Professional Documents
Culture Documents
Dhaka Electric Supply Authority (DESA). In 1996 when PGCB was formed, the total length of 230 kV
and 132 kV lines were 838 Circuit km and 4755 Circuit km respectively which increased to 1144
Circuit km and 4962 Circuit km respectively by the 2000-2001 fiscal year.
At present there are 2647.3 Circuit km of 230 kV lines and 6015 Circuit km of 132 kV lines
throughout Bangladesh under PGCB (total 8662.3 Circuit km). From the table below it can be seen
that in 2011 amongst the two types of substations, there are thirteen 230/ 132 kV substations with
the capacity of 7225 MVA and eighty one 132/33 kV substations with the capacity of 10492 MVA.
Therefore, the total current substation capacity is 17,717 MVA. The Transmission Network is
summarized below.
Table 1.2.1: PGCB Transmission Network
Transmission Line as on June, 2011
230 kV
2647.3 Circuit km
132 kV
6015 Circuit km
Substations as on June, 2011
230/132 kV
132/33 kV
1992
Source: PGCB
The PGCB grid network throughout the country is illustrated in Figure 1.2.1 on the next page.
Additionally, the PGCB has been using an optical fiber network, that is the optical ground wire
(OPGW) parallel to its over-head transmission lines to establish a digital communication system to
improve the control and monitoring of the transmission system. This optical fiber network is also
used by the telecommunication and IT networks of the country.
32
Source: PGCB
M/S AECOM (previously Maunsell), New Zealand was the consultant to PGCB in the project.
The total expenditure incurred for constructing NLDC, including consultancy services, was USD 37.44
million. The major activities of the NLDC include:
i)
ii)
iii)
Generation Control and Dispatch
Automatic Generation Control: There is a provision for Automatic Generation Control (AGC)
of generators from NLDC. However, owners of Power Stations i.e. BPDB, IPPs etc. have not
agreed to allow NLDC to control generation directly from NLDC. Therefore, generation
control is presently done by Power Stations themselves but as per instructions of NLDC.
Though the main function of NLDC is to ensure economic electricity generation and despatch and
maintain generation-demand balance, in recent past due to deficit in generation, load balance is also
maintained by the load management of NLDC which included, among others, load shedding. Load
shedding is done following a predetermined policy approved by top management and NLDC
allocates load to different distribution agencies following this policy.
National Load Despatch centre works together with four Area Load Despatch centre situated in
Dhaka, Chittagong, Khulna and Bogra. Area Load Despatch centre mostly coordinates with
Distribution entities.
India are underway. When completed it is expected that Bangladesh will import about 250MW of
power from India. There is also a plan of constructing a 13km 230kV double Circuit transmission line
between Comilla North s/s in Bangladesh & Panatona in Tripura, India. However, this has not been
finalized with India as of yet.
REB
DPDC
DESCO
WZPDC
BPDB
Total
Line (km)
218,881
505
3,100
8,915
46,599
278,000
Substation (MVA)
3,993
1,554
1,078
2,136
2,754
11,515
DPDC and DESCO distribute electricity within the nations capital, Dhaka, they receive 42 percent of
the electricity from the PGCB. REB provides electricity to the rural areas of Bangladesh and receives
the most i.e. 40 percent of the transmitted electricity. WZPDC covers the West Zone of Bangladesh
and receives 6 percent of electricity. BPDB receives 23 percent of electricity and also distributes
electricity to many rural areas and parts of the country that are not covered by the other companies.
The market share of electricity of the distribution companies is illustrated in the following figure.
35
Source: Energy Sector: Challenges of Adding New Capacity by M. Fouzul Kabir Khan
Source: Energy Sector: Challenges of Adding New Capacity by M. Fouzul Kabir Khan
However, the breakdown of electricity changes when looking at the number of consumers receiving
electricity. The two charts below show the number of consumers to whom electricity is distributed
to by the distribution company and the consumer segment.
36
BPDB
16%
Ind
2%
DPDC
6%
Com
12%
Others
1%
Agri
2%
DESCO
4%
REB
69%
Dom
83%
Source: Energy Sector: Challenges of Adding New Capacity by M. Fouzul Kabir Khan
Domestic consumers i.e. 83 percent of electricity consumers, account for 46 percent of electricity
sales; 2 percent industrial consumers purchase 39 percent of electricity; and commercial and
agricultural consumers use 12 percent and 2 percent respectively. Based on the energy sales, REB
still dominates with 40 percent of energy sales, followed by BPDB (23 percent), DPDC (20 percent),
DESCO (11 percent), and WZPDCL (6 percent) respectively.
The figures also show the rural-urban difference in electricity use. Rural customers are located
mainly in the REB and WZPDCL areas. While together, they account for 75 percent of the consumers;
their share in energy consumption is limited to 46 percent. Predominantly urban consumers of
DESCO and DPDC, 10 percent of the consumers, use 31 percent of electricity.
37
Table 1.2.2: Historical Changes in the Retail Tariff in the Past 5 Years
Consumer
Category
Domestic
Category-A
Range
000-100 KWh
101-400 KWh
401 & above
for all units in
KWh
BDT/Kwh
(March 2007)
BDT/Kwh
(March 2010)
BDT/Kwh
(February 2011)
BDT/Kwh
(December
2011)
BDT/Kwh
(February 2012)
2.50
3.15
5.25
2.60
3.30
5.65
2.60
3.46
5.93
2.73
3.81
6.88
2.87
4.04
7.43
Agricultural Pumping
Category - B
Flat
1.93
1.93
1.93
2.03
2.13
Small Industry
Category-C
Flat
Peak
Off peak
4.02
5.62
3.20
4.35
5.95
3.50
4.56
6.24
3.67
5.27
6.75
4.41
5.67
6.90
4.86
3.35
3.35
3.35
3.52
3.69
Non- Residential
Category-D
Commercial
Category-E
Flat
Peak
Off peak
5.30
8.20
3.80
5.58
8.45
4.05
5.85
4.25
8.87
6.80
9.31
5.23
7.33
9.66
5.88
Medium Voltage 11
KV General
Category-F
Flat
Peak
Off Peak
3.80
6.73
3.14
4.17
7.12
3.43
4.37
7.47
3.60
5.14
7.55
4.40
5.55
7.60
4.86
Extra High
Voltage 132
KV General
Category-G-2
Flat
2300-0600 hrs
0600-1300 hrs
1300-1700 hrs
1700-2300 hrs
2.82
1.49
2.48
1.66
5.52
3.10
1.63
2.72
1.82
5.94
3.25
1.71
2.85
1.91
6.23
4.59
4.04 (Off Peak)
5.02
4.86 (Off Peak)
6.90 (Peak)
7.60 (Peak)
High Voltage
33 KV General
Category-H
Flat
Peak
Off Peak
3.58
6.45
3.03
3.92
6.82
3.33
4.11
7.16
3.49
4.88
7.34
4.30
5.28
7.44
4.78
3.98
4.17
4.90
5.28
3.86
Source: BPDB
PGCB charges a transmission fee i.e. the wheeling charge which was decided by the GoB (BERC was
not formed at that time). From January 2003 the Government has set a transmission tariff at the rate
of BDT 0.1768/ kWh for the 132 kV level. This rate was set by taking into consideration of factors
such as: (i) Net energy transmission (ii) Administrative Cost ( Personnel to Office expenses) (iii)
Repair and Maintenance Cost (iv) depreciation (v) Interest and also allowing a 10 percent return on
net fixed assets and a 3.5 percent allowance for transmission loss.
Initially, PDB and DESA were the only consumers using power at 132 kV level. From January 2004 the
Government has issued a new directive by which distribution companies and Palli Biddyut Samity
(PBS) have started taking transmitted power at the 33 kV level for which a 1 percent additional tariff
was allowed to account for 132/ 33 transformer losses.
38
In April, 2004, the transmission tariff was increased by BDT 0.05/ kWh and the tariff has become BDT
0.2268 at the 132 KV level and BDT 0.2291 at the 33 KV level.
In addition to this wheeling charge, the distribution entities have to pay to BPDB according to the
bulk tariff fixed by BERC. The historical change in this bulk tariff in the last five years is shown in the
Table 1.2.3. In February 2011, bulk tariff was increased by 11 percent, which was again increased by
6.66 percent to BDT 2.80/ kWh in August 2011. Recently, BPDB has again increased the average bulk
tariff to BDT 3.27/kWh (4.3 cents). The bulk tariff will rise a further 14.37 percent to BDT 3.74/kWh
from February 1, 2012.
