Transformers Hyosung Corporation, Korea
230/132 kV Transformer i)Daian, Japan ii) Hyosung Corporation, Korea iii) Crompton Greaves Ltd. (CGL), India iv) ABB Ltd., India v) Shandong Takaoi Transformer Co ltd., China
132/33kv Transformer i) TBA, China ii) Crompton Greaves Ltd. (CGL), India iii) Shangdong Dachi, China iv) ABB Ltd., India
Circuit Breaker
400 kV Circuit Breaker Siemens, Germany
230 kV Circuit Breaker i) Siemens, Germany ii) Crompton Greaves Ltd. (CGL), India iii) New Northeast Electrical (Shenyang) High Voltage Switchgear Co. Ltd., China
132 kV Circuit Breaker i) Areva, Germany ii) ABB India iii) Siemens, Germany iv) Crompton Greaves Ltd. (CGL), India v) Shandong Takaoi High Volt Switchgear Co. Ltd., China vi) ABB, Sweden
Instrument Transformer (CT & PT)
400 kV Instrument Transformer (CT & PT)
CGL, India
230 kV Instrument Transformer (CT & PT)
i) Crompton Greaves Ltd. (CGL), India ii) ABB, India
132 kV Instrument Transformer (CT & PT)
i) ABB, India ii) Energypac, Bangladesh iii) Henghyang Nagfang,China iv) Crompton Greaves Ltd. (CGL), India v) Shandong Takaoi High Volt Switchgear Co. Ltd., China vi) ABB, Sweden
GIS unit
230 kV GIS unit i)Siemens, Germany ii)Shandong Takaoi High Volt Switchgear Co. Ltd., China
132 kV GIS unit Siemens, Germany
243
Product Type Products Manufacturers
Protective Relay i)ABB, Switzerland
ii) Areva T&D, France iii) Siemens, Germany
Source: Keystone Study
The following table lists major manufacturers of Transmission Line equipment/material:
Table 7.15: Manufacturers of Transmission Line equipment/material
Equipment Type Manufacturers
Tower i) Steel Products, India
ii) KEC ,India
iii) Bosung, Korea iv) Weifang Changian Steel Tower Stock co., Ltd. China
v) Confidence Steel, Bangladesh
vi) K2Engg., Korea ( Proposed ) vii) Samwoo , Korea ( Proposed )
Conductor i) Sterlite, India
ii) ZTT , China
iii) Hangzhou Conductor Co.Ltd. iv) Apar, India v) Taihan, Korea
Underground Cable TBA Cable Co Ltd.,China
Insulator i) Dalian, China
ii) NGK, Japan iii )NGK, China
OPGW i) NKT, Germany
ii) Prysmian, Spain
iii) LS Cable, Korea iv) ZTT, China v) Taihan Cable
Source: Keystone Study
7.3.4.2 Distribution sector
There were four major procurements in the last five years in DPDC. The details of these
procurements along with their contract values are given in the Table 7.15. From the table it can be
shown that Energypac Engineering Ltd., Bangladesh is the main contractor for DPDC projects. Out of
the four procurements they were involved in three of them. ABB Ltd., India was involved with one
project with Energypac by forming a consortium. Another project was also solely contracted by
them. Areva Energietechnik GmbH, Germany was also involved in a project by forming a Joint
Venture with Energypac.
Table 7.16: Distribution Efficiency Improvement in DPDC Area (2009-2011)
SI No Name of Package Name of
Contractor
Contract Price
Foreign (USD)
Contract
Price Local
(BDT)
Total Contract
Price (BDT)
1 Design, Supply, Installation,
Testing and Commissioning of
10 nos. upgraded substations.
Energypac
Engineering Ltd.
12,144,880.87 11,35,36,769
.50
95,63,91,501.88
244
SI No Name of Package Name of
Contractor
Contract Price
Foreign (USD)
Contract
Price Local
(BDT)
Total Contract
Price (BDT)
2 Design, Supply, Installation,
Testing and Commissioning of
Shaympur 33/11 kV Substation
at Existing Switching Station
Consortium of
Energypac
Engineering Ltd.,
Bangladesh and
ABB Ltd., India
1,715,282.10 1,59,91,020 13,50,31,597
3 Design, Supply, Installation of
132/33 kV Transformers and
Associated Materials at
Mogbazar, Maniknagar and
Shyampur 132/33 kV
Substations
ABB Ltd., India 4,920,404.64 39,991,986.6
0
38,14,68,068.88
4 Design, Supply, Installation,
Testing and Commissioning of 5
nos. of new 33/11 kV
Substations.
Joint Venture of
Areva
Energietechnik
GmbH, Germany
and Energypac
Engineering Ltd.,
Bangladesh
9,391,215.55 14,35,70,418
.75
79,53,20,778.60
Source: Keystone Study
The list of major manufacturers of distribution breakers and transformers is given in the Table 7.16.
CGL, India is the manufacturer of all types of breakers and power transformers of DPDC projects. 132
kV breakers are also manufactured by Pinggago, China; Siemens, Germany and ABB, Germany. Most
of the 33kV and 11 kV breakers are manufactured by CGL, India; Siemens, India; ABB, India; Areva,
Germany; TBEA, China and TAMCO, Malaysia. Local companies’ (Energypac, Powerman, Betelco etc.)
11 kV breakers are also procured. Power Transformers (132/33 kV and 33/11 kV) are mostly
manufactured by TBEA, China; CGL, India; Hocker Sidley, UK and BHEL, India. Only one local company
i.e. Energypac’s 33/11 kV transformers are found in the DPDC projects. Again, all the distribution
transformers (11/.4 kV) are procured from local manufacturers.
Table 7.17: Manufacturer of the different components of the DPDC Substations
Item Manufacturer
132 KV Breaker Pinggago, China; CGL, India; Siemens, Germany; ABB, Germany
33 KV Breaker CGL, India; Siemens, India; ABB, India; Areva, Germany; TBEA,
China; TAMCO, Malaysia; Energypac, Bangladesh
11 KV Breaker CGL, India; Siemens, India; ABB, India; Areva, India; TBEA, China;
TAMCO, Malaysia; Energypac, Bangladesh; Powerman,
245
Item Manufacturer
Bangladesh; BETELCO, Bangladesh;
132/33 kV Power Transformer TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India
33/11 kV Power Transformer TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India; Energypac,
Bangladesh; ABB, India
11/.4 kV Distribution Transformer Local Manufacturers like GEMCO, Energypac, BETELCO, ADEX,
POWER-MAN etc.
Source: Keystone Study
The detailed lists of Last five years procurements by DESCO are given in the Appendix 7C. 33 kV GIS
breakers are mainly manufactured by Areva, Germany. Other 33 kV breakers are from Compton
Greaves, India; Areva, India and Energypac, Bangladesh. Again, 11 kV breakers are mainly
manufactured by Tampco, India; Areva, India and Siemens, India. Compton Greaves, India is the major
manufacturer of most of the transformers of different types. Recently, DESCO procured some 25 kVA
Single Phase transformer from GE, Bangladesh also. In case of metering equipment, most of them are
either Chinese or Indian products. Secure, India is a major manufacturer for most of the 11 kV
metering equipment. The following table gives the list of major equipment manufacturers for DESCO
projects:
Table 7.18: Manufacturer of the different components of the DESCO projects
Item Manufacturer
33 kV GIS Breaker Areva, Germany
SF6/VCB Breaker (33 kV) Compton Greaves, India; Areva, India
33 KV RTC Panel/OLTC Compton Greaves, India; Energypac, Bangladesh
33 kV RTC Panel, outdoor Breaker Compton Greaves, India; Energypac, Bangladesh
11 kV Breaker Tampco, India; Areva, India; Siemens, India
20/28 MVA Transformer Compton Greaves, India; Energypac, Bangladesh
200 KVA Station Transformer Eaglerise, China; Compton Greaves, India; Energypac,
Bangladesh
500KVA 3-Phase Transformer Compton Greaves, India
25 KVA Single Phase Transformer General Electric, Bangladesh
11 KV Metering (Different Ratings) Secure, India
Source: Keystone Study
246
The detailed lists of Last five years procurements by BPDB in various distribution projects are given
in the Appendix 7D. Most of the equipments including the distribution transformers (100 kVA and
250 kVA) are procured locally. In some projects a few Indian and Chinese equipments are procured.
For instance, South China Electric Dev. Co Ltd, China was the manufacturer of the 100 kVA and 250
kVA distribution transformers of the Central Zone Power Distribution Project of BPDB.
In most of the REB projects of last five years, different equipments are locally procured and most of
the manufacturers are local companies. There is no major procurement of WZPDC in this period.
