FORTNIGHTLY MAGAZINE, VOL 10, ISSUE 14, JANUARY 1-16

Editor
Mollah M Amzad Hossain
Advisory Editor
Anwarul Islam Tarek
Saiful Amin
International Editor
Dr. Nafis Ahmed
Contributing Editors
Saleque Sufi
Dr. A Rahman
Islam Sharif
Khondker Rezaur Rahman
Managing Editor
Afroza Akther Pervin

Reporters
Jannatul Ferdushy
Nahid Anjum Siddiqui
Design & Graphics
Md. Monirul Islam
Photography
Bulbul Ahmed
Farzana Karim Chowdhury
Magazine Administrator
AKM Shamsul Hoque
Production
Mufazzal Hossain Joy
Computer Graphics
Md. Uzzal Hossain

he Awami League-led grand alliance government is stepping into the last

year of its five-year term on January 8 with the aim to be re-elected in the
next general election. But everything depends on its successes and failures in
the last four years. Already analysts have started reviewing the achievements
and shortcomings of the AL-led government. In energy sector, there are both
positive and negative things. No doubt, it is a big success to meet the entire
demand for electricity in four years of a government as compared to what the
country has achieved in last three decades (5000 MW). But the state of gas
sector is dismal. The achievements have been faded out for lack of
comprehensive policy to ensure primary energy supply. Failure in bringing
base-load plants would be added in the list. Many initiatives to encourage
efficient use of energy and promote renewable energy have been laudable.
However, all the achievements have been overshadowed by the inability to
take decision on the coal mining in last four years. Lets see how the
government tries to improve the situation and fulfill its electoral pledges.

Technical Support
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Price
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America, Africa & Australia: US$ 7.5

FBCCI President
45 Former
Abdul Awal Mintoo made
the remarks that there is no alternative to reach a political consensus, particularly between the two
main parties, to convert the countrys coal and gas into resources in
an exclusive interview with EP

Energy & Power wishes a Happy New Year 2013 to all its readers, writers,
contributors, advertisers & well wishers.

The Awami League-led grand

alliance government is going to
complete four years of the fiveyear term on January 8 while another
general election is knocking at the
door. The domestic politics gradually
becoming heated up ahead of the
election overshadowing the muchtalked-about Padma bridge corruption conspiracy, Hall-Mark credit
scam, Destiny scandal, and the
killing incidents of Sagor-Runi and
Bishwajit. Apparently the political situation would take unwanted turn due
to the debate over the caretaker government. The debate over what has
been achieved and what not in the
energy sector is likely to stimulate the
political arena.

COVER

Green Page

The Energy & Power

had introduced Green
Page marking its stepping into the 7th year to
campaign for efficient
use of energy, energy
conservation and using
environment-friendly
energy. Encouraged by
the
readers
and
patrons, the EP decided
to continue with the
pages as it is stepping
into the 8th year. The
EP would make its best
effort to keep up the
campaign
Page: 37, 39, 40

WORLD WATCH
Latest Development in World

6-7

SNAPSHOT
Latest Development

COVER
The Lost Opportunity
COVER ARTICLE

17

Looking Back, Leaping Forward

SPECIAL ARTICLE

21

HVDC in Bangladesh
ARTICLE

28

Wind Power - A Solution to The Energy Crises

31

Commercial Aircraft Using Biofuel

REPORT

33

Price Adjustment Soon

33

No Gas Found in Petrobangla's Much-Hyped Sunetra

34

BPC Fixes Fuel Import Contracts

35

CIPs Ask for Gas, Power

GREEN PAGE

37

60MW Wind Power Plant to Be Set Up in Coxs Bazar

37

WTO Allegation Against Canada

39

Sustainable Polymers from Algae Sugars & Hydrocarbons

40

Climate-Friendly Agriculture & Renewable Energy

MEMOIRS

41

Local Expertise Stabbed in The Back!

MANAGEMENT

43

Corporate World: Professionalism

INTERVIEW

45

Abdul Awal Mintoo,

Former FBCCI President
COLUMN

49

Stuck in The Middle

W O R L D WAT C H

Chevron Signs
Argentina Oil Deal

US oil giant Chevron

and Argentina's partly state-owned oil
firm YPF said they signed a deal to tap shale oil resources in
the country's western Neuguen basin.

Gas to Emerge Second

Most Used Fuel by 2025

The agreement was signed by YPF CEO Miguel Gallucio

and Ali Moshiri, president of Chevron Africa and Latin
America division.

However, oil will continue to remain as the most widely

used fuel, said the United States-based multinational oil and
gas corporation ExxonMobil.

A Chevron statement said the deal, which builds on an initial memorandum of understanding signed last September,
"confirms a mutual interest in working together to achieve
Argentina's strategic goal of energy self-sufficiency."

Energy demand in the developing world will increase 65 per

cent by 2040 compared to 2010, reflecting growing prosperity in nations that include more than 80 per cent of the
world's population, the outlook said.

YPF said the deal sets conditions for a shale pilot project to
develop massive non-conventional petroleum resources in a
290 square kilometers (111 square miles) area of the Vaca
Muerta field of the Neuquen basin.

By then 20 per cent of global gas production will occur in

North America including the US and Canada where the gas
will be explored from shale and other unconventional
sources, said the outlook.

India's Iran Oil

Imports Drop 17pc

The North America will emerge as major energy exporter by

2025 and oil and natural gas supply system would be boosted by advanced technologies to meet 60 per cent of global
energy demand by 2040.

India's oil imports

from Iran fell 17 percent in the first eight
months of the contract year, with November shipments
down 40 percent from a month ago, as Essar Oil cut purchases from the sanctions-hit nation, data from trade sources
showed.
India, Iran's top oil client after China, plans to reduce imports
from Tehran by 10 per cent to 15 per cent in the next fiscal
year starting April, and more if Tehran does not lower prices
to help cover costs resulting from Western sanctions, sources
said.

Natural gas
is likely to
replace coal
as the world's second most used fuel after crude oil by 2025,
ExxonMobil Corp. said in its 2013 Energy Outlook.

In the next few decades, electricity is likely to meet more

than half the growing global energy demand, as gas, nuclear
and renewable energy are likely to be used more as fuel for
power generation, gradually replacing coal and oil.
Aggregate global energy demand is expected to be 35 per
cent higher in 2040 against the demand in 2010 as population and economy will continue to grow, said the outlook.

Top Asian buyers of Iranian oil - China, India, Japan and

South Korea - have all cut imports after the United States and
the European Union imposed sanctions to curb Tehran's
nuclear ambitions and in return have secured US waivers.

"Today, the world consumes some 25 times the energy it

used 200 years ago," the outlook quoted ExxonMobil VicePresident of Corporate Strategic Planning, William M.
Colton as telling the outlook launching ceremony at the
Center for Strategic and International Studies in Irving Texas.

India shipped in about 270,000 barrels per day (bpd) of oil

from the OPEC member over the eight months ended
November, tanker arrival data showed on Friday.

Gazprom to Buy
Kyrgyz Gas Operator

That was down from about 325,600 bpd a year earlier and
below the government's target of 310,000 bpd.

Russia's
gas
giant Gazprom
is taking a controlling stake in Kyrgyzstan's debt-ridden state gas company for one dollar, Kyrgyzgaz said.

Pak Coal Mine

Collapse Kills Seven

"The price has been set at one dollar" for 75 percent of the
company, considering its estimated debt of $38 million,
said Kyrgyzgaz Director Turgunbek Kulmurzayev.

Seven
miners
were killed when
the roof of a coal
mine collapsed in a tribal region of northwest Pakistan
recently.
The accident happened in the Dowli area of Orakzai, one
of the seven semi-autonomous tribal regions which are
home to Taliban and Al-Qaeda-linked militants.
The top local administration official, Khushal Khan, said
the bodies of the seven had been recovered and taken to
their home town of Shangla.
Most coal mines in Pakistan are notorious for poor safety
standards and facilities. Similar deadly accidents have
occurred in the past.

Gazprom is eventually planning to buy 100 per cent of the

company and invest 20 billion rubles ($660 million) over
five years, he said.
"The issue of Kyrgyzgaz's privatisation will be resolved by
April 1, 2013."
Deputy Director Kuralbek Naskeyev said Gazprom intended to transport gas from Russia through either Kazakhstan
or Uzbekistan, as there is no direct link.
He added that Kyrgyzgaz also hoped to build a pipeline in
the north of the country to transport gas to China.
5

SNAPSHOT

Electrical, Computer
Engineering Conference

A
threeday international
conference on electrical and computer engineering was held
at a hotel in the capital, aiming to create rooms for sharing
research works of similar institutions of 15 countries on electrical and computer engineering.
In 35 technical sessions, 241 research papers were be presented on power, renewable energy, telecommunications,
electronics, nanotechnology, digital technology, computer
engineering and modern controlling system.
Chief Justice Md Muzammel Hossain attended the inauguration ceremony of the conference as chief guest while Prime
Ministers Energy Adviser Tawfiq-e-Elahi Chowdhury and
State Minister for Power and Energy Ministry Md Enamul
Huq were special guests.
Department of Electrical and Electronics Engineering of the
Bangladesh University of Engineering and Technology
organized the conference.
The bi-annual conference, which started in 2001, is aimed at
creating an environment for bilateral and multilateral cooperation in
research
a n d
development of
the much
needed
areas of
advanced
technology.
A front view of the inauguration ceremony of the international conference on electrical & computer engineering

Pak Oil Co Eager

to Takeover Tullow
Assets in SA

Pakistan Petroleum
Ltd (PPL) is eager to
buy
UK-based
Tullow Oil's assets in
Bangladesh and Pakistan that the company plans to sell
under a package deal, a company insider said. He said the
PPL is now evaluating Tullow's assets in the two South Asian
countries before submitting final bid to buy the same.
Tullow Oil is planning to divest all of its Asian assets, which
are located in Bangladesh and Pakistan, to focus on its huge
offshore discovery in Ghana and exploration in South
America and Africa.
Australian exploration and production company Santos that
initially wanted to buy Tullow's Bangladesh assets lost interest recently following the discovery of the Srikail gas field by
the Bangladesh Petroleum Exploration and Production
Company (Bapex).
The Srikail field, with recoverable gas reserves of 300 billion
cubic feet (Bcf), is located next to Tullow's producing
onshore Bangora gas field in Comilla district under block 9,
about 100 km southeast of the capital Dhaka.

879 MMCFD Gas

Required for Plants
by 2015-16

The Energy and

Mineral Resources
Division (EMRD)
has requested the
Power Division to
be more conservative in considering any new gas-fired power
plant till 2015-16 as it fears the country might face instability
in gas supply in different sectors by then.
A letter, signed by EMRD deputy secretary Dr Sayed Masum
Ahmed Chowdhury, was recently sent to the power secretary
in this regard.
The letter said the government would require additional supply of 879mmcfd gas for the proposed series of gas-fired
power plants till 2015-16.
If the division is pledge bound to supply gas to the proposed
power plants frequently, then it would be impossible to
ensure uninterrupted gas supply to others sectors in future,
the letter read.
The division, however, will consider a power division proposal to supply 25mmcfd of gas to the proposed 100MW
Shahjibazar gas-fired power plant at Habiganj, it said.
As per a forecast of the Petrobangla, the country may face a
shortage of 346mmcfd gas in 2013, 278mmcfd in 2014,
299mmcfd in 2015 and 289mmcfd in 2016. The Bangladesh
Power Development Board (BPDB) has a plan to commence
the 150MW Gazpur Kodda dual-fuel power project, 225MW
Bhola power plant, 150MW Sikalbaha dual-fuel power plant,
300MW Shahzibazar, 300 MW Ghorasal, 450MW Bibiyana
phase-2, 3, 100MW Ghorasal IPP, 150MW Kaliakair dualfuel, 150MW Karaniganj, 20MW Tangali, 100MW
Fenchuganj and 450MW Sirajganj dual-fuel power plants
depending on gas as main fuel.

PDB Instructs
Officials to Oversee
Activities of Revenue
Collection

P o w e r
Development
Board (PDB)
Chairman
Abdul Wahab
slammed the
concerned officials of areas where the system loss still
remains above 15 percent. He also instructed the senior officials of the board to pay field-level visits every 15 days to
oversee activities of revenue collection and ongoing crack
down on the illegal power connections.
"Everyone has to work carefully to identify the causes hampering revenue collection activities to resolve those phase by
phase," said Mr Wahab.
His instructions came at a meeting on PDB's actions to supply uninterrupted power supply during the upcoming irrigation season and load management process at that time with
the distribution zone officials. The meeting was held at the
Bijoy Hall of the Bidyut Bhaban.
The PDB chairman also reviewed the steps taken and their
progress to achieve the commercial goals, activities of the
taskforce and its progress, etc.
6

SNAPSHOT

PM Urges Sensible
Use of Water-Gas

Prime
Minister
Sheikh Hasina urged
Dhaka city dwellers
to be more judicious in using water, gas, electricity and
other civic amenities considering the scarcity of the natural resources.
There should be no misuse... it is the demand of time,
she said while addressing a function over the inauguration
of Sayedabad Water Treatment Plant Phase-2 at the plant
premises. With the plant's inauguration, the Wasa supply
line will have an additional 22.50 crore liters of safe drinking water every day.
The judicious use of water will also lead to reduced bills
for the users and help them save money...there should be
more campaign by Wasa to create awareness in this
regard, said Hasina.
Voicing her optimism to create a livable Dhaka, she commended Dhaka Wasa's initiative to preserve rainwater and
recharge groundwater.
Hasina said the Awami League government took
Sayedabad Water Treatment Project in 1996 and started
implementing the project in three phases.
The second phase, work of which started in 2010, was
inaugurated yesterday, six months ahead of schedule.
Phase-2 of the project was implemented costing Tk 1,140
crore with Danida of Denmark contributing 68 percent of
the total cost, excluding the cost of land.

Prime Minister Sheikh Hasina inaugurate Sayedabad

Water Treatment Plant Phase-2

S v e n d
O l l i n g
announced
that
his
governm e n t
would provide US$
100 million
for the project's 3rd
phase.

Khaleda Calls For

Quick Power, Gas
Supplies to RMG
Sector

Leader
of
the
Opposition
in
Parliament and BNP
Chairperson Khaleda
Zia underscored the
need for a national
movement to uphold democracy in the country.
The former prime minister made the call at the closing ceremony of Batexpo against the demand raised by garments
makers to shun hartal permanently as part of political
activities.
The garment makers demanded of the opposition leader to
avoid calling strikes as a political weapon in the greater
interest of the sector which has potentials to make the
country economically sovereign.
But Khaleda Zia said the present government wants to
introduce one party rule again by suppressing opposition
leaders and activists and in order to face it a national
movement against the government is essential.
"The country is now beset with multifarious crisis. The garment industry is not out of the crisis. The ruling part looted billions of taka by appointing political activists in state
owned financial institutions, they looted money in the
name of multilevel marketing companies. They siphoned
off billions of taka from capital market and by setting up
rental power plants. The banks are suffering a liquidity crisis because of the wholesale misappropriation," Khaleda
told the closing ceremony of BATEXPO 2012 held at the
Bangabandhu International Conference Centre. She said
the nation is passing through a critical juncture of its history.
"If the government and the opposition party can reach a
consensus that they would not use hartal as a political
weapon the sector can earn US$45 billion by 2020 and
the country could turn into a middle income one," said
Shafiul Islam Mohiuddin, president of Bangladesh
Garments Manufacturers and Exporters Association
(BGMEA).

US Inflation Drops as
Gasoline Prices Plunge

US consumer
prices fell in
November
due to a sharp drop in gasoline prices at the pump, the government said.
The consumer price index fell 0.3 percent from October, the
first decline in CPI since May, the Labor Department said
A steep 7.4 percent decline in the gasoline index more than
offset increases in all the other indexes, the department said.
Overall energy prices fell 4.1 percent, despite rises in prices
for natural gas and electricity. The energy index, though
volatile on a monthly basis, showed only a modest 0.3 percent rise from November 2011.

