POWER & ENERGY POLICY SHAMRIDHA BANGLADESH ---------------------------------- Production and use of power & energy is directly proportional to the economic growth of a nation. Once upon a time the natural gas (CH4) was the single largest source of power & energy in this country. Present proven reserve dose not exceed 10 (ten) trillion cubic feet (TCF) which is insufficient to service this nation with 170 (one hundred seventy) million population for more than 14 (fourteen) years. At present ± 2,000 (two thousand) million cubic feet gas is being supplied by our pipe lines: unable to meet the existing demand. In order to meet existing demand we require importing "LNG". It requires building offshore and on shore terminals including high pressure pipe lines: to import & gasify "LNG". Fertilizer factories, power plants and CNG stations can use "LNG" successfully. This business is capital intensive. Therefore, require private investment. Government must come out of its traditional “TENDER" practice to obtain this energy infrastructure immediately: through private investment. "LNG" is pure liquid from of natural gas with some added heat value. The best utilization of natural gas is: (a) Production of fertilizers {(± 20% gas) + (±80% water and ambient air)} (b) Household "covered burner’s" ± 50% heat efficiency (c) Industrial burners ± 40% heat efficiency (d) Combined cycle power plants ± 43% heat efficiency (e) Combined cycle Co-Generation power plants ±56% heat efficiency. (f) Production of "CNG": to use in automobile as fuel for complete combustion with appropriate quality "CNG" kits. At present largest quantity of natural gas is being used in the simple cycle, age old power plants: where real heat efficiency may be calculated @ less than 30% (thirty percent). Since, existing gas production fields shall be depleted within next 14 (fourteen) years. Therefore, we should develop 2 (two) sets of LNG Terminals: one set in the Eastern shore of the Bay and another set in the Southern offshore of the Bay: both sets shall be capable to handle 2,000 million cubic feet gas per day. Government should provide all support and incentives to all interested LNG terminal builders and operator. Authorities must allow them to design and build terminals and gas grid as per their marketing plan. A private "LNG Terminal" and gas transmission & distribution grid building proposal for the southern Bangladesh is waiting for Government cooperation and licensing since last 3 (three) years: will be welcome. Existing demand for gas is more than 3,000 (three thousand) million cubic feet per day, which shall be double within 2025 years: with expected 7% (seven) economic growth rate including massive industrialization within the same period. Considering the present rate of growth of population: this country shall be inhabited by 220 (two hundred twenty) million people by the year 2025. With increasing consumer capability and massive industrialization: per capita consumption of electricity shall reach 200 (two hundred) watt/hour. Therefore, net consumption shall be 44,000 (forty four thousand) MWH. Considering 85% (eighty five present) power plant capacity factor and 90% efficiency: net new capacity building shall be 50,000 (fifty thousand) MWH deducting existing capacity of 7,500 (seven thousand five hundred) M.W.H. Out of 7,500 M.W.H. existing capacity: 3,500 (three thousand five hundred) MWH liquid fuel based rental power plants should be replaced by 2,000 (two thousand) M.W.H. Nuclear power (new build) and 1,500 (one thousand five hundred) M.W.H. by BMRE of existing gas power plants: converted in to combined cycle power plants and installation of some new pick power plants at existing sites. Since the government is not at all a business organization: therefore it can at best take burden of building 10% (ten present) of new capacity, which is equal to 5,000 (five thousand) M.W.H. Therefore, we are to fully open this energy sector for private investment: to build new capacity of 45,000 (forty five thousand) M.W.H. In all 20,000 (twenty thousand) M.W.H. coal based private proposals and about 1,300 M.W.H. LNG based private power generation proposal are waiting long for government approvals and project land acquisition cooperation’s including right of the way (ROW). Authority can issue license for installation, generation, transmission, distribution and marketing: in the open market competition for those power plants: instead of enter into the power purchase agreements. Here, the government shall act as guarantor and co-guarantors of those huge investment proposals for new built power plants. Besides, Government can issue license to 750 KV/ A.C. Power transmission and distribution "private power grid" development and operation proposal for transmission of 40,000 (forty thousand) M.W.H. through out the country including cross border connection stations. Where, authorities will put their regulatory control: to set international standard wheeling charges. The only way, that could brought more than 30 (thirty) billion USD investment in the power and energy sector in Bangladesh market without lending a single USD from anybody by the government. These opportunities are waiting for government since 3 (three) years for necessary cooperation and nourishment to build future of this potential Asian Tiger will be gripped. Bangladesh might have a most effective generation policy. If this country can develop its economy rapidly: total generation capacity requirement as estimated will be: 57,500 M.W.H. We might agree to generate power in the most competitive cost, with abundance of generation fuel at site, minimum environmental impact and best utilization of geo-physical