Problems and Prospects of Poer Industry in Bangladesh

Course Title: Business Communication
Course Code: BUS 2112
Submitted To:
Md. Kaium Hossain
Assistant Professor
School of Business & Economics (UIU)
Submitted by:
Name
ID
Fyaz Mahbub Rohan
114 121 025
Sudip Kumar Biswas
114 122 015
Md. Musfiqul Islam
111 091 405
Md. Arif Jamal
111 122 284
Al Hakim
111 123 236
Section
Submission Date: 22th January 2014
Letter of Transmittal
January 22, 2014
Md. Kaium Hossain
Assistant Professor
School of Business & Economics
United International University (UIU)
Dhanmondi, Dhaka- 1209
Subject: Request for accepting the report.
Dear Sir,
We would like to draw your kind attention that we are submitting our report
about the Problems & Prospects of Power Industry in Bangladesh. We
have tried our best to prepare this report which has fulfilled our requirements.
We believe that all these ideas from this report will help us in our future
practical life.
We will be highly grateful to your honors if you would kindly accept our
report and obliged thereby.
Thanking you,
On behalf of
The entire group member
_________________
Fyaz Mahbub Rohan
II
Executive Summary
The report analyzes the problems and prospects of power industry in Bangladesh. It
finds out the present scenario of the industry. It includes the government vision and
future plans regarding the industry. The report also gives the information the public
and private companies producing power. The report gives some information about
owner wise power generation, power generation units (Fuel Type Wise), maximum
power generation etc.
The report includes a SWOT analysis of the power industry of Bangladesh. In the
SWOT analysis it tells the most important strengths, weaknesses, opportunities and
threats of the industry. By doing the analysis this report provides the most valuable
part of this study. This analysis will be helpful to understand the prospect of the
industry.
The report includes the problems like corruption, unskilled people, decreasing supply
of natural gas. It also includes prospects like nuclear plant, solar plant, and joint
venture with India etc.
Lastly,
the
report
gives
brief
recommendation
and
conclusion.
The
recommendations provided in the report would be helpful to solve problems. By

implementing the recommendation the government can make the power industry an
efficient industry to facilitate the overall development of the country.
III
Table of Contents
Description
Serial No.
Page No.
Letter of Transmittal
II
Executive Summary
III
Chapter One
Introduction
1.1
Introduction
1.2
Origin of the Report
1.3
Purpose of the Report
1.4
Objectives of the Report
1.5
Methodology of Data Collection
1.6
Limitations of the Study
Chapter Two
Industry Overview
2.1
Power Industry of Bangladesh
2.2
Power Generation 2013
2.3
Power Sector Structure
2.4
Office of the Electrical Advisor & Chief Electric Inspector
and Energy Monitoring Unit

2.5
Power Cell
7
Power Generation Companies
2.6
Public Power Generation Companies
2.6.1
Bangladesh Power Development Board (BPDB)
2.6.2
Ashuganj Power Station Company Ltd (APSCL)
2.6.3
Electricity Generation Company of Bangladesh Ltd
2.6.4
Rural Power Company Ltd (RPCL)
2.6.5
North-West Power Generation Company Ltd
2.7
2.7.1
Private Power Generation Companies

Orion Group
9
9
2.7.2
Summit Power Limited
10
2.7.3
Khulna Power Company Ltd (KPCL)
11
2.7.4
GBB Power Ltd (GBBPOWER)
11
2.7.5
Barakatullah Electro Dynamics Ltd. (BEDL)
11
Owner wise Power Generation (01-01-2014 to 15-01-
12
2.8
2014)
2.9
Power Generation Units (Fuel Type Wise)
26
2.10
Maximum Generation of January 2014
27
2.11
Daily Generation Report 15/01/2014
27
2.12
SWOT Analysis
33
Chapter Three
3.1
Problems of Power Industry in Bangladesh
3.1.1
Spend a Lot of Time to Complete the Tender Process
39
3.1.2
Decreasing Supply of Natural Gas
39
2.1.3
Capital Intensive Industry
39
3.1.4
Energy Infrastructure
39
3.1.5
Lack of Necessary Maintenance and Rehabilitation of Old
40
Power Plants
3.1.6
Dependency on Single Energy (gas) and Entity for
40
Electricity Generation
3.1.7
Huge System Losses
40
3.1.8
Delays in Completion of New Plants
40
3.1.9
Small Reserve of Oil and Coal
40
3.1.10
Increasing Price of Raw Material
41
3.1.11
Corruption in Power Sector
41
3.1.12
Setting Wrong People in Power Sector Management
42
3.2
Prospects of Power Industry in Bangladesh
3.2.1
Joint Venture with India
43
3.2.2
Nuclear Power Plant
43
3.2.3
Prospects of solar power
43
3.2.4
Wind Power Projects
46
3.2.5
Hybrid Projects
47
3.2.6
Micro/Mini Hydro Projects
47
3.2.7
Power Sector Future Rolling Plan
47
3.2.8
Power Industry Development Plan
48
3.2.9
List of projects that will be implemented by 2014
48
3.2.10
List of projects that will be implemented by 2015
49
Findings
50
3.3
Chapter Four
Conclusion & Recommendations
3.1
Conclusion
52
3.2
Recommendations
52
References
54
1.1 Introduction:
Bangladesh's energy infrastructure is quite small, insufficient and poorly managed.
The per capita energy consumption in Bangladesh is one of the lowest (136 kWH) in
the world. Noncommercial energy sources, such as wood fuel, animal waste, and crop
residues, are estimated to account for over half of the country's energy consumption.
Bangladesh has small reserves of oil and coal, but very large natural gas resources.
Commercial energy consumption is mostly natural gas (around 66%), followed by oil,
hydropower and coal.
Electricity is the major source of power for most of the country's economic activities.
Bangladesh's installed electric generation capacity was 8525 MW in 2013;[1] only
three-fourth of which is considered to be available. Only 40% of the population has
access to electricity with a per capita availability of 136 kWh per annum. Problems in
the Bangladesh's electric power sector include corruption in administration, high
system losses, and delays in completion of new plants, low plant efficiencies, erratic
power supply, electricity theft, blackouts, and shortages of funds for power plant
maintenance. Overall, the country's generation plants have been unable to meet
system demand over the past decade.
1.2 Origin of the Report:

This report has been prepared to make a study on the Problems & Prospects of
Power Industry in Bangladesh as a part of the fulfillment of Business
Communication course.
The report was prepared under the supervision of Md. Kaium Hossain, assistant
professor of School of Business and Economics of United International University.
We are very much thankful to him for assigning us such types of project work
1.3 Purpose of the Report:

The study attempted to understand the problems facing power industry and
their prospects.
1.4 Objectives of the Report:

To know the Problems of Power Industry in Bangladesh
To know the Prospects of Power Industry in Bangladesh

To know about power industry in Bangladesh
To analyze the strengths, weaknesses, opportunities and threats of the
industry.
To make some recommendations.
1.5 Methodology of Data Collection:

For smooth and accurate study every person has to follow some rules &
regulation. The study inputs were collected from one source.
Secondary Sources: This report does not use any primary data; rather it uses
secondary data to conduct the research. Newspapers, Articles, ADB (Asian
Development Bank) repots and different websites were used as the sources of data.
1.6 Limitations of the Study:

Though I have given utmost effort to prepare this report still there are some
limitations of the study. The main constrain of the study was the insufficiency of
primary data. For this reason, I was not able to collect the updated information and
strategy of the government.
2.1 Power Industry of Bangladesh:

The Government of Bangladesh through the Ministry of Energy and Mineral
Resources (MEMR)] bears overall responsibility for the power sub-sector in
Bangladesh. Consumption of commercial energy per head in Bangladesh is one of the
lowest in Asia, if not the world. A lack of commercially priced sources of electricity
has been a major factor in deterring foreign investment hindering GDP growth. Percapita generation of electricity was 110 kWh in 1997/98, according to Bangladesh
Economic Survey, Ministry of Finance (2000). With about 22% of households
receiving electricity, most commercial energy is consumed by industrial and
residential customers. Frequent power failures due to inadequate maintenance
continue to disrupt industrial production, water supplies and irrigation. In 2000, the
currently installed capacity of public power plants as listed by the World Bank, is
3,300 MW, though actual daily generating capacity is often reduced to 2,400 MW,
against a total daily demand of 2,675 MW to 2,725 MW. This usually results in
extensive load shedding, which has now become a factor of daily life in Dhaka. The
situation is worse outside the capital city. In 1999, there were some recorded 1,690
hours of load shedding. There is considerable foreign investor interest in the power
sector. Contracts for four barge mounted power plants (BMPPs) with a total capacity
of 470MW have already been signed and several other contracts are in the pipeline. A
total of US$750 million of FDI in this sector is expected in the next three years,
reflecting principally the external financing of imported power plants and auxiliary
equipment. The estimated capital requirement for the power sector during the next
five years is $5-6 billion. Since the Government of Bangladesh cannot finance the
power system's expansion and development programs from their own resources, they
are now seeking multilateral and bilateral assistance, as well as private sector
investments for adequate and sustainable development of the power sector. The Power
Development Board's Master Plan stipulates raising present generation capacity from
2900 MW to 10,000 MW by 2015. As part of the plan, about 2000 MW of power
generation capacity is expected to be added by 2005 at a cost of $1.2 billion through
foreign investment by Independent Power Producers (IPPs). At the suggestion of the
Infrastructure Investment Facilitation Center (IIFC), the Government has recently
agreed to license privately owned remote area power supply.
2.1.1 Vision, Mission Statement and Major Functions