Leader of the Opposition in Parliament & BNP Chairperson Khaleda

Zia delivered her speech at the closing ceremony of BATEXPO 2012

COVER

Mollah Amzad Hossain

he Awami League-led grand

alliance government is going to

complete four years of the five-year

term on January 8 while another general

election is knocking at the door. The
domestic politics gradually becoming
heated up ahead of the election overshadowing the much-talked-about Padma
bridge corruption conspiracy, Hall-Mark
credit scam, Destiny scandal, & the killing
incidents of Sagor-Runi & Bishwajit.
Apparently the political situation would
take unwanted turn due to the debate over
the caretaker government. The debate over
what has been achieved and what not in
the energy sector is likely to stimulate the
political arena.
9

The four years

in the office of
the government, leaving
only one year
to complete
this
term,
would
be
enough
to
compare the
achievements
in the sector
as compared
to the governments
pree l e c t i o n
pledges.
To
what extent the government would be
able to achieve in the gas, coal and
power sub-sectors during the remaining
one year period could also be projected.
The energy sector analysts are almost in
consensus that the government has been
successful in generating 3,795 MW of
electricity through emergency initiatives
during the period already passed, which
contributed substantially to reduce the
loadshedding. But their frustration is that
more than half of the new generation is
oil-based, which has pushed the power
generation cost by more than double in
last four years. And the burden was
passed on to the consumers through
price hike for six times during the period. Another effort was on to raise the
price -- it is not unlikely the seventh hike
would come as the new year gift by the
government for the people.
The failure is that the government could
not bring down the electricity price in
accordance
with their plan
and pledge as
they could not
implement the
mid-and-long
term plans of
setting
up
power plants.
This is also
due to failure
in increasing
the supply of
local energy
for
power
generation.
For instance,

the government could not take any decision to mine coal during the period
despite having their commitment.
There has been no new discovery of gas
during the period though production
increased by 500 MMCFD. Yet, the
shortage of gas supply remained same to
what it was four years back.
The government claims that they have
become successful in power generation
as per the election pledge and it would
also meet the commitment to generate
15,000 MW of electricity by 2016.
The countrys record highest power generation of 6350 MW was registered on
August 4, 2011 thanks to record highest
gas supply of 985 MMCF on the day for
power production. During the day,
126.46 million kilowatt hour (MKWH)
equivalent energy has been produced in
24 hours that comes from gas (99.27
MKWH), imported fuel oil (19.82

MKWH), coal
(3.5 MKWH)
and
hydro
( 3 . 8 6
MKWH). The
total production cost of the
energy was Tk
36.77 crore
(US$ 4.48 million) oil Tk
27.25 crore,
gas Tk 7.87
crore and coal
Tk 1.64 crore.
It
indicated
how the production cost escalated as only 16 percent of the days total generation came
from fuel oil sharing 74 percent of the
total cost. That day the power generation reduced by 484 MW in Chittagong
region for gas supply shortage and production suspension of a 104 MW capacity oil-based plant. Different power
plants having a total production capacity of 1114MW were also undergoing
maintenance on the same day.
According to official figures, the assured
production of electricity was 3800 MW
with a shortage of 2000 MW in 2009
when 88 percent of the power came
from gas and 8 percent from fuel oil.
The government was then a bit delayed
in starting activities with new plan
thanks to the caretaker government initiated works on few plants, which were
commissioned in 2009. It has been estimated that 3795 MW of new electricity
has been added in last four years until
December
2012 1612
MW in the
public sector
and 2183 MW
in the private
sector.
Of
them,
gasbased is 1873
MW and oilbased
1922
M
W
.
Unfortunately,
there is no
base-load
power
plant
among them.
11

According to BPDB estimate, the countrys total power generation capacity

now stands at 8475 MW, 56 percent of
which is in the public sector and rest in
the private sector. In 2009, BPDB had to
spend between Tk 9600 crore and Tk
10,800 crore (US$ 1.37 billion), excluding gas bills, annually to buy electricity
from the private power plants as compared to Tk 19,600 crore ($2.34 billion)
now. The average production cost now
stands at Tk 6.25 per unit but the sales
price is Tk 4.70 per unit -- BPDB is
incurring a loss of Tk 1.55 per unit. In
2009, the cost of production was Tk
2.68 per unit against the bulk tariff of Tk
2.45 per unit. In the last four years, the
production cost increased by Tk 3.25
per unit and bulk tariff by Tk 2.25 per
unit. BPDB had earlier estimated that
the bulk tariff of electricity would reach
to Tk 4.71 per unit in 2012 and the loss
would then stand at Tk 1.27 per unit.
But the extent of loss crossed the projection. It was also estimated that the
bulk tariff would start declining since
2013 when it would stand at
Tk 4.23 per unit, followed
by Tk 3.88 per unit in 2014
and Tk 3.90 per unit in
2015. And then there would
be no loss. However, it has
already been proved that the
target
could
not
be
achieved. The situation
was created due to the political decision to setting up of
more oil-based power plants
than the plan, said a former
BPDB chairman, requesting
anonymity. The plan was to
have oil-based plants having
a total capacity of 1350 MW
electricity.
The election manifesto of

Awami League reads:

A comprehensive long term policy on
electricity and energy will be adopted.
Economic usage of oil, gas, coal, hydro
power, wind power and solar energy
will be ensured. Big and small power
generation stations, coal extraction, and
oil and gas exploration will be given priority. Under a three year crash program
quick implementation of ongoing and
under consideration power generation
stations, import of electricity from
neighboring
countries,
arranging
100/150 megawatt gas turbine projects
on urgent basis, and the reactivation of
the past AL initiatives for constructing
10, 20 and 30 megawatt power stations
will be undertaken. A schedule for
repair, maintenance and overhauling or
salvaging of old power stations will be
made to increase and stabilize power
production. Supply of gas and LPG will
be increased. The Rooppur Nuclear
Power Project will be implemented.
In the next three years or by 2011 power
production will be increased to 5000

megawatt and by 2013 it will be further

increased to 7000 megawatt. The government has achieved this target and
would be able to achieve the target of
7000 MW this year. According to BPDB,
some 12,420 MW of new electricity
would be added during the period of
2012-2016. Around 1000 MW has
already been added in 2012. Former
FBCCI president Abdul Awal Mintoo,
however, contradicted that the government have had a commitment to
increase power generation by 5000 MW
by 2011 and by 7000 MW by 2013.
They have been successful in taking
urgent initiative, but failed to achieve
the target.
The government has signed 58 contracts
during the period of 2009-12 to set up
60 power plants having a total generation capacity of 8,138 MW of electricity. Of them, 33 plants have been commissioned to generate 2801 MW.
Meanwhile, 994 MW of electricity has
been added to the grid thanks to the initiatives by the last caretaker government, making the total new
power of 3795 MW during
this period. The rest 27
power plants having a
capacity of 5337 MW
remained under construction and scheduled to be
commissioned at different
times of a period of 201316. These plants include
1110 MW oil-based IPP for a
term of 15 years and 13
peaking power plant, 11
gas-based plants having
3139 MW capacity and coal
based three IPPs having a
cumulative capacity of
1088 MW. Of the 27, 20
would be set up by the pri12

vate sector and the rest in the

public sector.
Of the 1110 MW under construction plants, the government
would at best be able to bring
600 MW, including the three
peaking plants of 250 MWcapacity in the public sector, by
the year 2013. The governments
412 MW Haripur combined cycle
power plant would be commissioned
early this year. Contracts for 335 MW
Siddhirganj and, 225 MW and 373 MW
power plants were signed last year, but
there is hardly any progress in implementation of the projects. BPDB does
not think that they could be commissioned timely. Meanwhile, Summit
Power could not yet make financial closure for the Bibiyana 1 & 2 power plants
each having the capacity of 341 MW.
The Power Division may cancel the
contract for the Bibiyana 1 plant, making uncertain when the works on the
plants would be commenced. However,
the works on Summits Meghnaghat-2
plant of 335 MW-capacity were progressing. Summit executives said this
plant would be commissioned timely.
Even if the plants are commissioned
timely, there is uncertainty whether they
would get the supply of required gas.
GTCL would, however, be able to complete the Bakhrabad-Meghnaghat
pipeline before the plants would be
ready for production. There are skepticisms whether the required gas could be
supplied to the region from where
around 2500 MW of electricity would
come after the completion of the under
construction plants.
The contracting company
that will set up imported
coal-based power plant of
1088 MW capacity could
not yet arrange financing for
the project. Their initial plan
was to set up the plants at
three places, but later
revised to do in Mongla and
Chittagong. There is no sign
that the project works
would begin by the remaining period of the present
government.
The process to install 19

more power plants having a total capacity of 3419 MW remained at the stages
of tender evaluation or issuing letter of
intent (LOI). Of them, 10 plants having
the capacity of 2245 MW in the public
sector and nine plants of 1174 MWcapacity in the private sector. Two proposals of them would generate 200-800
MW of electricity based on imported
LNG on their own arrangement. Its
nothing but a fun. Itll not yield any
result, said a BPDB official.
The oil-based production capacity at
this stage is 799 MW, including 449
MW dual-fuel, while gas-based 1795
MW and coal-based 250 MW. For lack
of gas supply, a new power plant of 150
MW-capacity remained idle in
Shikolbaha. It still remains unclear why
authorities concerned have undertaken
an initiative to set up another gas-based
power plant of 225 MW-capacity.
Petrobangla has not yet provided the
guarantee for gas supply for a proposed
Bhola-2 plant of 225 MW-capacity.
According to an analysis by Energy &
Power, the gas-based power generation
capacity now stands at 5780 MW having a gas demand for 1200 MMCFD, but
the assured supply is 800-900 MMCFD.
The planned power plants having a total

generation capacity of 4934 MW

remained in the implementation,
contract or evaluation states.
Some
additional
800-900
MMCFD of gas would be
required for the plants to come by
2016 as per the government plan.
The question is that whether the
Petrobangla could meet the
increased demand?
Experts do not think that the proposed
coal projects of Orion (1088 MW) and
NTPC-BPDB (1320 MW) or two plants
of 1320 MW-capacity in Chittagong
would yield results. BPDB officials,
however, said JICA has agreed to
finance a coal-based plant of 1200 MWcapacity at Matarbari in Chittagong. The
feasibility study of the project has been
initiated. They think that a coal import
infrastructure could be developed based
on the project and only then imported
coal-based power plants could be set up
in the country.
The countrys total oil-based power generation now stands at 2275 MW and
1909 MW more remains under construction or contract stage, which would
make total oil-based capacity to 4184
MW. However, the oil-based short term
plants set up during the regime of the
present government would start phasing
out from this year and would end by
2017. The government, however,
extended the tenure of four rental power
plants -- three of them gas-based. The
tenure of diesel-fired 40 MW plant in
Khulna has been extended going against
BPDBs opinion. A process is also underway to give it one more
extension for a year.
Analysts on the basis of
development so far think
that the base load power
plants are very much unlikely to come in within the stipulated time frame. Even if
the gas-based plants come,
it is unlikely whether
required gas could be supplied. There is no indication
that power production
could be accelerated with
imported coal based plant.
As a result, there is apprehension that the depend13

ence on expensive oil-based

rental power would continue
for long time.
Im not against the emergency initiative of oil-based
power plants, said BNP
leader and former state minister for Power Iqbal Hassan
Mahmood. But, at the same
time, the government should
have been undertaken midand-long term as well as local
energy resource based initiatives. As a result, the government pushed the countrys power sector
and the economy as a consequence
towards the crisis.
CPD Executive Director Dr Mostafizur
Rahman said the financial pressure of
expensive power could have been better for the economy if it has been for a
short period of time. The impact would
be unfortunate due to already imposed
and to be imposed liability on the consumers of failure in implementation of
the medium and long term power and
energy projects. The situation would be
difficult to face even after repeated
increase in the prices of energy, which
will badly affect the economy.
Energy adviser to the former caretaker
government Dr M Tamim said the government has failed to implement even
after taking a coordinated plan. It would
be difficult to maintain the present temporary low level of power deficit while
any effort to maintain it would be
expensive and the price would go
beyond the purchasing power of the
people. Because, I am not optimistic
about the progress of the low cost energy-based power plants.
According to BPDB, an investment of

that the government has

made some progress in setting up of the nuclear power
plant. It is being expected
that the financing for the
project would be ensured
during the upcoming Russia
visit of the Prime Minister.

US$ 17 billion would be required to

generate 15,000 MW of electricity by
2016. Of the requirement, $ 8 billion
has been promised so far but some of
the amount for few plants could not be
ensured yet. Many consider that the
power sector target could not be
achieved for lack of investment. They
said the investment needs could not be
met without foreign direct investment.
Another problem is acute many bidders have been awarded projects at
lower rates, but they could not progress
the projects. On the other hand, the
government considered these lower
rates as benchmark, which might have
discouraged the able foreign entrepreneurs. Dr Tamim and Abdul Awal
Mintoo backed the perception and
viewed that new crisis would emerge
unless we can overcome the problem
investment is unlikely to be available for
the power stations or energy infrastructure.
Priority will be given to exploration and
exploitation of oil and
gas.
Arrangements will be made to supply
gas in the north and western regions of
the country. Supply of gas and LNG will
be significantly increased. It can be said

Meanwhile, there is no mentionable success in the exploration of gas and oil. Bapex
discovered 30 BCFf gas in
Sundalpur and 200 BCFf gas
in Srikail. The most talked
about Sunetra gas field despite having
drilled around 4500 meter found no discovery,
making
hopeless
the
Petrobangla as well as the nation.
Meanwhile, exploration drilling activities in Magnama and Hatia remained
suspended as the government could not
make the Kutubdia structure development contract through negotiation with
Santos. Its a big failure in solving the
energy crisis in Chittagong. The government has done a lot of delay in dealing
a contract with ConocoPhillips, which
own the bid during the caretaker government regime. However, its a big success that the country won over the maritime boundary dispute with Myanmar
while taking initiative to resolve the
maritime boundary dispute with India.
On the other hand, the government has
invited bids for hydrocarbon exploration
in 12 blocks of the Bay of Bengal. It has,
however, been considered that the pricing conditions are unlikely to be attractive for the IOCs. The response could be
understood after March 18 next year, the
deadline for submission of the bids. At
the same time, an exploration by
Chevron in Char Kajol proved to be
futile and Bapex has a plan to perform
one
or
two
exploratory wells this
year.
However,
Sunetra failure has
heightened
the
apprehensions over
the plan.
The initiative to forge
joint
venture
between Bapex and
state-run organizations of other countries has made hardly
14

any progress. Initially Gazprom had

showed interest but eventually did not
make headway. A Chinese enterprise
had showed interest to work jointly with
Bapex in the Chittagong Hill districts,
but authorities concerned could not
reach decision, however.
During the last four years, around 500
MMCFD of gas has been added to the
grid 200 MMCFD from Chevorn and
300 MMCFD from state-owned fields.
There is, however, a possibility that
around 650 MMCFD, including 300
from Chevron, gas would be added to
the grid in next one and half year. BPDB
estimated that a gas requirement of
1500 MMCFD would be required for
power generation by the end of 2014.
We need to bring in alternative energy
for power generation. Only the gas cannot serve the purpose, said a
Petrobangla official. As per the BPDB
plan, the entire new gas likely to be produced in next 18 months will have to be
supplied for power generation a reality which would not be accepted by all.

caretaker government. They have only

formed another committee which had
submitted a report, which has not been
heeded yet. The energy adviser to the
Prime Minister of the present government rather insisted that the government
would not take any decision on coal
mining during this tenure of the government. Earlier, the Prime Minister floated
a debate by saying that the coal
resource would be retained for the next
generation. Just after few days, she
emphasized on using local coal.
Coal is being extracted from the
Barapukuria mine in a very limited
quantity as compared to required coal
as estimated in the Power Sector Master
Plan (MSMP). To ensure supply of
required coal to generate 8000 MW of
power, at least two mines is necessary
and they would have to be mined
through open-pit method. The Phulbari
coal mine is apparently ready, but the
government could not take decision in
this regard. The government has not
even make its position clear about the
opposition by left-leaning oil, gas protection committee (OGPC) in FDI or
open-pit mining. Rather they have
planned to generate power with imported coal on excuse that the local coal
would take longer time to extract.

would not be interested to invest in

power generation along with developing physical infrastructure, said Abdul
Awal Mintoo. He was skeptical about
the possibility of doing so even in the
term of next government.
Former state Minister for Power Iqbal
Hassan Mahmood said BNP believes
that safe and affordable power cannot
be available unless it is possible to generate power with local resources specially coal . BNP worked from that point
of view, but the present Prime Minister
had supported those who are now
opposing the belief. I think, this is the
biggest failure of the present government.
Dr Tamim does not think that the government can do something about coal at
the terminal year of its tenure. However,
the two main political parties should
make it clear in their respective manifestoes what they would do with coal if
elected to power.