7.4 Future Investment and Opportunities
7.4.1 Yearly plan to meet generation addition
PGCB has prepared an outline of at least 15 projects that are to be completed by 2017 to upgrade
and expand the transmission network throughout the country. Eight of the projects are scheduled to
be finished by 2012-13. These include both construction of new transmission lines and new
substations in different areas to reduce the shortage of electricity supply. An important project that
is currently on going is the electricity interconnection between Bahrampur, India and Bheramara in
the Western region of Bangladesh. Under this project, there will be construction of 30 KM 400 KV
double circuit transmission line and a back to back 400kV HVDC station at Bheramara. When
completed this will be first electrical interconnection with a neighbouring country and will allow an
import of up to 500mW (the present commitment is 250 mW) from India. In the future Bangladesh
may export surplus (if, any) electricity through this T/L.
The projects to construct and expand new transmission lines include the Raozan-Sikalbaha- Anowara
& Hathazari-Khulshi 60 KM 230 KV transmission Lines, the Ishurdi-Rajshahi 70 KM 230 KV
transmission Lines, the RPCL Mymensingh-Tangail via Bhaluka 180 KM 132 KV double circuit K
transmission lines, Goalpara-Bagerhat 45 KM 132 kV 2nd Single Circuit transmission lines and
Chandraghona-Rangamati-Khagrachari 80 KM 132 KV Transmission Lines. After completion these
T/Lswill meet the power demand in their respective areas.
There are also projects to build new substations by 2012-13 including 230/132 KV Substations in
Shyampur, Jhenaidah and four new 132/33 kV substations with interconnecting lines in Mymensign-
Tangail.
There are two more transmission line projects to be finished by 2014-15 which are the Aminbazar-
Maowa -Mongla 400 kV, Mongla -Khulna(S) 230 kV Transmission lines and the Anowara -
Meghnaghat 400 kV Transmission lines. These will transmit the power generated by proposed large
coal fired Power Stations at Mongla, Khulna & Anowara, Chittagong to Khulna, Dhaka, Chittagong
and other areas.
Along with these short-term projects, there are three longer term projects to be completed within
2017 including the Khulna(s)-Barisal (N) 230 kV transmission line project, the Ruppur-Bheramara-
Zajira 400 kV transmission line project and the Ashuganj-Joydebpur 400 kV transmission line.
In the Table 7A.2 of Appendix 7A, projects planned for transmission sector to be implemented by
PGCB during next five years are shown.
247
7.4.2 Distribution expansion planned to get all of the power generation to consumers
At present the distribution utilities have a total distribution line of 278,000 KM serving over 12
million customers. They suffer a system loss of 12.75percent. To reduce the system loss and to
expand and improve the distribution network BPDB, REB, DPDC, DESCO and WZPDC have several
currently ongoing projects.
BPDB currently has six projects with completion dates within 2013-14 for the construction of
distribution lines, substations and renovation works at Mymensingh, Chittagong, Comilla, Sylhet,
Rangpur and Rajshahi. The total cost of these six projects is approximately USD 535 million.
Table 7.19: Upcoming Projects of BPDB
Sl
No
Name of the Project Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01 Power Distribution Development
project, Mymenshingh Zone
2013-14 637.00 Construction the distribution lines,
substations and renovation works
02 Power Distribution Development
project, Chittagong Zone
2013-14 1088.00 Construction the distribution lines ,
substations and renovation works
03 Power Distribution Development
project, Cumilla Zone
2013-14 756.00 Construction the distribution lines ,
substations and renovation works
04 Power Distribution Development
project, Sylhet Zone
2013-14 410.00 Construction the distribution lines ,
substations and renovation works
05 Power Distribution Development
project, Rangpur Zone
2013-14 710.00 Construction the distribution lines ,
substations and renovation works
06 Power Distribution Development
project, Rajshahi Zone
2013-14 693.00 Construction the distribution lines ,
substations and renovation works
Source: BPDB
Under REB, there are another six projects which are to be completed within 2012-13. These projects
will connect one million new consumers in the rural areas with the distribution network through the
construction of 14500 KM of new distribution lines in the Dhaka, Chittagong, Sylhet, Khulna, Barisal
and Rajshahi division. These will cost approximately USD 4.75 billion.
Table 7.20: Upcoming Projects of REB
Sl
No
Name of the Project Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01 One million new connections project 2012-13 34800.00 To connect one million new consumers
02 Rural Electrification extension project 2012-13 1322.00 Substation and distribution lines extension
248
Sl
No
Name of the Project Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
(Rajshahi, Rangpur, Khulna and
Barishal area)
03 Rural Electrification extension project
(Dhaka Division-1)
2012-13 498.00 Construction of 4100 km distribution lines
04 Rural Electrification extension project
(Chittagong-Sylhet Division-1)
2012-13 498.00 Construction of 4500 km distribution lines
05 Rural Electrification extension project
(Rajshahi-Rangpur Division-1)
2012-13 407.00 Construction of 3400 km distribution lines
06 Rural Electrification extension project
(Barishal Division-1)
2012-13 268.00 Construction of 2500 km distribution lines
Source: REB
Year wise detailed procurement plan for REB is given in the Appendix 7E.
DPDC has at least 20 projects including both short-term and long-term ones with several objectives.
Through these projects, DPDC will increase substation capacity, build new substations, ensure
quality power supply, rectify system loss and provide better service to a wide range of customers.
The estimated total cost to implement these projects is USD 580 million. The upcoming project list is
shown in the Appendix 7F.
The detail procurement plans for different projects are shown in the Appendix: 7G.
To extend the distribution network in Dhaka and to serve electricity to at least 600,000 new
customers DESCO has seven planned projects that are currently in operation. These projects will
upgrade their existing mechanisms, strengthen distribution lines, electrify some new areas in Uttara,
and install new prepaid meters all around Dhaka and install SCADA systems. Three of the projects
have already started. Their combined cost is approximately 330 million. The following table lists all
the upcoming projects up to 2015 and their respective procurements.
Table 7.21: Upcoming Projects of DESCO
Sl
No
Name of the Project Compl
etion
Date
Project
Cost (Tk
Crore)
Procurements
DESCO
01 Strengthen of distribution line project 2011-12
486.00 i) Construction 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable
249
Sl
No
Name of the Project Compl
etion
Date
Project
Cost (Tk
Crore)
Procurements
v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former
02 Extension and renovation of distribution system project (Gulshan Area)
2011-12
595.00 i) Construction 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former
03 Construction, augmentation and rehabilitation of 08 Nos 33/11 KV (GIS) Sub-station
2011-2014
177.00 i) Construction of 33/11 KV (GIS) Substation at Agargoan, Banani, Niketon, Purbachal and Mirpur-6 ii) Rehabilitation & Reinforcement of 33/11 KV (GIS) Substation at Digun, Joarshahara and Tongi
04 Replacement of existing 11 KV overhead line by underground cable in 04 routes
2011-2014
180.00 Installation of 11 KV Underground 16 KM Cable
05 Electrification of Uttara 3rd Phase & Purbachal Model Town
June 2015
1000.00 1) Construction of 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former
06 Prepaid Metering (200000 Nos) 2011-2014
110.00 Installation of 2,00000 Prepaid meter at Uttara, Mirpur, Baridhara and Gulshan.
07 DESCO’s SCADA System June 2015
100.00 Equipment for Real Time data acquisition and 33 KV & 11 KV feeder control
Source: DESCO
According to the three years development plan of DESCO the total year-wise procurement of
different equipments is given below:
Table 7.22: Year-wise Procurement Plan of DESCO
Sl Particulars 2011-12 2012-13 2013-14
1 Source line (33 KV) (km) 25 30 27
2 Distribution line (11 KV) (km) 250 300 270
3 No of substation (33/11 KV) (Nos) 10 0 5
4 No of 11 KV switching station (Nos) 2 2 1
250
Sl Particulars 2011-12 2012-13 2013-14
6 Distribution Transformer (11/0.4KV) (Nos) 400 490 327
7 No of feeder (11KV) (Nos) 29 34 35
8 132/33 KV Grid SS (Nos) 0 0 3
9 Prepaid metering (Nos) 20000 80000 100220
Source: DESCO
WZPDC has one project on the cards to extend the distribution system and substations in 21 districts
within 2012-13 that will cost approximately USD 57.2 million. In this period there is also plan for
prepaid metering system expansion, solar energy projects, SCADA system and Video conferencing
system.
Table 7.23: Upcoming Projects of WZPDC
Sl
No
Name of the Project Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01 21 district electricity distribution
project
2012-13 469.00 Extension of distribution systems and
substation
02 Pre-paid e-metering System 2012-13 88.55
03 Solar Energy 2012-13 1.00
04 SCADA System 2012-13 1.08
05 Video Conferencing System 2012-13 0.20
Total Cost 559.81
Source: WZPDC
The detailed equipment procurement plan of WZPDC for these projects is given below.