Vision
To provide access to affordable and reliable electricity to all by the year 2020.
Mission Statement
Ensure uninterrupted and quality power supply for all by 2020 through improvement
in generation, transmission and distribution systems.
Major Functions
All activities related to power generation, transmission and distribution;
Manage all matters and policies related to the Power sector;
Expand, rehabilitate and modernize power generation, transmission and
distribution services in line with the increasing national demand and prepare
action plans and programs accordingly;
Encourage private and joint venture investment in the Power sector in addition
to the government investment;
Improve the standard of living of the rural poor through rural electrification
and the introduction of renewable energy;
Monitor revenue earnings and commercial activities.
2.2 Power Generation 2013:
2013 Power Generation

800
700
600
500
MW 400
300
2013
200
100
0
2013
Public
Private
Power Import
662
692
500
Sector
2.3 Power Sector Structure:

Power Division is responsible for formulating policy relating to power and supervise, control
and monitor the developmental activities in the power sector of the country.
To implement its mandate the Power Division is supported by a number of

organizations,
related
with generation,
transmission and
distribution.
The
organizational linkage is as follows:
2.4 Office of the Electrical Advisor & Chief Electric Inspector and
Energy Monitoring Unit:
The office of the Electrical Advisor and Chief Electrical Inspector (EA & CEI) is
established, in order to ensure proper control and safety of life and property in the
generation, transmission and distribution of electricity. Main responsibility of this
office is to inspect installations, substation and lines and grant license for high tension
and medium tension consumers. Besides, it issues license to electrical contractors,
engineers and electricians. Energy Monitoring Unit is a sub-unit under this office. The
objective of EMU is to ensure efficient use of energy in industries and to induce
energy conservation.
2.5 Power Cell:

Power Cell was established in 1995 to assist Power Division in order to design,
facilitate and monitor reform measures in power sector. It acts as Think Task to
Power Division. Since inception, Power Cell has played vital role in reforming and
unbundling the sector, private power generation, power tariff evaluation and
establishing regulatory commissions. Power Cell is headed by a Director General,

appointed by the Govt. and assisted by three Directors.
Power generation Companies

2.6 Public Power Generation Companies:
The following government entities are involved in generation of power:
2.6.1 Bangladesh Power Development Board (BPDB)
Bangladesh Power Development Board was established in 1972 as a public sector
organization to boost the power sector. BPDB is the authority for planning,
construction and operation of power generation throughout Bangladesh and for
distribution in urban areas. Besides its own generation, BPDB purchases power from
other generating companies and sells to its consumers and other distribution
companies. BPDB consists of a chairman and six members appointed by the Govt.
2.6.2 Ashuganj Power Station Company Ltd (APSCL)
Ashuganj Power Station owned by APSCL is the second largest power station in the
country. At present, the total capacity of its 8 units is 642 MW. It fulfills about 15%
of loads throughout the country. APSCL is a public limited company registered under
companies Act. It was incorporated on 28 June 2000.
2.6.3 Electricity Generation Company of Bangladesh Ltd (EGCB)
Electricity Generation Company of Bangladesh Ltd (EGCB) is incorporated with
Register of Joint Stock Companies on February 16, 2004. It has existing power plants
at two sites, namely Siddirganj 210 MW Power Station and Haripur 100 MW Power
Station (to be over hundred soon). One unit of 2x120 MW peaking power plant is
launched on February 2010. EGCB Board of Director consists of Chairman and nine
members.
2.6.4 Rural Power Company Ltd (RPCL)
Rural power company Ltd is the first Bangladeshi Independent Power Producer (IPP).
RPCL is registered as a public limited company under companies Act and is
incorporated on 31 December 1994. Its entire equity investment is mobilized locally.

Rural Electrification Board (REB) owns 20% share and rest 80% owned by 9 Palli
Biddyut Samity (PBS). Mymensingh Power Station (MPS) is one of its power
generation plants with capacity of 210 MW power. This company has a plan to
establish some other installations to different parts of the country.
2.6.5 North-West Power Generation Company Ltd (NWPGCL)
North-West Power Generation Company Ltd (NWPGCL) is an enterprise of
Bangladesh Power Development Board, intends to establish three power plants at
different locations in North-Western Zone of Bangladesh. Its vision is to generate
more electricity to meet the present shortfall and the growing future demand of
electricity in the country. Present demand at north western zone is 900 MW. Present
generation capacity is 600 MW. Proposed power plant of NWPGCL is:
a) Sirajgonj 150MW peaking power plant project-Expected to be commissioned
by December 2011.
b) Khulna 150MW peaking power plant project-Expected to be commissioned by
December 2011.
c) Bheramara 360MW Combined Cycle Power Development Project- Expected
to be commissioned by September 2015.
2.7 Private Power Generation Companies:

The following government entities are involved in generation of power
2.7.1 Orion Group:
a) IEL Consortium & Associates Ltd: IEL Consortium & Associates Ltd
(IEL) recognizes the challenge the country faces in delivering reliable,
dependable electricity at most competitive pricing. It commits to make a
role-play with a single focus on delivering reliable and affordable electricity
across the country. With customer focused approach, it is poised to engineer,
develop, construct, own & operate small to large power plants with diverse
fuel choices to adapt to an increasingly competitive market environment.
IEL has been awarded to implement a 100 MW HFO Power Plant on quick
rental basis in Meghnaghat, Dhaka with machineries and equipments
supplied by Wartsila Finland OY. IEL Consortium & Associates Ltd. is a

power company responsible for the operation of electric power plants for
local consumption. The power generated from the power plant will be
supplied to Bangladesh Power Development Board (BPDB) which is the
main customer of the company.
A 100 hour reliability test was successfully completed on 7th of May and
currently the IEL Power Plant is running in full capacity contributing 105
MW to the national grid.
b) Dutch Bangla Power & Associates Ltd: Dutch Bangla power & Associates
Limited, a 100 MW HFO based rental Power Plant, situated in Siddirganj,
Narayanganj has signed contract with BPDB to produce electricity and
supply to national Grid starting from mid April, 2011. Orion Pharma holds
60% of equity share of the said company. The land has already been
procured, civil construction work of the project is in progress and the
company is optimistic about the supply of power to national grid by the
respective time line. The tentative costs of the project stand at Tk 614 Crore.
2.7.2 Summit Power Limited (SUMITPOWER) and Summit Purbanchol
Power Company Limited (SPPCL):
Summit Purbanchol Power Company Limited (SPPCL), sponsored by Summit
Group and a subsidiary of Summit Power Limited (SUMITPOWER), is one of
the leading Bangladeshi Independent Power Producer (IPP) in Bangladesh in
private sector providing power to national grid. SPPCL was incorporated in
Bangladesh on August 15, 2007 as a Private Limited Company. On November
2005, SUMITPOWER listed its share in both Dhaka Stock Exchange and
Chittagong Stock Exchange. Now it has been operating 11 plants situated in
different areas of the country through own operations and three other
subsidiaries. At the beginning of 2013 one of its subsidiaries named Summit
Purbachol Power Company Limited (SPPCL) has listed its share in both
Dhaka Stock Exchange and Chittagong Exchange.
10
2.7.3 Khulna Power Company Ltd (KPCL):