Table 1.2.3: Historical Changes in the Bulk Tariff in the Past 5 Years
Consumer
Category
Category-G-1
Category-I-1
Category-I-2
Category-I-3
Range
BDT/kWh
BDT/kWh
BDT/kWh
(March 2007) (February 2011) (August 2011)
DPDC
-132KV
-33KV
REB
1)132KV
2)33KV
-Economically insolvent
-Economically solvent
DESCO
-132KV
-33KV
WZPDCL
-132KV
-33KV
Category-I-4
Distribution Of BPDB
-132KV
-33KV
Category-I-6
2.7575
2.7825
2.9410
2.9680
2.34
2.7575
2.9410
2.05
2.4745
2.6395
2.39
2.7825
2.9680
2.34
2.39
2.7575
2.7825
2.9410
2.9680
2.34
2.39
2.7575
2.6415
2.9410
2.8175
2.34
2.39
2.7575
2.6710
2.9410
2.8490
2.34
2.39
2.7575
2.6710
2.9410
2.8490
Source: BPDB
BERC is also the authority for setting and monitoring the quality and safety standards of all practices
involved in the construction, commissioning and operations of power plants. In short, its goals
include promoting investment in the energy and power sector by creating a level playing field,
ensuring a reasonable return on investment, rationalizing the cost structure and helping mediate
dispute settlements.
The Power Division oversees administrative activities including appointments of the PGCB Board of
Directors and the top management. The Power Division also reviews and approves development
projects. All purchases made by PGCB are guided by Public Procurement (PPR) Act of 2006 and the
2008 amendments. In the case of foreign aid projects, donor guidelines are followed.
The Power Division also oversees administrative activities including appointments of top
management of BPDB, REB, and Board of Directors and top management of the power distribution
39
companies. The Power Division also reviews and approves development projects. All purchases
made by distribution entities are also guided by PPR Act 2008. In the case of foreign aid projects,
donor procurement guidelines are followed.
40
At present the distribution entities have a total distribution line of 278,000 KM serving over 12
million customers. This sector suffers a system loss of 12.75 percent. To reduce the system loss and
to expand and improve the distribution network BPDB, REB, DPDC, DESCO and WZPDC have
currently several ongoing projects. By 2013-14 BPDB will construct new distribution lines and new
substations in all divisions of Bangladesh. REB has the target to connect at least one million new
customers by 2012-13. DPDC has 14 planned projects which will increase substation capacity, build
new substations, ensure quality power supply, rectify system loss, and provide better service to a
wide range of customers. In the meantime DESCO will work to connect at least 600,000 new
customers in Dhaka and they will also install new prepaid meters all over Dhaka.
Additional details of future expansion plans in the T&D sector are provided in the in-depth analysis.
41
substation. Between 2002 and 2005 all the above mentioned T/Ls and Substations were
commissioned.
In 2008, a second east-west inter connector was commissioned connecting the Ashuganj Substation
and the Shirajganj switching station. From this period till today many other 132 kV lines and
substations were commissioned to feed more load centers, while at some other substations
capacities were increased.
As the acquisition of land is becoming difficult, particularly in city areas, the PGCB has started the
construction of Gas Insulated Substations (GIS) with the extension of the Jaydebpur 132/33 kV
substation using GIS units (2006) and commissioning the Gulshan (132/33 kV) GIS substation (2006).
Another GIS was built in Gallamari, Khulna. There are also 230/132 kV GIS substations in the old
airport area (Agargaon, Dhaka) along with three other 132/33 kV GISs in the Dhaka area.
With the increase of load demands as well as power generation capacities, the PGCB has now
started the construction of 400 kV transmission lines. The first 400 kV double circuit T/L between
Aminbazar and Meghnaghat is expected to be commissioned (initially at 230 kV) in 2012-2013.
Another 400 kV transmission line from Bibiayanabazar to Kaliyakar, with 400/230/132 kV substations
at Kaliyakar is planned to facilitate transmission of power from the under construction IPP power
stations at Bibiyana bazar which are expected to be commissioned during the later parts of 2012-13.
Table 7A.1 of Appendix 7A shows the details of the ongoing projects in the transmission sector being
implemented by the PGCB which are expected to be completed within next two years. The
objective/ benefit of these projects as well as number of sub-stations with the number and capacity
of Transformers for each substation are also shown in the table.
225
A list of BPDBs ongoing projects along with their implementation time and present status is given
below:
Table 7.1: BPDB Ongoing Distribution Projects
Sl.
No
01.
Implementation Time
Present Status
87.05 percent up to
February 2011
Original: 2003-04 To
2007-08
Revised: 2003-04 To
2009-10
02.
01-07-2008 To
30-06-2011
03.
09-07-2008 To
30-06-2011
04.
01-12-2009 To
31-06-2013
05.
01-07-2010 To
31-12-2011
06.
01-01-2009 To
31-12-2010
07.
01-01-2009 To
31-12-2011
46.18 percent up
to February 2011
35.73 percent up
to February 2011
11.00 percent up
to February 2011
21.00 percent up
to February 2011
0.42 percent up to
February 2011
33.00 percent up
to February 2011
Source: BPDB
There are also five ongoing distribution projects under REB, which has the total estimated cost of
357.11 million USD. The detailed list is given in the following table.
Table 7.2: REB ongoing distribution projects
Sl.
86.69
32.58
42.97
178.37
No.
226
Sl.
16.5
Total
357.11
No.
5
Source: REB
DESCO has also started several projects for upgrading and expanding their distribution systems by
strengthening DESCOs Electric Distribution Network. These projects are expected to cost
approximately USD 171 million.
DESCOs Upgrading & Expanding Distribution System project in the Gulshan Circle area mainly
includes constructions of 33/11 KV (GIS) substations, installation of 33 KV UG Cables as source lines
for new Substations and the installation of HT/LT Composite Distribution lines. This project is
funded by the GoB, ADB and DESCO itself. The estimated cost of this project is USD 80 million with
an expected implementation in June 2012.
DESCO has also undertaken its own Electric Distribution Network Strengthening project that mainly
includes the construction of 33/11 KV (GIS) substations, installation of 33 KV UG Cable as source
lines for new Substations and the installation of HT/LT Composite Distribution lines. The project was
funded by the GoB, ADB and DESCO itself. The estimated cost of this project is USD 66 million with
an expected implementation in June 2013.
The construction, augmentation and rehabilitation of eight 33/11 KV (GIS) Sub-stations of DESCO is
an own-financed project of DESCO. It includes: Construction of 33/11 KV (GIS) Substations in
Agargoan, Banani, Niketon, Purbachal and Mirpur-6 and the rehabilitation & reinforcement of the
33/11 KV (GIS) Substations at the Digun, Joarshahara and Tongi areas. The estimated cost of this
project is USD 24 million with an expected implementation in June 2013.
The Construction of a Central Warehouse building project of DESCO at Mirpur is estimated at cost of
total USD 1.2million and this project has an expected implementation in December 2012. The
following table summarizes DESCOs ongoing projects:
Table 7.3: DESCO Ongoing Projects
Sl.
Name of the
No.
Project
Implementati
Estimated
on Period
Cost (in
million BDT)
Upgrading &
Expanding
Distribution
Substation
System in
Gulshan Circle
June 2012
5949.00
Fund :
DESCO, GOB
& ADB
227
Sl.
Name of the
No.
Project
Implementati
Estimated
on Period
Cost (in
million BDT)
Strengthening
DESCOs Electric
Distribution
substation
Network
June 2012
4859.20
Fund :
DESCO, GOB
& ADB
Construction,
augmentation
and
rehabilitation of
June 2013
1770.00
DESCO Own
fund
08 Nos 33/11 KV
(GIS) Sub-station
Total
12578.2
Source: DESCO
DPDCs five ongoing projects include: the reinforcement, renovation and augmentation of 33/11 kV
sub-stations project financed by ADB, development of new 132/33 kV and 33/11 kV sub-stations
project financed by ADB and KFW, procurement and installation of 132/33 kV 50/75 MVA
transformers financed by ADB, the upgrade of the Shyampur BSCIC 11 kV switching station financed
by ADB and the rehabilitation and augmentation of the distribution network of the DPDC financed by
the GoB. These projects are expected to cost approximately USD 56 million. The detailed statuses of
these projects are shown below:
Table 7.4: DPDC Ongoing Projects
Sl.