In conclusion, it is a big success to meet

the entire demand for electricity in four
Meanwhile, a gas pipeline network is
years of a government as compared to
being installed in the countrys northwhat the country has achieved in last
western part, but a sort of public dissatthree decades (5000 MW). In the last
isfaction was erupted in Rajshahi as the
four years, some 3795 MW of new elecpipeline already reached the divisional
tricity has been added to the national
headquarter. The investment in this
regard remains idle. At the same time, Analysts say it is not impossible to set up grid. The achievement has, however,
many thinks, the plan to set up the imported coal based power plant. There been faded out for lack of comprehenBibiyana-Dhanua pipeline is a bad is no alternative although the imported sive policy to ensure primary energy supinvestment because where the gas to coal would cost more than the local ply. Failure in bringing base-load plants
feed the Bibiyana 1050 MW plant coal. But the question is that the country would be added in the list. Policymakers
lacks physical infrastructure to import contacted have been unwilling to
would be available.
coal and it is time consuming and capiexplain why the good initiatives failed
According to the election manifesto, a
tal intensive that the entrepreneurs
and how they would make
Coal Policy will be formuit up in the remaining one
lated safeguarding nationyear. Many initiatives to
al interest. Special initiatives will be taken to
encourage efficient use of
ensure economic use of
energy
and
promote
the coal available so far
renewable energy have
and also to develop coalbeen laudable. However,
based power plants.
all the achievements have
Priorities will be given to
been overshadowed by the
the
exploration
and
inability to take decision
exploitation of new coal
on the coal mining in last
fields and other mineral
four years lack of a masresources.
sive program to ensure priThe Coal Policy has not
mary energy supply. Its a
been finalized during the
lost opportunity for the
last BNP-led alliance govnation.
EP
Photo: Yeasin Kabir Joy; Focus Bangla News
ernment and the two-year Prime Minister Sheikh Hasina
15

COVER ARTICLE

Looking Back,
Leaping Forward
Saleque Sufi

urtain dropped on yet another

eventful year 2012. Bangladesh
got a year older, Grand Alliance
Government completed the penultimate
year of its five year present term in state
power. Very soon political analysts,
economists and critics will start stocking
taking and evaluating the performance
objectively the performance of the democratic government over 80% of its current term. This pro-liberation popular
democratic government came to power
with several promises and pledges to
make significant changes. Looking back
in retrospect critics would reflect upon
achievements and failures of the government. Our discussions here in Energy &
Power will be confined to Power and
Energy sector.
There is no denial that the government
in 2009 inherited messy energy & power
sector with huge deficit of power in
power sector and natural gas in gas sector. The official power demand was
6500 MW against which effective generation capacity at generation end was
3300-3500 MW. Considering the 20%
system loss the deficit was impacting on
industrial operation and growth, economy and commerce. The coincident peak
demand in the gas grid was 2100
MMCFD against which the production
was about 1750 MMCFD. Natural gas
shortage impacted on power generation,
fertilizer production, and industrial
growth. The worst affected sector at that
time was export oriented industries. The
major problem area was Chittagong
where both power and energy crisis created serious concern. The management
capacity of both sectors was in crisis
with several accomplished and competent professionals made to leave the sector through political victimization. No
one bothered for massive brain drain
and the impacts of this on performance
of the sectors. State-Owned Enterprises

[SOEs] in the power and energy sector

grew weaker and sicker for political
interference and beauracratic control.
BNP-led four-party alliance government
during its rule from 2001-2006 scrapped
several power generation initiatives at
different stages of evaluation and
approval without considering their feasibilities. Over its entire term it could not
set up any new power plant other than a
scam infected 100 MW Tongi power
plant in gas-constrained region. The
works of Meghnaghat 450MMW gas
fired plant and 125MW coal fired power
plants actually started during the 19962001 term of Bangladesh Awami
League-led government. There had been
no efforts for exploration of new gas
resources and development of existing
resources were way below minimum
required. Government created a serious
crisis in Phulabri coal mining due to misconception and poor management.
Taking advantage of very cheap power
and gas many energy inefficient small
and medium capacity sunset industries
from south and south-east Asian
Countries were set up in power and
energy congested corridors in and
around greater Dhaka and Chittagong
areas. The unplanned surge of industrialization overstressed power and gas supply infrastructures.
Consequently when BNP-led four-party
alliance was thrown out of power from
popular movement it left behind an
almost non functional power and energy
sector. The sad incidents of Kansat,
Phulbari could be avoided if government could plan its priorities in power
and
energy
sector
intelligently.
Government did little to expand power
generation and arrange for sustained
supply of fuel for power. Government
also created a stalemate situation in mining of significant coal resources. On the
other hand expanding power distribu-

tion networks it burdened the power sector with huge unmet demand.
The caretaker government from 2007 to
2008 tried within its limitations to confront the situation. But for its lack of
mandate it left major issues like coal
mining and offshore exploration for the
democratic government. However, during this time the major gas field Bibiyana
came into operation and it completed
evaluation process of offshore exploration based on draft PSC 2008. The
caretaker government also initiated
some contingency power generation
plan bringing in the concepts of short
term imported liquid fuel based power
plants. The major failure of the BNPJamaat-led alliance government and
caretaker government was in not anticipating the deteriorating gas and power
supply situation of Chittagong. They also
failed to implement or even advance
positively several gas sector projects like
development of discovered gas fields
and expansion of gas transmission networks.
Coming to power, the Bangladesh
Awami
League-led
government
announced its appropriate extensive
homework. But no one knew who did
that homework and what were their
basis of plans and mega plans that they
announced. Prime Minister herself kept
Power and Energy Ministry under her
belt and instead of entrusting the responsibility of these most important sectors
on a senior political colleague, she
chose a controversial beauracratic as her
energy advisor. She even engaged a less
experienced newcomer MP of Pabna as
state minister for energy. She soon realized her mistake in selection of state
minister and replaced him with another
MP, a retired Brigadier of Army
Engineering Corp. But the real power
lied with her energy advisor to spearhead power and energy sector.
After passage of four years of five year
the situation as it stands are
Power demand grew to 7500-8000
MW against which effective generation
is about 5500 MW of which about 1800
MW is imported liquid fuel based contingency plants used mostly as peak
shaver.
Coincident peak demand of gas grew
to 2700 MMCFD against which gas pro17

duction increased to 2250 MMCFD.

Gas demand in Chittagong area alone
is now 350 MMCFD against which supply is 220-230 MMCFD. It requires suspending gas supply to KAFCO/ CUFL or
power plants alternately and rationing of
gas supply to all consumers.
Governments unplanned initiative for
import of 500 MMCFD equivalent LNG
import through setting up of LNG terminal at Maheskhali and building gas transmission pipeline from Maheskhali to
Chittagong has already nosedived into
uncertainty.
Government unplanned initiative for
setting up large imported coal based
power plants at Rampal, Bagerhat and
Anwara, Chittagong is also proving
uneconomic and unimplementable.
Initiative for setting of up medium
capacity plants based on imported coal
has not advanced and may not be implemented soon. Bangladesh has several
issues of setting up sustainable port facilities, storage facilities for self burning
coal, impact of coal fired power plants
and finally affordability of imported coal
fired power.
Government relied mostly on high
cost imported liquid fuel based inefficient contingency plants and failed to
advance major gas/ coal fired power
plants to replace these expensive plants.
Government failed to adopt appropriate strategy for exploring high quality
own coal and setting up of mine mouth
coal plant.
Government failed to expedite exploration and development of discovered
gas resources and implementation of
several delayed gas transmission infrastructure projects. Failed also to maintain operate gas transmission facilities
professionally.
The power import from India got
delayed. Initiative for importing
hydropower from Nepal & Bhutan via
Indian grid also did not proceed.
Government also failed to engage
effectively in cross border gas transmission pipeline [TAPI, gas from Myanmar]
It is not that government kept its fingers
crossed. It has made several plans took
several initiatives. It started with however with high voltage Road Shows in
Singapore, London and New York in late
2009 and early 2010 seeking invest-

ment. A big contingent of Bangladeshi

policymakers and blessed power and
energy sector officials made a costly foreign trip wasting foreign exchange
meant for capacity building of
Petrobangla professionals. Road show
achievements turned out to be big zero.
Power sector officials in Road Shows
clearly mentioned about requirements of
huge investment to confront and comfort
power crisis and energy crisis.
Government enacted indemnity bill
facilitating dealing with unsolicited
offers in power and energy sector. But
apart from bringing inefficient liquid fuel
based power plants the indemnity bill
brought little tangible dividends.
Nevertheless government could add
about 3300 MW new power including
1800 MW liquid fuel based contingency
plants to power grid. The theoretical
capacity increased from 3500 MW-6800
MW. On some days it achieved the generation of 6400 MW plus. But higher
cost of imported fuel leading to requirement of arranging huge subsidy restricted use of contingency plants as peak
shaver only. These types of plants were
mostly brought in for limited period 3
years mostly. They were supposed to be
replaced by major base load plants. But
all major plant installation efforts got
long delayed for various reasons leading
to delays in tendering, tender evaluation,
manipulations in tender, prolonged
award process and ill motivations for
favoring incompetent party leaning
groups. Even some major plants are suffering from lack of financing. It is highly
unlikely that most of the major plants
can be put into operation before the
expiry of the current term of the government. Government will require relying
on expensive liquid fuel based plants.
Even then winter irrigation time and next
summer will witness intolerable load
shedding.
Government claims to have increased
500 MMCFD new gas addition to
national grid. Most of the new gas addition came from Chevron operated
Bibiyana and Jalalabad gas fields. But in
the meantime some gas fields like Sangu,
Moulavibazar,
Rashidpur,
and
Beanibazar depleted. Though Chevron
managed to construct and commission
Muchai Compressor station of GTCL

effecting marginal increase of transmission capacity prolonged delay in GTCL

compressor projects at Ashuganj and
Elenga impedes gas transportation from
gas fields to load centers. The gas supply
situation in Chittagong is really critical.
Petrobangla did not bother to pay heed
to experts advice of constructing
Bakhrabad-Chittagong gas transmission
loop line facilitating diversion of additional gas to Chittagong from national
grid. Absence of a loop line will cause
major bottle necks in gas supply to
Chittagong even after commissioning of
Ashuganj compressor station and several
other pipelines like Ashuganj-Bakhrabad
loop line.
We always suggested expanding
Rashidpur-Ashuganj loop line to
Koillashtilla facilitating evacuation of
stranded gas from Sylhet region. Instead
Government is proceeding with construction of Bibiyana-Dhanua Pipeline
through a very aggressive ROW.
Significant portion of this pipeline ROW
remain under water for most time of the
year. This flood plain is also affected
from flash flood in early monsoon rain.
Amphibian equipment like swamp buggies will be required for the construction
of the pipeline. Wonder how this
pipeline would benefit gas supply to
Chittagong. How long the gas resource
of Bibiyana will sustain at high flow
rates?
Despite reported 500 MMCFD plus new
gas addition gas crisis exist everywhere.
There has been no major new gas consumer added over the last 4 years. Yet all
consumers fertilizer, power, industries,
CNG, domestic and commercial continue to suffer from gas crisis -- lack of supply and low pressure. There is genuine
apprehension that several illegal connection could have been given by gas
mafia syndicate during this time.
Otherwise the 500 MMCFD new gas
should have better impacts on gas system management.
BAPEX Flourished
The only major milestone of the present
government in the gas sector is milestone achievements of BAPEX. The
national flagship bearer utilizing its limited manpower and resources has
already explored and discovered new
gas resources, worked over several wells
18

and drilled some development wells.

Discovery of Sundalpur and Sreekail,
development of Semutang, new wells at
Salda, mapping of new resources at
Rashidpur, Koilashtilla, Sylhet, and Titas
has made people of dream for gas based
development for longer term. BAPEX
may give further good news soon from
Sunetra. It is also engaged in drilling gas
wells at Titas Gas field and will also drill
wells at Bakhrabad and other fields. The
commendable achievement of BAPEX is
acquiring both 2D and 3 D seismic
capabilities. It has removed unnecessary
myths of gas resources running out too
soon which many theoreticians predicted. Government must continue to support BAPEX efforts. The professionals
must get attractive pay packages and
special incentives.
GAZPROM in Bangladesh
Due to poor planning of gas sector management and preference given to a particular IOC by its beneficiaries IOC dominates upstream sector of gas value
chain. When failure of Petrobangla in
accelerated gas production augmentation failed after struggling for three years
Prime Minister Hasina in a desperate bid
initiated actions to bring in Russian
Energy Giant GAZPROM to assist
Bangladesh gas sector in drilling development wells in discovered gas fields
and also install some gas compressor stations while Petrobangla appeared hesitant to award contracts to GTCL selected
contractor for it. Several top level policymakers including PMs advisors,
Executive Chairman BOI, Petrobangla
Chairman, Senior Officers of BAPEX and
GTCL visited GAZPROM in Moscow.
Anyone who has computer skill can easily know about GAZPROM. It is the
major gas company in Central and West
Asia and supplier of major gas to
Western Europe now. But its advent to
Bangladesh was opposed by the blessed
syndicate of IOCs in Bangladesh.
GAZPROM agreed to drill 10 wells as
contractor and proposed to drill wells at
about 19 million US$ each and requested for a contingency fund of additional
$7 million for drilling 4 wells at Titas Gas
Field considering its continued leakage.
In Bangladesh Chevron and other IOCs
engage drilling contractors to drill wells
at US$25 million or more. Still less

informed group disputed comparing

drilling cost of BAPEX. They never consider that BAPEX drilling rigs were purchased using money from government.
BAPEX is already mobilized in
Bangladesh; it has no costs of financing.
Moreover, one cannot compare HSE
standard and quality of works of BAPEX
with a major international drilling company. However, good senses prevailed
and Government signed agreement with
GAZPROM. But it could be much
smarter in concluding contracts in early
2012 which could bring about 200
MMCFD additional gas to gas grids by
now. However, GAZPROM is in mobilization process and by end 2013 about
200 -250 MMCFD additional gas may
come to national grid through its efforts.
However, extra care should be taken
while drilling at Titas.
Power & Energy Price
We are not too fussy about power energy price rationalization. For quality service on sustainable basis consumers must
pay the economic price of energy and
power. Governments in the past continued to provide subsidy or let the SOEs
suffer business loss. Poor energy and
power price also created wastage and
inefficiencies. We rather appreciate the
courage of the present government in
adjusting and rationalizing power and
energy price .Yes it creates discomforts
to limited income groups. But industrialists and business men must not complain. They have made huge profits from
very poor power and energy price.
Government should continue subsidizing agriculture sector and domestic
users. But prices must continue to be
adjusted till it becomes market oriented.
Recommendations for 2013
Nevertheless, energy & power will be a
major issue in the next general election.
We understand the challenges of the
present government. But government
policy makers must realize now that
many of its so called mega plans have
failed to deliver. Major mistake was in
not proceeding with mining of own coal
using the most appropriate mining
method. If government could initiate
mining of coal from Phulabri using technically appropriate and financially
viable open pit mining method and if it

could simultaneously commence setting

up of at least 2X500 MW mine mouth
power plant about 1000 MW new
power could be at final stage by now.
Government like its predecessor wasted
4 years working like a novice. Ill motivated coal mafia syndicate misguided
policy makers and some smart persons
active around policymakers misguided
the Prime Minister in opting for imported
coal based power plants. Another wrong
strategy was going for LNG import initiative and doing little else for resolving gas
crisis of Chittagong. Bangladesh struggles to absorb impacts of imported liquid
fuel based plants. How can it absorb
impacts of US$ 15 / MBTU LNG or higher imported coal?
Government in 2013 must
Abandon plans for import of LNG and
leave it for future.
Give green signal to mining of own
coal following the recommendation of
expert committee and plan to set up
mine mouth coal plants.
Thoroughly scrutinize imported coal
fired power plants.
Initiate
actions
to
construct
Bakharabad-Chittagong gas transmission
loop line on top priority basis.
Support BAPEX in its exploration and
development efforts.
Approve the Australian IOC Santos
proposal of developing Kutubdia along
with its development plan of Magnama.
Invite IOCs and financial institutions
to Dhaka and in presence of all stakeholders deliberate on Model PSC 2012.
This document must be investor friendly
to attract major IOCs in deep water
exploration.
Petrobangla must monitor all gas production and transmission projects for its
expedited quality implementation.
GTCL must arrange on-stream pigging
of all its major transmission pipelines.
In summary, we consider that government performed much better than the
predecessors. But it could do much better if it could be more courageous and
proactive in not taking some major decisions like mining own coal. It should not
have followed the footprints of the predecessors through victimizing some senior professionals of the sectors.
EP
19