Table 7.24: Procurement & Installation Item from 2011 to 2013 of WZPDCL
Sl No. Item Description Quantity
01 5 MVA X-former 20 Nos.
02 10/13.33 MVA X-former 14 Nos.
03 33 KV Line( New+ Renovation) 211 KM
04 11,11/.4,0.4 KV line( New & Renovation) 2460 KM
251
Sl No. Item Description Quantity
05 11/.4,3-Phase Distribution X-former 1100 Nos.
06 1-Phase Meter 105000 Nos.
07 3-Phase Meter 10,000 Nos.
08 Solar Energy 20KW
09 SCADA System 12 nos.
10 Video conferencing System L/S
Source: WZPDC
Further procurement plan for projects like system efficiency improvement, pre-paid e-metering
system and SCADA System is also given in the following Table 7.25.
Table 7.25: Procurement & Installation Item from 2014 to 2017 of WZPDCL
Sl No. Item Description Quantity Estimated Cost In Crore TK
01 5 MVA X-former 18 Nos.
585.0
02 10/13.33 MVA X-former 18 Nos.
03 33 KV Line( New+ Renovation) 215 KM
04 11,11/.4,0.4 KV line( New &
Renovation)
2500 KM
05 11/.4,3-Phase Distribution X-former 1700 Nos.
06 1-Phase Meter 140000 Nos. 118.58
07 3-Phase Meter 14,000 Nos.
08 SCADA System 36 nos. 3.24
Total Cost 706.82
Source: WZPDC
7.4.3 Asset mapping in the transmission and distribution utilities
Asset mapping in not very popular in the transmission and distribution utilities. Asset mapping
technologies like Dissolve Gas Analysis (DGA) is completed only for the testing purpose before the
purchase of the transformer and after that this is done only once in a year.
252
7.4.4 Unmanning of substation in T&D
At present there are no unmanned substations in the transmission and distribution network except
for the ones in REB. From inception, all the substations of REB were unmanned. But these
substations are still controlled manually and there is no remote control in these substations. At
present there is no plan for unmanning the substations of other distribution entities or PGCB.
7.4.5 Distribution automation
Still the utilities are aware of the benefits of distribution automation. Substation wise automation
has already started in some areas. There are plans to improve the real time monitoring of the all the
substations. DESCO has already introduced 33/11 KV Substation Automation programs. DPDC and
BPDB are also taking similar initiatives.
7.4.6 Software for outage detection and workforce management
DESCO and DPDC are also using a Complaint Management database which was developed by using
Microsoft access with help of in-house IT experts.
7.4.7 Use of billing and CIS Software along with Meter Data Management (MDM) Software
All distribution utilities of Bangladesh DESCO, DPDC, REB and BPDB are using billing software and
Meter Data Management Software.
7.4.8 Smart Meter technologies in the distribution utility
The distribution utilities have plans to convert all conventional meters to smart meters. Some of the
companies that are supplying these meters are: Secure Meters, India; L&T, India; EDMI, Singapore;
Landis+Gear, Singapore; Shanghai Meter, China; Fae, Brazil; Dengly, China. DESCO has already
explored a Remote meter pilot project at Mirpur and Prepayment meters in Uttara.
7.4.9 Market for power backup/power quality
Market for power backup i.e. UPS is discussed in section 7.3.2.7.
7.5 Issues and Challenges
7.5.1 Finance required to build the transmission capacity
Financing is always a challenge for the transmission sector. Since the establishment of PGCB in 1996,
this state-owned organization has implemented many projects. In the initial period, Asian
Development Bank (ADB) was the major financier of many the PGCB projects. In addition, KFW also
came forward by financing a transmission line. Other foreign financiers include: NDF (Nordic fund,
Scandinavian countries), SIDA (Sweden), DANIDA (Denmark) and JICA. Two transmission lines were
implemented with suppliers’ credit (one Chinese and two Indian companies). Furthermore, PGCB has
also implemented few projects through their own financing. In addition, one project was financed by
the Palli Bidyut Samity (PBS), Dhaka 1. The Government of Bangladesh has always supported PGCB
by financing the local currency portion of the total project costs (on the basis of 60 percent equity
and 40 percent loans). At present, different projects are being financed by the ADB, JICA, World
Bank, EDCF (Korea) and the KFW. Negotiations are going on with the local branch of a foreign
commercial bank for financing the Barisal-Bhola-Bahauddin 230 KV double CKT Transmission Line.
253
The ongoing projects of PGCB are being financed by the ADB, the JICA, the KFW and the EDCF
(Korea). The Bibiyana-Comilla (N) 230 kV transmission line project is being financed by the GoB &
PGCB itself. Negotiations are currently taking place a foreign commercial bank (Local Branch) for
financing the foreign currency portion of the Barisal-Bhola-Burhanuddin 230 kV Transmission Line
project. The local currency portion of all the above projects is being financed by the GoB.
For financing future projects, discussions are going on with the ADB, World Bank and the JICA
through the Extended Resources Division of the GoB for financing some of the above-mentioned
projects. Moreover, the donor agencies have shown interest in financing these projects. One or two
small projects may be funded by the PGCB itself. There is a possibility of financing via suppliers’
credit though recent experiences in this regard have not been encouraging. Financing projects by
taking loans from commercial Bank is also an option but it is difficult to get long term loans from
commercial banks. Lately, the Government of Bangladesh has been trying to promote Public-Private
Partnerships (PPP). However, no policy has yet been formed. In future, PPPs may play an important
role in financing the transmission sector. However, this will largely depend on the tariff structures of
the country.
As per present planning, a total of USD 552.92m and USD 946m in local and foreign currency will be
required to implement the upcoming next five years’ projects.
7.5.2 Financing challenge to distribution expansion
As per present planning a total of 6948 million USD is needed for the distribution facilities, out of
which 2759 Million USD is in foreign currency. If there are any additions to the generation capacity
there must be some financing arrangements will be required for the T&D sector.
To meet the finance for the upcoming distribution projects utilities are still looking for donors. But
the common donors of Bangladesh like the ADB, the WB, the KFW, the IDB etc are placing a lot of
conditions which are proving to be very difficult to fulfill. Hence the utilities are now looking for
alternative financers.
7.5.3 Grid connection with neighboring countries and amount of imports planned
The first Electrical Inter Connection between Bangladesh and India is under construction. This Inter
connection consists of a 85km (30 km In Bangladesh part & 53km in Indian part) Bahrampur (India)
to Bheramara (Bangladesh) 400kV double circuit Transmission line, one 400kV switching station at
Bahrampur and one 500MW HVDC back to back 400/230kV sub-stations at Bheramara. The
switching station at Bahrampur and the 53km Transmission line in the Indian part is being
constructed by Power Grid Corporation of India (PGCI), whereas 500MW HVDC back to back
400/230kV sub-stations at Bheramara and 30km transmission line in Bangladesh part is being
constructed by Power Grid Company of Bangladesh (PGCB). When completed it is expected that
Bangladesh will initially import about 250MW of power from India.
There is also a plan for constructing a 13km 230kV double ckt. transmission line between Comilla
North switching station in Bangladesh and Palatana in Tripura, India. However this has not been
finalized with India yet. The main objective of this project is to import power from the Combined
Cycle Power Station being built at Palatana, Tripura, India.
In addition PGCB also prepared proposals for constructing the following 3 radial lines.
254
1. Bongaon (India) - Jessore (Bangladesh) 132 kV 50km (10 km in India & 40 km in Bangladesh)
Transmission line.
2. Krishnanagar (India) - Chuadanga (Bangladesh) 132 kV 46km (24 km in India & 22 km in
Bangladesh) Transmission line.
3. Dalkhola (India) - Thakurgaon (Bangladesh) 132 kV 46km (24 km in India & 22 km in Bangladesh)
Transmission line.
Proposals of above 3 lines are yet to be discussed with India. It is likely that India will want back to
back HVDC connection to prevent disturbance in one side affecting other side and also to have
control over the power flow. On the other hand Bangladesh will want AC connection for transferring
of small amount of power. The cost also does not justify construction of back to back HVDC
connection.
The Power System Master Plan (PSMP) also envisages following Interconnections.
1. Myanmar- Bangladesh Transmission line.
Anowara, Chittagong is the likely to be the location for substation in Bangladesh side. This line is
proposed to be built by 2020 and will allow transfer of 500 MW.
2. Shilchar (India) –Fenchuganj (Bangladesh) Transmission line.
This line is proposed to be built by 2025 and will allow transfer of 750 MW.
