Overview of Energy Sector in Bangladesh

Introduction

Electricity is the most potential for foundation of economic growth of a country and constitutes one of the vital infrastructural inputs in socio-economic development .The world faces a surge in demand for electricity that is driven by such powerful forces as population growth, extensive urbanization, industrialization and the rise in the standard of living.

Bangladesh, with its 160 million people in a land mass of 147,570sq km. In 1971, just 3% of Bangladesh’s population had access to electricity .Today that number has increased to around 50% of the population –still one of the lowest in the world-but access often amounts to just a few hours each day. Bangladesh claims the lowest per-capita consumption of commercial energy in South Asia, but there is a significant gap between supply and demand. Bangladesh’s power system depends on fossil fuels supplied by both private sector and state-owned power system. After system losses, the countries per installed capacity for electricity   generation can generate 3,900-4300 Megawatts of electricity per day; however, daily demand is near   6,000 Megawatts per day. In general, rapid industrialization and urbanization has propelled the increase in demand for energy by 10% per year. What further exacerbates Bangladesh’s energy problems is the fact the country’s power generation plants are dated and may need to be shut     down sooner rather than later.

There was no institutional framework for renewable energy before 2008; therefore the renewable energy policy was adopted by the government. According to the policy an institution, Sustainable & Renewable Energy Development Authority (SREDA), was to be established as a focal point for the promotion and development of sustainable energy, comparison of renewable energy, energy efficiency and energy conservation. Establishment of SREDA is still under process. Power division is to facilitate the development of renewable energy until SREDA is formed.

While the power sector in Bangladesh has witnessed many success stories in the last couple of years, the road that lies ahead is dotted with innumerable challenges that result from the gaps that exist between what’s planned versus what the power sector has been able to deliver. There is no doubt that the demand for electricity is increasing rapidly with the improvement of living standard, increase of agricultural production, progress of industries as well as overall development of the country.

Power Generation Scenery in Bangladesh

Severe power crisis compelled the Government to enter into contractual agreements for high-cost temporary solution, such as rental power and small IPPs, on an emergency basis, much of it diesel or liquid-fuel based. This has imposed tremendous fiscal pressure. With a power sector which is almost dependent on natural-gas fired generation (89.22%), the country is confronting a simultaneous shortage of natural gas and electricity. Nearly 400-800 MW of power could not be availed from the power plants due to shortage of gas supply. Other fuels for generating low-cost, base-load energy, such as coal, or renewable source like hydropower, are not readily available and Government has no option but to go for fuel diversity option for power generation.

When the present Government assumed the charge, the power generation was 3200 – 3400 MW against national demand of 5200 MW. In the election manifesto, government had declared specific power generation commitment of 5000 MW by 2011 and 7000 MW by 2013.

Over View of Electricity Last Couple of Year

To achieve this commitment, in spite of the major deterrents energy crisis and gas supply shortage, government has taken several initiatives to generate 6000 MW by 2011, 10,000 MW by 2013 and 15,000 MW by 2016, which are far beyond the commitment in the election manifesto. 2944 MW of power (as of Jan, 2012) has already been added to the grid within three years time. The government has already developed Power system Master Plan 2010. According to the Master Plan the forecasted demand would be 19,000 MW in 2021 and 34,000 MW in 2030. To meet this demand the generation capacity should be 39,000 MW in 2030. The plan suggested going for fuel-mixed option, which should be domestic coal 30%, imported coal 20 %, natural gas (including LNG) 25%, liquid fuel 5%, nuclear, renewable energy and power import 20%. In line with the Power system Master Plan 2010, an interim generation plan up to 2016 has been prepared, which is as follows:

Table 01: Plants Commissioned During 2009-2011

  *In 2011, 1763 MW commissioned against plan for 2194 MW

Power Generation Units (fuel Type Wise)

Table 02: Installed Capacity of BPDB Power Plants as on April 2012

Table 03: Dreaded Capacity of BPDPB Power Plants as on April 2012

 OWNER WISE DALY GENERATION REPORT

Table 04: Daily Generation of 25/04/2012

Table 05: Maximum Generation: Last Six Year

Electricity Demand and Supply

Per capita generation of electricity in Bangladesh is now about 252KWh. In view of the prevailing low consumption base in Bangladesh, a high growth rate in energy and electricity is indispensable for facilitating smooth transition from subsistence level of economy to the development threshold. The average annual growth in peak demand of the national grid over the last three decades was about 8.5%. It is believed that the growth is still suppressed by shortage of supply. Desired growth is generation is hampered, in addition to financial constraints, by inadequacy in supply of primary energy resources. The strategy adopted during the energy crisis was to reduce dependence on imported oil through its replacement by indigenous fuel. Thus almost all plants built after the energy crises were based on natural gas as fuel. Preference for this fuel is further motivated by its comparatively low tariff for power generation.

 Power Demand Forecasts (2010-2030)

The adoption scenarios of the power demand forecast in this MP are as shown in the figure below.

The figure indicates three scenarios; (i) GDP 7% scenario and (ii) GDP 6% scenario, based on energy intensity method, and (iii) government policy scenario.

Table 06: Demand Forecast (3scenario)

Source: Power System Master Plan (PSMP) Study Team

FY- Forecast year*

INSTALLED CAPACITY

NEW GENERATION PLAN OF THE GOVERNMENT (From 2012 to2016) In MW

Power is the precondition 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 fulfill the commitment as declared in the Election Manifesto and to implement the Power Sector Master Plan 2010, Government has already been taken massive generation, transmission and distribution plan. The generation target up to 2016 is given below:

Table 07: Power generation addition from 2009-11

     *2894 MW Power Generation addition from January 2009 to December 2011

Government Upcoming Nearest plan

Government has taken short, medium and long term plan. Under the short term plan, Quick Rental Power Plants will be installed using liquid fuels/gas and capable to produce electricity within 12-24 months. Nearly 1753 MW is planned to be generated from rental and quick rental power plants.

Under the medium term plan, initiatives have been taken to set up power plants with a total generation capacity of 7919 MW that is implementable within 3 to 5 years time. The plants are mainly coal based; some are gas and oil based. In the long term plan, some big coal fired plants will be set up, one will be in Khulna South and other will be in Chittagong, each of having the capacity of 1300 MW. Some 300-450 MW plants will be set up in Bibiana, Meghnaghat, Ashugonj, Sirangonj and in Ghorashal. If the implementation of the plan goes smoothly, it will be possible to minimize the demand-supply gap at the end of 2012.

Government has already started implementation of the plan. Total 31,355 Million-kilowatt hour (MkWh) net energy was generated during 2010-11. Public sector power plant generated 47% while private sector generated 53% of total net generation. The share of gas, hydro, coal and oil based energy generation was 82.12%, 2.78%, 2.49% and 12.61% respectively. On the other hand, in FY 2009-10, 29,247 million-kilowatt hour (MkWh) net energy was generated i.e. electricity growth rate in FY 2011 was 7.21% (In FY 2012 (Jul-Dec, 2011) is 13.2%).

Why do we select this project?

Now fuel crises are increasing day by day in worldwide and it impacts on energy sector to produce or generate electricity. Big amount of fuel from total reserved of fuel in our country is used to generate electricity.

Therefore the reserved fuel will be finish in the future. Analysis are thinking to make the strong energy sector with the rentable energy is one of the major part of the renewable energy to produce electricity and that is why we have chosen the solar energy system.

The solar system is constructed with various types of ingredients. But here the battery is the heart of the solar system. The solar energy is not used directly and it is used with the help of the battery because we get very low D.C voltage from the solar panel. Therefore we need to use the battery to store this low D.C voltage which is supplied from the solar panel. In a solar system, the 50% cost is expense for the battery from its total cost. Since the battery is a major part of the solar system and it is charged perfectly by a controller circuit. If the battery is not charged perfectly then the charge capacity will be decreasing in a very short time and it also can be damaged for the overcharging.

We have chosen the battery charge controller system by considering above reason.