No.
1
Reinforcement,
Renovation
Augmentation
and
of
Procurement
of
the
Implementation
project
Period
MBDT)
Replacing of 19 nos. of
01/07/2006-
1335.0576
30/06/2011
(PA
12.811M)
Comments
210 MW capacity
USD
increase in 33 KV
level
228
33/11 kV Sub-station
(GOB 438.2846)
(ADB financed)
2
Development of New
Construction of 2 nos.
01/07/2006-
4246.155
2X50/75
30/06/2012
capacity increase in
kV Sub-station
Construction of 5 nos.
(GOB 1772.02)
33 KV & 132 KV
(ADB
&
MVA
KfW
2X20/28 MVA
level respectively
and
01/09/2006-
544.156
180 MW capacity
MVA X-former.
30/06/2011
increase in 132 KV
(GOB 198.095)
level
01/07/2006-
184.809
45
30/06/2011
(PA 1.787 M)
increase in 33 KV
(GOB 59.699)
level
financed)
3
Procurement
Installation of 132/33
kV,
50/75
MVA
Transformer Project
(ADB financed)
4
Up-gradation
of
Shyampur BSCIC 11
2X20/28
MVA
Transformer
kV Switching Station
MW
capacity
to a regular 33/11 kV
Sub-station Project
(ADB financed)
5
Rehabilitation
and
29 km 11kV line, 38 km
01/01/2010-
1690.712
Improve
Augmentation
of
30/06/2012
(PA 0)
Distribution
(GOB 1690.712)
network.
Ensure
Reliable
Power
Distribution Network
of
kV line
DPDC
(GOB financed)
Supply
Total
PA USD 56.314
Source: DPDC
In order to reduce system loss and increase consumer satisfaction through more accountability
measures, the WZPDCL was established and incorporated as a public limited Company on the
4th November, 2002 under the Companies Act 1994. It started operating from April, 2005 when it
signed Vendor Agreements (VA) & Power Sale Agreements (PSA) with BPDB.
The WZPDC has undertaken several projects which will cost approximately USD 76 million. Among
these projects, the Power Distribution Projects in the 21 districts will cost approximately USD 63
million and will be financed by the GoB and the WZPDCL. Another large project: a prepaid emetering System includes a total of 105,000 1-Phase and 10,000 3-Phase meters installations. This
project is expected to cost approximately USD 12 million. The detailed statuses of the ongoing
projects under the WZPDC are given in the following table.
229
Sl.
No.
1
Implementati
Estimated Cost
on Period
(in MBDT)
4691.8
21 Districts Power
01/01/2011-
Distribution Project,
31/12/2013
WZPDCL
Prepaid e-metering
01/01/2011-
885.5
System
30/06/2014
Solar Energy
2011-2014
10
2012-2014
10.8
2012-2014
Total
5598.1
SCADA SYSTEM
VIDEO CONFERENCING
SYSTEM
System
Source: WZPDC
Sl No.
01
02
Circle Name
At 33KV
At 132KV
Capacity
(MVAR)
No Of
Units
Capacity
(MVAR)
No Of Units
Chittagong
220
44
45
Comilla
20
230
Sl No.
Circle Name
At 33KV
At 132KV
Capacity
(MVAR)
No Of
Units
Capacity
(MVAR)
No Of Units
03
Dhaka
185
39
180
04
Khulna
80
16
180
05
Bogra
265
53
45
770
156
450
Total
Source: PGCB
In the distribution sector only DESCO (60 MVAR) uses shunt compensation at their substations and
lines. Previously BPDB installed 170 MVAR shunt capacitors which are not presently operative. There
is no level of compensation in use in the other distribution companies substations. But at consumer
level the customer has to install shunt capacitors to improve its power factor according to the load.
The customer has to maintain a power factor of 0.9521 to get exemption from a penal tariff.
tapping the bare conductors of L.T. feeder or tampered service wires. Some of the bonafide
consumers willfully commit pilferage by way of damaging and / or creating disturbances in
measuring equipment installed at their premises. Some of the modes for illegal abstraction or
consumption of electricity are given below:
Year
2010-2011
2.66
2009-2010
3.07
2008-2009
3.23
2007-2008
3.55
2006-2007
3.15
2005-2006
3.44
Source: PGCB
232
Fiscal Years
1999-2000
26.09
2000-2001
25.34
2001-2002
23.92
2002-2003
21.64
2003-2004
20.04
2004-2005
17.83
2005-2006
16.53
2006-2007
17.14
2007-2008
15.56
2008-2009
14.33
2009-2010
13.49
2010-2011
12.75
Source: Power Cell
The authorities want to reduce system loss by installing new digital meters, AMI meters and prepaid
meters. At the 33 KV level, the target is to reduce loss from 12.10 percent to 9.50 percent within the
next 5 years. In case of T&D, the target is to reduce system loss from 14.40 percent to 11.70 percent
gradually by the 2015-16 financial year. The following table summarizes the expected system loss in
the Transmission and Distribution sector.
Table 7.9: Target Loss in T&D Sector
Fiscal Years
Transmission System
loss (PGCB)
2011-2012
12.10
2.65
14.40
2012-2013
11.45
2.60
13.70
2013-2014
10.80
2.55
13.10
2014-2015
10.20
2.50
12.40
2015-2016
9.50
2.40
11.70
233
7.1.4.3 Value of aggregated technical and commercial loss and the issue of theft
High technical losses (9percent) in the system are primarily due to inadequate investments over the
years for system improvement works, which have resulted in unplanned extensions of the
distribution lines, overloading of the system elements like the transformers and conductors, and a
lack of adequate reactive power support.
The commercial losses (currently 3.5percent) are mainly due to inefficient meter reading and billing
systems, theft & pilferages. This may be eliminated by improving metering efficiency, proper energy
accounting & auditing and improved billing & collection efficiency. Improving the accountability of
the personnel / feeder in-charges may help considerably in the reduction of aggregated technical
and commercial losses.
The following table summarizes the amount of technical and commercial losses in the past five
years.
Table 7.10: Historical Loss in the Distribution Sector
Organization
Technical Loss
Commercial Loss
Total Loss
DESCO
8.86
0.00
8.86
DPDC
9.00
8.50
17.50
REB
9.00
5.40
14.40
BPDB
9.00
12.20
21.20
WZPDCO
9.00
2.50
11.50
National Standard Institute (ANSI) guidelines for purchasing all sorts of electrical equipment. All
distribution entities also look for ISO certified manufacturers.
235
A. 230/132 kv
B. 132/33 kv
The capacities of the transformers of a new sub-station are determined on the basis of forecasted
demand of electricity for the next 5 years of the area to be served by that substation. When
transformers of an existing substation are fully loaded, it is replaced by transformers of a higher
capacity. Transformers thus relieved are shifted to another sub-station where lower capacity
transformers are already overloaded or almost fully loaded.
236
Transformers are procured against new sub-station projects or via the upgrade of old sub-station
projects. These projects are done on a turnkey basis. Sometime transformers are also procured
separately if urgently needed for sub-stations which are in operation.
All procurements are done through International competitive bidding (ICB) following the Public
Procurement Act 2006 (with its amendments). In case of the foreign aid projects, donors guidelines
are also followed.
PGCB selects Turnkey contractors through International competitive bidding (ICB) for project work
/large supply and generally follows some technical and nontechnical conditions, which are included
in the tender document. A Turnkey contractor/ Bidder must fulfill the following conditions:
Only Tape changers manufactured by MR, Germany or ABB Sweden are accepted and it is specified
in tender document.
The prices of some of the HV Power Transformer purchased by PGCB against different
projects/supply through International Competitive Bidding (ICB) are given in the following table.
237
Name of
Project
Name of
Turnkey
contractor
Date of
contract
China National
Electric wire &
cable
corporation,
China
Lot-2 24
24.05.2009
ABB, INDIA
Lot-3
21.12.2009
ABB, INDIA
132/33 kV,
25/41 MVA
___
Euro 600,752
ABB, INDIA
Do
ABB, INDIA
132/33 kV,
66/100 MVA
___
Euro 675,055
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
3x75 MVA
Euro
2,513,292
Euro
2,602,937
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
150 MVA
Euro
1,431,284
Euro
1,482,336
Siddhirganj
Maniknaga
r 230 kV
Transmissi
on Line
Consortium of
GS ,Korea &
Crompton
Greaves, India
Siddhirganj
S/S
Crompton Greaves
,India
230/132 kV,
225/300
MVA
Siddhirganj
Maniknaga
r 230 kV
Transmissi
on Line
JV of Shandong
Wuzhou
Electrical co. ltd.