SPECIAL ARTICLE

HVDC in Bangladesh
Asif Islam
Md. Jahangir Alam
Gotland and the Swedish mainland.
VDC (High-Voltage Direct
Thyristors were applied to DC transCurrent) system is an electric
mission in the late 1960s and solid
power transmission system
state valves became a reality. In
which uses direct current for the
1969, a contract for the Eel River DC
bulk transmission of electrical
link in Canada was awarded as the
power, in contrast with the more
first application of solid state valves
common alternating current sysfor HVDC transmission. Today, the
tems. The first commercial electricihighest functional DC Voltage for
ty generated (by Thomas Alva
DC transmission is +/- 600 kV for the
Edison) was direct current (DC)
785 km transmission line of the
electrical power. The first electricity
Itaipu scheme in Brazil. DC transtransmission systems were also
mission is now an integral part of the
direct current systems. The first
delivery of electricity in many coun110V DC central electric station was
tries throughout the world.
installed by Edison in New York in
1882. With the introduction of
Why use DC Transmission?
transformer and 3-phase AC system
The level of losses is designed into a
the situation changed in favors of Figure1: Price Variation for AC transmission compared with transmission system and is regulated
an HVDC transmission
AC. For many reasons, such as facilby the size of conductor selected DC
ity of transformations of voltages
and AC conductors, either as overup in the 1930s in Sweden and the USA
from one level to another, better perhead transmission lines or submarine
formance of AC motors and superiority to investigate the use of mercury arc cables can have lower losses but at highof AC generators in comparison to DC valves in conversion processes for trans- er expense since the larger cross-sectiongenerator, the power was generated, mission and frequency changing.
al area will generally result in lower losstransmitted, distributed and utilized in DC Transmission now became practical es but cost more. When converters are
the form of AC. But the supporters of DC when long distances were to be covered used for DC transmission in preference
carried out extensive research on DC or where cables were required. The to AC transmission, it is generally by
field and found the advantages of DC in increase in need for electricity after the economic choice driven by one of the
high and extra high voltage of transmis- Second World War stimulated research, following reasons:
sion for long distance.
particularly in Sweden and in Russia. In
a). An overhead DC transmission line
1950, a 116 km experimental transmisHistorical Perspective on
with its towers can be designed to be
sion line was commissioned from
HVDC Transmission
less costly per unit of length than an
Electric power transmission was original- Moscow to Kasira at 200 kV.
equivalent AC line designed to transmit
ly developed with direct current. The The first commercial HVDC line built in
the same level of electric power.
availability of transformers and the 1954 was a 98 km submarine cable with
However the DC converter stations at
development and improvement of ground return between the island of
each end are more costly than the termiinduction motors at the
nating stations of an AC line
beginning of the 20th
and so there is a breakeven
Century, led to greater
distance (Figure 1) above
appeal and use of AC transwhich the total cost of DC
mission. Through research
transmission is less than its
and development in Sweden
AC transmission alternative.
at
Allmana
Svenska
b) The DC transmission line
Electriska
Aktiebolaget
can have a lower visual pro(ASEA), an improved multifile than an equivalent AC
electrode grid controlled
line and contributes to a
mercury arc valve for high
lower
environmental
powers and voltages was
impact. There are other
developed
from
1929.
Figure 2: Comparison of HVDC and HVAC tower area
environmental advantages
Experimental plants were set

21

(Figure 5) can be buildup in different ways

depending on the application and manufacturer. However, the most
common way of arranging the thyristor valves is
in a twelve-pulse group
with three quadruple
valves. Each single
thyristor valve consists
of a certain amount of
series connected thyristors with their auxiliary
circuits. All communication between the control equipment at earth
potential and each
thyristor at high potential is done with fiber

to a D.C. transmission
line through the electric
and magnetic fields
being DC instead of AC.
c) If transmission is by
submarine or underground
cable,
the
breakeven distance is
much less than overhead transmission. It is
not practical to consider
AC
cable
systems
exceeding 50 km but
DC cable transmission
systems are in service
whose length is in the
hundreds of kilometers
and even distances of
600 km or greater have
been considered feasible.
d) Some AC electric power systems are
not synchronized to neighboring networks even though their physical distances between them is quite small. This
occurs in Japan where half the country is
a 60 Hz network and the other is a 50
Hz system. It is physically impossible to
connect the two together by direct AC
methods in order to exchange electric
power between them. However, if a DC
converter station is located in each system with an interconnecting DC link
between them, it is possible to transfer
the required power flow even though the
AC systems so connected remain asynchronous.
e) Direction of power flow in HVDC system can be changed quickly with great
reliability. It has lesser
corona loss and radio
interference. The tower
area required to transmit
same power for HVDC is
less than that of HVAC
system (Figure 2).
HVDC Substation
Configuration
The fundamental process
that occurs in an HVDC
system is the conversion
of electrical current from
AC to DC (rectifier) at the
transmitting end and from
DC to AC (inverter) at the
receiving end. There are
three ways of achieving

Figure 3: Schematic Diagram of a HVDC substation.

conversion:
Natural
Commutated
Converters, Capacitor Commutated
Converters and Forced Commutated
Converters. To assist the designers of
transmission systems, the components
that comprise the HVDC system and the
options available in these components
are presented in Figure 3 and discussed.
The three main elements of an HVDC
system are: the converter station at the
transmission and receiving ends, the
transmission medium, and the electrodes.
The Converter Station: The converter stations at each end are replicas of each
other and therefore consists of all the
needed equipment for going from AC to
DC or vice versa. The main components
of a converter station (Figure 4) are:
Thyristor valves: The thyristor valves

Figure 4: Monopolar HVDC Converter Station

optics.
VSC valves: The VSC converter consists of two level or multilevel converter,
phase-reactors and AC filters. Each single valve in the converter bridge is built
up with a certain number of series connected IGBTs together with their auxiliary electronics. VSC valves, control
equipment and cooling equipment
would be in enclosures (such as standard
shipping containers) which make transport and installation very easy. All modern HVDC valves are water-cooled and
air insulated.
Transformers: The converter transformers (Figure 6) adapt the AC voltage
level to the DC voltage level and they
contribute to the commutation reactance. Usually they are of the single
phase three winding
type, but depending on
the
transportation
requirements and the
rated power, they can be
arranged in other ways.
AC Filters & Capacitor
Banks: On the AC side of
a 12-pulse HVDC converter, current harmonics
of the order of 11, 13, 23,
25 and higher are generated. Filters are installed
in order to limit the
amount of harmonics to
the level required by the
network.. In the conversion process the convert22

Figure 5: Thyristor valves in HVDC substation

er consumes reactive power which is

compensated in part by the filter banks
and the rest by capacitor banks. In the
case of the CCC the reactive power is
compensated by the series capacitors
installed in series between the converter
valves and the converter transformer.
The elimination of switched reactive
power compensation equipment simplify the AC switchyard and minimize the
number of circuit-breakers needed,
which will reduce the area required for
an HVDC station built with CCC. With
VSC converters there is no need to compensate any reactive power consumed
by the converter itself and the current
harmonics on the AC side are related
directly to the PWM frequency.
Therefore the amount of filters in this
type of converters is reduced dramatically compared with natural commutated
converter.
DC filters: HVDC converters create
harmonics in all operational modes.
Such harmonics can create disturbances
in
telecommunication
systems.
Therefore, specially designed DC filters
are used in order to reduce the disturbances. Usually no filters are needed for
pure cable transmissions as well as for
the Back-to-Back HVDC stations.
However, it is necessary to install DC filters if an overhead line is used in part or
all the transmission system. The filters

needed to take care of the harmonics

generated on the DC end, are usually
considerably smaller and less expensive
than the filters on the AC side. The modern DC filters are the Active DC filters. In
these filters the passive part is reduced to
a minimum and modern power electronics is used to measure, invert and reinject the harmonics, thus rendering the
filtering very effective.

paper tapes impregnated with high viscosity oil. No length limitation exists for
this type and designs are today available
for depths of about 1000 m. The
selfcontained oil-filled cable is completely filled with low viscosity oil and
always works under pressure. The maximum length for this cable type seems to
be around 60 km. The development of
new power cable technologies has
accelerated in recent years and today a
new HVDC cable is available for HVDC
underground or submarine power transmissions. This new HVDC cable is made
of extruded polyethylene, and is used in
VSC based HVDC systems.
HVDC in Bangladesh
Overview: The issue Cross Border
Electrical Interconnection between India
and Bangladesh have been discussed
from long before but it has got momentum during the visit of Four members
Indian delegations headed by Joint
Secretary Power to Bangladesh from
22nd November to 26th November
2009. Keeping in view the technical
consideration and reliable operation of
both
the
System
Baharampur
(India)Bheramara (Bangladesh) option
was taken for implementation after several visit & study by the joint technical
committee.

Scope of the Project:

Transmission Medium
A. Establishment of 400kV Switching
For bulk power transmission over land, Station at Baharampur (India) by Line inthe most frequent transmission medium Line out of Farakka-Jeerat 400kV single
used is the overhead line. This overhead circuit line (Figure 8).
line is normally
bipolar, i.e. two
conductors
with different
polarity. HVDC
cables are normally used for
submarine
transmission.
The most common types of
cables are the
solid and the
oil-filled ones.
The solid type
is in many
cases the most
economic one.
Its insulation
Figure 6: Typical outlook of a HVDC converter Transformer
consists
of
(courtesy ABB, Switzerland)
23

B. Baharampur (India) Bheramara

(Bangladesh) 400kV double circuit line.
The proposed 125 km transmission line
will connect Behrampur in India and
Bheramara in Bangladesh, which would
enable transfer of electricity from the former to the latter. Of the total line length,
40 km would fall in the Bangladesh territory while the rest would be in India.
C. The transmission systems of India and
Bangladesh, which are based on 400 kV
alternate current (AC) and 230 kV AC
respectively, is proposed to be synchronized by installing a back-to-back high
voltage direct current (HVDC) station
(400/230kV) at Ishurdi/Bheramara
(Bangladesh). The line will have an initial transfer capacity of 500 MW, which
will later be upgraded to 1,000 MW.
Developers: Power Grid Corporation of
India Limited (PGCIL), India and
Bangladesh Power Development Board
(BPDB), Bangladesh.
Project Background
In January 2010, the two countries
signed a memorandum of understanding
(MoU) for the trade of only 250 MW of
power, whereby India will supply power
to Bangladesh.
During March and April 2010, the
Power Grid Company Bangladesh
(PGCB) invited three tenders for development of the link. The first involved the
installation of a 30 km, 400 kV line and
a line-in line-out (LILO) of 230 kV for the
Ishurdi-Khulna double-circuit (DC)
transmission line at Bheramara, the second was for the installation of one 500
MW back-to-back HVDC system at
Bheramara and the third pertained to the
commissioning of the 165 km, 230 kV
Bibyana-Comilla transmission line.

Figure 7: Project Layout of Interconnection between India & Bangladesh.

Bangladeshs Planning Commission (PC)

sent back PGCBs proposal for the crossborder line citing faulty project design
and lack of power supply guarantee by
India.
In July 2010, BPDB signed a 35-year
power transmission agreement with
PGCIL to import 250 MW of electricity
from India. Under the agreement,
Bangladesh can begin the import of
electricity from late 2012. The power
and transmission tariff which BPDB will
pay will be on a monthly basis to its
Indian counterpart will be determined
by Indias Central Electricity Regulatory
Commission (CERC). Bangladesh and
ADB signed the USD100 million loan
deals for this interconnection on
October 2010.
In February 2011, PGCB awarded a BDT
1 billion contract to construct the
Bangladesh segment of the line to

Spanish company Cobra Instalaciones Y

Servicios SA. The contract requires
Cobra to complete the double-circuit
overhead line by 2012 while in April
2011, Siemens was awarded a USD107
million contract to set up the convertor
station at Bheramara that will convert
400 kV high voltage power from India to
230 kV voltage for feeding into
Bangladesh's existing grid. Siemens is
required to complete the contract within
two years.
In July 2012, PGCB decided to double
the capacity of the under-construction
substation at Bheramara to facilitate
greater power trade with India. For this,
PGCB will construct another 500 MW
substation at Bheramara. As of July
2012, PGCIL had completed 60 per cent
of its end of the work while PGCB had
completed 40 per cent of its share of the
work. PGCB plans to soon float a tender
for the purchase of the planned 250 MW
from private players. In
August 2012, PGCB
announced that it has
planned to complete the
construction of the
Bheramara substation by
June 2013.

In early June 2010, the Asian

Development Bank (ADB) approved a
USD100 million loan for
constructing the crossborder line. ADBs loan
will finance the transmission and substation
components of the project. In mid-June 2010,
PGCB announced its
plans of installing a 40
km section of the line by
June 2012. However, in
Figure 8: Schematic Diagram for Grid Interconnection between Bangladesh
end-June
2010,
(Bheramara) & India (Bahrampur)

Project Update
HVDC Station (400230kV, 500 MW) at
Bheramara, Bangladesh:
Tender Invited on 2824

created an era in
the area of power
sector
in
Bangladesh.
There would be
several
HVDC
substations
in
Bangladesh
in
future to connect
eastern part of
Indian Power Grid
with Power Grid
of
Bangladesh.
HVDC
can
increase reliability
in power grid as it
can connect two
asynchronus network. Excessive
long distances are
technically
Figure 9: Proposed location of HVDC substation
unreachable by
HVAC line withFeb-2010
out
intermediate
reactive
compensaContract awarded on 29-March-2011
tions.
The
frequency
and
the
intermedi(effective from 01-June-2011)
ate reactive components cause stability
Completion time: May 2013.
problems in AC line. On the other hand
Contractor: Siemens, Germany.
HVDC transmission does not have the
Contract value: FC EURO 76.622 M, stability problem because of absence of
LC BDT 156.97 Cr
the frequency, and thus, no distance limitation. The cost per unit length of a
Single Line Diagram approved
HVDC line lower than that of HVAC line
Draft Layout approved
of the same power capability and comDrawing Submission started
parable reliability, but the cost of the terSome Drawings approved
minal equipment of a HVDC line is
Soil Resistivity Test started
much higher than that of the HVAC line.
Overall physical progress 50%
The breakeven distance of overhead
Transmission line (400kV: 30km &
230kV: 05km):
Tender Invited on 28-Feb-2010
Contract awarded on 30-Dec-2010
(effective from 01-March- 2011)
Completion time: August 2012.
Contractor: Cobra (Spain)
Contract value: FC USD 9.428 M,
LC BDT 35.996 Cr.
Route Alignment Survey completed
Plan Profile Approved (excluding the
termination towers).
Work Plan submitted & work is going
on as per work plan.
Planned profile for LILO of 230kV
Ishurdi Khulna Line under verification
Overall physical progress 70%
Conclusion
Inception of HVDC in Bangladesh has

lines between AC and DC line is ranged

from 500 km (310 miles) to 800 km (497
miles). The HVDC has less effect on the
human and the natural environment in
general, which makes the HVDC friendlier to environment.
EP

Asif Islam;
Assistant Manager
Design (SSD-2)
Planning & Development Division
Power Grid Company of Bangladesh
(PGCB) Ltd
Md. Jahangir Alam;
Assistant Manager
Bibiyana-Kaliakoir 400kV Transmission
Line Project
Project Division
Power Grid Company of Bangladesh
(PGCB) Ltd
25

ARTICLE

Wind Power - A Solution to

The Energy Crises
J.A. A. S. Ranasinghe

he President while presenting the

2013 budget offered a basket of
incentives for the renewable
energy sector to attract both local and
foreign investors to embark on this
much neglected renewable energy sector that has not received the desired
attention in its development drive for
the last six decades. He emphatically
noted that promoting renewable energy
is a key necessity to slash the heavy
crude bill and the resultant foreign
exchange savings would have a positive cushioning effect on the trade
deficit. Hence, the granting of tax concessions through exemption of import
taxes for solar, wind and bio mass
power systems and other renewable
energy equipment which could not be
manufactured in the country backed by
the slashing of corporate tax rates to
concessionary 12 per cent is viewed as
a noteworthy incentive given for the
development of wind farm projects in
the right direction.

wind farm projects in Sri Lanka in the

light of the tax concessions and other
forms of incentives declared in the
2013 budget and secure their technical
and financial support, as Sri Lanka is
woefully lacking expertise and technology in this wind farm energy sector.
Lankan Energy Sector
Sri Lanka no longer can depend on
hydro-power or thermal power given
the sheer number of power cuts
imposed annually. Though this adverse
trend was somewhat resurrected with
the opening of Norochcholai Coal
Power plant, its frequent break-downs
have aggravated the issue time and
again bringing untold hardship to the
people and industry. Hence the reliability of an environmentally friendly and
easy accessible renewable energy
source has to be found, which is sinequa-non for the economic development of the country.

In this context it is heartening to note

that a team of new investors who have
had hands on experience in the construction of mega wind power plants in
Europe are expected to meet government authorities this week, even before
the dust of the second reading of the
budget debate settles down in response
to the budget proposals. These three
experts -- Micheal Huntings Ford, Peter
Crone and Jens Dickmann who have
been reportedly instrumental in setting
up the worlds largest off shore wind
farms in Array and Bristol, UK, where
there are generating 1,000 MW and
1.500 MW to the national grid of UK-,
are expected to have a series of discussions with the Sri Lankan Government.

In 2011 and 2012, our energy sector

experienced significant pressure due to
high oil prices and lower hydro power
generation caused by erratic weather
conditions which prompted the
increase of thermal power use. The
average price of crude oil which was in
the region of US$80 in 2010 drastically
increased to $112 per barrel in 2011
resulting in a $4.8 billion cost. Though
the government has taken some measures to promote energy conservation
and development of renewable energy,
the vulnerability to oil prices has had a
debilitating effect on the economy and
this unhealthy situation could create
economic imbalances unless remedial
measures are taken for the generation
of an alternate energy source such as
wind energy power.

Undoubtedly, it is a herculean task for

the government to convince them on
the commercial viability of the off shore

Though the Sri Lanka Sustainable

Energy Authority (SLSEA) has an ambitious plan to increase the share of

renewable energy in power generation

to 10 per cent in 2015 and 20 per cent
in 2020, it is extremely doubtful
whether it is able to achieve these targets given the paucity of foreign
exchange restrictions and the lack of
technology and expertise. Hence, it is
in the light of these inhibitions, the Sri
Lankan Government should seize the
visit of this delegation and have a productive dialogue for the setting up of an
off shore wind farm project in Sri
Lanka. The discussion, in my understanding, should revolve around a strategy for the investors to build the off
shore wind farm project at their cost
and later to transfer the project to Sri
Lankan government (BOT) when the
pay-back period is over for which necessary tax concessions have been provided in the budget.
These investors from British and
Germany, I believe, have the required
financial resources and technology
expertise for a gigantic investment on
off shore wind farm projects, provided
the negotiations are taking place at the
highest level in a true spirit of understanding and mutual trust. The Sri
Lankan Government should understand
that it has a bleak future unless the
heavy drain out of foreign exchange on
the oil bill is curtailed. It should learn
lessons from other countries that are
working on wind power generation at
breakneck pace. Sri Lanka is an island
and it is surrounded by the sea, which
is an ideal platform for the establishment of offshore wind farm mills.
Global Scenario
Since 2004, wind energy deployment
has risen dramatically. Global installed
capacity increased from 40,000 MW to
94,000 MW at the end of 2007 at an
average annual growth rate of nearly
25 per cent. Europe is the undisputed
global leader in wind energy technolo28

gy. Some 60 per cent of the worlds

capacity was installed in Europe by the
end of 2007 and European companies
had a global market share of 66 per
cent by 2007. Penetration levels in the
electricity sector have reached 21 per
cent in Denmark and about 7 per cent
and 12 per cent in Germany and Spain,
respectively. Achievements at the
regional level are even more impressive: the North German state of
Schieswig-Holstein is reported to have
over 2,500 MW of installed wind
capacity enough to meet 36 per cent of
the regions total electricity supply
demand, while in Navarra, Spain, some
70 per cent of consumption is met by
wind power.
Offshore wind by now accounts for
more than 3 per cent of total installed
wind power capacity in the world and
development has taken place mainly
around North Sea and the Baltic Sea. At
the end of 2007, there was a capacity
of more than 1000MW located offshore
in five countries: Denmark, Ireland, the
Netherlands, Sweden and the UK. Most
of the capacity has been installed in relatively shallow water (less than 20m)
and no further than 20 KM from the
coast, so as to minimize the costs of
foundations and sea cable.
The nature of business in wind energy
is changing at a rapid pace. This
change brings new money to the industry and decreases dependence on
banks for initial funding. Powerful
sponsors are also arriving on the scene.
Projects are increasing in size and
large-scale off shore activity is taking
off; since banks favor big projects, this
is a change for the better. There is a
strong political and environmental support for renewable energy which means
that wind energy funding is still viewed
as a very attractive option.
Renewable Non-Polluting Resource
Wind energy is a free, renewable
resource, so no matter how much is
used today, there will still be the same
supply in the future. Wind energy is
also a source of clean, non-polluting,
electricity. Unlike conventional power
plants, wind plants emit no air pollutants or greenhouse gases. According to

the U.S. Department of Energy, in

1990, Californias wind power plants
offset the emission of more than 2.5 billion pounds of carbon dioxide, and 15
million pounds of other pollutants that
would have otherwise been produced.
It would take a forest of 90 million to
175 million trees to provide the same
air quality.
Cost Issues
Even though the cost of wind power
has decreased dramatically in the past
10 years, the technology requires a
higher initial investment than fossilfueled generators. Roughly 80 per cent
of the cost is the machinery, with the
balance being site preparation and
installation. Wind costs are much more
competitive with other generating technologies because there is no fuel to
purchase and minimal operating
expenses.
In general, the cost of conventional
electricity production is determined by
four cost components, namely fuel, carbon dioxide emissions (CO2), operation and maintenance (O&M) and capital cost component including planning
and site work. Implementing wind
power avoids the full fuel and CO2
costs, as well as a considerable share of
conventional plants O&M costs. The
amount of capital costs avoided
depends on the extent to which wind
power capacity can displace investments in new conventional power
plants; this is linked directly to how
wind power plants are integrated into
the power system.
Wind Energy Resources in Sri Lanka
Wind energy is very abundant in many
parts of Sri Lanka. Wind resources are
characterized by wind-power density
classes, ranging from class 1 (the lowest) to class 7 (the highest). Good wind
resources (e.g., class 3 and above,
which have an average annual wind
speed of at least 13 miles per hour) are
found in many locations. Wind speed is
a critical feature of wind resources,
because the energy in wind is proportional to the cube of the wind speed. In
other words, a stronger wind means a
lot more power.
Since site location of off shore wind

farms is inherently restricted by the

accessibility to grids, utmost care has to
be taken in selecting possible locations.
Puttalam peninsula in which the
Norochcholai Coal Power Station is
located is reported to be an ideal site
for the set of offshore wind farm mills.
Currently two onshore wind farms,
namely Seguwantivu and Vidatamunai
and Powergen contribute power to the
national grid. By analyzing the historical wind data from the Meteorological
Department, a proper assessment could
be made with regard to the location of
offshore wind mills. A fact to be bone in
mind is that a minimum wind speed of
3.5 meter per second is required.
During the monsoon period, the wind
power increases from 13 to 15 meters
per second.
According to bathymetry figures, the
north east coast where the Sampur Coal
Power Station near Mutur is located is
also reported to be a potential site for
off shore wind power projects.
However, it being on the east coast, the
exposure the prevailing south westerly
winds could be reduced by the effect of
the landmass. Secondly, the east coast
is prone to tsunamis and although the
impact of tsunamis on offshore turbines
in 15m-45m water depth may be manageable, it may be a prudent step to
critically examine these issues in much
detail. The off shore site adjacent to
Kerawalapitiya is expected to have a
favourable wind speed considering the
easy access to the 220KV transmission
network
Advantageous
Nimal de Silva, a Sri Lankan wind farm
expert domiciled in the UK is of the
view that Sri Lanka could reap enormous benefits by resorting to this new
source. Sri Lanka experiences heavy
drought annually, which has a deleterious impact on the generation of hydropower. The size of the water reservoirs
is another inhibiting factor whereby the
reservoirs cannot store the entire inflow of water during rainy seasons. The
heavy dependability of fuel for the
operation of thermal power plants during drought can be avoided, as wind
farms are not dependant on fuel but on
wind which is readily available around
29

Sri Lanka.
Though the initial investment is exorbitant, Sri Lanka could recover the entire
cost of investment within a relative
period of 10 to 12 years. The wind farm
sector could create employment opportunities more than 10,000 people initially by way of direct and indirect jobs.
Wind energy companies in the EU
employ around 108,000 people; when
indirect jobs are taken into account this
figure rises to more than 150,000,
according to Mr. Silva. He says the concentration should therefore be off shore
wind farms because of the limited land
space of the country. Environment pollution is minimal. With the transfer of
technology, our engineers could secure
lucrative employment in Europe, as the
trend in Europe is for wind power. It is
the ideal time for our universities;
preferably the University of Moratuwa
to establish a faculty of wind farm energy technology so that gainful employment could be found for young engineering graduates. According to Mr.
Silva, some 160 off shore plants are
currently in operation, under construction or being planned around the coastline of the European continent.
Funding Arrangements
Having realized the potential benefits
that could be reaped from the off shore
wind farms, many countries have come
forward to lend their financial support
for the expansion of the wind farm
industry. Green Investment Bank of UK
is on course to substantially reduce the
cost of electricity from off shore wind
over the next seven years. The UK is
clearly relying on offshore wind farms
to achieve its renewable energy goals.
In Germany, the off shore wind business model is becoming more attractive
to the banks who are signaling their
readiness to co-operate to develop the
industry. The KfWs Offshore Wind
Energy program is providing up to Euro
5 billion for offshore wind farms in the
Baltic and North Sea. The KfW has
indicated their willingness to give Euro
100 billion to help finance. The KfW
has long been highlighted as a possible
source of credit for upfront costs relating to off shore wind projects and is

planning to make huge loans available

for renewable energy projects including wind energy.
We cannot expect the Sri Lankan
Government to fall in line with the
same financial model due to paucity of
funds but it could certainly look forward to financial assistance from international funding agencies for these
projects. Or else, the government could
enter into bilateral agreements with
developed countries such as Germany
with a view to establishing these wind
farms on BOT basis.
Even the Maldives, our neighbor has
embarked on a massive investment of
US$ 200 million for an off shore wind
farm mill in Kaafu Island, which is
located 54.3 km from the shore.
Wind Energy & Power
Wind is a form of solar energy. Winds
are caused by the uneven heating of the
atmosphere by the sun, the irregularities of the earths surface, and rotation
of the earth. Wind flow patterns are
modified by the earths terrain, bodies
of water, and vegetative cover. This
wind flow, or motion energy, when
harvested by modern wind turbines,
can be used to generate electricity
The terms wind energy or wind
power describe the process by which
the wind is used to generate mechanical power or electricity. Wind turbines
convert the kinetic energy in the wind
into mechanical power. This mechanical power can be used for specific tasks
(such as grinding grain or pumping
water) or a generator can convert this
mechanical power into electricity to
power homes, businesses, schools, and
the like.
Wind turbines, like aircraft propeller
blades, turn in the moving air and
power an electric generator that supplies an electric current. Simply stated,
a wind turbine is the opposite of a fan.
Instead of using electricity to make
wind, like a fan, wind turbines use
wind to make electricity. The wind
turns the blades, which spin a shaft,
which connects to a generator and
makes electricity.
Wind turbines are often grouped

together into a single wind power plant,

also known as a wind farm, and generate bulk electrical power. Electricity
from these turbines is fed into a utility
grid and distributed to customers, just
as with conventional power plants.
Environmental Concerns
Although wind power plants have relatively little impact on the environment
compared to fossil fuel power plants,
there is some concern over the noise
produced by the rotor blades, aesthetic
(visual) impacts, and birds and bats
having been killed by flying into the
rotors. Most of these problems have
been resolved or greatly reduced
through technological development or
by properly sitting wind plants.
Supply & Transport Issues
The major challenge to using wind as a
source of power is that it is intermittent
and does not always blow when electricity is needed. Wind cannot be
stored (although wind-generated electricity can be stored, if batteries are
used), and not all winds can be harnessed to meet the timing of electricity
demands. Further, good wind sites are
often located in remote locations far
from areas of electric power demand
(such as cities). Finally, wind resource
development may compete with other
uses for the land, and those alternative
uses may be more highly valued than
electricity generation. However, wind
turbines can be located on land that is
also used for grazing or even farming.
Exceed Benefits of The Mahaweli
It is hoped that saner counsel will prevail among the governmental delegation who negotiates with the expert
panel on this crucial issue considering
the far-reaching benefits the country
could derive, which in my opinion,
would exceed the economic and social
benefits of the accelerated Mahaweli
project.
(The writer is a Productivity Consultant
and an External Trainer presently
attached to the Ministry of Public
Reforms)
EP

Curtsy: The Sunday Times

30

ARTICLE

Commercial Aircraft Using Biofuel

Engr. S. A. Mansoor

etroleum based fuels are extracted

from below the earth's surface.
Similar to underground water, it is
found in geological strata of rocks or
shale below the ground. It is now established that the liquid commonly called
crude oil were formed, eons back,
through geologically induced compressive decomposition of plant and vegetation, as further rocks and soil mass
was deposited by water flowing down
from snowy mountains or coming from
natural fissures or lakes, connected to
underground water
sources.
From these underground geological
structures, we pump out the crude oil,
which is then refined by fractional distillation into various types of usable
petroleum products as fuel and lubricants. This is today, the largest, and in
fact the only source of energy and
power, which provides transport for
people and goods all over, across land,
sea and air; that covers the travel routes
across the globe.

Biofuels are directly sourced from

plants, and can be refined and used as
fuel. The process can be compared to
the process for preparing oils like corn
oil, soya oil and similar other edible
oils. We can also grow our fuel that has
gradually led to the development and
making of biofuel as an energy source
for powering transport vehicles; which
today runs on gasoline, diesel oil and
kerosene; and which is used in all
modern jet aircraft where it is called
Aviation Turbine Fuel (ATF). It has now
come into use, to some extent for motor
vehicles in road transport. However, its
development and application in the
marine sector has still not been established and documented, both for inland
and overseas marine vessels.
In the rapidly developing air transportation sector; not much is known about
developments with biofuels; though a
few well documented trials have been
done; starting from the last decade of
the twentieth century. At that time,
development work has been undertaken in countries like Europe and USA,
where airplanes, aircraft engine manufacture and air transportation industries

are well established for quite some

time.
Most of the information, comes from
this sector, and it is closely related to
commercial
air
transport.
Unfortunately, very little authentic
information has come from Russia and
China, where it can be assumed that
substitute for fossil fuel is being undertaken; and work at least on producing
biofuels should be in hand! However,
no significant breakthrough in the utilization of biofuel has possibly come
lately; otherwise it would have
swamped the print media internationally!
In USA, aircraft designers, engine makers and commercial aircraft manufacturers have experimentally evaluated
the advantages of using biofuels. The
reason behind this development has
been more strategic rather than commercial. USA naturally wants to curtail
dependence on imported petroleum
fuels; particularly because of its location in the troubled Middle East; where
their influences are being polarized;
that can hamper future oil supplies.

Given the fact, that it is plants and vegetation that is processed by nature, giving us the fuel for all forms and types of
Biofuels have been substituted for
transport facilities;
kerosene (ATF), the
the logical corolpresent day fuel for
lary is why not we
almost all types of
grow these, and
jet aircraft; both for
decompose it and
civil aviation and
produce crude oil?
the armed forces.
Though theoretiIn
December
cally it is possible;
2008, Air New
the cost involved
Zealand flew a
for
generating
commercial
these huge presBoeing 747 airsures and temperacraft, with one of
tures for converits four engine runsion will be enorning on a 50:50
mous, to say the
blend of ATF and
least. It is therefore
biofuel, sourced
far cheaper
from the 'Jatropa'
to pump out the
plant. The test
crude oil and
flight, replicating
A fuel crew loads biofuel into the 787 Dreamliner that made the first trans-Pacific flight on biofuel all normal flight
refine it.
31

and weather patterns possible, was

fully recorded and videoed all throughout the flight from takeoff to landing.
In early 2009, other commercial carriers, Virgin Atlantic (British) and
Continental Airlines (US) have also carried out similar tests with their commercial aircraft. Also in January 2009,
Japan Air Lines similarly flew a Boeing
747-300 aircraft with one engine using
a 50:50 blend of ATF and biofuel from
three different plant sources now available; Jatropa, Alge and Camalia plants.
All the different blends were used in a
special flight, and the aircraft was
flown with maximum engine thrust;
and with fuel pump shutdown and
restart during flight! All the three fuel
blends used performed to full satisfaction. The flight was monitored by a
team of engine makers and airlines
operational and test personnel, on
board the test flight.
Meanwhile, in another historic but
defining way ahead in a new direction,
Boeing Aircraft Company; makers of

large or jumbo commercial aircraft

went a step further into the future. They
made aviation history during February
and March 2008; by having a test flight,
without using any fuel! They used fuelcell to power the aircraft.
All these are known and recorded facts
in the aviation sector. It confirms the
viability of using biofuels for commercial aircraft. However, in this scenario,
we come across the usual dilemma; of
which comes first the chicken or the
eggs? With ATF, now being used for
commercial aircraft; its price is much
cheaper in real terms, when compared
to the cost of cultivation of plants and
then converting the fruits or seeds to
biofuels; when the costs will definitely
be more on a BTU basis.
Hence, so long as kerosene is easily
available, and adequate refining capacity is available; and the sources are easily accessible; the venture to establish
biofuel refining plants and its storage
and supply facilities will be a fully risky
commercial venture. Also time and
effort, all of which is ultimately in terms

of money; biofuel rationally, comes as

a very poor second or last option for
the foreseeable future.
This is the commercial reality; that discourages the development, availability
and use of biofuels. Only when supplies of crude oil are restricted; for one
reason or another; can biofuel make a
headway. It could be that political
events in the Middle East, which has
sizable resources of crude oil, can
reach a stage were the extraction and
transport of oil extracted there is no
longer possible due to geo-political
events in the area; where the long
drawn Arab-Israel conflict can upset
the situation at any time. The reality of
biofuel is well established; and only
time can tell, when it will find regular
use as a source of motive power.
EP

Engr. S. A. Mansoor;
Retired Engineer, with over half a century of management of Mechanical &
Chemical industries.

32

REPORT

Price Adjustment Soon

gas production and settlement of a case

pending with the High Court.

EP Report

The court ruling is one of the main reasons for halting new gas connections,
he told newsmen.

rime ministers Energy

Adviser Dr Tawfiq-eElahi Chowdhury said
the government has a plan to
further increase power and gas
prices soon for the sake of
adjustmenta euphemism for
hike in tariffs of public utilities.
The existing fuel prices in the
country are lower than that on
the international market
because of government subsidy, he said, stressing the
need for upward adjustment of
the fuel prices.

Recently, the court asked the

authorities concerned to keep
giving new gas connections
suspended unless the government decides to restart giving
new connections.
The energy and mineral
resources division has formed
a committee as per directive
by the court to identify those
who are responsible for providing illegal gas connections.
At the seminar, the power division officials stressed jointventure projects to mitigate
power crisis of Bangladesh and India.

A front view of the seminar Promotion of the Renewable Energy in

Bangladesh
Photo: EP

The money the government used in

subsidy can be utilized in other sectors,
including education, health and socialsafety net, he told reporters, emerging
from a seminar at Bidyut Bhaban in the
capital.
But the adviser could not disclose when
the new rates will be announced and
come into effect.
Tawfiq-e-Elahi further said that the government would not lease out Phulbari
and other coalmines for development
before getting the results of water-management survey conducted by a local
firm in Barapukuria mine area.
We are first conducting water management in coalmine areas and then we
well decide on lease of coalmine, he
told journalists at the same function
titled Promotion of Renewable Energy in
Bangladesh organized by Bangladesh
Power Division.
Responding to a query on the home ministrys permission to conduct the survey
in Phulbari coalmine area by GCM,
locally known as Asia Energy, he said, I
dont want to log in a controversy making a comment about it.
He pointed out that power and industrial sectors were suffering from severe gas
shortage though 500mmcfd (million
cubic feet of natural gas a day) had been
added a day to the national grid during
the past four years of the present governments tenure.

Replying to another question, Elahi said

that providing new gas connections to
the industries depends on the increase of

EP

No Gas Found in Petrobangla's

Much-Hyped Sunetra
EP Report

he Petrobangla had forecast 'discovery' of a gas field having no less

than two trillion cubic feet of reserve in
a potential spot in NetrakonaSunamganj area on the basis of a seismic survey two years ago. However,
upon drilling an exploratory well there,
the Bangladesh Petroleum Exploration
Company (Bapex) found no usable gas
in that spot that they had named
Sunetra gas field.
As the exploration affiliate of
Petrobangla, Bapex drilled a well up to
4,500 meters deep. Except for hitting
some small pockets of gas which is not
worth extracting, Bapex found nothing
useful there.
Upon completion of the logging, we
would be able to decide whether we
should further drill this well by another
500 meters or not. Without logging, we
cannot understand the true nature of
the geological structure down there,
said a top official of Bapex requesting
anonymity.

There had been no sign of any big

hydrocarbon reserve during the
drilling. The structure was big. If there
was any gas discovery, it would have
been very big, he said referring to the
previous forecast made by both Bapex
and Petrobangla that there will be no
less than 2 TCF gas in this zone.
The Bapex started drilling in Sunetra
since late August. The Sunetra zone is
located in the eastern part of block 11
which was awarded to Bapex. It had
initially targeted drilling 3,700 metres
with a secondary target of 4,000
metres. As there had been no sign of
gas discovery, the Petrobangla chief
asked for further drilling to secure a
success.
If we ultimately find nothing, it will
have a negative impact on Bapex's further exploration in block 11. This eastern part of the block had high
prospects. The western parts have
lower prospects, the source pointed
out.
EP

33

REPORT

BPC Fixes Fuel Import Contracts

EP Report

angladesh Petroleum Corporation

(BPC) has concluded first half 2013
term negotiations for refined oil
products at mostly stronger premiums
than current contracts.
A senior BPC official said BPC will also
buy 700,000 tonnes of Murban crude
from Abu Dhabi National oil Company
and another 700,000 tonnes of Arab
Light crude from Saudi Aramco in 2013
for its refinery.
The BPC finalized its gasoil term contract
at a premium of $4.30 a barrel to Middle
East quotes, up from the $3.80 a barrel
premium for its July to December term
cargoes this year. For large vessels, the
premium has been set at $3.62, up from
$3.42 a barrel.
The term contract for jet fuel and
kerosene has been fixed at a premium of
$5.30 a barrel, up from $4.80 a barrel.
The premium for fuel oil for first half of
2013 will remain unchanged from
$39.50 a tonne to Singapore spot quotes
for October-December term cargoes.
BPC, the country's sole oil importer and
distributor, will import around 2.60 million tonnes of gasoil, 700,000 tonnes of
fuel oil, 510,000 tonnes of jet oil, 60,000
tonnes of 95-gasoline octane and 20,000
tonnes of kerosene in the next year.
Kuwait Petroleum Corporation (KPC) will
supply around 1.02 million tonnes of
gasoil in 2013 and 210,000 tonnes of jet
fuel.
Malaysia's Petronas will supply 460,000
tonnes of gasoil, 240,000 tonnes of fuel
oil, 120,000 tonnes of jet fuel and
20,000 tonnes of kerosene.
Around 180,000 tonnes each of gasoil
and fuel oil will be sourced from
Emirates National Oil Company (ENOC)
and 500,000 tonnes of gasoil and 20,000
tonnes of fuel oil from Egypt's Middle
East Oil Refinery.
Philippines National Oil Company
(PNOC) will supply 214,000 tonnes of
gasoil and 60,000 tonnes of 95-octane

gasoline and PetroChina will supply

120,000 tonnes of gasoil and 40,000
tonnes of fuel oil in the next year.

occasional seller in the Asian fuel oil

market, offering small volumes of about
30,000 tonnes irregularly.

Vietnam's Petrolimex will sell 220,000

tonnes of fuel oil and 60,000 tonnes of
gasoil and Indonesia's Bumi Siak Pusako
40,000 tonnes of fuel oil to the BPC.

The government heavily subsidises BPC,

which sells fuel oil to the local market at
much lower rates than import prices.

Domestic demand for fuel oil has been

swelling as a shortfall of natural gas supply forced the country to turn to costly
oil-fired quick rental power plants. The
chronic electricity shortage has limited
economic growth and investments in
Bangladesh and often stirs public fury.
Until early 2010, Bangladesh was an

In December 2011 Bangladesh last

raised oil prices for the four time since
May last year and has been under pressure from the global lending agencies
such as the International Monetary
Policy to hike again to trim the country's
subsidy burden but the government is
responding slowly as election is due late
2013.
EP

ADB, JAPAN to Help Improve

Coastal Town Infrastructure
EP Report

he Asian Development Bank (ADB)

and the Government of Bangladesh
signed a technical assistance (TA) grant
agreement of $900,000 for improving
the quality, delivery and climate
resilience of basic urban services and
infrastructure in coastal towns.
The Government of Japan is financing
the TA through the Japan Fund for
Poverty Reduction. ADB will administer
the fund and also provide technical support for project implementation.
The TA will prepare the proposed
Coastal
Towns
Infrastructure
Improvement Project, which will contribute to improving climate resilience
and overall health of selected coastal
town populations. Local Government
Engineering Department (LGED) of the
Ministry of Local Government, Rural
Development and Cooperatives will be
the executing agency of the project.
Saifuddin Ahmed, Joint Secretary,
Economic Relations Division (ERD)
signed the agreement on behalf of
Bangladesh government and Wahidur

Rahman, Chief Engineer signed on

behalf of the executing agency at a ceremony at ERD, Sher-e-Bangla Nagar,
Dhaka. Stefan Ekelund, Deputy Country
Director, signed the agreement for ADB.
The assistance will lead to improved
municipal infrastructure with climateresilient designs, particularly in water
supply, sanitation, and drainage,
strengthened local governance, capacity for sustainable service delivery and
urban planning while raising awareness
in disaster risk preparedness, said
Stefan Ekelund, Deputy Country
Director for ADBs Bangladesh Resident
Mission.
ADB, based in Manila, is dedicated to
reducing poverty in Asia and the Pacific
through inclusive economic growth,
environmentally sustainable growth and
regional integration. Established in
1966, it is owned by 67 members -- 48
from the region. In 2011, ADB
approvals including cofinancing totaled
$21.7 billion.
EP

34

REPORT

CIPs Ask for Gas, Power

EP Report
Chittagong to Dhaka takes
as much as 20-25 days and
takes equal time when we
go for export, said Azad,
the immediate past president of Federation of
Bangladesh Chamber of
Commerce and Industry
(FBCCI).

he government has
awarded some 35
business people the
Commercially
Important
Person (CIP) status under six
categories in recognition of
their outstanding contributions to the country's economy in the year 2012.

"Private sector would be

Industries Minister Dilip
able to export goods worth
Barua handed over the CIP
US$ 50 billion within the
cards to the entrepreneurs at
a ceremony at Pan Pacific Industries Minister Dilip Barua handed over the CIP cards to the entrepre- next few years subject to
infrastructural
Sonargaon Hotel in the city. neurs at a ceremony at Pan Pacific Sonargaon Hotel in the city. Photo: PID adequate
supports
from
the governIndustries minister was the
need
for
smooth
supply
of
gas,
electricment,
he
said.
chief guest at the program where State
Minister for Industries Omar Farooq ity and completion of Dhaka- The key business leader however
Chowdhury and FBCCI President Kazi Chittagong 4-lane highway immediate- hailed the government for recognising
Akram Uddin Ahmed were the special ly for the shake of economy.
the contribution of the entrepreneurs.
guests. Acting Secretary of the Ministry Transportation of Goods from
EP
of Industries Mohammad Moinuddin
Abdullah presided over the program.
A large number of leading business personalities, high officials of the government and members of civil society
were also present at the ceremony.
Berger Paints Bangladesh Ltd Managing
Director Rupali Chowdhury in her
reaction as a recipient expressed her
commitment to make the industry a
suitable workplace and urged all to
practice corporate social responsibilities.
We are running the industries amidst a
lot of challenges, said the CIP recipient urging the government to solve the
power and energy problem to ensure
smooth functioning of mills and factories. Rupali thanked the authorities for
awarding CIP status to her but asked
the government to teach Airport officials what the status means.
When cannot avail VIP facilities in the
airport as most of the time we have to
explain what is CIP and what amenities
we are entitled to, said Rupali.
Bangladesh Chamber of Industries
president AK Azad also emphasized the

HSBC Arranges $420M Loans

for Ashuganj Power Station
EP Report

SBC Bangladesh has arranged

$420 million loans for Ashuganj
Power Station Company Ltd (APSCL) to
help the state-run electricity producer
set up a 450-megawatt combined cycle
power plant.
HSBC signed an agreement with
APSCL at Radisson Hotel in Dhaka to
help the power producer use the fund
backed by the Export Credit Agency
and the Multilateral Investment
Guarantee Agency.
The project is the first transaction of its
kind in the power sector in Bangladesh,
the bank said in a statement.
Ashuganj Power Station is the second
largest power plant in Bangladesh with
installed capacity of 724 megawatts
and de-rated capacity of 642megawatt, meeting 15 percent of the

country's electricity requirements.

The credit arrangement is a reflection
of HSBC's ongoing efforts to support
infrastructure growth in public sector in
Bangladesh, especially bolster government activities to enhance power supply in order to sustain the current economic growth momentum, the bank
said.
Tawfiq-E-Elahi Chowdhury, Energy
Adviser to the Prime Minister;
Muhammad Enamul Huq, State
Minister for Power, Energy and Mineral
Resources; Anwar Hossain, Chairman
of Ashuganj Power Station Company;
and Mahbub-ur-Rahman, head of
HSBC's
corporate
banking
in
Bangladesh, were present at the deal
signing ceremony.
EP

35

60MW Wind Power Plant to Be

Set Up in Coxs Bazar
EP Report

he Cabinet Committee on Public

Purchase approved a proposal to
set up a 60-megawatt wind-based
power project in Coxs Bazar.

The project, first of its kind in the district, will be set up under Special
Energy and Power Supply Act.
As per the proposal, Bangladesh Power
Development Board (BPDB) will purchase electricity from the plant at Tk
9.78 per unit.
Taylor Engineering and PH Consulting
Inc - a joint venture company (JVC) - in
association of its local partner
Multiplex Green Energy Limited will
supply electricity to PDB for the next
18 years. As per the proposal, the company will finance Tk 1.27 billion to set
up the plant, the sources said.
Power Division said the proposed
power tariff from the plant will be
much less than that from governments
fuel-based plants.
An agreement in this regard was signed
earlier between the Power Division and
the JVC of Taylor Engineering and PH
Consulting Inc and its local partner
Multiplex Green Energy Ltd.
The Power Division proposal said the
fully foreign financed plant will start
commercial operation within 10 to 11
months after signing the Power
Purchase Agreement (PPA).
This was the first initiative taken by the
authority after effectiveness of Special

Energy and Power Supply Act, that lets

a company set up a power plant, was
extended for two years. It may be mentioned that the government has a plan
to purchase electricity worth Tk 37.65
billion from different plants during the
next 18 years.
At present, the country has a one
megawatt wind-based power project in
Moheskhali of Coxs Bazar, but it has
remained out of operation.

ate 5 percent of the countrys required

electricity from renewable energy
sources by 2015 and 10 percent by
2020.
About approving the wind-based
power project, finance minister AMA
Muhith told journalists that the countrys only wind-based power project
face trouble due to rough weather. But
the plant is able to overcome the adversity of weather, he said.
EP

The government has a target to gener-

WTO Allegation Against Canada

EP Desk

Canadian scheme to pay green

energy companies more for their
electricity if they use local technology
broke World Trade Organization
(WTO) rules, the global body said in a
ruling that could lead to challenges
against similar programs.
The WTO largely backed complaints
from Japan and the European Union
that the scheme set up by the
Canadian province of Ontario discriminated unfairly against foreign
companies.
The case has been closely watched
because it deals with "local content
requirements", where countries
ensure their own firms get a guaranteed cut of big projects, that are at the

centre of a number of other disputes.

The EU welcomed the ruling and said
it would open up more business for
the bloc's businesses in Canada.
"Exports from the EU into Canada in
wind power and photovoltaic power
generation equipment are significant,
ranging from 300 to 600 million
Euros in 2007-2009," the European
Commission said in a statement.
"These figures could be higher should
the local content requirements be
removed from the legislation in question," it added. The Canadian government, acting on a request from
Ontario, said it would appeal the ruling.
Separately, a spokeswoman for the

37

Ontario ministry of energy said the program was consistent with Canada's
obligations under WTO agreements.
Brazil, India, Indonesia and Nigeria
have been criticized repeatedly in
WTO committee meetings for having
similar local content clauses in big
infrastructure projects.
China has also launched a challenge
against the EU over renewable energy
rules in Italy and Greece, alleging they
discriminate against Chinese suppliers

of solar power components.

A WTO adjudication panel agreed
Canada had broken some of the trade
body's rules, but was split on the question of whether Ontario's scheme constituted an illegal subsidy that had disadvantaged importers.
The panel offered a suggestion about
how the Japanese and EU cases could
have been framed to overcome their
objections. The EU and Japan also
have the right to appeal.
EP

Sustainable Polymers from

Algae Sugars & Hydrocarbons

he 20 partners involved in an EU
funded research program held their
kick-off meeting on November 19-21
in Wageningen, the Netherlands.
Led by Wageningen UR Food &
Biobased Research, the 4-year project
has the goal to develop a new
biobased industrial platform using
microalgae as raw material for the sustainable production and recovery of
hydrocarbons and (exo)polysaccharides from algae and their further conversion to renewable polymers.
SPLASH will deliver knowledge, tools
and technologies needed for the establishment of a new industry sector:
Industrial Biotechnology based on
algae and/or algal genes for the manufacture of polyesters and polyolefins.
The project covers the whole process
chain from optimized biomass production to product development and
exploitation. In a first step, two industrial bioproduction platforms will be
explored: the green alga Botryococcus
braunii and the green microalga
Chlamydomonas reinhardtii, to which
the unique hydrocarbon and polysaccharides producing genes from
Botryococcus will be transferred.
Biomass cultivation is targeted to reach
a pilot scale.
Following steps will develop procedures for the production, in situ extraction and isolation of sugars and hydrocarbons, which will be further

processed into polymers: Polyesters

from sugars and polyolefins from
hydrocarbons. Furthermore, the project
will explore the possibilities for the
production of high-value end-use
applications, such as fibers for yarns,
ropes and nets. This exploitation will
also include market analysis and environmental assessments.
The project comprises twenty partners,
of which 55% are SMEs and large
enterprises and the remaining 45 % are
universities and research institutes. The
research consortium is being managed
by Wageningen UR Food & Biobased
Research. Institutes and universities
include the Centre for Research and
Technology Hellas (CERTH), The
Chancellor, Masters and Scholars of the
University of Cambridge, FraunhoferGesellschaft zur Frderung der angewandten Forschung e.V., Universidad
de
Huelva,
EGE
Universitesi,
Westflische
Wilhelms-Universitt
Mnster, Wageningen Universiteit and
Universitt Bielefeld, while companies
such as nova-Institut fr politische and
kologische Innovation GmbH, PNO
Consultants BV, Lankhorst Euronete
Portugal SA, Rhodia Operations,
Organic Waste Systems NV, Paques BV,
Biotopic, Value for Technology BVBA
(VFT), Avantium Chemicals BV,
Lifeglimmer GmbH and Pursuit
Dynamics PLC form the other part of
the project consortium.
EP

Israel Partners China

in RE Technology

srael is set to work with China in the

future to develop renewable energy
technology, following talks at the 5th
Eilat-Eilot
Renewable
Energy
Conference & Exhibition held last week
in Eilat, Israel.
The conference provided a platform to
facilitate the development and investment in the booming renewable energy
industry, which is the future of energy
use, according to Dorit Banet, conference co-chair and manager of Eilat-Eilot
Renewable Energy Administration.
Israeli Minister of Energy and Water
Resources Uzi Landau also told a
Chinese newspaper that China leads the
world in solar, wind, and methanol
technology, and Israel looked forward
to carrying out further cooperation with
China in these fields.
"As the national project of alternative
energy in transportation, carried out by
the Israeli government, we plan to lower
fossil fuel usage in the transportation
sector by 30 percent by 2020, and 60
percent by 2025. That is to say, 30 percent and 60 percent of vehicles would
run on renewable energies such as
methanol, compressed natural gas, biofuel, and electricity by 2020 and 2025,"
said Eyal Rosner, director of the Israeli
prime minister's office of alternative
fuel.
Renewable energy use accounts for less
that 1 percent in the sector, according to
Rosner. "Methanol usage should reach
almost 10 percent by 2020," he said. "It
is quite a challenge, and that is why we
hope to learn from our Chinese counterparts and carry out in-depth cooperation with China."
Israel is also working with China in solar
power utilization and technology development. Half of the nation's solar panels
are provided by Suntech, a Chinese
solar power company based in Wuxi,
China. Suntech has installed over
100MW of solar panels in Israel and the
market outlook remains optimistic,
according to Suntech's PR department.
EP

39

Climate-Friendly Agriculture
& Renewable Energy
Laura Reynolds & Sophie Wenzlau

orldwide, agriculture contributes

between 14 and 30 percent of
human-caused greenhouse gas
(GHG) emissions because of its heavy land,
water, and energy usethat's more than every
car, train, and plane in the global transportation
sector. Livestock production alone contributes
around 18 percent of global emissions, including 9 percent of carbon dioxide, 35 percent of
methane, and 65 percent of nitrous oxide.

Activities like running fuel-powered farm

equipment, pumping water for irrigation, raising dense populations of livestock in indoor
facilities, and applying nitrogen-rich fertilizers
all contribute to agricultures high GHG footprint.
The good news? The UN Food and Agriculture
Organization (FAO) estimates that the sector
has significant potential to reduce its emissions, including removing 80 to 88 percent of
the carbon dioxide that it currently produces.
Some of this reduction can be achieved by substituting renewable energy for the fossil fuels
typically used to power day-to-day farm activities. Do-it-yourself solar heat collectors can
warm livestock buildings, greenhouses, and
homes; small or cooperatively owned wind and
water turbines can pump water and power
equipment; photovoltaic panels can power critical farm operations like electric fencing and
drip irrigation systems; and designing or renovating buildings and barns to maximize natural
daylight can dramatically reduce the electricity
required to light and warm farm buildings.
These innovations can be scaled up for implementation on large farms, but their beauty is in
their simplicity, accessibility, and application to
the smallest of operations.
And greening a farm does not stop at replacing
fossil fuels with renewable energy. To make a
farm truly climate-smart, it must take into
account all aspects of its environmental footprint: soil fertility, water use, chemical inputs,
and biodiversity. Farmers can implement lowtech, low-cost practices to curb their emissions
while building resilience to weather shocks and
severe resource scarcity, two projected stumbling blocks for farmers in coming decades.
Any measure that reduces on-farm water use,
for instance, will help to relieve the heavy pressures on the planets dwindling resources while
reducing agricultures energy footprint.

Agriculture accounts for a whopping 70 percent of global water use; in the United States,
the figure rises to 80 percent. Rivers, lakes, and
underwater aquifers are drying up across the
globe, causing serious concerns over basic
human rights like sanitation, food production,
and safe drinking water.
Installing drip irrigation, which applies precise
amounts of water to the plant roots instead of
spraying water over plants, is a simple way to
invest in climate-stress mitigation. Watering
crops using greywater, or water used in
domestic activities like dishwashing, laundry,
and bathing not to be confused with blackwater, or sewage can also reduce water use
on farms, particularly small-scale operations.
And switching from thirsty crops like rice,
wheat, and sugarcane (which account for nearly 60 percent of the worlds irrigated cropland)
to less-demanding plants like sorghum, millet,
lettuce, broccoli, carrots, beans, and squash
can reduce on-farm water use and help farmers
cope with drought and other threats (while
broadening access to fresh and nutritious
foods).
Water conservation is just one approach to
making a farm more climate-friendly. Practices
such as using animal manure rather than artificial fertilizer, planting trees on farms to reduce
soil erosion and sequester carbon, and growing
food in cities all hold huge potential for reducing agricultures environmental footprint.
Interestingly, biofuels can combine the need for
renewable energy with climate-friendly agricultural practices.
Perennial bioenergy crops stand as a shining
example of agricultural innovation. While corn
has long reigned the biofuels industry, its relative energy-conversion inefficiency and its sensitivity to high temperatures make it an unsustainable long-term energy option. But trees and
shrubs like willow, sycamore, sweetgum, and
cottonwood offer promising alternatives. These
perennials grow quickly for many years, can
often thrive on marginal land, and are often
much hardier than annual plants like corn or
soybeans. Their long roots can also reduce erosion, filter groundwater, harbor beneficial
microorganisms, and help soil retain key nutrients like phosphorus and nitrogen.
Because we may need to double our global
food production by 2050 to feed the projected

world population, it is important that farmers

do not divert their food-bearing land to grow
energy crops. Although corn- and soy-based
biofuels must be produced on fertile agricultural land, perennial crops can often thrive on
marginal land (i.e. steep slopes and eroded soil)
that would otherwise fallow. In the United
States, 27 million acres are currently enrolled
in the U.S. Department of Agricultures
Conservation Reserve Program, which pays
agricultural landowners to grow long-term,
resource-conserving cover crops on their marginal or unused farmland. A portion of this programs enrolled land could be planted with
perennial crops and harvested regularly for fuel
production. And because perennial crops
require considerably less fertilizer, pesticides,
and herbicides not to mention time and
labor than annual crops, they are a natural
choice for the millions of farmers around the
world who cannot access or afford expensive
chemical inputs.
By tapping into the multitude of climate-friendly farming practices that already exist, agriculture can continue to supply food for the worlds
population, and also help to reduce our
dependence on fossil fuels. But if we want agriculture to contribute to climate change mitigation, climate-friendly food production will
need to receive increased attention in the
form of both research and investment in the
coming years.
A step in the right direction: in early December,
a presidential advisory council on science and
technology warned that U.S. agricultural
research has not prepared the country for the
predicted impacts of climate change, population growth, emerging pests and diseases, and
severe resource depletion and scarcity. The
United States and other countries must promote
innovative agricultural research to brace for
these serious challenges, and to protect the
livelihoods of the 1.3 billion people whose
livelihoods rely on agriculture.
Laura Reynolds and Sophie Wenzlau are Staff
Researchers for the Food and Agriculture
Program at the Worldwatch Institute. Laura coauthored
Innovations
in
Sustainable
Agriculture: Supporting Climate-Friendly Food
Production, which was released earlier this
month.

Source: Renewable Energy World Magazine

40

MEMOIRS

Local Expertise Stabbed in The Back!

Engr. Khondkar Abdus Saleque

n a country like Bangladesh, the

opportunity to operate the first and
the only oil well in the very first year
after discovery must be considered as a
great fortune. This happened to a
Bangladeshi Chemical Engineer in
1988, just after returning from a 12week extensive training on gas transmission in Gasuine BV, Holland in
1988. It was very challenging first year
of operation of the Sylhet 7 oil well,
leading a small group of young, innovative and dynamic professionals. The
prospect of working in the first discovered gas field of Bangladesh was
thrilling and exciting. With no background of operating an oil field and
very little guidance from superiors, one
had to rely on innovations and enthusiasm.
The news of getting transferred to SGFL
on deputation from BGFSL to SGFL was
conveyed while in training in Western
Europe. One elderly Dutch Shell
Petroleum Engineer who had experience of working for Shell in Bangladesh
in 1960s kindly gave some tips on
Bangladesh Geology and operation
skills of waxy crude oil. On return to
Bangladesh, Late Quazi Shahidur
Rahman, a celebrated Petroleum
Engineer, was of great help initially. He
was a General Manger of BGFCL at that
time. Almost every week he used to
visit Haripur Gas Field and transfer
knowledge to SGFL professionals.
Oil was discovered at Sylhet 7 when
Petrobangla drilling division was
drilling for gas in 1987. All the completion tools for the well were mobilized
for a gas well. The discovery of oil created so much of euphoria that professionals forgot to arrange for oil well
completion tools and used those mobilized for gas wells. Subsurface safety
valve is not essentially used in oil well
as well field gas pressure is never too
high. Production tubing is also of higher size to produce more oil at lesser
pressure. The waxy crude started clog-

ging the flow path especially around

subsurface safety valve requiring scraping using wire line unit at given intervals. In the first year of operation, scarping was required at least two times to
maintain optimum daily production of
oil.
At that time in yearly days, many dignitaries opted to visit the oil field. Being
located beside Sylhet Tamabil Zaflong
highway most of the tourists ventured
to visit the oil field. Extra caution was
necessary to avoid any possible security threat. Outside visitors required a
permission from the then Energy ministry to enter the oil field.
Working in SGFL and living in Haripur
Gas Field started getting more challenging when a little known oil Company
Scimitar was awarded rights to explore
for oil in Sylhet area without any bidding and based on its unsolicited offer.
This decision of the government triggered strong countrywide protests. All
sensible citizens protested this unimaginative action of the government when
we almost got our drilling project for
additional oil wells approved and were
at advanced stage of financial support
from donor agency. Various activists
started street agitation. Persons like Dr
Kamal Hossain and Dr Khondkar
Musharraf Hossain played leading role.
People of Sylhet also staged very strong
protest. We had to send our crude very
carefully to Sylhet Railway station for
sending it to Chittagong Refinery.
Life in Haripoor Gas field was very
entertaining otherwise. Indoor and outdoor games were arranged regularly. A
reasonably strong cricket team was
raised. A visiting sports writers team
lost the match against SGFL team. The
Haripur Gas field area is one of the
most attractive areas of Bangladesh.
The officials still retains the punctuality
from early 1960s. The community there
is like an extended family with strong
fellow feelings. Fabulous sweet water
fishes, fruits and fresh vegetables are

available very easily.

SGFL was operating Kaillashtilla Gas
field also at that time. The young SGFL
team was also encouraged to accomplish maintenance works of Kaillashtilla
process plant (Silica Gel Plant) on its
own initiative. SGFL production department also successfully liaised with PIU
during drilling of appraisal cum development wells at Beanibazar and
Rashidpur. One incident was of great
significance on the evening when PIU
drilling unit informed of oil show at KTL
location 2 while Challenger drilling
crew approached the target depth.
SGFL production personnel were present at that moment. But later possibly
for strategic reason policymakers decided not to complete the well for oil.
Possibly a very strong lobbying for
Scimitar at that time discouraged
Petrobangla policymakers.
SGFL management was very reluctant
to work alongside with Scimitar at that
time. It was not possible to take any
anti-people move. General Manager
SGFL was transferred and was replaced
by a senior Petrobangla official. One
day, under strong security support, a
very strong Scimitar delegation went to
the Sylhet 7 and other Haripur wells.
SGFL production manager was advised
to escort the Scimitar team. There were
one Lebanese, one Canadian and a
Pakistani gentleman along with a host
of Bangladeshis. SGFL manager (production) was transferred and standreleased the following day without any
valid reason just to create an undue
favor for an incompetent company
which was awarded exploration right in
a very non-transparent manner. With
this the possibility of developing the
Sylhet oil resources utilizing own
expertise was stabbed in the back.
EP

Engr. Khondkar Abdus Saleque;

Advisor, Ministry of Mines; Afghanistan
41

MANAGEMENT

Corporate World: Professionalism

Naseer Ahmed

n my young days as an Executive in

Petrobangla we found one bright
manager who was a Chartered
Accountant by Profession. His apparel,
look, smartness and intelligence always
attracted us. Behind him we used to
call him Pseudo Director. He was
ambitious but at the same time cordial
and friendly with all levels-his seniors,
peers and juniors. At that time I did not
know what was professionalism but he
seemed to be a person who can be
called a true professional. Later he
switched
over
to
a
leading
Multinational Company and his posting
was at a foreign capital.
At this age of globalization we have
now more knowledge about professionalism. We know that our different
jobs require different level or sets of
skill. Whatever may be the industry or
trade-all of these jobs have one thing in
common-for success and progression
ahead we need to demonstrate professionalism.
In the competitive corporate environment the need for Professionalism has
become increasingly important. For the
realization of declared Objectives and

Goals of the organization, the modern

Manager must take a conscious effort
towards achieving a high degree of
Professionalism.
Indeed modern business needs Resultoriented Managers with a high degree
of Common Sense and other special
characteristics e.g. Knowledge, Skill,
Discipline and Leadership.
Now we elaborate each point
Common Sense
This is a generalized sense to be developed from our background, environment and perception. We should be
Street Smart.
Knowledge
There is no limit to knowledge. Existing
knowledge must be developed and
new knowledge to be acquired in an
organized way and continuously.
Skill
A Manager is responsible for Results.
Knowledge by itself is only of academic value. An organization demands
Managers
who
can
translate
Knowledge into Results through utilizing proper Perception, Communication
Skill, Listening Skill etc.
Discipline
A Professional
maintains
high
Standards of Discipline containing
Punctuality,
Reliability
and
Consistency.
Leadership
The Modern Manager is not a Bossbut the Leader of a Team. Leadership
qualities can be acquired by Training
and on hand experience. The
Professional Managers primarily produce Results through effective utilization of Skilled People.
Every Manager of an Organization
must realize that he has two major
Roles to play: Execute all Duties and
Responsibilities entrusted with the
expected degree of competence, using
Skills to achieve set goals and functions
effectively as a Team Member and be

an integral part of the Companys

Think Tank.
Considering the reality of today business scholars now say that professionalism does not mean wearing a suit or
carrying a briefcase. Rather it means
conducting oneself with responsibility,
integrity, accountability and excellence. It means communicating effectively and appropriately and always
finding a way to be productive.
Employers need workers to be responsible, ethical, team oriented and possess strong communication and problem solving skills. If we wrap all these
skills-we
get
professionalism.
Professionalism is indeed a combination of qualities.
For becoming world-class professional
focus should be on communication,
enthusiasm/attitude, teamwork, networking and problem solving/critical
thinking. Professionalism is an entire
package blending and integrating variety of skills.
Real professional should think positive
feel positive and talk positive. Positive
thinking evokes more energy, more initiative and more happiness. For professionals every minute is a challenge and
every challenge is an opportunity.
Professionals believe that Sky is the
limit and there is no sky if we dont look
up. So they always keep their antenna
up and try to be innovative in thinking
and actions.
Climbing to the corporate top position
is like an Everest expedition to a professional.
So, every professional
should try his or her best for success. At
this age of Google, Wikipedia and
Copy-Paste this is challenging but more
easily achievable.
EP

Naseer Ahmed
Energy & Management Consultant
43

I N T E RV I E W

Not Possible
Without Own Coal

Abdul Awal Mintoo

here is no alternative to reach a

political consensus, particularly
between the two main parties, to
convert the countrys coal and gas into
resources. The consensus is to take a
decision on Phulbari coal mine after
going through an evaluation by a
skilled and eligible foreign organization of a proposal submitted to the government. We should keep in mind that
the economy will face setbacks
growth will be affected and inflation
will be increased -- unless local energy
cannot be ensured in power generation.

Former FBCCI President Abdul Awal

Mintoo made the remarks in an exclusive interview with Energy & Power
Editor Mollah Amzad Hossain. Mintoo,
who is an adviser of BNP chairperson
as well as an energy analyst, dwelt
mainly on the governments achievements in the energy sector during the
last four years.
Following are the excerpts from the
interview:
EP: How do you see the energy sector
achievements in last four years?
Mintoo: It cannot be said they have had
a complete failure. But it has not been
achieved what Awami League had
promised for or what we hoped for.

One of the energy is imported fuel oil,

which I think has never been a problem. We all know that the main energy
of the country is natural gas. Whatever
increment in its production took place
came from the IOCs, particularly
Chevron. The gas production by
Chevron from the Bibiyana and
Moulvibazar fields has increased but
declined at the Sangu field Santos. On
the other hand, the production from the
government-owned 25 fields has not
been increased as such, instead
declined at some fields.
Four types of energy are now being
used to generate power. The potential
for increasing hydropower is very poor.
Gas is still the main source of energy
for power generation, contributing
around 70 percent. The power generation has been increased on an emergency basis by imported fuel oil. And
despite having coal reserve in the
country, very small amount of it is
being used. In my consideration, the
government has completely failed in
mining coal as it could not take any initiative to lift coal and ensure its utilization. It will not contribute to the development of the country as well as the
people unless the underground coal
cannot be converted into real asset
through mining. This is the biggest failure of the government.

The price of electricity would

continue to rise until the government stops generating power with
short term arrangements. There is
no alternative to come out of the
problem until the government sets
up base-load plants & ensures use
of local energy.

The government has been successful in

reducing the power deficit but could
not meet the entire demand by setting
up the oil-based power stations. It,
however, utterly failed in setting up of
the base-load power plants for remaining busy with the power plants of temporary nature. Rather, created an obstacle to ensure transparency and
accountability of works through enacting a law of special kind to facilitate
energy projects without tenders. It has
instead stimulated corruption and
nepotism. I dont think, the success in
45

power generation could be retained for

long time because it is unlikely that the
government would be successful in
replacing the temporary power plants
with the base-load ones in next one
year. Moreover, the investment in mitigating the power crisis has put pressure
on the economy as the government
could not bring in foreign direct investment in a planned manner. Fuel oil
import doubled due to the oil-based
power plants, resulting in increased
non-food inflation. So, it cannot be said
that the government has done a good
job in the energy sector.
EP: The achievement in the power sector with 3,700 MW new addition is
laudable. What do you say?
Mintoo: It is a window dressing. I can
remember that the election pledge was
to increase the power generation by
5,000 MW within 2011 and by 7,000
MW within 2013 from the existing generation. But the government is now
talking about taking together the old
and new generation capacity. Its not
acceptable. It has been told in January
2009 that the power deficit would be
2,000 MW, which means the demand
was then 5,500 MW. Taking into
account a demand growth of 16-18
percent to keep up the GDP growth at
a rate of 7 percent, around 1,000 MW
of electricity should be added in the
grid every year or the power generation
should be reached to 9,000 MW at the
end of the 5-year tenure of the present
government to meet the demand for the
terminal year. I think, the success
lagged behind the election commitment.
EP: How do you see the initiative to
generate power from oil-based plants?
Mintoo: It is not so bad for the economy for a temporary period, but it can
invite danger for the economy if continues for a longer period of time. There
are oil-based plants for 15-year term
while the diesel-run ones are getting
extensions. The BPDB has also set up
oil-based peaking power plant were
also set up and dual-fuel based load
power plants are also being set up.
These are the danger signals for the
economy as the expenditure on oil

import has already reached to US$ 6

billion from US$ 2 billion. It would
mount further unless the oil-based
plants are not replaced with the baseload ones. It contributed to double the
power generation cost to Tk 6 per Kwh,
which would increase further forcing
the government to adjust upward the
price 3-4 times a year, pushing up the
inflation. It would also put pressure on
the current account balance.
EP: Would it be possible for the government to replace the oil-based plants
with gas- and-coal fired base-load
plants in accordance with its commitment?
Mintoo: Already failed. Its not possible
during the tenure of this government.
Setting up of base-load power plant
depends on one organization, which is
not experienced in doing big projects
like base-load plants. I dont think they
can do it within the remaining period.
EP: Do you think the government could
start the works on setting up of 1320
MW and 1100 MW imported coalbased power plants by the end of its
tenure?
Mintoo: It is another wrong initiative.
Forget about this government, it is even
less likely whether the next government
could do it because the project is not
feasible with imported coal. We do not
have the required infrastructure to facilitate the imports while the power will
have to be purchased at foreign currency and the production cost would be
much higher. The power company will
not invest in infrastructure to be
required for facilitating import of coal.
The government will have to do it thus
requiring huge investment. So, it is confusing why the government wants to
import coal despite having our own
coal.
EP: Do you think the election pledge to
generate 20,000 MW of power by
2021 is possible?
Mintoo: If we consider that the generation rose by 3700 MW in last four
years, 3000 MW of which is coming
from short term arrangements and only
700 MW would serve for a longer period of time. Let us assume, the total

assured generation would stand at

7,000 MW by the end of 2013. It
would be simply impossible to increase
generation by 13,000 MW in next 7
years. It would not be easy to get FDI in
the present situation of Bangladesh.
The present policy of the government
does not support achieving the goal. To
achieve the goal, initiative should be
taken to lift local coal to generate
around 5,000 MW of electricity while
similar quantity of electricity should
come from gas. At the same time, the
inefficient plants should be replaced so
the efficient ones could generate same
quantity of electricity consuming less
gas.
EP: How do you consider the achievement in raising the gas production by
500 mmcfd in last four years of the government?
Mintoo: It is definitely appreciable, but
the thing is that most of the gas is coming from the fields of the IOCs.
Moreover, there is no discovery in real
term during this period. There was a
much hype that there would be a big
discovery in Sunetra, but nothing found
up to 4,500 meter. Bapex did a good
job during this period, but production
has not been increased from the fields
under the local company. The gas
deficit is still 500-600 mmcfd. So, I
think it is irrational to claim success
without being able to meet the deficit.
EP: How do you evaluate the consequence of the suspension of domestic
and industrial gas supply?
Mintoo: The gas supply remained suspended as we could not produce adequate gas while the works on developing infrastructure for LNG import has
not been started yet. We will have to do
massive exploration works for getting
new gas. Otherwise, economic development will be affected.
EP: How do you think the consequence
of increased price of dollar stimulated
by an investment of US$ 3 billion from
local resources for setting up of power
plants?
Mintoo: We have been informed that
foreign investors are attached with
every project. Later, we have seen that
46

they could not bring any foreign investment, but finance the projects from
local banks to put pressure on the
money market. Now, it is urgent to look
into whether they are now siphoning
off foreign currency from the country.
EP: Do you think the latest announcement inviting bids for hydrocarbon
exploration in the Bay of Bengal would
get desired response?

Mintoo: It is a good initiative. But the

response would depend on the attractiveness of the package offered for the
IOCs. There are instances of many
countries like India that the local entrepreneurs have been flourished in the
energy sector due to conditions that
the local partners should be engaged
in exploration of hydrocarbon. We
have long been demanding this type of
condition. It is unfortunate that the
demand has been left out this time too.
EP: What do you say about the indecision on coal mining for more than last
eight years?
Mintoo: Its a shame. Bangladesh is one
of few countries where gas is being
used even before the USA. But unfortunately, it lacks proper planning in
using resources as we failed to take the
resources from the economic consideration. As a result, we failed to use from
the huge resource of high-quality coal,
which can contribute a lot to improve
the living standard of the people.
I would say its an administrative failure, coming out of which is essential
for the nation. The two main political
parties of the country remain in a complete opposite stance, changing the
policies of the previous government by
turn. Establishment of political consensus is essential for coming out of the
situation and solving the countrys
energy crisis.
EP: What initiatives the present government or the next government should
take to face the opposition in open-pit
mining or leasing out coal mining to
foreign companies by left-leaning civil
society group?
Mintoo: The problem is that they are
not giving any alternative. One may

also raise question whether the people

expressing their opinions are qualified
enough. As I told, the two main political parties of this country should reach
a consensus to end the ongoing debate
over the Phulbari coal mining. We
have no time left to waste.
About opposition in bringing FDI in the
energy sector, either we will have to
attract FDI or foreign loan. FDI should
be preferred for the development of the
country than loan, which is subject to
interest payment. It will bring finance
as well as technology.
EP: Chittagong is the most affected area
of the country by the energy problem.
What do you think is the way out?
Mintoo: The only solution is to
increase supply of energy be it
through pipeline supply of gas or
imported LNG. The presently available
gas can be used in other sectors after
suspending the production of fertilizer,
the demand of which could be met
through imports. It deserves short,
medium and long term plans.
EP: The subsidy cannot be reduced
despite frequent incidents of raising
prices of electricity and fuel oil. What
do you suggest?
Mintoo: The price of electricity would
continue to rise until the government
stops generating power with short term
arrangements. There is no alternative
to come out of the problem until the
government sets up base-load plants
and ensures use of local energy.
EP: What do you say about the initiative of importing power from the
neighboring countries?
Mintoo: India having power deficit
would export electricity from political
consideration. However, it would be
better importing electricity from
Tripura and its adjacent areas. At the
same time, initiatives could be taken to
import electricity from Bhutan directly
through India.
However, I dont see the scope to
import electricity or gas from Myanmar
as the recent geopolitics goes on.
EP
47

COLUMN

Stuck in The
Middle
T
he countrys power sector has
two tales. In the past four years
the generation of electricity has
increased to more than 8,000
megawatt thanks to the governments
urgent short-term measures.

This picture does not provide a happy

context for another go for hiking the
electricity price. But the government,
desperate to slash the subsidies given
in the power sector, is going to another round of power price hike.

The success story is not having a

happy ending. The short-term measures have proved costly. The high cost
of production has pushed the prices of
electricity up. In the four years since it
came to power Prime Minister Sheikh
Hasinas government has hiked
domestic price of electricity six times
by nearly 80 percent. Until September
the cost of a unit of electricity was Tk.
4.7.

Business leaders are calling upon the

government to drop its plan to raise the
electricity prices saying it will further
hamper the economy. The cost of production will go up and thats not at all
a good news for the industries. Media
reports suggest the Bangladesh Energy
Regulatory Commission is going for 9
to 12 percent increase in the electricity price from January. What a New
years gift!

So, it has also been a tale of power

price hike.

The plan is facing stiff resistance from

ordinary users too. On Dec. 30 police
clashed with dozens of protesters from
Left Democratic Alliance in front of
National Press Club. Police fired tear
gas shells and charged batons to disperse the protesters who tried to hold a
procession. Question remains if the
use of tear gas was at all necessary
since the protesters were small in number and remained largely peaceful.
The alliance has now threatened to

Yes, there is now more electricity

available than before. Yes, the incidences of load shedding have been
fewer than before. Yes, the government is doing its best to meet the shortage of power and keep the wheel of
the economy running.
But the cost has become prohibitive.
The problem lies there

start the English New Years day with

demonstrations in Dhaka and elsewhere.
The main opposition Bangladesh
Nationalist Party is too looking for a
valid pro-people opportunity to challenge the government on the streets.
The possible hike of electricity price
may provide the party with that opportunity. It has threatened to call hartals
if the power price hike happens.
Power is not only an economic issue.
Its a political issue too.
The upcoming 2013 will be the last
year of this governments five-year
term. The next general election is due
in January 2014. So, this is going to be
a crucial year for the government. The
economic reality demands that the
authorities raise electricity price to cut
down the huge subsidies it has to pay
for the import of fuel to run the oilfired rental power stations.
The solution, according to some business leaders, is to go for implementing
the plan to set up gas-and-coal-fired
power stations. What they are talking
about is nothing new. This has exactly
been in the original
master plan of the
government on the
power
sector.
There will be shortterm, mid-term and
long-term plans. It
appears that the
government
has
got stuck to the
short-term measures.
The prospects of an
immediate solution
are bleak.
EP

49