facilities of this economic region. That will include regional power transmission facility and guarantee. Since, we can explore gas from our large marine area and we have got many coal deposits suitable for open mining and more then one uranium deposits for future utilization, therefore we propose: (a) Gas fuel based: Base plant, pick plant and stand-by generation capacity: 7,500 (seven thousand five hounded) M.W.H. (b) Liquid fuel (Naphtha, Furnace oil, Diesel, Petrol) based: rental, stand-by generation capacity: 3,000 (three thousand) M.W.H. (c) Nuclear fuel based: base plant: 8,000 (eight thousand) M.W.H. (d) LNG fuel based: base plant, pick plant and stand –by generation capacity: 3,000 (three thousand) M.W.H. (e) Solar panel based: Remote homestead power generation capacity (up to): 500 (five hundred) M.W.H. (f) Wind Turbine based: sea shore and offshore power generation capacity (up to): 500 (five hundred) M.W.H. (g) Hydro Power: one set plant in the Nepal, capacity: ± 10,000 (ten thousand) M.W.H. and another set plant in Bhutan, capacity: ±5,000 (five thousand) M.W.H. Total generation and import via high voltage transmission: ± 15,000 (fifteen thousand) M.W.H. (h) Imported coal based: Low Sulphur Indonesian and Australian coal based semi-critical and super critical power plants, capacity: 20,000 (twenty thousand) M.W.H. Also, the fuel coal may be imported from Russia, China and many other countries. Long term, we can use our country mines to feed those plants In an open competitive market: consumer price for electricity may not exceed: (a) Tk = 10/- (ten) per KWH for L.N.G. fuel generated power (b) Tk= 7.50/- (seven point five zero) per KWH for coal fuel generated power (c) TK= 5/- (five) per KWH for Hydro-power: buy- back {Conversion: US$- 1 (one) = Taka – 80 (eighty) *If all those power generated in the "private power plants": Transmitted & Distributed through "Private power grid" {maximum system loss less then 3% (three percent)} and facilities by 0% tariff including sales tax exempted. ** Price of Power generated by indigenous natural gas, quick-rental liquid fuel and solar panel are known to all. The Nuclear fuel power price has been estimated by the government. (Must be less than TK = 4/- (four) per K.W.H.) *** Here, in most locations: wind velocity is not suitable for installation of large turbines. However if wind turbine power plants are made of better quality popular brands, cost of production of power including all expenses shall come under Tk= 7/- (seven) per K.W.H. **** Price shown here are indicative and included cost of generation (plus O & M), financial expenses on the capital cost, cost of transmission and profit of the power plant operators. However, to achieve energy security: we are to facilitate installation of crude oil refineries including petrochemical plants at the shore of the Southern Bangladesh in a free trade zone. We require allowing processing of 1 (one) million barrel plus crude oil per day in our chemical energy park situated within the free trade zone and supported by a liquid handling sea port, suitable for mooring of SUEZ type mega tankers. This capacity can be filling up by 3 to 6 (three to six) large refineries. When all those refinery & petrochemical plants are put into operation: large quantities of low cost energy by products shall be available from them. Those shall include furnace oil, naptha, paraffin, solid petroleum cake etc: including large quantity of L.P.G. which can full up our household and industrial energy demand on long term basis. Since, we subsidize for fuel oil like petrol, octane, diesel, kerosene etc. Therefore, we should allow all those refineries to export fuel oils including petrochemicals produced by them without putting any duty and sales taxes. Local consumption of those plant products shall be treated as import by us. Certainly, government will gain corporate tax and tariffs on imported products as usual. By this way Bangladesh can emerge as a petroleum products exporting country without any major crude petroleum deposit within our territory. An important Arabian refinery investment group has been entering into a long term agreement with a Bangladeshi company can full up one third of planned capacity: forwarded their proposal to the BOI for necessary co-operation in the beginning of the year 2012. It proves that this country can gain such opportunity to full up its energy requirement at most competitive cost. To achieve those giant energy investments: we are to open up the business for all joint venture agreements: to move forward as per the law of the business: through registration of the J.V. agreement in BOI. Along with the registration BOI can arrange to issue: export and import licenses, warehousing and storage licenses, plant machinery, equipment, spares and accessory import and installation licenses and permits including import license for utility plants, fire control and security services: vehicle, vessels & equipments. Also, they require issuing licenses, for liquid and bulk handling port building and operation to the joint venture Bangladesh entrepreneur. If we are being successful to inspire: to install one refinery and petrochemical plant. Rest of the plants we will obtain automatically. This will be a mile stone success in our industrial diversification. If all petrochemical plants are build: we will gain private investment of another USD 30 (thirty) billion plus in our nation. We plan to practice mentioned policy to fill up our power & energy demand! We thank you all for your interest to know about our "Power & Energy Policy"!
Posted on: Wed, 12 Jun 2013 13:34:53 +0000
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