Khulna Power Company Ltd (KPCL) is the first Independent Power Producer
(IPP) in the country. It commenced full commercial operation on October 13,
1998 and since then it has been supplying uninterrupted reliable power to the
national grid. The formation of KPCL Project was initially sponsored by
Summit Group and United Group along with their foreign partner El Paso
Corporation (El Paso), USA, one of the worlds largest and most diversified
natural gas exploration and pipeline companies and Wrtsil Corporation
(Wrtsil), Finland, a leading power plant manufacturer of the world.Khulna
Power Company Ltd. has one subsidiary company named as: Khanjahan Ali
Power Company Ltd.
2.7.4 GBB Power Ltd (GBBPOWER):
GBBPOWER is another IPP in Bangladesh incorporated on October 17, 2006
as a private company to supply power to the national grid. The company was
awarded a contract on June 17, 2007 to set up a 20 MW gas power plant at
Bogra to produce electricity and sell the generated power to BPDB. In 2008,
the company was converted into Public Limited Company and started its
commercial operation on June 17, 2008. After July, 2009, total of 23.26 MW
of capacity commissioned for natural gas based electricity production. In
2011, GBBPOWER generated total gross electricity of 11 KV or 172.423
MWH. This company has no subsidiary in operation, thus total capacity
relative to other power generating company listed here is insignificant.
2.7.5 Barakatullah Electro Dynamics Ltd. (BEDL):
Barakatullah Electro Dynamic Limited (BEDL) is a joint collaboration of local
and a group a Non Resident Bangladeshi (NRB) entrepreneur. BEDL is the
only private sector power generating company developed by a group of NRB
investors. The company was incorporated in Bangladesh on 26 June, 2007 as a
Private Limited Company. On June, 2008 it was converted into Public Limited
Company. Company profile is given below:
11
2.8 Owner Wise Power Generation (January 01, 2014 to January 15,
2014:
Daily Generation 01/01/2014 to 15/01/2014 (All)
Owner Name
Derated Capacity (MW)
Day Peak (MW)
Eve. Peak (MW)
Daily Generation of 01/01/2014
PDB
3502.00
1118.00
1660.00
SBU,PDB
223.00
102.00
128.00
EGCB
622.00
0.00
0.00
APSCL
684.00
389.00
398.00
1515.00
976.00
1188.00
110.00
80.00
90.00
33.00
0.00
0.00
SIPP,REB
215.00
145.00
161.00
Q.Rental 3 Years
100.00
13.00
81.00
QRPP(5yrs)
200.00
37.00
115.00
Other
800.00
636.00
609.00
1063.00
445.00
578.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
12
QRPP (3 Yrs.)
416.00
59.00
209.00
RPP (15 Yrs.)
169.00
61.00
129.00
9652.00
4061.00
5346.00
3502.00
1097.00
1590.00
SBU,PDB
223.00
80.00
153.00
EGCB
622.00
0.00
0.00
APSCL
684.00
398.00
401.00
1515.00
1054.00
1142.00
110.00
88.00
91.00
33.00
0.00
0.00
SIPP,REB
215.00
154.00
156.00
Q.Rental 3 Years
100.00
13.00
81.00
QRPP(5yrs)
200.00
16.00
189.00
Other
825.00
572.00
620.00
1063.00
242.00
679.00
416.00
147.00
263.00
Total
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
QRPP (3 Yrs.)
13
RPP (15 Yrs.)
169.00
122.00
156.00
9677.00
3983.00
5521.00
3502.00
1064.00
1430.00
SBU,PDB
223.00
80.00
128.00
EGCB
622.00
0.00
0.00
APSCL
684.00
402.00
398.00
1515.00
1032.00
1203.00
110.00
59.00
89.00
33.00
0.00
0.00
SIPP,REB
215.00
90.00
133.00
Q.Rental 3 Years
100.00
11.00
100.00
QRPP(5yrs)
200.00
16.00
115.00
Other
825.00
570.00
642.00
1063.00
193.00
516.00
QRPP (3 Yrs.)
416.00
23.00
173.00
RPP (15 Yrs.)
169.00
31.00
155.00
Total
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
14
Total
9677.00
3571.00
5082.00
3502.00
1077.00
1526.00
SBU,PDB
223.00
103.00
128.00
EGCB
622.00
0.00
0.00
APSCL
684.00
397.00
390.00
1515.00
982.00
1249.00
110.00
92.00
65.00
33.00
0.00
0.00
SIPP,REB
215.00
139.00
160.00
Q.Rental 3 Years
100.00
14.00
100.00
QRPP(5yrs)
200.00
16.00
156.00
Other
825.00
624.00
641.00
1063.00
352.00
618.00
QRPP (3 Yrs.)
416.00
23.00
184.00
RPP (15 Yrs.)
169.00
134.00
154.00
9677.00
3953.00
5371.00
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
15
PDB
3502.00
1015.00
1340.00
SBU,PDB
223.00
110.00
135.00
EGCB
622.00
0.00
0.00
APSCL
684.00
410.00
457.00
1515.00
971.00
1097.00
110.00
11.00
91.00
33.00
0.00
0.00
SIPP,REB
215.00
46.00
146.00
Q.Rental 3 Years
100.00
12.00
47.00
QRPP(5yrs)
200.00
16.00
97.00
Other
825.00
615.00
678.00
1063.00
102.00
496.00
QRPP (3 Yrs.)
416.00
5.00
209.00
RPP (15 Yrs.)
169.00
27.00
155.00
9677.00
3340.00
4948.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
16
PDB
3502.00
960.00
1411.00
SBU,PDB
223.00
105.00
152.00
EGCB
622.00
0.00
0.00
APSCL
684.00
460.00
460.00
1515.00
954.00
1191.00
110.00
92.00
92.00
33.00
0.00
0.00
SIPP,REB
215.00
142.00
161.00
Q.Rental 3 Years
100.00
12.00
98.00
QRPP(5yrs)
200.00
59.00
188.00
Other
825.00
637.00
683.00
1063.00
390.00
615.00
QRPP (3 Yrs.)
416.00
125.00
264.00
RPP (15 Yrs.)
169.00
153.00
154.00
9677.00
4089.00
5469.00
3502.00
1068.00
1580.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
17
SBU,PDB
223.00
105.00
129.00
EGCB
622.00
0.00
0.00
APSCL
684.00
455.00
461.00
1515.00
854.00
1139.00
110.00
91.00
93.00
33.00
0.00
0.00
SIPP,REB
215.00
154.00
142.00
Q.Rental 3 Years
100.00
0.00
97.00
QRPP(5yrs)
200.00
55.00
173.00
Other
825.00
579.00
654.00
1063.00
418.00
570.00
QRPP (3 Yrs.)
416.00
114.00
253.00
RPP (15 Yrs.)
169.00
152.00
153.00
9677.00
4045.00
5444.00
3502.00
1073.00
1617.00
223.00
112.00
149.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
SBU,PDB
18
EGCB
622.00
0.00
0.00
APSCL
684.00
465.00
471.00
1515.00
932.00
1209.00
110.00
68.00
82.00
33.00
0.00
0.00
SIPP,REB
215.00
120.00
152.00
Q.Rental 3 Years
100.00
16.00
97.00
QRPP(5yrs)
200.00
16.00
171.00
Other
825.00
630.00
544.00
1063.00
341.00
633.00
QRPP (3 Yrs.)
416.00
172.00
231.00
RPP (15 Yrs.)
169.00
61.00
151.00
9677.00
4006.00
5507.00
3502.00
1080.00
1592.00
SBU,PDB
223.00
109.00
128.00
EGCB
622.00
0.00
0.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
19
APSCL
684.00
471.00
508.00
1515.00
1025.00
1189.00
110.00
87.00
89.00
33.00
0.00
0.00
SIPP,REB
215.00
153.00
146.00
Q.Rental 3 Years
100.00
13.00
97.00
QRPP(5yrs)
200.00
16.00
181.00
Other
825.00
532.00
462.00
1063.00
380.00
613.00
QRPP (3 Yrs.)
416.00
171.00
354.00
RPP (15 Yrs.)
169.00
154.00
154.00
9677.00
4191.00
5513.00
3502.00
1058.00
1494.00
SBU,PDB
223.00
110.00
149.00
EGCB
622.00
100.00
45.00
APSCL
684.00
499.00
483.00
IPP
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
20
IPP
1515.00
997.00
1139.00
110.00
78.00
89.00
33.00
0.00
0.00
SIPP,REB
215.00
129.00
124.00
Q.Rental 3 Years
100.00
16.00
60.00
QRPP(5yrs)
200.00
16.00
65.00
Other
825.00
559.00
658.00
1063.00
117.00
396.00
QRPP (3 Yrs.)
416.00
0.00
239.00
RPP (15 Yrs.)
169.00
35.00
153.00
9677.00
3714.00
5094.00
3502.00
1088.00
1507.00
SBU,PDB
223.00
80.00
153.00
EGCB
622.00
100.00
0.00
APSCL
684.00
491.00
499.00
1515.00
993.00
1205.00
SIPP,PDB
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
IPP
21
SIPP,PDB
110.00
90.00
87.00
33.00
0.00
0.00
SIPP,REB
215.00
98.00
146.00
Q.Rental 3 Years
100.00
15.00
100.00
QRPP(5yrs)
200.00
16.00
189.00
Other
825.00
583.00
617.00
1063.00
221.00
630.00
QRPP (3 Yrs.)
416.00
149.00
243.00
RPP (15 Yrs.)
169.00
65.00
149.00
9677.00
3989.00
5525.00
3502.00
1096.00
1661.00
SBU,PDB
223.00
103.00
153.00
EGCB
622.00
0.00
0.00
APSCL
684.00
493.00
493.00
1515.00
941.00
1119.00
110.00
87.00
86.00
RENTAL(3 yrs)
RPP (3 Yrs.)
Total
PDB
IPP
SIPP,PDB
22
RENTAL(3 yrs)
33.00
0.00
0.00
SIPP,REB
215.00
143.00
150.00
Q.Rental 3 Years
100.00
12.00
97.00
QRPP(5yrs)
200.00
40.00
188.00
Other
825.00
572.00
675.00
1063.00
433.00
609.00
QRPP (3 Yrs.)
416.00
119.00
251.00
RPP (15 Yrs.)
169.00
145.00
138.00
9677.00
4184.00
5620.00
3502.00
1002.00
1526.00
SBU,PDB
223.00
80.00
146.00
EGCB
622.00
0.00
28.00
APSCL
684.00
513.00
513.00
1515.00
1074.00
1241.00
110.00
75.00
88.00
33.00
0.00
0.00
RPP (3 Yrs.)
Total
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
23
SIPP,REB
215.00
126.00
148.00
Q.Rental 3 Years
100.00
12.00
97.00
QRPP(5yrs)
200.00
16.00
189.00
Other
825.00
593.00
585.00
1063.00
409.00
654.00
QRPP (3 Yrs.)
416.00
224.00
303.00
RPP (15 Yrs.)
169.00
116.00
152.00
9677.00
4240.00
5670.00
3502.00
993.00
1411.00
SBU,PDB
223.00
107.00
157.00
EGCB
622.00
114.00
44.00
APSCL
684.00
507.00
507.00
1515.00
1023.00
1327.00
110.00
49.00
60.00
33.00
0.00
0.00
215.00
100.00
135.00
RPP (3 Yrs.)
Total
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
SIPP,REB
24
Q.Rental 3 Years
100.00
11.00
65.00
QRPP(5yrs)
200.00
16.00
176.00
Other
825.00
586.00
588.00
1063.00
310.00
567.00
QRPP (3 Yrs.)
416.00
211.00
229.00
RPP (15 Yrs.)
169.00
54.00
153.00
9677.00
4081.00
5419.00
3502.00
1039.00
1676.00
SBU,PDB
223.00
108.00
155.00
EGCB
622.00
178.00
89.00
APSCL
684.00
482.00
479.00
1515.00
864.00
967.00
110.00
81.00
82.00
33.00
0.00
0.00
SIPP,REB
215.00
130.00
143.00
Q.Rental 3 Years
100.00
49.00
97.00
RPP (3 Yrs.)
Total
PDB
IPP
SIPP,PDB
RENTAL(3 yrs)
25
QRPP(5yrs)
200.00
189.00
195.00
Other
825.00
617.00
604.00
1063.00
449.00
640.00
QRPP (3 Yrs.)
416.00
252.00
404.00
RPP (15 Yrs.)
169.00
145.00
146.00
9677.00
4583.00
5677.00
RPP (3 Yrs.)
Total
2.9 Power Generation Units (Fuel Type Wise):