& Shandong
Takaoi Power Co
ltd.
Maniknagar
S/S
Supply of
Transforme
rs
Crompton
Greaves, India
Constructio
n&
Extension
of Grid
Substations
including
transmissio
n line
facilities
(Phase-1)
Name of
Manufacturer
Shandong Dachi,
China
Sept.,2010
Voltage
rating &
capacity
Unit Price
132/33 kV,
25/41 MVA
USD
869,910
USD
915,146*
132/33 kV,
50/75 MVA
USD
869,910
USD
915,146*
FOB
CIF
USD
1,403,500___
Shandong Takaoi
Power Co ltd.
Dec.,2010
230/132 kV,
225/300
MVA
USD
1,176,591
____
Crompton Greaves,
India
132/33kv
50/75MVA
____
USD
6,62,939-
Source: PGCB
*M/s China National Electric wire & cable corporation, China (CCC) quoted same price for
132/33kv, 25/41 & 132/33kv,50/75 Transformers.
It is observed that the price quoted by turnkey contractors for equipment/transformers for project
work are generally higher than the price quoted by contractors for supply of
equipment/transformers.
238
where competition is considered inappropriate. As all the products are procured through these
methods the price is market driven.
7.3.2.3 Substation automation and protection
Sub-station equipment automation is designed and provided by concerned manufacturers or
Turnkey contractors. For standardization of operating performance, facilities and spare
requirements, the main protective relays manufactured by ABB (Switzerland/Sweden), Siemens
(Germany), and Areva (France) are used in the transmission network. More detail will be given in the
final report.
7.3.2.4 EMS/DMS/GIS software
M/S Areva, France constructed the National Load DispatchCentre in Bangladesh. All the software
including the software for EMS is supplied by M/S Areva, France.
ABB, Sweden constructed Supervisory Control and Data Acquisition (SCADA) for DPDC with the help
of SPIDER SCADA Software.
7.3.2.5 Meters/AMI
PGCB always purchases 3 phase 4 wire programmable digital energy meters with class of accuracy
0.2 for the transmission sector particularly for inter organizational metering. PGCB prefers meters
manufactured by EDM Sweden, Landys Gear Germany, and CWE USA. Supply of energy meters are
generally finalized during pre-contract negotiation meetings.
DPDC has been recently purchasing 3 phase 4 wire programmable digital energy meter (AMI/ AMR)
with class of accuracy 0.2 for the HT (11 kV) consumer. Key suppliers of these meters are: Secure
Meters, India; L&T, India; EDMI, Singapore; Landis+Gear, Singapore; Shanghai Meter, China; Fae,
Brazil; Dengly, China
7.3.2.6 Communication
Till 2000 PDB/PGCB were using power line carriers for internal communication and load dispatching,
but from 2000., OPGW were installed along with all new transmission lines and ground wires of
almost all old transmission lines were replaced by OPGW. A communication system using OPGW was
introduced.
At the initial stage, communication equipment manufactured by ABB were used. These were used till
the NLDC was constructed by Areva, France. All equipments, software, hardware for NLDC were
from Areva including communication systems. Now, the Areva and the ABB equipments/ software
are in use in the transmission system but in the future, communication systems compatible with the
NLDC software and hardware will be used.
The distribution entities use the available communication systems of Transmission network. Other
than that, wireless communication (Motorola Equipment) and PSTN/ cell phones are also used.
7.3.2.7 UPS
NLDC uses UPS supplied by Areva, France. Important sub-stations are provided with emergency
diesel generator sets.
240
Turnkey Contractors
1.
2.
3.
4.
5.
Energypac, Bangladesh.
ABB Ltd., India
JV of Energypac, Bangladesh & ABB, India.
Basic Engg. Bangladesh
China National Electric wire & cable Import / Export
Corporation, China (CCC).
6. Siemens, India.
7. Consortium of Siemens, Germany, Siemens, India &
Siemens, Bangladesh
8. Consortium of Siemens, Germany & Siemens,
Bangladesh
9. HG Power, Malaysia.
10. Hyosung Corporation, Korea.
Although, there are no dominant player in Transmission line construction, M/S H.G. Power, Malaysia
won highest number contract .ide. Overall, it is observed that Indian companies dominate the list of
vendors. It needs to be mentioned that although M/S H.G. Power, Malaysia registered in Malaysia,
the company is in Indian ownership.
241
Indian & Chinese manufacturers dominate the list of manufactures of different equipment &
materials. This is due to fact that they are near to Bangladesh & prices are more compatible in
comparison to manufacturers of other countries particularly European countries. However, Circuit
Breakers manufactured by Areva Germany, Siemens Germany & ABB Sweden are also supplied.
Bibyana-Kaliakor 400 kV Transmission line and Kaliakor 400/230kV & 400/132 kV Substations are
financed by EDCF, Korea and being a tied loan the most of the equipment/materials to be supplied in
this projects are from Korea.
Before 2005, the situation was a bit different. At that time most of the manufacturers from India &
China didnt qualify to supply equipment & materials due to lack of operational experience
particularly in 230 kV system. However, with passage of time they gained the required operational
experience and became qualified to supply equipment/materials to Transmission sector.
The main protective relays manufactured only by ABB (Switzerland/Sweden), Siemens (Germany),
and Areva(France) are used in transmission network for better co-ordination and to facilitate
standardization of operating performance & spare requirements.
The following table lists major manufacturers of equipment, which were supplied by the Turnkey
Contractors of Substation:
Table 7.14: Manufacturers of Substation Equipment
Product Type
Products
Manufacturers
400/132 kV Transformers
230/132 kV Transformer
Transformers
132/33kv Transformer
Circuit Breaker
Instrument
Transformer (CT &
PT)
242
Product Type
Products
Manufacturers
i)ABB, Switzerland
ii) Areva T&D, France
iii) Siemens, Germany
Protective Relay
Equipment Type
Tower
Manufacturers
i) Steel Products, India
ii) KEC ,India
iii) Bosung, Korea
iv) Weifang Changian Steel Tower Stock co., Ltd. China
v) Confidence Steel, Bangladesh
vi) K2Engg., Korea ( Proposed )
vii) Samwoo , Korea ( Proposed )
i) Sterlite, India
ii) ZTT , China
iii) Hangzhou Conductor Co.Ltd.
iv) Apar, India
v) Taihan, Korea
TBA Cable Co Ltd.,China
i) Dalian, China
ii) NGK, Japan
iii )NGK, China
i) NKT, Germany
ii) Prysmian, Spain
iii) LS Cable, Korea
iv) ZTT, China
v) Taihan Cable
Conductor
Underground Cable
Insulator
OPGW
SI No
Name of Package
Name of
Contractor
Contract Price
Foreign (USD)
Contract
Price Local
(BDT)
Total Contract
Price (BDT)
Energypac
Engineering Ltd.
12,144,880.87
11,35,36,769
.50
95,63,91,501.88
243
SI No
Name of Package
Name of
Contractor
Contract Price
Foreign (USD)
Contract
Price Local
(BDT)
Total Contract
Price (BDT)
Consortium
of
Energypac
Engineering Ltd.,
Bangladesh and
ABB Ltd., India
1,715,282.10
1,59,91,020
13,50,31,597
4,920,404.64
39,991,986.6
0
38,14,68,068.88
Joint Venture of
Areva
Energietechnik
GmbH, Germany
and
Energypac
Engineering Ltd.,
Bangladesh
9,391,215.55
14,35,70,418
.75
79,53,20,778.60
The list of major manufacturers of distribution breakers and transformers is given in the Table 7.16.
CGL, India is the manufacturer of all types of breakers and power transformers of DPDC projects. 132
kV breakers are also manufactured by Pinggago, China; Siemens, Germany and ABB, Germany. Most
of the 33kV and 11 kV breakers are manufactured by CGL, India; Siemens, India; ABB, India; Areva,
Germany; TBEA, China and TAMCO, Malaysia. Local companies (Energypac, Powerman, Betelco etc.)
11 kV breakers are also procured. Power Transformers (132/33 kV and 33/11 kV) are mostly
manufactured by TBEA, China; CGL, India; Hocker Sidley, UK and BHEL, India. Only one local company
i.e. Energypacs 33/11 kV transformers are found in the DPDC projects. Again, all the distribution
transformers (11/.4 kV) are procured from local manufacturers.