3. Kishanganj (India) –Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Nepal and proposed to be built by 2025.
4. Alipurdua (India) –Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Bhutan and proposed to be built by 2025.
However no plan has been done yet regarding these transmission lines.
7.5.4 Plans being formulated for distribution to incorporate variable distributed
generation
There is not specific plan to incorporate distributed generation system (solar, biogas, micro-grid
etc.). Still BPDB has some upcoming projects planned on grid connected solar PV. The Government
also has recently published the Renewable energy policy. It is taking different steps by which 5
percent of total generation by 2015 will be met from renewable energy and 10 percent by 2020.
According to the GoB plan 500 MW from Solar, 200 MW from wind and 100 MW from biomass, in
total 800 MW of distributed generators will be added within the next five years. Some of these
projects are outlined below.
Table 7.26: Upcoming Renewable Energy Projects
Sl. NO. Location of the Project Capacity Type of Project
1 Parki Beach, Chittagong
[Pilot Basis]
20 MW Wind Power
175
CHAPTER 4: POWER GENERATION
4.1 Background and Trends
Significant efforts aimed at adding new generation capacities characterized the power sector of
Bangladesh in recent years. As a result, installed capacity and evening peak electricity generation
have increased over the period of 1994-2011. Compound Annual Growth Rates (CAGR) during this
period were 5.81 percent, 7.17 percent and 5.62 percent for installed capacity, derated capacity and
evening peak generation respectively. A significant portion of this addition in generation came from
liquid fuel based(Diesel, HFO) power plants rising the overall contribution of liquid fuels in power
generation to 12.6 percent in 2011 compared to only 5 percent in 2010. However, the addition in
installed capacity is not reflected in terms of proportional increase in power generation. More
power plants have become non-operational in recent years resulting in huge gap between derated
capacity and evening peak generation since FY 2005-2006 as evident from figure 4.1. Moreover,
increase in generation costs resulted in huge budgetary subsidy. The government has also estimated
USD 366 million as subsidy in the energy sector for the fiscal year 2011-12 which is 333.33 percent
higher than that of the FY 2009-10.29 The government has proposed to allocate USD 872 million in
the power sector as the development budget for FY 2011-12 which is 340 percent higher than that of
FY 2009-10.
Installed, derated capacity and evening peak generation as of December 31, 2011 was 8,033 MW,
7,413 MW and 4,728 MW respectively.
Figure 4.1: Installed, Derated Capacity and Evening Peak Generation 1994-2008 (in MW)
Source: Power Cell
29
1 USD = 82 BDT (as of December 29, 2011)
1500
2500
3500
4500
5500
6500
7500
8500
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
UptoDec2011
Installed Capacity (MW) Derated Capacity (MW) Evening Peak Generation in MW
176
In line with the increase in generation capacity, average daily electricity generation has increased
steadily from 25.26 M kWh in FY1994-1995 to 72.26 M kWh in 2009-2010 as shown in Figure 4.2.
This represents a CAGR of 7.70 percent over the period.
Figure 4.2: Average of Daily Electricity Generation 1994-2010 (in M kWh)
Source: Powercell
As of June 2011, household electrification rate increased to 50 percent of the total population
compared to 47 percent in April 2010. Considering the captive generation as well per capita
consumption of electricity grew by 7.2 percent during this period and now the consumption stands
at 252 kWh per capita. Electricity generation in Bangladesh is overwhelmingly gas based. More than
82 percent of evening peak electricity is generated by using natural gas (Figure 4.4). This is followed
by liquid fuel and coal with generation shares of 12.61 percent and 2.49 percent respectively. Hydro
accounts for 2.78 percent of generation. Compared to previous year’s (2010) power generation mix,
contribution of natural gas decreased by approximately 8 percent and contribution of liquid fuel
increased by 152 percent in the mix of total generation of electricity. Around 1,169.88 M kWh of
electricity generated in 2010 was attributed to coal whereas in 2011, only 780.74 M kWh of
electricity was generated from coal based power plants.
Figure 4.3: Energy Generation (FY 2010): 29,247 M kWh Figure 4.4: Energy Generation (FY 2011): 31,355 M kWh
Source: Powercell
0
20
40
60
80
Average Daily Electricity Generation
Coal 4.00%
Liquid Fuel
5.00%
Hydro 2.00%
Natural Gas
89.00%
Coal 2.49% Liquid
Fuel 12.61%
Hydro 2.78% Natural
Gas 82.12%
177
Public and private sectors equally share the power generation sector of Bangladesh. 51 percent of
Bangladesh’s total power plants are owned by the state. The Government, in face of the country’s
current power crisis envisions electricity for all by 2021 while ensuring a reliable supply at affordable
prices. The target has been particularly set in line with the United Nations Millennium Development
Goals (MDG) for economic development and poverty alleviation. Empirical data on electricity
generation and GDP growth reveals a correlation of 1.5 to exist between the two variables. Thus, an
increase in GDP by 7 percent requires power generation to increase by 10.5 percent. According to
the government’s Election Manifesto, power generation targets include 5,000 MW by 2011, 7,000
MW by 2013 and 20,000 MW by the year 2021. Maximum power generation stood at 5244 MW in
2011. The government of Bangladesh claims to progress according to its plan and projects the
possibility of generating 7,000 MW and 8,000 MW by years 2013 and 2015 respectively.
4.2 Nature of the market
The market for electricity includes households, agriculture, industries, and transport. In Bangladesh,
about 50 percent of the population currently has access to electricity. The remaining 50 percent
represents the market yet to be brought under the national grid. The present generation capacity
(derated) of 7,413 MW cannot be realized to its fullest due to the events of forced outage,
maintenance activities and particularly fuel constraints i.e. gas supply shortage. One-fourth of the
generation plants of the power system are more than 20 years old, which causes higher
maintenance costs and regular plant outages. In addition, gas supply shortfall forced the power
plants to operate at a reduced capacity in recent years. Hence, even the demand originating from
within the grid remains unmet. Against the demand of 6,454 MW (with DSM) in the year 2011, the
actual generation capacity falls short by 1,000-1,200 MW, which reaches around 2,000 MW during
the summer months.
Figure 4.5: Planned Electricity Demand-Supply Balance
Source: Power Division
As the country suffers a shortage of dependable electricity generation, the ongoing power system
development programs emphasize capacity addition. However, the implementation trends do not
2011 2012 2013 2014 2015 2016
Maximum Demand with DSM(in April)
6,765 7,518 8,349 9,268 10,283 11,405
Dependable Capacity (End ofDec.)
5091 6348 9192 10287 11811 13629
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
MW
178
provide a promising picture of this development program. In order to meet the demand on short-
term basis, a number of plants on the quick rental basis have been contracted and commissioned.
The share of the quick rental in the added capacity was 32.3 percent in 2010 and in the next year the
projected contribution by these plants was 67.9 percent. Such a high dependence on quick rental
power plants does not provide the assurance that the power supply scenario is becoming more
reliable and stronger any time soon. Nevertheless, the government’s projection of the demand-
supply trend of the power sector draws an optimistic picture that includes having surplus generation
capacity from the year 2013 onwards.
4.2.1 Demand forecast for electricity
Over the last ten years, net energy demand has grown at an average compound annual rate of 8.1
percent. The Power System Master Plan 2010 (PSMP) forecasted year wise demands for electricity in
Bangladesh up to 2030 (Appendix 4A). According to the projections by PSMP, Grid system demand
for with Demand Side Management for 2015, 2020 and 2030 would be 10,283 MW, 17,304 MW and
33,708 MW respectively as opposed to the current (2012) demand of approximately 7,518 MW.
Captive demands for areas where grid is not likely to reach within the projected years are estimated
to be 1,335 MW, 1,515 MW and 2,951 MW for 2015, 2020 and 2030 respectively.
The Power System Master Plan 2010 forecasts the demand for electricity on the basis of GDP growth
and the elasticity of electricity demand. The projection also considers the possible impact of
demand-side management (DSM) programs. DSM programs involve using energy-saving equipment
and machinery, conducting holiday staggering programs in the industrial segment, and avoiding
wastage of electricity.
The power demand forecast shows that the demand for electricity will be growing at around 10
percent over the next decade. The growth will slow down after that and will stabilize at a rate of 7
percent from the year 2028 onwards. However, considering the reinforcement from DSM, demand
for electricity is projected to be growing at a comparatively slower rate. A noteworthy fact is that the
off-grid demand goes up over the forecasting horizon. The power system master plan does not seem
to have any plans in connecting the entire population to the national grid in the near future, which
casts doubt about the government’s commitment to their stated vision of providing electricity to all
by 2020.