Installed Capacity of BPDB Power Plants as on January 2014
Unit Type
Coal
Capacity(Unit)
250.00 MW
Total(%)
2.44 %
FO
0.00 MW
Gas
6615.00 MW
64.59 %
HFO
1963.00 MW
19.17 %
HSD
683.00 MW
6.67 %
Hydro
230.00 MW
2.25 %
Imported
500.00 MW
4.88 %
10241.00 MW
100 %
Total
0%
Derated Capacity of BPDB Power Plants as on January 2014

Unit Type
Coal
Capacity(Unit)
200.00 MW
FO
0.00 MW
Gas
6220.00 MW
Total(%)
2.07 %
0%
64.28 %
26
HFO
1876.00 MW
19.39 %
HSD
661.00 MW
6.83 %
Hydro
220.00 MW
2.27 %
Imported
500.00 MW
5.17 %
Total
9677.00 MW
100 %
2.10 Maximum Generation of January 2014

Maximum Generation of January 2014
Day
Gen(MW) 5346.00 5521.00 5082.00 5371.00 4948.00 5469.00

Day
10
11
12
13
Gen(MW) 5507.00 5513.00 5094.00 5525.00 5620.00 5670.00

Day
15
7
5444.00
14
5419.00
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Gen(MW) 5677.00
Day
Gen(MW)
Day
Gen(MW)
2.11 Daily Generation Report 15/01/2014:
Owner Station Name
Derated
Capacity(Unit)
Day Peak
Eve Peak
78.00 MW
87.00 MW
87.00 MW
Ghorashal ST 4
180.00 MW
180.00 MW
180.00 MW
Ghorasal ST :Unit-3,
180.00 MW
110.00 MW
110.00 MW
Ghorashal 100
100.00 MW
103.00 MW
102.00 MW
a) Ghorasal ST 1, 2
27
Ghorrashal ST 5
190.00 MW
190.00 MW
190.00 MW
Ghorashal ST 6
190.00 MW
0.00 MW
0.00 MW
Ghorashal 45 MW
45.00 MW
43.00 MW
46.00 MW
Ghorashal MAX
78.00 MW
62.00 MW
62.00 MW
Horipur SBU GT 1,2,3
60.00 MW
0.00 MW
0.00 MW
Horipur NEPC
110.00 MW
55.00 MW
95.00 MW
Horipur P. Ltd CCPP
360.00 MW
0.00 MW
0.00 MW
Meghnaghat P.Ltd CCPP
450.00 MW
453.00 MW
451.00 MW
Meghnaghat IEL
100.00 MW
89.00 MW
95.00 MW
Madanganj 102 MW
100.00 MW
49.00 MW
97.00 MW
Karanigonj
100.00 MW
40.00 MW
93.00 MW
Narshingdi
22.00 MW
15.00 MW
15.00 MW
Shiddirganj ST
150.00 MW
0.00 MW
0.00 MW
Siddirgonj GT 1,2
210.00 MW
178.00 MW
89.00 MW
96.00 MW
0.00 MW
91.00 MW
100.00 MW
100.00 MW
100.00 MW
50.00 MW
0.00 MW
50.00 MW
Horipur EGCB 360MW
412.00 MW
0.00 MW
0.00 MW
Summit Power (Dhaka)
146.00 MW
77.00 MW
88.00 MW
52.00 MW
0.00 MW
52.00 MW
105.00 MW
0.00 MW
0.00 MW
180.00 MW
0.00 MW
0.00 MW
25.00 MW
0.00 MW
26.00 MW
180.00 MW
0.00 MW
0.00 MW
Siddirgonj 100 MW
Dutch Bangla 100 MW
DPA Power 50 MW
Gazipur RPCL
Tongi GT
Chittagong
RaozanST(Gas):Unit-1
Raozan 25MW
Chittagong
28
RaozanST(Gas):Unit-2
Kaptai Hydro:Unit-1,2,3,4,5
220.00 MW
42.00 MW
76.00 MW
40.00 MW
0.00 MW
0.00 MW
150.00 MW
0.00 MW
0.00 MW
98.00 MW
0.00 MW
98.00 MW
0.00 MW
0.00 MW
0.00 MW
Dohazari Sangu
102.00 MW
0.00 MW
102.00 MW
Julda
100.00 MW
90.00 MW
92.00 MW
0.00 MW
7.00 MW
17.00 MW
22.00 MW
10.00 MW
11.00 MW
a) Ashuganj ST Unit -1,2
110.00 MW
0.00 MW
0.00 MW
b) Ashuganj ST 3
140.00 MW
140.00 MW
140.00 MW
Ashugonj ST 4
150.00 MW
150.00 MW
150.00 MW
Ashugonj ST 5
140.00 MW
140.00 MW
140.00 MW
c) Ashuganj CCPP-146MW
91.00 MW
40.00 MW
40.00 MW
d) Ashuganj 50 MW
53.00 MW
12.00 MW
9.00 MW
Ashuganj (Precision)
55.00 MW
23.00 MW
25.00 MW
Ashuganj (Aggreko)
80.00 MW
36.00 MW
44.00 MW
Ashuganj Midland
51.00 MW
53.00 MW
54.00 MW
Ashugonj Up-53 MW
53.00 MW
30.00 MW
30.00 MW
Brahmanbaria (Agrico) (Gas)
70.00 MW
66.00 MW
72.00 MW
Daudkandi 50 MW
52.00 MW
0.00 MW
42.00 MW
163.00 MW
0.00 MW
0.00 MW
22.00 MW
22.00 MW
22.00 MW
Shikalbaha ST
b) Shikalbaha Peaking (GT)
Hathazari
Shikalbaha(Energis)
Malancha, Ctg. EPZ (United)