Table 7.17: Manufacturer of the different components of the DPDC Substations
Item
Manufacturer
132 KV Breaker
33 KV Breaker
11 KV Breaker
CGL, India; Siemens, India; ABB, India; Areva, India; TBEA, China;
TAMCO, Malaysia; Energypac, Bangladesh; Powerman,
244
Item
Manufacturer
Bangladesh; BETELCO, Bangladesh;
TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India; Energypac,
Bangladesh; ABB, India
The detailed lists of Last five years procurements by DESCO are given in the Appendix 7C. 33 kV GIS
breakers are mainly manufactured by Areva, Germany. Other 33 kV breakers are from Compton
Greaves, India; Areva, India and Energypac, Bangladesh. Again, 11 kV breakers are mainly
manufactured by Tampco, India; Areva, India and Siemens, India. Compton Greaves, India is the major
manufacturer of most of the transformers of different types. Recently, DESCO procured some 25 kVA
Single Phase transformer from GE, Bangladesh also. In case of metering equipment, most of them are
either Chinese or Indian products. Secure, India is a major manufacturer for most of the 11 kV
metering equipment. The following table gives the list of major equipment manufacturers for DESCO
projects:
Table 7.18: Manufacturer of the different components of the DESCO projects
Item
Manufacturer
33 kV GIS Breaker
Areva, Germany
33 KV RTC Panel/OLTC
11 kV Breaker
Secure, India
Source: Keystone Study
245
The detailed lists of Last five years procurements by BPDB in various distribution projects are given
in the Appendix 7D. Most of the equipments including the distribution transformers (100 kVA and
250 kVA) are procured locally. In some projects a few Indian and Chinese equipments are procured.
For instance, South China Electric Dev. Co Ltd, China was the manufacturer of the 100 kVA and 250
kVA distribution transformers of the Central Zone Power Distribution Project of BPDB.
In most of the REB projects of last five years, different equipments are locally procured and most of
the manufacturers are local companies. There is no major procurement of WZPDC in this period.
7.4
246
7.4.2 Distribution expansion planned to get all of the power generation to consumers
At present the distribution utilities have a total distribution line of 278,000 KM serving over 12
million customers. They suffer a system loss of 12.75percent. To reduce the system loss and to
expand and improve the distribution network BPDB, REB, DPDC, DESCO and WZPDC have several
currently ongoing projects.
BPDB currently has six projects with completion dates within 2013-14 for the construction of
distribution lines, substations and renovation works at Mymensingh, Chittagong, Comilla, Sylhet,
Rangpur and Rajshahi. The total cost of these six projects is approximately USD 535 million.
Table 7.19: Upcoming Projects of BPDB
Sl
No
Completi
on Date
Project
Cost (Tk
Crore)
01
2013-14
637.00
02
2013-14
1088.00
03
Power Distribution
project, Cumilla Zone
Development
2013-14
756.00
04
Power Distribution
project, Sylhet Zone
Development
2013-14
410.00
05
Power Distribution
project, Rangpur Zone
Development
2013-14
710.00
06
Power Distribution
project, Rajshahi Zone
Development
2013-14
693.00
Source: BPDB
Under REB, there are another six projects which are to be completed within 2012-13. These projects
will connect one million new consumers in the rural areas with the distribution network through the
construction of 14500 KM of new distribution lines in the Dhaka, Chittagong, Sylhet, Khulna, Barisal
and Rajshahi division. These will cost approximately USD 4.75 billion.
Table 7.20: Upcoming Projects of REB
Sl
No
Completi
on Date
Project
Cost (Tk
Crore)
01
2012-13
34800.00
02
2012-13
1322.00
247
Sl
No
(Rajshahi, Rangpur,
Barishal area)
Khulna
Completi
on Date
Project
Cost (Tk
Crore)
and
03
2012-13
498.00
04
2012-13
498.00
05
2012-13
407.00
06
2012-13
268.00
Source: REB
Year wise detailed procurement plan for REB is given in the Appendix 7E.
DPDC has at least 20 projects including both short-term and long-term ones with several objectives.
Through these projects, DPDC will increase substation capacity, build new substations, ensure
quality power supply, rectify system loss and provide better service to a wide range of customers.
The estimated total cost to implement these projects is USD 580 million. The upcoming project list is
shown in the Appendix 7F.
The detail procurement plans for different projects are shown in the Appendix: 7G.
To extend the distribution network in Dhaka and to serve electricity to at least 600,000 new
customers DESCO has seven planned projects that are currently in operation. These projects will
upgrade their existing mechanisms, strengthen distribution lines, electrify some new areas in Uttara,
and install new prepaid meters all around Dhaka and install SCADA systems. Three of the projects
have already started. Their combined cost is approximately 330 million. The following table lists all
the upcoming projects up to 2015 and their respective procurements.
Table 7.21: Upcoming Projects of DESCO
Sl
No
Compl
etion
Date
Project
Cost (Tk
Crore)
Procurements
201112
486.00
DESCO
01
248
Sl
No
Compl
etion
Date
Project
Cost (Tk
Crore)
02
201112
595.00
03
20112014
177.00
04
Replacement of existing 11 KV
overhead line by underground
cable in 04 routes
Electrification of Uttara 3rd Phase
& Purbachal Model Town
20112014
180.00
June
2015
1000.00
06
110.00
07
20112014
June
2015
05
100.00
Procurements
Source: DESCO
According to the three years development plan of DESCO the total year-wise procurement of
different equipments is given below:
Sl
Particulars
2011-12
2012-13
2013-14
25
30
27
250
300
270
10
249
Sl
Particulars
2011-12
2012-13
2013-14
400
490
327
29
34
35
20000
80000
100220
Source: DESCO
WZPDC has one project on the cards to extend the distribution system and substations in 21 districts
within 2012-13 that will cost approximately USD 57.2 million. In this period there is also plan for
prepaid metering system expansion, solar energy projects, SCADA system and Video conferencing
system.
Table 7.23: Upcoming Projects of WZPDC
Sl
No
Completi
on Date
Project
Cost (Tk
Crore)
01
21 district
project
2012-13
469.00
Extension of distribution
substation
02
2012-13
88.55
03
Solar Energy
2012-13
1.00
04
SCADA System
2012-13
1.08
05
2012-13
0.20
electricity
distribution
Total Cost
systems and
559.81
Source: WZPDC
The detailed equipment procurement plan of WZPDC for these projects is given below.
Table 7.24: Procurement & Installation Item from 2011 to 2013 of WZPDCL
Sl No.
Item Description
Quantity
01
5 MVA X-former
20 Nos.
02
14 Nos.
03
211 KM
04
2460 KM
250
Sl No.
Item Description
Quantity
05
1100 Nos.
06
1-Phase Meter
105000 Nos.
07
3-Phase Meter
10,000 Nos.
08
Solar Energy
20KW
09
SCADA System
12 nos.
10
L/S
Source: WZPDC
Further procurement plan for projects like system efficiency improvement, pre-paid e-metering
system and SCADA System is also given in the following Table 7.25.
Table 7.25: Procurement & Installation Item from 2014 to 2017 of WZPDCL
Sl No.
01
Item Description
Quantity
5 MVA X-former
18 Nos.
02
18 Nos.
03
215 KM
04
2500 KM
05
1700 Nos.
06
1-Phase Meter
140000 Nos.
07
3-Phase Meter
14,000 Nos.
08
SCADA System
36 nos.
Total Cost
585.0
118.58
3.24
706.82
Source: WZPDC
251
7.4.7 Use of billing and CIS Software along with Meter Data Management (MDM) Software
All distribution utilities of Bangladesh DESCO, DPDC, REB and BPDB are using billing software and
Meter Data Management Software.
252
The ongoing projects of PGCB are being financed by the ADB, the JICA, the KFW and the EDCF
(Korea). The Bibiyana-Comilla (N) 230 kV transmission line project is being financed by the GoB &
PGCB itself. Negotiations are currently taking place a foreign commercial bank (Local Branch) for
financing the foreign currency portion of the Barisal-Bhola-Burhanuddin 230 kV Transmission Line
project. The local currency portion of all the above projects is being financed by the GoB.
For financing future projects, discussions are going on with the ADB, World Bank and the JICA
through the Extended Resources Division of the GoB for financing some of the above-mentioned
projects. Moreover, the donor agencies have shown interest in financing these projects. One or two
small projects may be funded by the PGCB itself. There is a possibility of financing via suppliers
credit though recent experiences in this regard have not been encouraging. Financing projects by
taking loans from commercial Bank is also an option but it is difficult to get long term loans from
commercial banks. Lately, the Government of Bangladesh has been trying to promote Public-Private
Partnerships (PPP). However, no policy has yet been formed. In future, PPPs may play an important
role in financing the transmission sector. However, this will largely depend on the tariff structures of
the country.
As per present planning, a total of USD 552.92m and USD 946m in local and foreign currency will be
required to implement the upcoming next five years projects.
7.5.3 Grid connection with neighboring countries and amount of imports planned
The first Electrical Inter Connection between Bangladesh and India is under construction. This Inter
connection consists of a 85km (30 km In Bangladesh part & 53km in Indian part) Bahrampur (India)
to Bheramara (Bangladesh) 400kV double circuit Transmission line, one 400kV switching station at
Bahrampur and one 500MW HVDC back to back 400/230kV sub-stations at Bheramara. The
switching station at Bahrampur and the 53km Transmission line in the Indian part is being
constructed by Power Grid Corporation of India (PGCI), whereas 500MW HVDC back to back
400/230kV sub-stations at Bheramara and 30km transmission line in Bangladesh part is being
constructed by Power Grid Company of Bangladesh (PGCB). When completed it is expected that
Bangladesh will initially import about 250MW of power from India.
There is also a plan for constructing a 13km 230kV double ckt. transmission line between Comilla
North switching station in Bangladesh and Palatana in Tripura, India. However this has not been
finalized with India yet. The main objective of this project is to import power from the Combined
Cycle Power Station being built at Palatana, Tripura, India.
In addition PGCB also prepared proposals for constructing the following 3 radial lines.
253
1. Bongaon (India) - Jessore (Bangladesh) 132 kV 50km (10 km in India & 40 km in Bangladesh)
Transmission line.
2. Krishnanagar (India) - Chuadanga (Bangladesh) 132 kV 46km (24 km in India & 22 km in
Bangladesh) Transmission line.
3. Dalkhola (India) - Thakurgaon (Bangladesh) 132 kV 46km (24 km in India & 22 km in Bangladesh)
Transmission line.
Proposals of above 3 lines are yet to be discussed with India. It is likely that India will want back to
back HVDC connection to prevent disturbance in one side affecting other side and also to have
control over the power flow. On the other hand Bangladesh will want AC connection for transferring
of small amount of power. The cost also does not justify construction of back to back HVDC
connection.
The Power System Master Plan (PSMP) also envisages following Interconnections.
1. Myanmar- Bangladesh Transmission line.
Anowara, Chittagong is the likely to be the location for substation in Bangladesh side. This line is
proposed to be built by 2020 and will allow transfer of 500 MW.
2. Shilchar (India) Fenchuganj (Bangladesh) Transmission line.
This line is proposed to be built by 2025 and will allow transfer of 750 MW.
3. Kishanganj (India) Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Nepal and proposed to be built by 2025.
4. Alipurdua (India) Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Bhutan and proposed to be built by 2025.
However no plan has been done yet regarding these transmission lines.
Sl. NO.
Capacity
20 MW
Type of Project
Wind Power
[Pilot Basis]
254
8500
7500
6500
5500
4500
3500
2500
1500
1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- Upto
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
Dec
2011
29
175
In line with the increase in generation capacity, average daily electricity generation has increased
steadily from 25.26 M kWh in FY1994-1995 to 72.26 M kWh in 2009-2010 as shown in Figure 4.2.
This represents a CAGR of 7.70 percent over the period.
Figure 4.2: Average of Daily Electricity Generation 1994-2010 (in M kWh)
80
60
40
20
0
As of June 2011, household electrification rate increased to 50 percent of the total population
compared to 47 percent in April 2010. Considering the captive generation as well per capita
consumption of electricity grew by 7.2 percent during this period and now the consumption stands
at 252 kWh per capita. Electricity generation in Bangladesh is overwhelmingly gas based. More than
82 percent of evening peak electricity is generated by using natural gas (Figure 4.4). This is followed
by liquid fuel and coal with generation shares of 12.61 percent and 2.49 percent respectively. Hydro
accounts for 2.78 percent of generation. Compared to previous years (2010) power generation mix,
contribution of natural gas decreased by approximately 8 percent and contribution of liquid fuel
increased by 152 percent in the mix of total generation of electricity. Around 1,169.88 M kWh of
electricity generated in 2010 was attributed to coal whereas in 2011, only 780.74 M kWh of
electricity was generated from coal based power plants.
Figure 4.3: Energy Generation (FY 2010): 29,247 M kWh
Liquid
Fuel
5.00%
Coal
4.00%
Hydro
2.00%
Natural
Gas
89.00%
Natural
Gas
82.12%
Coal
2.49% Liquid
Fuel
12.61%
Hydro
2.78%
Source: Powercell
176
Public and private sectors equally share the power generation sector of Bangladesh. 51 percent of
Bangladeshs total power plants are owned by the state. The Government, in face of the countrys
current power crisis envisions electricity for all by 2021 while ensuring a reliable supply at affordable
prices. The target has been particularly set in line with the United Nations Millennium Development
Goals (MDG) for economic development and poverty alleviation. Empirical data on electricity
generation and GDP growth reveals a correlation of 1.5 to exist between the two variables. Thus, an
increase in GDP by 7 percent requires power generation to increase by 10.5 percent. According to
the governments Election Manifesto, power generation targets include 5,000 MW by 2011, 7,000
MW by 2013 and 20,000 MW by the year 2021. Maximum power generation stood at 5244 MW in
2011. The government of Bangladesh claims to progress according to its plan and projects the
possibility of generating 7,000 MW and 8,000 MW by years 2013 and 2015 respectively.
16,000
14,000
12,000
MW
10,000
8,000
6,000
4,000
2,000
0
2011
2012
2013
2014
2015
2016
6,765
7,518
8,349
9,268
10,283
11,405
5091
6348
9192
10287
11811
13629
As the country suffers a shortage of dependable electricity generation, the ongoing power system
development programs emphasize capacity addition. However, the implementation trends do not
177
provide a promising picture of this development program. In order to meet the demand on shortterm basis, a number of plants on the quick rental basis have been contracted and commissioned.
The share of the quick rental in the added capacity was 32.3 percent in 2010 and in the next year the
projected contribution by these plants was 67.9 percent. Such a high dependence on quick rental
power plants does not provide the assurance that the power supply scenario is becoming more
reliable and stronger any time soon. Nevertheless, the governments projection of the demandsupply trend of the power sector draws an optimistic picture that includes having surplus generation
capacity from the year 2013 onwards.
178
For power system development analysis, Bangladesh is divided into five geographical regions: the
Central, Northern, Southern, Western and greater Dhaka regions as shown in figure 4.6
Figure 4.6: Geographical Segmentation in Power System Development Program
The load distribution factor for a region is that regions percentage of total national demand. Table
4A.2 in Appendix 4A presents estimated electricity demand for each area for the Base Case of the
Power Sector Master Plan 2006.
The regional substation load based on the results of the Power System Master Plan -2010 is shown in
the figure 4.7 below. The substation load of Dhaka region is approximately 40 percent, which is the
highest. In addition, the substation load of the east region is approximately 70 percent. If the
amount of the power generation is equally located in both the east and west, the power flow from
the west to the east will be approximately 20 percent. As the Jamuna River divides the country into
eastern and western zones, a huge amount of investment will be required to construct the rivercrossing transmission line. Therefore, it is important that the power development plan be consistent
with the regional load balance.
179
Anticipated completion of the new power generation projects up to 2016 are illustrated in Table 4.1.
180
2010
2011
(MW)
(MW)
2012 (MW)
2013 (MW)
2014
(MW)
2015 (MW)
2016 (MW)
TOTAL
(MW)
Commissioned
Public
255
1107
582
1040
1270
450
1500
6204
Private
270
105
1319
1134
1053
1900
1300
7081
Quick Rental
250
1238
Total
775
2450
1488
1901
2174
2323
2350
2800
14,773
Indigenous natural gas, coal, LPG, LNG, nuclear, cross-border trade and hydro resources are mainly
considered as fuel for the additional generation plan. Other factors such as availability of fuel,
cooling water, transportation of heavy equipment, proximately to grid network and load center etc.
are also considered for plant placement. The generation plan up to 2030 segmented by fuel type is
illustrated by the following figure:
Figure 4.8: Power Generation Plan till 2030 by Fuel Type
The plan heavily relies on coal based power generation in the future, while the contribution of the
gas based plants are expected to decline over time. Both domestic and imported coal resources are
given equal priority in the generation plan. However, the prime minister of Bangladesh has recently
declared its intention to conserve domestic coal for future generation and meet present demand
through imports. Moreover twelve noted citizens protested the proposal of a coal-fired power
project near the Sundarbans. They expressed their worries over a move to sign an agreement with
the NTPC of India for setting up the proposed 1,300-megawatt plant at Rampal upazila in Bagerhat.
The other fuel types and cross-border power trade will be undertaken as acting in a supporting role
in meeting the national demand.
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The year wise detailed power development plan according to the PSMP 2010 is given in table 4B.1 in
Appendix 4B. The name of each power plan indicates the region where it is planned to be
commissioned.
4.2.2.1 Region wise supply (existing and planned)
Summary of BPDBs supply forecast up to 2016 is given in the table below. According to the plan,
Khulna zone in the western grid will have greatest addition of up to 2,743 MW of installed capacity
while no capacity addition will be made in the Rajshahi zone in the coming 4 years. A detail list of
existing and planned power plants divided into different regions is provided in Appendix 4B table
4B.2 and 4B.3.
Table 4.2: Summary of Existing and Planned Power Supply (Regional Breakdown)
Eastern Grid
Western Grid
Existing
Dhaka
Chittagong
Comilla
Mymens
ingh
Sylhet
Khulna
Barisal
Rajshahi
Rangpur
Installed
Capacity
(MW)
3333
937
1167
232
571
959
78.5
483
340
Derated
Capacity
(MW)
3164
887
1054
197
563
864
68
463
306
2743
450
Planned
Installed
Capacity
(MW)
1853
1246
265.5
145
1524
1052
182
To set the long-term power source configuration driving the peak and base load power plants,
screening analysis for the power system is done analytically. The screening analysis consists of a
combination of the fuel/cost graph and the electric power demand duration curve. It shows what
demand uses which power supply, i.e., economically optimal combination of power supplies. The gas
price in Bangladesh is much lower than the international price. If fuel prices are assumed to increase
because of tight demand of the primary energy, the optimal power supply configuration ratio would
be- oil 10 percent, gas 20 percent, and coal 70 percent.
To estimate the mix of power plant, it is necessary to find out the actual peak demand and base load
demand. In Bangladesh, the power supply has constantly remained strained in peak hours. Potential
demands have not been met, and rotational outage has frequently occurred.
Table 4.3 depicts the characteristics of base-middle-peak generation.
183
Base
Hydro
Economic
Condition
Operational
Condition
Fixed
Middle
Nuclear
Coal
Gas/LNG
High
Variable
Start up
duration
Fast
Slow
Load
Control
Peak
Hydro(Pumped
Storage
Oil
Hydro(Dam/pndage)
Low
Low
Middle
Middle
Slow
Middle
High
High
Fast
Fast
The following figures (4.11 and 4.12) illustrates power development plan by BPDB up to 2010 for
Base load generation by fuel type for base scenario.
Figure 4.11: Power Development Plan by FY 2030 (MW)
184
2012
2013
2014
2015
2016
Peaking Plants
Large Plants
Combined Cycle PP
No. of Plants
11
Capacity (MW)
1287
295
163
44%
16%
4%
No. of Plants
15
Capacity (MW)
3027
199
1726
91%
6%
52%
No. of Plants
16
15
Capacity (MW)
3054
2463
93%
0%
75%
No. of Plants
Capacity (MW)
2032
1410
93%
0%
65%
No. of Plants
Capacity (MW)
2350
750
100%
0%
32%
185
Source: BPDB
26%
FO
48%
Gas
HSD
26%
186
187
Since January 2009, there has been an increase of 2,900 MW in power. However, net gain in power
is only about 1,500 MW due to the lack of maintenance and old age of already existing plants. About
1,088 MW out of the 1,944 MW created by the GoB has come from the use of untendered rental
power plants. The rental power plants run on expensive imported fuel oil either furnace oil or
diesel. The government buys 2 million tones more than it had to, three years back. Moreover, the
power produced by these plants is more than six times the cost of power from the standard gas-fired
power stations which have in the past produced most of the countrys power.
Within a year, till August 2011, BPDB has more than doubled the amount of energy it buys from
rental plants which produce electricity at USD .1630 a kilowatt-hour (unit) which is over six times
what the public sector plants sell power for, USD .024 a unit. At the same time, there has been a 25
percent decrease in the level of low-cost power generated in the public sector plants. Consequently,
according to the BERC, the power board will spend more than double the amount of money on a
unit of power in February than it did when the government first assumed office USD .065
compared with USD 0.029. In order to deal with these significantly higher costs, the government
increased the retail prices of both fuel oil and power. The price of power was increased by
approximately 25.5 percent whilst the cost of diesel and kerosene went up by 39 percent,
compressed natural gas by 79 percent and furnace oil by 131 percent.
Economists of the country say that the increase in fuel oil and power prices has contributed to the
surge in inflation which has risen from 7.5 per cent in November 2010 to 11.6 per cent in November
2011. They accuse the government of failing to consider the consequences of this policy on an
economy which already had a large budget deficit and claim that it will take a long time for the
economy to recover. The economy is trapped in a cycle where inflation is increasing whilst at the
same time local businesses are not able to invest as banks have lent significantly to the government.
The government has exhausted its borrowing limit, around USD 2.26 billion, for the financial year
201112 from the banking channels and thus created a liquidity crisis for the entrepreneurs. Few
steps have been taken thus far by the power board to decrease the use of its low-cost power
generating plants through renovation of its old plants to replace the use of expensive rental plants.
The power board is yet to formulate a guideline for the release and use of the Power Maintenance
and Development Fund which was created with some of the additional money it collected from an
increase in power prices in February 2011.
The rental power plants together have emerged as a serious challenge for the government. The GoB
is left with no option other than spending a substantial amount from its reserve to run the rental
plants, which has again come under strain of late because of the less-than-expected inflow of foreign
assistance and remittance income, on the import of additional quantity of diesel and furnace oil.
Apart from the foreign exchange expenditure, what is worrying the government more is the subsidy
that it would have to provide on account of the supply of fuel to the rental power plants and the
gross mismatch between power procurement and selling tariffs. There are confusions about the
subsidy estimates since varying disclosures are made from to time by men in-charge of the ministry
and agencies concerned. However, according to the latest estimates, if selling tariffs remains
30
188
unchanged both in the case of petroleum products and power, the government would have to
provide subsidies worth USD 2.8 billion - USD 1.7 billion on oil marketing by the Bangladesh
Petroleum Corporation (BPC) and USD 1.1 billion on power purchase, mainly from rental power
plants, by the Power Development Board (PDB) in the current fiscal. If the 'subsidy' estimates are
right, the government will have difficulty in meeting those, particularly when the allocation against
all types of subsidies in the national budget for this fiscal is little over USD 1.1 billion. In such a
situation, the government will take recourse to what most governments do; it would borrow from
banks in excess of the amount projected in the budget, thus, adding more fuel to an already high
inflationary pressure (point-to-point inflation, according to the Bangladesh Bureau of Statistics, was
12 per cent in last September).
189
The capacity of a conventional facility using steam turbines (ST) ranges from 55 MW to 210 MW. For
adopted steam conditions, the pressure is 13 MPa for a 210 MW unit (maximum capacity) and 9.0
MPa for a re-heat type with a temperature of 540 C and non-re-heat type with a temperature of
535 C. The design performance (thermal efficiency) of such a facility is approximately 30 percent;
lower than that of a coal thermal power generation plant. The oldest facility was produced in 1974.
Almost all gas turbine facilities (GT) are old, small-capacity, and with low thermal efficiency except
for the recently installed large-capacity plants in Tongi and Baghabari. Manufacturers supplying the
facilities include GE (USA), ALSTOM (France), Mitsubishi (Japan), and Hitachi (Japan).
Figure 4.14 illustrates the current state efficiency of each gas-fired power generation facility.