The impact of DSM is very significant in the power sector analysis as the master plan estimates up to
a 15 percent reduction in demand for power due to appropriate practice of DSM projects. In
Bangladesh, a number of initiatives have already been taken to popularize DSM for both primary
energy and power usage. The initiatives include: holiday staggering program in the industrial
segment (reduced 150 MW of demand), closing the shopping malls at 8 pm (reduced 350 MW of
demand), distributing over 10 million energy saving CFL bulbs at free of cost among the subscribers
(reduced 150-160 MW of demand), providing advice on DSM, and encouraging DSM through mass
promotions. However, the DSM measure, supplying energy efficient CFL bulbs, failed due to poor
quality of bulbs procured under the program.
179
For power system development analysis, Bangladesh is divided into five geographical regions: the Central, Northern, Southern, Western and greater Dhaka regions as shown in figure 4.6
Figure 4.6: Geographical Segmentation in Power System Development Program
Source: Power System master Plan 2006
The load distribution factor for a region is that region’s percentage of total national demand. Table
4A.2 in Appendix 4A presents estimated electricity demand for each area for the Base Case of the
Power Sector Master Plan 2006.
The regional substation load based on the results of the Power System Master Plan -2010 is shown in
the figure 4.7 below. The substation load of Dhaka region is approximately 40 percent, which is the
highest. In addition, the substation load of the east region is approximately 70 percent. If the
amount of the power generation is equally located in both the east and west, the power flow from
the west to the east will be approximately 20 percent. As the Jamuna River divides the country into
eastern and western zones, a huge amount of investment will be required to construct the river-
crossing transmission line. Therefore, it is important that the power development plan be consistent
with the regional load balance.
180
Figure 4.7: Substation Load by Region
Source: Power System Master Plan 2010
4.2.2 Supply plan to meet the demand
In order to meet the growing demand for electricity, 15,000 MW of new generation capacity has
been planned. The plan involves commissioning a number of quick rental and rental power plants as
immediate measures to meet the demand in the short run. Once the generation scenario is
strengthened after the completion of large power projects, small generation units will be gradually
uninstalled. The Generation Expansion Program of GoB is planned to be implemented in the
following phases:
Immediate: 6 -12 Months
Rental and Quick Rental Plants (liquid fuel) Short term: 18 - 24 Months
Peaking Plants (liquid fuel) Medium term: 3 - 5 years
Combined Cycle Plants (Gas or dual fuel)
Peaking Plant (Gas or dual fuel)
Coal fired steam plants Long term: beyond 5 years
LNG based Combined Cycle Plants
Domestic/Imported Coal Power Plant
Gas/Oil based Peaking Plant
Nuclear Power Plant
Renewable Energy
Anticipated completion of the new power generation projects up to 2016 are illustrated in Table 4.1.
181
Table 4.1: Calendar-wise Project Completion (from 2010 to 2016)
YEAR 2010
(MW)
Commissioned
2011
(MW)
2012 (MW) 2013 (MW) 2014
(MW)
2015 (MW) 2016 (MW) TOTAL
(MW)
Public 255 1107 582 1040 1270 450 1500 6204
Private 270 105 1319 1134 1053 1900 1300 7081
Quick Rental 250 1238
1488
Total 775 2450 1901 2174 2323 2350 2800 14,773
Source: Bangladesh Power Development Board
Indigenous natural gas, coal, LPG, LNG, nuclear, cross-border trade and hydro resources are mainly
considered as fuel for the additional generation plan. Other factors such as availability of fuel,
cooling water, transportation of heavy equipment, proximately to grid network and load center etc.
are also considered for plant placement. The generation plan up to 2030 segmented by fuel type is
illustrated by the following figure:
Figure 4.8: Power Generation Plan till 2030 by Fuel Type
Source: Power System Master Plan 2010
The plan heavily relies on coal based power generation in the future, while the contribution of the
gas based plants are expected to decline over time. Both domestic and imported coal resources are
given equal priority in the generation plan. However, the prime minister of Bangladesh has recently
declared its intention to conserve domestic coal for future generation and meet present demand
through imports. Moreover twelve noted citizens protested the proposal of a coal-fired power
project near the Sundarbans. They expressed their worries over a move to sign an agreement with
the NTPC of India for setting up the proposed 1,300-megawatt plant at Rampal upazila in Bagerhat.
The other fuel types and cross-border power trade will be undertaken as acting in a supporting role
in meeting the national demand.
182
The year wise detailed power development plan according to the PSMP 2010 is given in table 4B.1 in
Appendix 4B. The name of each power plan indicates the region where it is planned to be
commissioned.
4.2.2.1 Region wise supply (existing and planned)
Summary of BPDB’s supply forecast up to 2016 is given in the table below. According to the plan,
Khulna zone in the western grid will have greatest addition of up to 2,743 MW of installed capacity
while no capacity addition will be made in the Rajshahi zone in the coming 4 years. A detail list of
existing and planned power plants divided into different regions is provided in Appendix 4B table
4B.2 and 4B.3.
Table 4.2: Summary of Existing and Planned Power Supply (Regional Breakdown)
Eastern Grid Western Grid
Existing
Dhaka Chittagong Comilla Mymens
ingh Sylhet Khulna Barisal Rajshahi Rangpur
Installed Capacity
(MW) 3333 937 1167 232 571 959 78.5 483 340
Derated Capacity
(MW) 3164 887 1054 197 563 864 68 463 306
Planned
Installed Capacity
(MW) 1853 1246 265.5 145 1524 2743 450 1052
Source: Keystone Study
4.2.3 Mix of plants, e.g. Large, CHP, Peaking etc.
In Bangladesh there is no system for combined heat and power (CHP) service. The Peak and Base
load power generation addition depend upon the demand fluctuation in the daily load curve. The
figure below depicts the general demand fluctuation and generating operational conditions in a
typical day. Gas based combined cycle power plant, nuclear and coal-fired power stations
demonstrate several advantages over a stable fuel supply system as well as economic efficiency
making the systems suitable for base generation power. Gas (LNG) power stations are more suitable
for mid-generation power due to environmental adaptability and operations capability as compared
with other generations. Oil and hydro powers are able to operate flexibly over demand fluctuations;
hence these powers are suitable for peak generations.
183
Figure 4.9: Optimum Mix Generation
Source: TEPCO Annual Report
To set the long-term power source configuration driving the peak and base load power plants,
screening analysis for the power system is done analytically. The screening analysis consists of a
combination of the fuel/cost graph and the electric power demand duration curve. It shows what
demand uses which power supply, i.e., economically optimal combination of power supplies. The gas
price in Bangladesh is much lower than the international price. If fuel prices are assumed to increase
because of tight demand of the primary energy, the optimal power supply configuration ratio would
be- oil 10 percent, gas 20 percent, and coal 70 percent.
To estimate the mix of power plant, it is necessary to find out the actual peak demand and base load
demand. In Bangladesh, the power supply has constantly remained strained in peak hours. Potential
demands have not been met, and rotational outage has frequently occurred.
Table 4.3 depicts the characteristics of base-middle-peak generation.
184
Table 4.3: Characteristic of Base-Middle-Peak Generation
Base Middle Peak
Hydro Nuclear Coal Gas/LNG Oil Hydro(Pumped
Storage Hydro(Dam/pndage)
Economic Condition
Fixed High Low High
Variable - Low Middle High -
Operational Condition
Start up duration
Fast Slow Middle Fast
Load Control
- - Slow Middle Fast
Source: PSMP Study Team
The following figures (4.11 and 4.12) illustrates power development plan by BPDB up to 2010 for Base load generation by fuel type for base scenario.
Figure 4.11: Power Development Plan by FY 2030 (MW)
Figure 4.12: Power Development Plan by FY 2030 (%)
185
4.2.3.1 Year wise plan till 2016
According to Bangladesh Power Development Board’s Planning for the next 4 years, the following
mix (Table 4.4) of Peaking, Large and Combined Cycle Power Plants will be commissioned
throughout 2012 to 2016.