Barabkunda (Regent)
Chandpur CCPP
Feni (Doreen)
29
Feni, Mahipal (Doreen)
11.00 MW
5.00 MW
5.00 MW
Jangalia (Summit)
33.00 MW
24.00 MW
24.00 MW
Summit Power, Comilla
25.00 MW
20.00 MW
22.00 MW
197.00 MW
158.00 MW
152.00 MW
Tangail (Doreen)
22.00 MW
20.00 MW
20.00 MW
Fenchuganj CCPP-1 (Gas)
90.00 MW
69.00 MW
73.00 MW
Fenchuganj CCPP-2(New)
104.00 MW
67.00 MW
88.00 MW
Fenchuganj (BEDL)
51.00 MW
42.00 MW
45.00 MW
Fenchuganj Prima 50 MW
44.00 MW
34.00 MW
35.00 MW
Hobiganj (Confidence-EP)
11.00 MW
10.00 MW
10.00 MW
Shajibazar GT Unit-8, 9
66.00 MW
67.00 MW
65.00 MW
Shajibazar 86 MW
86.00 MW
73.00 MW
72.00 MW
Shajibazar - 50 MW
50.00 MW
47.00 MW
47.00 MW
Sylhet 150MW
142.00 MW
48.00 MW
57.00 MW
Sylhet GT (Gas)
20.00 MW
21.00 MW
21.00 MW
Sylhet 50 MW
50.00 MW
41.00 MW
42.00 MW
Sylhet 11 MW
10.00 MW
8.00 MW
7.00 MW
Shahjahanulla 25mw
25.00 MW
10.00 MW
13.00 MW
Bheramara GT (Unit-1,2,3)
46.00 MW
0.00 MW
46.00 MW
105.00 MW
0.00 MW
0.00 MW
55.00 MW
0.00 MW
0.00 MW
500.00 MW
465.00 MW
344.00 MW
30.00 MW
0.00 MW
0.00 MW
110.00 MW
30.00 MW
47.00 MW
RPCL,CCPP, Mymensingh
Bheramara
a)Khulna ST 110 MW
HVDC C/B. Interconnector
b)Khulna ST 60MW
KPC, Khulna
30
KPCL Khulna (New)
115.00 MW
115.00 MW
116.00 MW
Khulna 150 MW
150.00 MW
0.00 MW
85.00 MW
54.00 MW
0.00 MW
47.00 MW
Gopalganj 110 MW
109.00 MW
85.00 MW
71.00 MW
Noapara (105MW) Quantam
101.00 MW
0.00 MW
0.00 MW
Noapara (40MW),KZA
40.00 MW
32.00 MW
32.00 MW
Khulna 40 MW
40.00 MW
0.00 MW
0.00 MW
Khulna 55 MW
55.00 MW
40.00 MW
43.00 MW
0.00 MW
0.00 MW
0.00 MW
Barisal GT 1& 2
32.00 MW
0.00 MW
15.00 MW
Bhola Venture
33.00 MW
0.00 MW
0.00 MW
a)Baghabari GT 1
71.00 MW
0.00 MW
0.00 MW
b)Baghabari GT 2
100.00 MW
108.00 MW
107.00 MW
Baghabari 50 MW
52.00 MW
0.00 MW
48.00 MW
Baghabari Westmont
70.00 MW
0.00 MW
0.00 MW
Bera 70 MW
71.00 MW
0.00 MW
71.00 MW
Amnura 50 MW
50.00 MW
0.00 MW
50.00 MW
Khtakhali NPS 50MW
50.00 MW
0.00 MW
50.00 MW
Katakhali PPP 50 MW
50.00 MW
0.00 MW
47.00 MW
150.00 MW
135.00 MW
145.00 MW
Santahar 50MW
50.00 MW
0.00 MW
46.00 MW
Bogra GBB
22.00 MW
22.00 MW
22.00 MW
0.00 MW
0.00 MW
0.00 MW
100.00 MW
0.00 MW
0.00 MW
Faridpur
Barisal Diesel(HSD)
Sirajganj 150 MW
Rajlanka 52MW
Barupukuria ST 1
31
Barupukuria ST 2
100.00 MW
73.00 MW
80.00 MW
Bogra 20 MW
20.00 MW
14.00 MW
14.00 MW
Summit Powser(Ullapara)
11.00 MW
8.00 MW
8.00 MW
Rangpur GT (HSD)
20.00 MW
0.00 MW
20.00 MW
Syedpur GT 20MW(HSD)
20.00 MW
0.00 MW
18.00 MW
Thakurgaon 47 MW((RZ)
47.00 MW
0.00 MW
24.00 MW
Total
9677.00 MW
4583.00 MW 5677.00 MW
32
2.12 SWOT Analysis:

By analyzing all the data I have collected and by analyzing various reports I have
made the following SWOT Analysis. This analysis contains the most featured
parameters of the power industry of Bangladesh.
Strengths
Government incentives
Bangladesh government has announced Fiscal incentives and incentives for foreign
investors to facilitate the investment in the power plants. Exemption from corporate
income tax for a period of 15 years has been announced for the investors. They are
also allowed to import plant and equipment and spare parts up to a maximum of ten
percent (10%) of the original value of total plant and equipment within a period of
twelve (12) years of commercial operation without payment of customs duties. For
foreign investors government announced tax exemption on royalties, technical knowhow and technical assistance fees. The foreign investors are also exempted from
paying tax on interest on foreign loans. They are also enjoying tax exemption on
capital gains from transfer of shares by the investing company.
Demand for electricity

The biggest strength of the power industry of Bangladesh is the high demand of
power within the country. As automation in businesses and industrialization is taking
place all over the country, the demand for power is also increasing at the same time.
Demand is also increasing with the improvement of living standard, increase of
agricultural production, development of existing industries as well as overall
development of the country. On the other hand, only 47% of people have access to
power in the country. So, government is also trying to increase the production of
power to ensure enough supply to the people. Government has a plan to ensure power
for all by 2021.
Weaknesses
Decreasing supply of Natural Gas
33
The only natural resource that Bangladesh has got enough is natural gas. But the
supply of natural gas is decreasing day by day. Although government is trying to lease
the gas blocs to the 46 foreign investors still the total supply of Natural Gas, Coal and
any other fossil fuels to the national grid is quite low and it is not sufficient to ensure
enough supply to the upcoming gas based power projects.
Capital Intensive Industry

Power industry is a capital intensive industry as a small power plant needs a huge
investment to establish and operate. SME based entrepreneurs cannot invest in this
industry due to its initial huge investment. Only investors with large capital or joint
ventures projects or foreign investors are coming to invest in power plants.
Energy infrastructure
And no initiative is taken to improve the infrastructure. With this type of poor
infrastructure it is quite difficult to reach the goal of the government to produce the
additional power in the coming years.
Lack of necessary maintenance and rehabilitation of old power

plants
Due to lack of necessary maintenance and rehabilitation of old power plants, it is not
possible to utilize the total installed capacity of the power plants. The shortage of
electricity can be from the load-shedding made during the peak demand of summer
which is about 1800 Megawatt each day. If all the existing plants could be maintained
properly the supply of electricity could have been more.
Dependency on single energy (gas) and entity for electricity

generation
In Bangladesh, commercial energy consumption is mostly natural gas (around 66%),
followed by oil, hydropower and coal. Power plants in Bangladesh are dependent on
gas significantly. On the other hand, 63% of total electricity is produced by public
sector and 37% is produced by private sector. Among the 63% production of public
sector 40% is produced by BPDB (Bangladesh Power Development Board) only.
34
Participation of private sector

Investment or participation of private sector in electricity generation is at the
minimum. The private sector is producing only 37% of the total electricity production.
No new private investment is coming to this industry to increase the power
production.
Huge system losses