Figure 4.14: Actual Efficiency of Gas fired Power Plant
190
Lack of inspection funds and regular maintenance leads to break down maintenance and lower
efficiency. Moreover, the reduced efficiency of the steam turbine facilities was caused by steam
leakage from turbine, absence of a high-pressure heater, difficulty to maintain a vacuum in the
condenser, and leakage from thin pipes in the condenser. Some gas turbines reduced in efficiency
with age. To improve the efficiency BPDB prepares retirement plans for the existing power
generation plants. Higher efficiency may be achieved through re-powering of the existing power
stations, construction of higher efficient gas combined power stations and allocation of gas to more
efficient power stations. The retirement plan by BPDB for the gas fired facilities is given in Appendix
4D.
Open tendering
Limited tendering
Direct procurement
to the 33kV distribution line of selected Palli Bidyut Samity (PBS) of the Rural Electrification
Board (REB). Unless a cost-based or economic tariff structure is operational in the country, a
Power Exchange or open market system or other improved methods for trading electricity is
not likely to be introduced in Bangladesh anytime soon. As such, the buyer-seller dynamics is
expected to remain the same.
Customers for GE would comprise of power generation companies that have been awarded or
will be awarded contracts to set up power projects in the future. Both private and public
sectors actively participate in the power generation scenario of Bangladesh. The Public
Private ratios for the current and for the next four years are summarized in table 4.1. As of
2010, the public private ratio in terms of capacity installed stood at 13:9. From the above table, it is
apparent that, the public private ratio for new projects commissioned up to 2016 stands at 7:8. This
indicates an increase in private sector involvement in the power generation sector. Customers in the
future can thus be expected to largely comprise of private power generation companies.
4.3.1.1 Vendors awarded contracts for power generation services for the past 5 years
The list of vendors and Machine OEMs that were awarded to set up Power Plants in the last 5 years
are given in Appendix 4F.
4.3.1.2 Key buying criteria for customers
Tariff for electricity is determined by the Government or the single buyer through the Bangladesh
Energy Regulatory Commission (BERC). Customers are bound to procure electricity at the fixed rate.
Grid electricity, being cheaper, is preferred by retail customers as alternative sources usually cost
more.
Suppliers of equipment for both Public projects and IPPS are more or less chosen by a competitive
bidding process. Suppliers are initially shortlisted given they meet all technical standards. The bidder
offering the most competitive price i.e. the bidder offering the lowest tariff is finally awarded the
contract.
4.3.2 Vendors awarded contracts for power generation services for the past 5 years.
Vendors awarded contracts for different power generation services are provided in Appendix 4 E.
Names of equipment/spare parts/ services and corresponding manufacturers, local agents and
contract winning companies are enlisted according to capacity and type of power plants.
192
One of the reasons why majority of the plants today are incapable of reaching designated
performance levels of capacity and efficiency is restorative nature of maintenance activities instead
of preventive. As such, most repairs take place after something breaks down. Meeting the stable
power demand would require a transition to the concept of take care before break down in place
of the current repair after break down philosophy. In other words, proceed with regular
inspections regardless of whether something is broken or not such as Time Based Maintenance
(TBM) or heeding equipment predictors during monitoring (Condition Based Maintenance (CBM).
The National Energy Policy (1995) addresses both energy conservation and environmental issues.
The policy suggests utilization of energy for sustainable economic growth, development of the
indigenous energy sources and assurance of environmentally sound and sustainable energy
development programs causing minimum damage to the environment.
The Environment Policy and the Energy Policy have seven recommendations; of which the following
three are relevant to the power plants.
a. Environmental Impact Assessment should be made mandatory and should constitute an
integral part of any new energy development project.
b. Use of economically viable environment friendly technology is to be promoted.
c. Popular awareness to be promoted regarding environmental conservation.
National land Use Policy 2001
According to the national Land use Policy, 2001, the following objectives could be relevant to power
plants.
Prevention of the current tendency of gradual and consistent decrease of cultivable land for
the production of food to meet the demand of expanding population;
Ensuring usage of land in harmony with natural environment;
Usage of land resources in the best possible way
Protection of natural forest areas, prevention of river erosion and destruction of hills;
Prevention of land pollution; and
Ensuring minimal use of land for construction of both government and non-government
buildings.
198
amount is BDT = 100,000). The DOE authority reserves the right to request additional information,
supporting documents, or other additional materials for the proposed project.
The ECR (1997) focuses on the classification of industries into three main categories i.e. Green,
Amber and Red; based on their pollution potential. Red listed industries are those that can cause
'significant adverse' environmental impacts and are, therefore, required to submit both Initial
Environmental Examination (IEE) and an EIA report. These industrial projects may obtain an initial
Site Clearance on the basis of an IEE based on the DoEs prescribed format, and subsequently submit
an EIA report for obtaining Environmental Clearance.
Power Plant projects fall under the Red category according to ECR97, and would therefore
require, among others, an EIA for obtaining Environmental Clearance from the DoE. This involves
three steps. First, obtaining site clearance to permit pre-construction and construction activities;
second, obtaining approval of the EIA study and third, obtaining Environmental Clearance. This
permit is required before the power station can be operated.
Refer to the Environmental Regulation for Existing Plants and Current emission Levels section
under the power generation sector study for policies around particulate and gaseous emissions
levels.
199
D-Coal
I-Coal
Gas
FO
HSD
Others
D-Coal
I-Coal
Gas
FO
HSD
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[1,000t/y]
[1,000t/y]
[mmcfd]
[1,000t/y]
[1,000t/y]
792
882
405
35,474
659
28,885
3,948
1,564
416
239
About 82.12 percent of the annual power is currently being generated from indigenous natural gas
reserves. The gas demand ratio of the power sector (grid Power and captive power) to all sectors
used to be around 45 percent, but the consumption pattern started declining from the 2007. The
trend of the Gas Demand Ratio is shown below:
Table 4.19: Gas Demand Ratio of the Power Sector for All Sectors
The following figure shows the month-wise availability of gas in the power sector for the years 2009,
2010 and 2011 (up to July). It is clear from the trend that the supply of gas was reduced in the latest
years even during the peak season. Due to this gas supply shortfall a number of plants could not
operate at their usual capacity. This causes an average generation loss of around 500-800 MW
currently.
200
Figure 4.16: Month-wise Average Gas Availability for Power Generation in MMCFD
850
800
750
700
650
600
550
500
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Production loss due to the gas shortage and low gas pressure reached 792 MW as on November 1,
2011 (Appendix 4 I, Table 4I.1). Two of the plants had to be kept inactive and the Haripur NEPC GT
110 MW plant had to be converted to a liquid fuel based plant because of the lack of adequate gas
supplies. It should also be noted that the Shikalbaha Peaking GT was in partial operation only
because Chittagong ST Unit 2,180 MW was under maintenance. Otherwise this plant would have had
to be shut down as well.
New gas based plants are planned where gas is available (Sylhet, Bhola).
At least 50 percent allocation of total produced gas is planned for power generation.
201
gas pipeline project which will bring benefits to the gas consumer of Demra, Siddhirgonj and
Narayangonj areas. TGDTCL has given work order but there is case in the court against this
work order, for which contractor could not start the work. They expected the contractor will
start work very soon and the project will be completed by June, 2012. After completion this
pipeline gas flow & pressure will be increased in some extent in Siddhirgonj RMS which can
be used to operate gas based power plants in this area.
CHEVRON Bangladesh has started installation of Gas Booster Compressor at Muchai near
Rashidpur gas field and installation and commissioning work will be completed by
September, 2012. The inlet and outlet pressure of the compressor is 1000 ps (g) and 1300
psi (g) respectively. Gas pressure at the subsequent area will be improved.
GTCL has also taken up a project to install the Gas Booster Compressor at Ashuganj (AGMS).
Tender evaluation has been completed and they expected to give work order in the month
of May, 2011 and probable date of completion by end of 2012. This will also help to increase
gas flow and pressure in Dhaka area.
CHEVRON Bangladesh has started exploration of gas in Moulovibazar and they have a plane
to supply additional 900-1000 MMSCFD gas from Bibyana and Jalalabad gas field by 2013.
4.5.5 Scope for bundled sales and sales dependent financing of equipment
Equipment sales are usually not a package for procurement. Power generation projects are
procured on an Engineering Procurement and Construction (EPC) basis. The vendor bidding for the
project will be responsible for Engineering, Procurement and Construction of the project as a
whole.
Normally the turn-key EPC contractors are awarded a certain power project with the condition that
the turn-key contractor will supply goods from reputed companies like, ABB, Alsthom, GE or
202