Table 4.4: Mix of Plants (Large, Peaking, CCPP) 2012- 2016
Peaking Plants Large Plants Combined Cycle PP
2012
No. of Plants 11 4 1
Capacity (MW) 1287 295 163
Contribution in Total additions in Generation
44% 16% 4%
2013
No. of Plants 15 2 8
Capacity (MW) 3027 199 1726
Contribution in Total additions in Generation
91% 6% 52%
2014
No. of Plants 16 0 15
Capacity (MW) 3054 0 2463
Contribution in Total additions in Generation
93% 0% 75%
2015
No. of Plants 8 0 8
Capacity (MW) 2032 0 1410
Contribution in Total additions in Generation
93% 0% 65%
2016
No. of Plants 3 0 1
Capacity (MW) 2350 0 750
Contribution in Total additions in Generation
100% 0% 32%
186
Source: BPDB
4.2.3.2 Long term plan (2010-2030)
According to the PSMP-2010, the maximum demand in 2015, 2021 and 2030 will be 10,000; 19,000
and 34,000 MW respectively. To meet the demand with reliability, installed capacity needs to be
increased to 24,000 MW and 39,000 MW by the year 2021 and 2030 respectively. Generation
capacity from different primary fuel in the year 2030 would be:
Domestic and imported coal based ST- 19,650 MW (Base Load)
Nuclear power- 4,000 MW (Base Load)
Gas and LNG- 8,850 MW regional Grid- 3,500 (Middle)
Regional Grid- 3,500 MW (Peaking)
Liquid Fuel, Hydro, Renewable- 2,700 MW (Peaking)
4.2.4 Projects under pipeline
As of December 2011, 39 power projects were in the pipeline with 6,784 MW of installed capacity in
the private sector and 5,098 MW of installed capacity in the public sector. Detailed list of the
projects in the pipeline is provided in Appendix 4C. The list includes the name, location, capacity,
fuel type and expected commissioning date of the projects.
4.2.5 Realistic addition
Will be provided in the final report.
4.2.6 Rental and quick rental projects under pipeline
There are no projects under pipeline for rental and quick rentals. The last were commissioned in 2011.
4.2.6.1 Mix of fuel for rental and quick rental
No new rental or quick rental projects are in the pipeline. Figure 4.13 shows the fuel mix for rental projects that were recently commissioned i.e. in 2010 to 2011.
Figure 4.13: Fuel Mix for Rental Projects Commissioned in 2010-2011
48%
26%
26%
FO
Gas
HSD
187
4.2.7 Commercial arrangement of contracts
The nature of commercial arrangements varies depending on the ownership structure of the power
projects. Commercial arrangement of contracts of BPDB owned power plants follow the Public
Procurement Rules (2008) which is discussed in a later section (4.2.9).
Commercial arrangement of contracts in case of IPPs is guided by the Private Sector Power
Generation Policy of Bangladesh (IPP) whose tenure could be anything from 7 to 22 years. Nature of
contracts could be of three manners. The Power Purchase Agreement (PPA) is a contract between
BPDB and the IPP where BPDB is bound to purchase the power produced by the IPP. The Fuel Supply
Agreement is between the IPP and the Fuel Supplier (namely Petro Bangla) where the IPP is
guaranteed uninterrupted fuel supply. The Implementation Agreement (IA) is a direct contract
between the IPP and the Government where the government gets involved in the implementation of
the project.
Rental Power Plants again follow PPR or a competitive bidding process whereas contracts for quick
rentals are awarded based on negotiation. Price determination in such cases either requires the
single buyer to supply fuel where the vendor only gets the capacity payment or the vendor is
allowed to import the necessary fuel directly, provided the fuel is a pass through item. Payment is
made by the single buyer on a monthly basis in Bangladeshi taka, unless otherwise specified in the
contract. The duration of the contract may vary from a minimum of three years up to twelve years.
However, contracts have extended beyond twelve years in the past.
Rental power plants have a ‘must dispatch’ obligation under the contract up to the declared capacity
with an acceptable level of variance. A default results in penalty. But if directed by the load dispatch
authorities to produce a lower amount of electricity or go for a complete shutdown, the vendor is
entitled to receive capacity payment only.
According to the power generation expansion plan, the GoB intends to phase out rental power
plants shortly with the commissioning of gas or coal-based large scale steam turbine or combined
cycle power plants. Any delay in execution of the plan will automatically extend the rental contracts
resulting in the government either choosing to continue providing high subsidies or seek alternatives
measures e.g. tariff inflation, extensive load shedding, etc.
4.2.7.1 Future challenges that power sector (especially national government) could face because
large amounts of very high cost rental power has been contracted
The addition of new power facilities to the national grid for the last few years has come at a
significant cost to the economy and the government as much of the new electricity comes from the
use of expensive fuel oil-fired rental plants which produce power at over six times the prices charged
by the standard gas-fired plants. The financial burden imposed by rental power plants has
contributed to a troubling decline in the country’s scarce foreign exchange reserves because of
import of capital machinery and additional fuel oil for the rental power plants and make hefty
increases in the price of fuel oil and power to ordinary consumers.
188
Since January 2009, there has been an increase of 2,900 MW in power. However, net gain in power
is only about 1,500 MW due to the lack of maintenance and old age of already existing plants. About
1,088 MW out of the 1,944 MW created by the GoB has come from the use of untendered rental
power plants. The rental power plants run on expensive imported fuel oil — either furnace oil or
diesel. The government buys 2 million tones more than it had to, three years back. Moreover, the
power produced by these plants is more than six times the cost of power from the standard gas-fired
power stations which have in the past produced most of the country’s power.
Within a year, till August 2011, BPDB has more than doubled the amount of energy it buys from
rental plants which produce electricity at USD .1630 a kilowatt-hour (unit) which is over six times
what the public sector plants sell power for, USD .024 a unit. At the same time, there has been a 25
percent decrease in the level of low-cost power generated in the public sector plants. Consequently,
according to the BERC, the power board will spend more than double the amount of money on a
unit of power in February than it did when the government first assumed office — USD .065
compared with USD 0.029. In order to deal with these significantly higher costs, the government
increased the retail prices of both fuel oil and power. The price of power was increased by
approximately 25.5 percent whilst the cost of diesel and kerosene went up by 39 percent,
compressed natural gas by 79 percent and furnace oil by 131 percent.
Economists of the country say that the increase in fuel oil and power prices has contributed to the
surge in inflation which has risen from 7.5 per cent in November 2010 to 11.6 per cent in November
2011. They accuse the government of failing to consider the consequences of this policy on an
economy which already had a large budget deficit and claim that it will take a long time for the
economy to recover. The economy is trapped in a cycle where inflation is increasing whilst at the
same time local businesses are not able to invest as banks have lent significantly to the government.
The government has exhausted its borrowing limit, around USD 2.26 billion, for the financial year
2011–12 from the banking channels and thus created a liquidity crisis for the entrepreneurs. Few
steps have been taken thus far by the power board to decrease the use of its low-cost power
generating plants through renovation of its old plants to replace the use of expensive rental plants.
The power board is yet to formulate a guideline for the release and use of the Power Maintenance
and Development Fund which was created with some of the additional money it collected from an
increase in power prices in February 2011.
The rental power plants together have emerged as a serious challenge for the government. The GoB
is left with no option other than spending a substantial amount from its reserve to run the rental
plants, which has again come under strain of late because of the less-than-expected inflow of foreign
assistance and remittance income, on the import of additional quantity of diesel and furnace oil.
Apart from the foreign exchange expenditure, what is worrying the government more is the subsidy
that it would have to provide on account of the supply of fuel to the rental power plants and the
gross mismatch between power procurement and selling tariffs. There are confusions about the
subsidy estimates since varying disclosures are made from to time by men in-charge of the ministry
and agencies concerned. However, according to the latest estimates, if selling tariffs remains
30
1 USD = 82 BDT (as of December 29, 2011)
189
unchanged both in the case of petroleum products and power, the government would have to
provide subsidies worth USD 2.8 billion - USD 1.7 billion on oil marketing by the Bangladesh
Petroleum Corporation (BPC) and USD 1.1 billion on power purchase, mainly from rental power
plants, by the Power Development Board (PDB) in the current fiscal. If the 'subsidy' estimates are
right, the government will have difficulty in meeting those, particularly when the allocation against
all types of subsidies in the national budget for this fiscal is little over USD 1.1 billion. In such a
situation, the government will take recourse to what most governments do; it would borrow from
banks in excess of the amount projected in the budget, thus, adding more fuel to an already high
inflationary pressure (point-to-point inflation, according to the Bangladesh Bureau of Statistics, was
12 per cent in last September).
4.2.8 Conversion efficiency of existing plants
One fourth of the generation plants of the power system are more than 20 years old causing higher
maintenance costs and plant outage. The current status of existing gas-fired power plants Facilities
under BPDB control can be roughly classified into 4 groups. The current state of each is shown in the
following table.
190
Table 4.11: Classification of Gas-fired Power Plants under BPDB Control
Source: Power Division
The capacity of a conventional facility using steam turbines (ST) ranges from 55 MW to 210 MW. For
adopted steam conditions, the pressure is 13 MPa for a 210 MW unit (maximum capacity) and 9.0
MPa for a re-heat type with a temperature of 540 °C and non-re-heat type with a temperature of
535 °C. The design performance (thermal efficiency) of such a facility is approximately 30 percent;
lower than that of a coal thermal power generation plant. The oldest facility was produced in 1974.
Almost all gas turbine facilities (GT) are old, small-capacity, and with low thermal efficiency except
for the recently installed large-capacity plants in Tongi and Baghabari. Manufacturers supplying the
facilities include GE (USA), ALSTOM (France), Mitsubishi (Japan), and Hitachi (Japan).
Figure 4.14 illustrates the current state efficiency of each gas-fired power generation facility.
Figure 4.14: Actual Efficiency of Gas fired Power Plant
Source: BPDB, System Planning
191
Lack of inspection funds and regular maintenance leads to “break down maintenance” and lower
efficiency. Moreover, the reduced efficiency of the steam turbine facilities was caused by steam
leakage from turbine, absence of a high-pressure heater, difficulty to maintain a vacuum in the
condenser, and leakage from thin pipes in the condenser. Some gas turbines reduced in efficiency
with age. To improve the efficiency BPDB prepares retirement plans for the existing power
generation plants. Higher efficiency may be achieved through re-powering of the existing power
stations, construction of higher efficient gas combined power stations and allocation of gas to more
efficient power stations. The retirement plan by BPDB for the gas fired facilities is given in Appendix
4D.
4.2.9 Procurement procedures for parts, repairs and services
Procurement procedures of goods (parts) and repair maintenance & expert services of power plants
usually follow the Power Procurement Rules-(PPR) 2008 and Power Purchase Agreement-2003 of
GOB. For procurement purposes of projects funded by development partners, partner’s or donor’s
guidelines are followed. State owned power plant projects specifically follow the PPR 2008 rules.
Privately owned power plants also follow a competitive bidding process unless required otherwise
for specific goods. Equipment/parts suppliers are usually responsible for repair and services of parts,
usually bound by ECP contracts, for a certain period of time.
The procurement processes under PPR are briefly discussed below. A detailed summary as well as a
copy of the Public Procurement Rules are attached in Appendix to the power generation sector.
Table 4.12: Procurement Procedures under PPR 2008
Open tendering competition open to all interested firms
Limited tendering competition limited to those invited to tender
Two stage tendering Similar to open tendering but proceeding in two stages
Single-Stage Two Envelope tendering Similar to open tendering but Technical and Financial Proposals submitted
in two separate sealed envelopes simultaneously.
Request for quotations a simplified method of smaller purchases
Direct procurement sole source procurement when competition is inappropriate
Request for proposals used for the procurement of intellectual and professional services
4.3 Key Players
4.3.1 Main customers today and in the future
A Single Buyer System prevails in the power sector making. Almost 100 percent or all of the
electricity generated is either produced or purchased by Bangladesh Power Development
Board (BPDB) making it the sole customer of power generation companies. Nevertheless, a
small portion of electricity produced by rather small IPPs and RPPs are directly synchronized
192
to the 33kV distribution line of selected Palli Bidyut Samity (PBS) of the Rural Electrification
Board (REB). Unless a cost-based or economic tariff structure is operational in the country, a
”Power Exchange” or open market system or other improved methods for trading electricity is
not likely to be introduced in Bangladesh anytime soon. As such, the buyer-seller dynamics is
expected to remain the same.
Customers for GE would comprise of power generation companies that have been awarded or
will be awarded contracts to set up power projects in the future. Both private and public
sectors actively participate in the power generation scenario of Bangladesh. The Public–
Private ratios for the current and for the next four years are summarized in table 4.1. As of
2010, the public private ratio in terms of capacity installed stood at 13:9. From the above table, it is
apparent that, the public private ratio for new projects commissioned up to 2016 stands at 7:8. This
indicates an increase in private sector involvement in the power generation sector. Customers in the
future can thus be expected to largely comprise of private power generation companies.
4.3.1.1 Vendors awarded contracts for power generation services for the past 5 years
The list of vendors and Machine OEMs that were awarded to set up Power Plants in the last 5 years are given in Appendix 4F.
4.3.1.2 Key buying criteria for customers
Tariff for electricity is determined by the Government or the single buyer through the Bangladesh
Energy Regulatory Commission (BERC). Customers are bound to procure electricity at the fixed rate.
Grid electricity, being cheaper, is preferred by retail customers as alternative sources usually cost
more.
Suppliers of equipment for both Public projects and IPPS are more or less chosen by a competitive
bidding process. Suppliers are initially shortlisted given they meet all technical standards. The bidder
offering the most competitive price i.e. the bidder offering the lowest tariff is finally awarded the
contract.
4.3.2 Vendors awarded contracts for power generation services for the past 5 years.
Vendors awarded contracts for different power generation services are provided in Appendix 4 E.
Names of equipment/spare parts/ services and corresponding manufacturers, local agents and
contract winning companies are enlisted according to capacity and type of power plants.
4.3.3 Operation expenses for existing plants
Operating, Maintenance, administrative and Personnel expenses of BPDB Power plants during FY
2007-2008, 2008-2009 and 2009-2010 are given in the Appendix 4G. Operating costs and
maintenance cost may vary across power plants depending on type, size and plant utilization factors.
Fuel costs, fixed O&M costs and variable costs of existing power plants are also provided in Appendix
4G.
193
4.3.3.1 Maintenance practices
Absence of any specific regulations regarding routine inspections of public power units calls for
generators to independently carry out inspection activities at their discretion. Stringent supply
demand situations make it difficult to halt operations for maintenance purposes. Lack of inspection
funds is also a probable reason for less frequent inspections. Thus operations continue non-stop
until the equipment breaks down leading to greater damage and longer repairing periods; a classic
case of “break-down maintenance.” In order to ensure implementation of regular inspections, the
Power System Master Plan -2010 recommends the revision of existing rules and regulations and
enables the maintenance scheme to shift over from break-down maintenance to time-based or
condition-based maintenance.
Figure 4.15: Conceptual comparison of three different maintenance strategies
Source: Keystone Research
One of the reasons why majority of the plants today are incapable of reaching designated
performance levels of capacity and efficiency is restorative nature of maintenance activities instead
of preventive. As such, most repairs take place after something breaks down. Meeting the stable
power demand would require a transition to the concept of “take care before break down” in place
of the current “repair after break down” philosophy. In other words, proceed with regular
inspections regardless of whether something is broken or not such as “Time Based Maintenance
(TBM)” or heeding equipment predictors during monitoring (Condition Based Maintenance (CBM)”.
4.3.4 Sales channel for GE competitors
Power Procurement Rules-(PPR) 2008 are followed in case of public power plants as discussed
earlier. Selection of sponsors for power plants in case of IPPs follows a similar competitive bidding
process where BPDB issues a Letter of Intent (LoI) to the awarded company. The sponsor company
then starts selection procedures of Engineering and Procurement (EPC) contractor and the
Operation and Maintenance (O&M) contractor. The EPC contractor and the O&M contractor directly
198
The National Energy Policy (1995) addresses both energy conservation and environmental issues.
The policy suggests utilization of energy for sustainable economic growth, development of the
indigenous energy sources and assurance of environmentally sound and sustainable energy
development programs causing minimum damage to the environment.
The Environment Policy and the Energy Policy have seven recommendations; of which the following
three are relevant to the power plants.
a. “Environmental Impact Assessment should be made mandatory and should constitute an
integral part of any new energy development project.”
b. “Use of economically viable environment friendly technology is to be promoted.”
c. “Popular awareness to be promoted regarding environmental conservation.”
National land Use Policy 2001
According to the national Land use Policy, 2001, the following objectives could be relevant to power
plants.
Prevention of the current tendency of gradual and consistent decrease of cultivable land for
the production of food to meet the demand of expanding population;
Ensuring usage of land in harmony with natural environment;
Usage of land resources in the best possible way
Protection of natural forest areas, prevention of river erosion and destruction of hills;
Prevention of land pollution; and
Ensuring minimal use of land for construction of both government and non-government
buildings.
Environmental Conservation Rules (ECR) 1997 amended 2003
These are the first set of rules, promulgated under the Environment Conservation Act 1995. The
rules set, among others, (i) the National Environmental Quality Standards for ambient air, various
types of water, industrial effluent, emission, noise, vehicular exhaust etc., (ii) requirement for and
procedures to obtain Environmental Clearance, and (iii) requirements for Environmental Impact
Assessment (EIA) according to categories of industrial and other development interventions.
Obtaining Environmental Clearance
"EIA Guidelines for Industries" published by the Department of Environment (DoE) and the
"Environment Conservation Rules 1997”are the formal documents providing guidance for
conducting Environmental Assessment. Any proponent planning to set up or operate an industrial
project requires obtaining an “Environmental Clearance Certificate” from the DoE, under the
Environment Conservation Act 1995 amended in 2002.
The application for Environmental Clearance includes a project feasibility study report, the EIA
report, No Objection Certificate (NOC) of the local authority; Mitigation Plan for minimizing potential
environmental impacts; and appropriate amount of fees in ‘treasury chalan’ (in the present case the
199
amount is BDT = 100,000). The DOE authority reserves the right to request additional information,
supporting documents, or other additional materials for the proposed project.
The ECR (1997) focuses on the classification of industries into three main categories i.e. Green,
Amber and Red; based on their pollution potential. Red listed industries are those that can cause
'significant adverse' environmental impacts and are, therefore, required to submit both Initial
Environmental Examination (IEE) and an EIA report. These industrial projects may obtain an initial
Site Clearance on the basis of an IEE based on the DoE’s prescribed format, and subsequently submit
an EIA report for obtaining Environmental Clearance.
Power Plant projects fall under the “Red” category according to ECR’97, and would therefore
require, among others, an EIA for obtaining Environmental Clearance from the DoE. This involves
three steps. First, obtaining site clearance to permit pre-construction and construction activities;
second, obtaining approval of the EIA study and third, obtaining Environmental Clearance. This
permit is required before the power station can be operated.
Refer to the “Environmental Regulation for Existing Plants and Current emission Levels” section
under the power generation sector study for policies around particulate and gaseous emissions
levels.
4.4.2 The policy on selection of a plant size for a particular location
The determination of the size of a power plant in Bangladesh usually precedes the selection
of a suitable site. Demand for power and a least cost expansion plan is the basis for the
generation expansion planning procedures. Fuel availability and cost drives the selection of
generation options. Optimal locations for power plants are then ranked considering the
following factors:
Proximity to the load centers and their forecast load demand.
Transmission to the load centers.
Availability of adequate space at the site.
The value of the land for other uses.
The suitability of the ground and geotechnical conditions for construction of the plant.
The possibility of flooding or seismic events.
Potential sources of cooling water and makeup water.
Fuel deliverability at the site.
The impact of the facility in a positive or negative manner on the local environment.
Sources of fill and construction materials.
Access to the site for transportation of heavy equipment and construction materials.
Availability of social facilities near site.
200
4.5 Future Issues and Challenges
4.5.1 Impact of global demand-supply dynamics on the Bangladesh market
From the demand side perspective, there is no relationship between demand for electricity
and the global demand-supply situation.
Any increase in the price of major equipment in the international market will eventually
increase the investment cost for setting up of a power plant in Bangladesh, resulting in cost
overrun. Delays in the procurement of such equipment may result in a time over-run for a
project. Any increase in the price of fuels in the international market will eventually increase
the generation costs.
4.5.2 Impact of current gas availability and low gas pressures
The power generation scenario of Bangladesh heavily relies on natural gas as fuel source. The share
of other fuel sources is negligible. At present fuel consumption for power generation is as follows:
Table 4.18: Present Fuel Consumption Scenario
Total D-Coal I-Coal Gas FO HSD Others D-Coal I-Coal Gas FO HSD
[GWH] [GWH] [GWH] [GWH] [GWH] [GWH] [GWH] [1,000t/y] [1,000t/y] [mmcfd] [1,000t/y] [1,000t/y]
35,474 659 0 28,885 3,948 1,564 416 239 0 792 882 405
Source: Power Division
About 82.12 percent of the annual power is currently being generated from indigenous natural gas
reserves. The gas demand ratio of the power sector (grid Power and captive power) to all sectors
used to be around 45 percent, but the consumption pattern started declining from the 2007. The
trend of the Gas Demand Ratio is shown below:
Table 4.19: Gas Demand Ratio of the Power Sector for All Sectors
Source: Power Division
The following figure shows the month-wise availability of gas in the power sector for the years 2009,
2010 and 2011 (up to July). It is clear from the trend that the supply of gas was reduced in the latest
years even during the peak season. Due to this gas supply shortfall a number of plants could not
operate at their usual capacity. This causes an average generation loss of around 500-800 MW
currently.
201
Figure 4.16: Month-wise Average Gas Availability for Power Generation in MMCFD
Source: Power Division
Production loss due to the gas shortage and low gas pressure reached 792 MW as on November 1,
2011 (Appendix 4 I, Table 4I.1). Two of the plants had to be kept inactive and the Haripur NEPC GT
110 MW plant had to be converted to a liquid fuel based plant because of the lack of adequate gas
supplies. It should also be noted that the Shikalbaha Peaking GT was in partial operation only
because Chittagong ST Unit 2,180 MW was under maintenance. Otherwise this plant would have had
to be shut down as well.
4.5.3 Plan to address low gas pressure at power plants
The generation expansion plan undertaken by the government reduces the power system’s reliance
on natural gas as the primary fuel. However, a large portion of the future demand of power is still
planned to be met by gas based generation. The projection of the status of the gas based power
production scenario is shown in the Appendix 4 I, Table 4I.2.
Gas Requirement will rise up to nearly twofold by 2018. In order to meet the projected demand for
gas in power generation, the following plans of actions have been undertaken:
New gas based plants are planned where gas is available (Sylhet, Bhola).
At least 50 percent allocation of total produced gas is planned for power generation.
Enhanced exploration activities to ensure gas supply to power plants.
All the new gas based power stations are designed with gas booster compressor.
To meet additional gas demand for the gas based proposed power plants in Meghnaghat,
Haripur and Siddhirgonj areas and also to ensure gas supply with requisite presser in existing
power plants in Siddhirgong area, GTCL has taken up Bakhrabad - Siddhirgonj Gas
Transmission Pipeline project under WB loan. Additional 380 MMSCFD gas will be required
to be transported to the proposed and existing power plants. The pipeline has designed to
supply 400 MMSCFD with a pressure 1000 psi (g). This pipeline would also be the initial
source to supply gas to the southern part of the country. Tender evaluations for the pipeline
project have been completed and GTCL expected to place work order within June, 2011 and
this pipeline project will be commission by June, 2013.
To overcome the acute gas shortage with low presser TGDTCL has taken up MonohNorsindi
500
550
600
650
700
750
800
850
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Gas Availability in 2009 Gas Availability in 2010 Gas Availability in 2011
202
gas pipeline project which will bring benefits to the gas consumer of Demra, Siddhirgonj and
Narayangonj areas. TGDTCL has given work order but there is case in the court against this
work order, for which contractor could not start the work. They expected the contractor will
start work very soon and the project will be completed by June, 2012. After completion this
pipeline gas flow & pressure will be increased in some extent in Siddhirgonj RMS which can
be used to operate gas based power plants in this area.
CHEVRON Bangladesh has started installation of Gas Booster Compressor at Muchai near
Rashidpur gas field and installation and commissioning work will be completed by
September, 2012. The inlet and outlet pressure of the compressor is 1000 ps (g) and 1300
psi (g) respectively. Gas pressure at the subsequent area will be improved.
GTCL has also taken up a project to install the Gas Booster Compressor at Ashuganj (AGMS).
Tender evaluation has been completed and they expected to give work order in the month
of May, 2011 and probable date of completion by end of 2012. This will also help to increase
gas flow and pressure in Dhaka area.
CHEVRON Bangladesh has started exploration of gas in Moulovibazar and they have a plane
to supply additional 900-1000 MMSCFD gas from Bibyana and Jalalabad gas field by 2013.
4.5.4 Significance of financing as a bottleneck for power projects
Power Generation is a capital-intensive sector requiring substantial investment for setting up power
plants. Therefore, financing is always a major drawback in the growth of the power sector. Large
multilateral financing institutions like the World Bank or the Asian Development Bank have rarely
showed any interest in financing power generation projects in Bangladesh until recently. These
organizations have, in recent years, sanctioned loans to a few public sector power generation
companies to install medium size (120/150/335/360 MW) power plants. Recently, the Government
has invested an amount equivalent to more than one billion US Dollars in a single project for setting
up of 820 MW diesel-based peaking power plants in various locations of the country. These
instances indicate that financing of large projects will get positive responses from relevant quarters
in future. However, bureaucracy involved both in the donor and recipient ends make the
implementation time of the projects unpredictable lengthy.
On the other hand increased government borrowing from the commercial banks is aggravating the
liquidity crisis faced by banks suppressing funds available for private sector investments. Moreover
an implementation of the Basel III by 2014 would require banks to follow more stringent standards
of maintaining capital adequacy and liquidity which might prove getting financing from the
commercial banks more difficult.
4.5.5 Scope for bundled sales and sales dependent financing of equipment
Equipment sales are usually not a package for procurement. Power generation projects are
procured on an Engineering Procurement and Construction (EPC) basis. The vendor bidding for the
project will be responsible for Engineering, Procurement and Construction of the project as a
whole.
Normally the turn-key EPC contractors are awarded a certain power project with the condition that
the turn-key contractor will supply goods from reputed companies like, ABB, Alsthom, GE or