Shortage of electricity is not attributed to generation alone but transmission and
distribution are also responsible for the existing short fall. There is a huge amount of
system loss in the power production process. These system losses are also taking
place during the transmission and distribution of power.
Delays in completion of new plants

Delays in completion of power projects are very common in all power plants. The
projects cannot meet the deadline for its completion time. Hence, this delay leads to a
crisis in the production and distribution of power according to its demand and supply
within the required time.
Opportunities
Joint venture with India
Bangladesh is going to establish joint venture power plants with India especially with
its north eastern states. Indian govt. invites Bangladesh to invest in power sector in
joint venture basis which will increase both countries power generation. Bangladesh
government recently got an invitation from the state government of Tripura to invest
in a joint venture power plant from which Bangladesh will get 100 MW power in its
national grid.
Renewable energy
Bangladesh has great opportunity in using renewable power sources. Bangladesh has
15 MW solar energy capacities through rural households and 1.9 MW wind power in
Kutubdia and Feni. Bangladesh has planned to produce 5% of total power generation
by 2015 & 10% by 2020 from renewable energy sources like air, waste & solar
35
energy. Using more renewable power sources will increase the total power
production.
Nuclear power plant

Bangladesh recently signed a contract to set up a 1,000 MW power plant at Rooppur,
200 km (125 miles) northwest of the capital Dhaka. After completion of this project
there will be an addition of 1,000 MW supply to the national grid. This project will
also attract other foreign investors to invest in nuclear power plants in Bangladesh
which ultimately increase the power production of the country.
Threats
Increasing price of raw material
The price of oil in the international market is increasing since the depression of 2009.
Recently the economic crisis in Europe and political instability of Middle East leads
the international market of oil towards an unpredictable situation. As oil is one of the
main raw materials for power plants and Bangladesh government imports most of
their oil from international market, the increasing price of oil in the international
market will be a treat for our power industry.
Political influence in the industry

The political influence is a treat for the power industry. In Bangladesh, there are
political influences in the bidding process of tender and even in the selection process
of Concern Company. Donor agencies withdraw their donation on the specific
projects due to the political influence. Sometimes the donors withdraw their donation
even in the last stage of selection process because of this political influence.
Small reserve of oil and coal

Most of the existing power plants are oil or coal based in our country although
Bangladesh has a very small reserve of oil and coal both offshore and onshore. From
this small reserve Bangladesh cannot get the enough supply of oil and coal for its
power plants. This small reserve could lead to a crisis of raw materials for the oil and
coal based power plants.
36
Own Power Plants of Industries

Sometimes the big industries or business entities establishes own power plants for
their factories. The insufficient supply of power from the government leads them to
build up their own mini power plants. This tendency could be a treat for the typical
power producers of the country.
37
38
3.1 Problems of Power Industry in Bangladesh

3.1.1 Spend a Lot of Time to Complete the Tender Process:
The Power Development Board (PDB) is facing serious problem to complete the
tender processes for the installation of two public sector power plants as the latest
tenders need to be scrapped for three other independent power plants because of
demands of bidders. As a result, the power projects 210MW plant in Khulna,
150MW plant in Sylhet and three 330MW-450MW independent power plants,
already seven to eight years behind schedule, will be getting further delayed.
3.1.2 Decreasing Supply of Natural Gas:

The only natural resource that Bangladesh has got enough is natural gas. But the
supply of natural gas is decreasing day by day. Although government is trying to lease
the gas blocs to the foreign investors still the total supply of Natural Gas, Coal and
any other fossil fuels to the national grid is quite low and it is not sufficient to ensure
enough supply to the upcoming gas based power projects.
3.1.3 Capital Intensive Industry:

Power industry is a capital intensive industry as a small power plant needs a huge
investment to establish and operate. SME based entrepreneurs cannot invest in this
industry due to its initial huge investment. Only investors with large capital or joint
ventures projects or foreign investors are coming to invest in power plants.
3.1.4 Energy Infrastructure:

And no initiative is taken to improve the infrastructure. With this type of poor
infrastructure it is quite difficult to reach the goal of the government to produce the
additional power in the coming years.
3.1.5 Lack of Necessary Maintenance and Rehabilitation of Old

Power Plants:
Due to lack of necessary maintenance and rehabilitation of old power plants, it is not
possible to utilize the total installed capacity of the power plants. The shortage of
39
electricity can be from the load-shedding made during the peak demand of summer
which is about 1800 Megawatt each day. If all the existing plants could be maintained
properly the supply of electricity could have been more.
3.1.6 Dependency on Single Energy (gas) and Entity for Electricity

Generation:
In Bangladesh, commercial energy consumption is mostly natural gas (around 66%),
followed by oil, hydropower and coal. Power plants in Bangladesh are dependent on
gas significantly. On the other hand, 63% of total electricity is produced by public
sector and 37% is produced by private sector. Among the 63% production of public
sector 40% is produced by BPDB (Bangladesh Power Development Board) only.
3.1.7 Huge System Losses:

Shortage of electricity is not attributed to generation alone but transmission and
distribution are also responsible for the existing short fall. There is a huge amount of
system loss in the power production process. These system losses are also taking
place during the transmission and distribution of power.
3.1.8 Delays in Completion of New Plants:

Delays in completion of power projects are very common in all power plants. The
projects cannot meet the deadline for its completion time. Hence, this delay leads to a
crisis in the production and distribution of power according to its demand and supply
within the required time.
3.1.9 Small Reserve of Oil and Coal:

Most of the existing power plants are oil or coal based in our country although
Bangladesh has a very small reserve of oil and coal both offshore and onshore. From
this small reserve Bangladesh cannot get the enough supply of oil and coal for its
power plants. This small reserve could lead to a crisis of raw materials for the oil and
coal based power plants.
3.1.10 Increasing Price of Raw Material:

The price of oil in the international market is increasing since the depression of 2009.
Recently the economic crisis in Europe and political instability of Middle East leads
the international market of oil towards an unpredictable situation. As oil is one of the
40
main raw materials for power plants and Bangladesh government imports most of
their oil from international market, the increasing price of oil in the international
market will be a treat for our power industry.
3.1.11 Corruption in Power Sector:

Dishonest officials and employees of Power Development Board and similar agencies
are swindling around Tk1000crore annually from the power and energy sector under
the cover of system loss and using false vouchers against payment of utility bills.
The power sector is a hostage to rental and quick renal power plants at the moment, as
they are owned by business houses close to the government. They are swindling
several thousands crore taka annually. The entire power sector is suffering from huge
financial losses for paying against unutilized capacity of rental power plants.
But the swindling of power sector due to system loss and grabbing money using false
payment vouchers of electricity, gas and fuel oil of Bangladesh Petroleum
Corporation bills is no less enormous, the sources said.
The swindling is going on almost unabated and the concerned sources in the Energy
ministry said the government is failing to stop it as several strong syndicates are
involved in the swindling and a section of dishonest senior officials are giving them
shelter.
The sources said black cats are everywhere in the gas and power sector. They are
swindling around Tk 600 crore from power sector, besides around Tk 220 crore from
gas and Tk 156 crore from fuel oil. The overall swindling stands at over Tk 1000
crore annually, the sources said adding the financial losses in all three areas may
actually stand much more than that.
BPC officials told The New Nation on Monday that their real loss from misuse may
exceed Tk300 crore. They are adjusting the loss manipulating the weighing system of
the oil delivery, they said.
The system loss in the Power Development Board (PDBs) alone stands at around 15
per cent, of which 10 percent occurs at the generation, transmission and distribution
level. It is systemic loss and has nothing to do with swindling by dishonest syndicates.
But the remaining five percent of the system loss results from misuse of electricity
and electricity bills by dishonest employees and officials from field level to engineers
41
and accountants. The government has lost around Tk 600 crore last year, the PDB
estimates said.
3.1.12 Setting Wrong People in Power Sector Management:

Government is taking unskilled people for public power industries. Some officials
take bribe to hire unskilled people. For this reason inefficient professionals failed to
make proper planning of power and energy projects, implement key projects on time
or manage maintenance and operation of generation, production, transmission and
distribution of power and gas supply. Wrong professionals misguided government
into making wrong planning of importing coal and LNG leaving our substantial coal
resources underground and making no sincere efforts of exploring huge untapped
petroleum resources at onshore frontiers and offshore.
3.2 Prospects of Power Industry in Bangladesh

3.2.1 Joint Venture with India:
Bangladesh is going to establish joint venture power plants with India especially with
its north eastern states. Indian govt. invites Bangladesh to invest in power sector in
joint venture basis which will increase both countries power generation. Bangladesh
government recently got an invitation from the state government of Tripura to invest
in a joint venture power plant from which Bangladesh will get 100 MW power in its
national grid.
3.2.2 Nuclear Power Plant:

Bangladesh recently signed a contract to set up a 1,000 MW power plant at Rooppur,
200 km (125 miles) northwest of the capital Dhaka. After completion of this project
there will be an addition of 1,000 MW supply to the national grid. This project will
also attract other foreign investors to invest in nuclear power plants in Bangladesh
which ultimately increase the power production of the country.
3.2.3 Prospects of solar power:

Solar power has a great future in Bangladesh. But its potentials are being put on a
hold from various factors. The rate of solar electrification is on the rise in Bangladesh.
42
Every month more than 30,000 Solar Home Systems (SHS) are being installed in the
rural areas of the country. But this rate could be a great deal higher if the cost of
owning one SHS could be substantially lowered from its current price of the
equivalent of $ 300. Since this is a big price tag to be paid by an average rural
homestead, the consequences have been restricted ownership of SHS. However, the
ones who have set up SHS are also able to bear the costs gradually by paying through
installments.
But the faster rate of SHS ownership involves scaling down its purchase cost or
installation cost. And this can be done mainly through discouraging import of solar
panels and making them locally. But even the local manufacture of SHS will not quite
lead to relatively affordable costs of the same till the local makers are enabled to
decrease their production costs.
But importers still need to pay 40 to 50 per cent import duty on other components of a
panel. Clearly, there is a need to reduce to the reasonable minimum duties on the
components to cut costs in the installation and maintenance of solar power devices.
Bangladesh has one of the highest VAT/taxes on raw materials used by the solar
power industry. If VAT/ taxes are removed sufficiently, then it should become
possible to reduce the cost of a SHS by 40 per cent. If these costs are reduced, then
solar can become competitive with diesel generators. Government and people will
both benefit from not requiring the import of diesel to run irrigation pumps, less load
shedding and more productivity.
Feed in tariff policy had been very effective in promoting solar in most western
countries. India also has a feed in tariff policy. Under this policy, a solar-system
installer can sell electricity to the national grid at a slightly higher price. This will
encourage urban dwellers to install solar-systems and feed the extra electricity to grid
line. We can transform every urban building into a powerhouse through the effective
implementation of feed in tariff policy.
Solar electrification of rural areas where the greatest number of Bangladeshis has
their existence will effectively solve the problem of reaching of the blessing of
power to the greatest number of people at the soonest. The availability of power, of
course, will be a big boost in helping people to increase their income in many
different ways.
43
Ongoing Projects
650 KWp (400 kW load) Solar Mini Grid Power Plant at remote Haor area of
Sullah upazila in Sunamgonj district under Climate Change Trust Fund
(CCTF) on turnkey basis.
8 MWp Grid Connected Solar PV Power Plant at Kaptai Hydro Power
Station,at Rangamati on turnkey basis.
3 MWp Grid Connected Solar PV Power Plant at Sharishabari, Jamalpur on
IPP basis.
30 MWp Solar Park Project adjacent to new Dhorola Bridge, Kurigram on IPP
basis.
Solar Street Lighting Projects in seven (7) City Corporations of the country.
Projects under Planning
Conversion of existing 37.5 kWp Solar System installed on the rooftop of
Bidyut Bhaban into 37.5 kWp Grid Tied Solar System
Conversion of existing 32.75 kWp Solar System installed on the rooftop of
WAPDA Bhaban into 32.75 kWp Grid Tied Solar System
Rehabilitation of 10 KWp Solar Power Plant at the Barkal upazilla sadar of
Rangamati district.
BPDB has planned to install Grid Connected Solar PV Power Plant on IPP
basis such asI.
1 MW Grid Connected Solar Power Plant at Regional Training Centre

(RTC), Rajshahi.
II.
500 kWp Grid Tied Solar System at 33/11 kV substation's compound

of former Hajigonj Electric Supply, Chandpur.
BPDB has planned to install Solar Mini Grid Power Plant on turnkey basis
under Climate Change Trust Fund (CCTF) at remote and inaccessible areas
such asI.
500 kW Solar Mini Grid Power Plant at Swandip Upazila of

Chittagong district.
II.
500 kW Solar Mini Grid Power Plant at Thanchi Upazila of Bandarban

district.
44
BPDB has planned to implement Solar Park Projects on IPP/PPP basis under
the Roadmap of ADBs 500 MW Solar Power Mission such asI.
Rangunia 60 MW Solar Park Project on IPP basis at Karnafuli river

side, Rangunia, Chittagong
II.
40-45 MW Solar Park Project adjacent to Bangabandhu Bridge,Tangail

and Sirajgonj area.
III.
2-3 MW Solar Park Project adjacent to PGCB Grid Sub-station

compound, Ishwardi.
IV.
1-2 MW Solar Park Project adjacent to PGCB Grid Sub-station

compound, Jhenaidaha.
3.2.4 Wind Power Projects:

The potential of wind energy is limited to coastal areas, off-shore islands, rivers sides
and other inland open areas with strong wind regime. In order to generate electricity
from Wind Energy, BPDB installed 4x225 KW = 900 KW capacity grid connected
Wind Plant at Muhuri Dam area of Sonagazi in Feni.
Another project of 1000 KW Wind Battery Hybrid Power Plant at Kutubdia Island
was completed in 2008 which consists of 50 Wind Turbines of 20 kW capacity each.
Ongoing Projects
Repairing work of the existing 900 kW grid connected Wind Power Project at
Muhuri Dam of Sonagazi in Feni is going on.
Repair and operation & maintenance of the existing Kutubdia 1000 kW Wind
Battery Hybrid Power Project is underway
Steps have been taken to install 15 MW Wind Power Plant across the coastal
regions of Bangladesh after 1 year Wind Resources Assessment in Muhuri
Dam Area of Feni, Mognamaghat of Coxsbazar, Parky Beach of Anwara in
Chittagong, Kepupara of Borguna and Kuakata of Patuakhali. Wind Mapping
is going on at Muhuri Dam area of Feni and at Mognamaghat of Coxsbazar
by Regen Powertech Ltd. of India.
45
Installation of Wind Monitoring Stations at Inani Beach of Cox'sbazar, Parky

Beach of Anwara, Sitakundu of Chittagong and at Chandpur under USAID
TA project is underway
BPDB has planned to implement 50-200 MW Wind Power Project at Parky
Beach area, Anawara in Chittagong on IPP basis.
Power Division and BPDB have primarily identified 22 potential sites for
Wind Resource Mapping in Bangladesh. Wind monitoring stations will be
installed at these sites for comprehensive Wind Resource Assessment (WRA).
BPDB has also plan to expand On-shore Wind Power Plants along the
coastline of coastal regions of Bangladesh.
3.2.5 Hybrid Projects:

Ongoing Projects
7.5 MW off Grid Wind-Solar Hybrid System with HFO/Diesel Based Engine
Driven Generator in Hatiya Island, Noakhali.
BPDB has planned to install 1 MW off Grid Solar- Diesel based Hybrid Power
Plant in Kutubdia Island.
3.2.6 Micro/Mini Hydro Projects:

Micro/ mini-hydro have limited potential in Bangladesh with exception of Chittagong
Hill Tracts region. A 50 kW micro-hydro plant was installed at Barkal Upazila of
Rangamati district in 2005.
Ongoing Projects
50-70 kW Mohamaya Irrigation-cum-Hydro Power Project at Mirersorai,
Chittagong.
Rehabilation of 50 kW Micro-Hydro Power Plant at Barkal Upazila of
Rangamati district.
46
Micro-hydro power projects on the potential streams/charas/rivers of CHT

regions will be implemented after detail Feasibility Study.
3.2.7 Power Sector Future Rolling Plan:

Power is the pre condition for social and economic development. But currently consumers
cannot be provided with uninterrupted and quality power supply due to inadequate generation
compared to the national demand. To resolve the present shortfall and to meet the increasing
demand for electricity, the government has taken an initiative to increase generation
(installed) capacity to 13735 MW by 2015. For this reason installation of new power plants
and the maintenance of the old power plants has been given highest priority.
3.2.8 Power Industry Development Plan:

In order to realize the governments vision to provide electricity to most of the
population at a reasonable price and to achieve overall socio-economic development
of the country, the government of Bangladesh has initiated a Power and Energy Sector
Development Roadmap (2010-2021) which targeted to produce 8,500 MW by 2013,
11,500 MW by 2015 and 20,000 MW by 2021. However, to ensure overall and
balanced development of this sector government has taken immediate plan (2010),
short-term plan (2011), medium-term plan (2012-2015) and a long-term development
plan (2016-2021). The plans have been developed based on a techno-economic
analysis and a least-cost option. These plans include balanced development in
generation, transmission and the distribution system to achieve a desired level of
reliability of supply. A summary of the development plan is given as follows:
Immediate plan (2010)
According to the immediate plan, short term implementable (six to twelve
months) liquid fuel based quick rental power stations will be established through
private sector. In the first phase, 3 power plants with a capacity of 360 MW each
are implementing in different places of the country and are expected to initiate by
2010. However, capacity of 1,000-1,200 MW quick rental power stations will be
expected to establish by 2010 and by early 2011. Meanwhile, power plant with a
capacity of 432 MW is implementing privately.
Short term plan (2011)
47
According to the short-term plan, liquid fuel based 12-24 months of

implementable power stations will be established. However, government has
initiated to implement a power station with a capacity of 920 MW.
Midterm plan (2012-2015)
Under this plan, government has taken into account to establish 3 to 5 years of
implementable coil based power stations with a capacity of 2,600 MW to the total
capacity of 7,714 MW.
Long term plan
As of the Power and Energy Development Roadmap (2010-2021), government
expects to meet the desire destination (20,000 MW by the year 2021) through the
increment of 10% production per year to towards reaching the per capita
consumption to 600 Kw.
3.2.9 List of Projects that will be implemented by 2014:
Sl.
Name of the Power
Capacity
No.
Station
(MW)
Expected
Fuel
time of
Current
Status
Completion
Public Sector
1
Haripur
360
MW
360
Gas
June 2014
CCPP (EGCB)
Evaluation
of
PQ
underway
2
Bheramara 360 MW
360
Gas
June 2014
CCPP (NWPGC)
Scrutiny of
DPP in the
Ministry
underway
Shidhdhirganj 450 MW
450
Gas
June 2014
CCPP (EGCB)
Total
1170
48
3.2.10 List of Projects that will be implemented by 2015:
Sl.
Name of the Power
Capacity
No.
Station
(MW)
Expected
Fuel
time of
Completion
Current
Status
PPP/IPP
1
Chittagong , PPP (Joint
1300
Coal
March 2015
Venture)/IPP
Feasibility
study will
start soon
Khulna
(South),
PPP
1300
(Joint Venture)/IPP
Coal
March 2015
Draft
contract
with
NTPC
under
process
Total
2600
49
3.3 Findings
Investment or participation of private sector in electricity generation is at the
minimum.
Corruption is at higher level in this sector.
Huge amount of system loss in the power production process.
Delays in completion of power projects are very common in all power plants.
Unskilled people hired by government.
Government depend on single energy (gas) and entity for electricity generation
Solar setup cost is very high.
Inadequacy of supply of electricity compared to demand
Dependency on single energy (gas) for electricity generation
Shortage of electricity is not attributed to generation alone but transmission
and distribution are also responsible for the existing short fall
Limited use of renewable energy
Coal-based power plants using domestic and imported coal;
Bangladesh recently signed a contract to set up a 1,000 MW power plant at
Rooppur, 200 km (125 miles) northwest of the capital Dhaka. Signed a
contract with India for power import.
Some big projects are to be implemented in future.
50
51
3.1: Conclusion
In conclusion, now we can say the power industry of Bangladesh has a lot of
opportunity although there are many obstacles present in the industry. If the
government can implement all the projects that are initiated to increase power
production then the industry could be a very effective industry for the country. As
development of business is very much dependent on the power industry, so if this
industry can reach to its maximum then other business sectors will also get the facility
of this development. Hence, the development of power industry is essential for the
development of business as well as the overall economic development of the country.
The goal of the government regarding this industry is optimistic and promising. If the
government reaches its goal then the industry will surely be an independent industry
which will facilitate the development of the country. Finally, I can say that the
government and private sectors should take necessary actions to improve the power
industry of Bangladesh so that this industry can operate efficiently and facilitate the
national development of the country.
3.2: Recommendations
From the above report now I have a clear idea about the present situation of power
industry of Bangladesh. The power industry of Bangladesh has a lot of weaknesses
but at the same time it has a lot of opportunities also. The prospect of the industry is
positive. It is a promising industry. From my study on this industry, I recommend the
following for the betterment of the industry.
1. The government should enter joint venture projects with the government of
India and with other foreign investors.
2. Bangladesh government should encourage foreign investors by providing
more attractive incentives.
3. Bangladesh government should decrease the cost of solar power setup.
4. Corruption will also decreased by government.
5. Illegal connections will be cut by power companies.
6. The industry needs more private investors to facilitate the production. Giant
private business groups should enter in this industry.
7. Proper maintenance and rehabilitation of existing power plants is very
essential to increase the production.
52
8. Other power producers except BPDB should involve more and increase their
production to reduce the dependency on BPDB.
9. Bangladesh government should improve the energy infrastructure of the
country with the involvement of the private sector.
10. The government needs to improve the distribution and transmission network
of the country to ensure the best distribution and transmission process.
11. The tender and selection process for power producers need to be transparent to
get the loans of the donor agencies.
12. Bangladesh government should ensure enough supply of gas and oil to the
power plants to increase the production.
13. The ongoing power plant projects must be finished to increase the production
and at the same time the upcoming projects must meet the deadline to reach
the estimated increase in production.
53
References
Newspapers
Star Business, The Daily Star
Prothom Alo
Websites
www.powercell.gov.bd.
www.bpdb.gov.bd.
www.wzpdcl.gov.bd
www.dpdc.org.bd
www.desco.org.bd
www.egcb.com.bd
www.apscl.com
www.pgcb.org.bd
www.reb.gov.bd
www.rpcl.org.bd
www.mof.gov.bd
Articles
Power and Energy Sector Development Roadmap (June 2010), Ministry of
Finance
Bangladesh Economic Review 2011(Bangla version)
Private Sector Power generation Policy of Bangladesh, Ministry of Power,
Energy and Mineral Resources
Reports
ADB (Asian Development Bank) Report on Power Industry of Bangladesh
http://www.bpdb.gov.bd/bpdb/index.php?option=com_content&view=article
&id=26&Itemid=24
http://empire-capital.org/power-sector-analysis-a-comparative-analysis-offive-energy-generating-companies/
54

Problems and Prospects of Poer Industry in Bangladesh

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Problems and Prospects of Poer Industry in Bangladesh

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Course Title: Business Communication

Course Code: BUS 2112

Fyaz Mahbub Rohan

114 121 025

Sudip Kumar Biswas

114 122 015

Md. Musfiqul Islam

111 091 405

Md. Arif Jamal

111 122 284

111 123 236

Submission Date: 22th January 2014

recommendations provided in the report would be helpful to solve problems. By

Origin of the Report

Purpose of the Report

Objectives of the Report

Methodology of Data Collection

Limitations of the Study

Power Industry of Bangladesh

Power Generation 2013

Power Sector Structure

Office of the Electrical Advisor & Chief Electric Inspector

and Energy Monitoring Unit

Public Power Generation Companies

Bangladesh Power Development Board (BPDB)

Ashuganj Power Station Company Ltd (APSCL)

Electricity Generation Company of Bangladesh Ltd

Rural Power Company Ltd (RPCL)

North-West Power Generation Company Ltd

Private Power Generation Companies

Summit Power Limited

Khulna Power Company Ltd (KPCL)

GBB Power Ltd (GBBPOWER)

Barakatullah Electro Dynamics Ltd. (BEDL)

Owner wise Power Generation (01-01-2014 to 15-01-

Power Generation Units (Fuel Type Wise)

Maximum Generation of January 2014

Daily Generation Report 15/01/2014

Problems of Power Industry in Bangladesh

Spend a Lot of Time to Complete the Tender Process

Decreasing Supply of Natural Gas

Capital Intensive Industry

Lack of Necessary Maintenance and Rehabilitation of Old

Dependency on Single Energy (gas) and Entity for

Huge System Losses

Delays in Completion of New Plants

Small Reserve of Oil and Coal

Increasing Price of Raw Material

Corruption in Power Sector

Setting Wrong People in Power Sector Management

Prospects of Power Industry in Bangladesh

Joint Venture with India

Nuclear Power Plant

Prospects of solar power

Wind Power Projects

Micro/Mini Hydro Projects

Power Sector Future Rolling Plan

Power Industry Development Plan

List of projects that will be implemented by 2014

List of projects that will be implemented by 2015

1.2 Origin of the Report:

1.3 Purpose of the Report:

1.4 Objectives of the Report: