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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)
Source: Powercell
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 Figure 4.4: Energy Generation (FY 2011): 31,355 M kWh
Source: Powercell
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.
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 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.
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.
Anticipated completion of the new power generation projects up to 2016 are illustrated in Table 4.1.
Indigenous natural gas, coal, LPG, LNG, nuclear, and hydro resources are mainly considered as fuel for the additional generation plan. It also includes cross-border trade. 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 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 Rampalupazila 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.
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 4.2 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. Two detailed Tables of existing and planned power plants up to 2016 divided into different regions are provided in Appendix 4B table 4B.2 and 4B.3.
Table 4.2: Summary of Existing and Planned Power Supply (Regional Breakdown)
Eastern Grid Existing Dhaka Installed Capacity (MW) Derated Capacity (MW) Chittagong Comilla Mymens ingh 232 Sylhet Khulna
Western Grid
Barisal
Rajshahi
Rangpur
3333
937
1167
571
959
78.5
483
340
3164
887
1054
197
563 Planned
864
68
463
306
1853
1246
265.5
145
1524
2743
450
1052
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 constrained in peak hours. Potential demands have not been met, and rotational outage has frequently occurred. Table 4.3 depicts the characteristics of base load, middle load and peak load generation.
Base Hydro Economic Condition Fixed Variable Start up duration Load Control Fast Slow Slow Nuclear High Low Coal
Operational Condition
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 in MW and percentages respectively.
Figure 4.11: Power Development Plan by FY 2030 (MW)
Source: Power Division Figure 4.12: Power Development Plan by FY 2030 (%)
4.2.3.1 Year wise plan till 2016 According to Bangladesh Power Development Boards Planning for the next 4 years, the following mix (Table 4.4) of Peaking, Large and Combined Cycle Power Plants will be commissioned throughout 2012 to 2016.
Table 4.4: Mix of Plants (Large, Peaking, CCPP) 2012- 2016
Peaking Plants No. of Plants 2012 Capacity (MW) Contribution in Total additions in Generation No. of Plants 2013 Capacity (MW) Contribution in Total additions in Generation No. of Plants 2014 Capacity (MW) Contribution in Total additions in Generation No. of Plants 2015 Capacity (MW) Contribution in Total additions in Generation No. of Plants 2016 Capacity (MW) Contribution in Total additions in Generation 11 1287 44% 15 3027 91% 16 3054 93% 8 2032 93% 3 2350 100% Source: BPDB
Combined Cycle PP 1 163 4% 8 1726 52% 15 2463 75% 8 1410 65% 1 750 32%
4.2.3.2 Long term plan (2010-2030) According to the PSMP-2010, the maximum demand in 2015, 2021 and 2030 will be 10,000; 19,000 and 34,000 MW respectively. To meet the demand with reliability, installed capacity needs to be increased to 24,000 MW and 39,000 MW by the year 2021 and 2030 respectively. Generation capacity from different primary fuel in the year 2030 would be: Domestic and imported coal based ST- 19,650 MW (Base Load) Nuclear power- 4,000 MW (Base Load) Gas and LNG- 8,850 MW regional Grid- 3,500 (Middle) Regional Grid- 3,500 MW (Peaking) Liquid Fuel, Hydro, Renewable- 2,700 MW (Peaking)
contract. The duration of the contract may vary from a minimum of three years up to twelve years. However, contracts have extended beyond twelve years in the past. Rental power plants have a must dispatch obligation under the contract up to the declared capacity with an acceptable level of variance. A default results in penalty. But if directed by the load dispatch authorities to produce a lower amount of electricity or go for a complete shutdown, the vendor is entitled to receive capacity payment only. According to the power generation expansion plan, the GoB intends to phase out rental power plants shortly with the commissioning of gas or coal-based large scale steam turbine or combined cycle power plants. Any delay in execution of the plan will compel the government to extend the rental contracts resulting in the government either choosing to continue providing high subsidies or seek alternatives measures e.g. tariff inflation, extensive load shedding, etc. 4.2.6.1 Future challenges that power sector (especially national government) could face because large amounts of very high cost rental power has been contracted The addition of new power facilities to the national grid for the last few years has come at a significant cost to the economy and the government as much of the new electricity comes from the use of expensive fuel oil-fired rental plants which produce power at over six times the prices charged by the standard gas-fired plants. The financial burden imposed by rental power plants has contributed to a troubling decline in the countrys scarce foreign exchange reserves because of import of capital machinery and additional fuel oil for the rental power plants and make hefty increases in the price of fuel oil and power to ordinary consumers. 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 liquid fuel either furnace oil or diesel. The government buys 2 million tonnes 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 .162 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 electricity tariffs 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 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).
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
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.
FO 1691MW 13.37%
Solar 23 MW 0.18%
Realistically, actual addition rarely reflects governments plans. If taken the example of India, according to a KPMG study on power sector of the country, historically India exhibited failure to meet targets on the power generation capacity additions. Variance with the target has been as high as 50 percent in the past. India is a manufacturer of power equipment and has more qualified engineers and technical personnel and capabilities compared to Bangladesh. Bangladesh faces several challenges in terms of unavailability of domestic coal, rising international prices of coal and liquid fuel, inability to raise electricity prices to the level of full cost recovery and fiscal constraints. Moreover, absence of deep pocket-financiers and long term financing limits the full realization of plans. While the government has been quite successful in implementing short term rental power plants, the performance in relation to longer based load plans are disappointing. Thus expectations regarding realistic addition in Bangladesh could be revised down to approximately 30 to 40 percent (5059 MW to 3794 MW) as opposed to what is planned (12647 MW) by BPDB for the next four years.
Open tendering Limited tendering Two stage tendering Single-Stage Two Envelope tendering
competition open to all interested firms competition limited to those invited to tender Similar to open tendering but proceeding in two stages Similar to open tendering but Technical and Financial Proposals submitted in two separate sealed envelopes simultaneously. a simplified method of smaller purchases sole source procurement when competition is inappropriate used for the procurement of intellectual and professional services
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.
4.3.3.1 Maintenance practices Absence of any specific regulations regarding routine inspections of public power units calls for generators to independently carry out inspection activities at their discretion. Stringent supply demand situations make it difficult to halt operations for maintenance purposes. Lack of inspection funds is also a probable reason for less frequent inspections. Thus operations continue non-stop until the equipment breaks down leading to greater damage and longer repairing periods; a classic case of break-down maintenance. In order to ensure implementation of regular inspections, the Power System Master Plan -2010 recommends the revision of existing rules and regulations and enables the maintenance scheme to shift over from break-down maintenance to time-based or condition-based maintenance.
Figure 4.15: Conceptual comparison of three different maintenance strategies
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).
suppliers respectively who either sell their products directly or through local agents. Sometimes equipment suppliers provide the equipment directly to the project sponsors. Suppliers are usually required to present price quotations to the EPC/ O&M contractor or to the project company. Based on the quoted prices and quality assurances vendors are awarded contracts for the supply of specific equipment/spare parts. In some instances, BPDB specifies the major equipment suppliers or the specific criteria for the major equipment suppliers in the Request for Proposal for a project. The sales channel for a typical private power project equipment supplier follows the following pattern in Bangladesh. Equipment Supplier Or, Or, 4.3.4.1 SWOT analysis of GE competitors Competitors of GE for the purpose of a SWOT analysis in the power generation sector are identified from the major vendors that were awarded contracts for supplying large machines to power projects in the past few years. In this regard, a brief SWOT analysis for ABB, Siemens, Hitachi and Rolls-Royce is discussed in the following section. 4.3.4.1.1 ABB ABB is a global provider of power and automation technologies. The power technologies division serves electric, gas and water utilities, as well as industrial and commercial customers. The automation technologies division provides products and services for automating and improving industrial and commercial processes. The company primarily operates in Europe and Asia. It is headquartered in Zurich, Switzerland and employs about 112,000 people. The SWOT for ABB is discussed below.
Table 4.8: SWOT Analysis for ABB Strengths Strong market position and brand strength Broad product portfolio Strong R&D capabilities Weak performance of all business divisions in recent years Weaknesses Has contingency payment obligations due to asbestos litigation
Local Agent
EPC Contractor
Project Sponsor
Opportunities
Threats
Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity
Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Falling gas supplies in Bangladesh Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
4.3.4.1.2 Siemens Siemens is a global group in electronics and electrical engineering, operating primarily in the industry, energy, and healthcare sectors. The group operates in about 190 countries. It is headquartered in Munich, Germany and employs about 427,000 people.
Table 4.9: SWOT Analysis for Siemens Strengths Strong market position and brand strength Broad product portfolio Strong R&D capabilities Major presence in Bangladesh Weaknesses Increasing debt to equity ratio/ Highly leveraged Weak internal control High dependence on third party providers Allegation of improper payments resulting in Black Listing by the World Bank even though recently lifted. Threats Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Falling gas supplies in Bangladesh Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
Opportunities Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity Possibilities of importing additional power from India and Myanmar
4.3.4.1.3 Hitachi With full-scale of Hitachi group, Hitachi pursues the compatibility of stable supply of energy and environmental preservation. Hitachi focuses not only on the various power generation systems but also power distribution system and next generation energy development. The SWOT of Hitachi follows as below.
Table 4.10: SWOT Analysis for Hitachi Strengths Strong brand recognition Advanced R & D capabilities Tendency for brand loyalty worldwide Tendency to develop specific capabilities based on advantages present in region of operation Opportunities Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity Possibilities of importing additional power from India and Myanmar Threats Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Falling gas supplies in Bangladesh Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB High Costs Lack of service quality and breadth Weaknesses
4.3.4.1.4 Rolls-Royce Rolls-Royce Group plc is a global power Systems Company headquartered in London, United Kingdom. It is the worlds second-largest maker of aircraft engines behind General Electric) and also has major businesses in the marine propulsion and energy sectors. SWOT for Rolls-Royce:
Table 4.11: SWOT analysis for Rolls-Royce Strengths Cost Advantage Strong reputation Strong financial position Strengths in gas-based generation Opportunities Threats Low R&D Weak Supply chain Weaknesses
Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity Possibilities of importing additional power from India and Myanmar
Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Falling gas supplies in Bangladesh Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
4.3.4.1.5 Chinese suppliers Chinese suppliers of power plant equipment offering competitive prices have been prevalent in Bangladesh in recent years that are quite popular. SWOT for such companies in general are discussed below.
Table 4.12: SWOT Analysis for the Chinese Suppliers
Opportunities Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity Possibilities of importing additional power from India and Myanmar
Threats Highly competitive environment in Bangladesh. Falling gas supplies in Bangladesh Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
4.4 Environmental Regulation for Existing Plants and Current Emission Levels
The regulatory framework for the whole of energy sector has been discussed in chapter 2. Regulations specific to the environmental standards for the power sector especially power plants can be found in the Environmental Conservation Rules (ECR) 1997 of Bangladesh. The ECR(1997) elaborates the environmental standards applicable in the country for all industries. Item falling under the regulation include air quality; water quality; (surface water, drinking water); noise (boundary, source); emissions from motor vehicles or ships; odor; sewage discharge; waste from industrial units and industrial effluents or emissions. Standards for these items pertinent to the power sector are given in Appendix 4 H.
Environmental Conservation Rules (ECR) 1997 amended 2003 These are the first set of rules, promulgated under the Environment Conservation Act 1995. The rules set, among others, (i) the National Environmental Quality Standards for ambient air, various types of water, industrial effluent, emission, noise, vehicular exhaust etc., (ii) requirement for and procedures to obtain Environmental Clearance, and (iii) requirements for Environmental Impact Assessment (EIA) according to categories of industrial and other development interventions.
Obtaining Environmental Clearance "EIA Guidelines for Industries" published by the Department of Environment (DoE) and the "Environment Conservation Rules 1997are the formal documents providing guidance for conducting Environmental Assessment. Any proponent planning to set up or operate an industrial project requires obtaining an Environmental Clearance Certificate from the DoE, under the Environment Conservation Act 1995 amended in 2002. The application for Environmental Clearance includes a project feasibility study report, the EIA report, No Objection Certificate (NOC) of the local authority; Mitigation Plan for minimizing potential environmental impacts; and appropriate amount of fees in treasury chalan (in the present case the 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.
4.4.2 The policy on selection of a plant size for a particular location The determination of the size of a power plant in Bangladesh usually precedes the selection of a suitable site. Demand for power and a least cost expansion plan is the basis for the generation expansion planning procedures. Fuel availability and cost drives the selection of generation options. Optimal locations for power plants are then ranked considering the following factors: Proximity to the load centers and their forecast load demand. Transmission to the load centers. Availability of adequate space at the site. The value of the land for other uses. The suitability of the ground and geotechnical conditions for construction of the plant. The possibility of flooding or seismic events. Potential sources of cooling water and makeup water. Fuel deliverability at the site. The impact of the facility in a positive or negative manner on the local environment.
Sources of fill and construction materials. Access to the site for transportation of heavy equipment and construction materials. Availability of social facilities near site.
Apart from the policy requirements mentioned above, political influences often determine the selection of plant sites.
About 82.12 percent of the annual power supply 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 in table 4.14 below:
Table 4.14: Gas Demand Ratio of the Power Sector
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.
Figure 4.16: Month-wise Average Gas Availability for Power Generation in MMCFD
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.
To overcome the acute gas shortage with low presser TGDTCL has taken up MonohNorsindi 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 equivalent. The turn-key contractor will engage reputed civil construction companies like Hundai, Marubeni etc. The EPC contact will have mentions of the companies from whom equipment and other things will be procured. The power projects in Bangladesh are financed in the following ways: (i) grants and low-interest loans provided by the donor agencies; (ii) inter-governmental finance in the forms of grants, soft loans or suppliers credit; and (iii) commercial loans from the domestic banking sector. The first two sources provide the project sponsors with low-cost financing solution, while the commercial loans charge high interest rates. The recent removal of the ceiling on the commercial interest rates has made the rate go even higher. Also, the local firms are now allowed to seek financing from foreign credit market directly at the rate of LIBOR + 4-5 percent. So it is likely that the power project companies will be looking for financing solutions other than the local commercial loans. Under these circumstances, if GE wants to create a competitive edge over the competitors by providing financing solutions along with equipment supply, the interest rate needs to be competitive. Examples of attractive interest rates would be LIBOR based interest rates or the refinancing rates quoted by the local financial institutions participating in the donors fund disbursement process.
Steam Turbine Fuji Electronic System (Japan) GE (USA) Alstom (Western Europe) Fuji Electronic System (Japan)
Siemens AG Germany Shanghai Turbine Co. Ltd. Fuji Electronic System (Japan) Harbin Turbine Co. Ltd. Total Gas Turbine GE(USA) BHEL, India MHI Japan Siemens AG Germany Ansaldo, Italy Alstom, France Ge, France Total
225 250 450 60 2291.2 Capacity (MW) 335.4 240 360 375 592.25 34.5 106 2043.15
10% 11% 20% 100% Share 16.42% 11.75% 17.62% 18.35% 28.99% 1.69% 5.19% 100%
An overall Idea about companies supplying all sorts of equipment to all power plants and who are currently prevalent in the market can be obtained from the vendors that have been awarded contracts for power generation services and power plants (Appendix 4 F and 4 G). Moreover, the highlighted columns of table 4J.1 in Appendix 4J depict an approximation of the equipment costs and installation costs associated with each type of power plant in Bangladesh. These costs could be taken as a close estimation of prevalent market prices of equipment in lump sum for power plants in Bangladesh.
The Barapukuria Coal Mine (BCMCL) is the only coal mine in Bangladesh. It was developed jointly by Petrobangla and CMC of China (agreement concluded in 1994). According to the Management, Production and Maintenance (M&P) Contract, CMC was supposed to transfer technology including the facilities, to Bangladesh by June 2011. In addition, the coal mine has concluded a consultancy agreement with IMC Consulting Ltd. of UK in June 2011. The underground equipment and technology for coal mining are mostly sourced from China.
Coal production has been stable in recent years. The coal mine produced 0.84 million tons of coal in 2008. The coal production in 2009 remained stable, but mining rates decreased due to a lack of demand from power plants. , Mining operations have been suspended since August 2010due to an accident involving a collapsed roof. This accident highlighted the difficulty of underground mining operations. Table 5.2 lists coal production in tons during 2006 to 2011 period. Coal is supplied to two adjacent 125MW Thermal Power Stations in Barapukuria. At present, 250 tons of coals are used every day for power generation. The remaining coal is primarily supplied for brick farms and other industries. The Barapukuria coal mine has an annual production capacity of approximately one million tons. A study is underway to determine ways to enhance the capacity to an annual production of 1.5 million tons.
Table 5.2: Coal production Records at Barapukuria Coal mine
Planned Coal Production (t) 500,000 770,000 970,000 1,020,000 930,000 560,000
Source: PSMP Study
Coal Production Result (t) 362,470 348,200 611,674 904,659 709,155 712,683
The total reserves in the 5 coal fields of Bangladesh are estimated to be 2.9 billion metric tons. This is the energy equivalent of 67 tcf of gas. The recovery rate of coal from reserves varies with the choice of technology used and the method of mining. Assuming a modest recovery rate of 30 percent coal, the available reserve will translate to about the energy equivalent of 20 tcf of natural gas. The following Table 5.3 gives an overview of present coal production situations and issues in Bangladesh.
Phulbari, (Dinajipur) 150 -240 2 15-70 572 572 257 -483 8 42.3 143 685 Dighipara, (Dinajipur) 328 -407 5 62 150 600
Asia Energy has completed a feasibility study. When the company was going to engage in a large-scale open-cast coal mine development, the development project was suspended in August 2006. Although Global Coal Management has succeeded to the development interest, the project is yet be progressed. The measured coal reserve is 277 million tons. Since only 14 borings were made, the reliability is low. The developer has submitted a feasibility study for coal mine development by underground mining to the GoB. The annual coal production plan ranges from two million to four million tons. GSB made five borings in a 1.25 km2 area and found five coal seams. The initial probable coal reserve is 600 million tons. A Korean syndicate has approached Petrobangla for development and investment. Largest coal field in Bangladesh Targeting coal seam gas of CBM (coal bed methane) in deep underground
Khalaspir, (Rangpur)
Jamalgonj, (Bogra)
6401,158
64
1053
1053
The fields discovered have depths ranging between 118-506 meters and 150-240 meters in Barapukuria and Phulbari respectively. The depth of the coal field discovered in Jamalganj is 640-1158 meters. The coal fields cover an area of about 70-80 square kilometers.
scenario, if the fuel price were to increase because of the tight demand for primary energy, the optimal power supply configuration ratio would be- Oil: 10 percent for peak, gas: 20 percent for middle and peak, and coal: 70 percent for base generation. Therefore, power generation will be the most economical when 70 percent of the total power plants is coal based. 5.3.1.1 Upcoming coal based power plant (up to 2016): supply plan of BPDB BPDB already initiated plans to meet the demand for coal based power plants between 2011 and 2016. It aims to do so by utilizing three (under construction) power plants to produce 2,850MW of coal-based power. One of them is the Barapukuria 3rd unit (250 MW), a public sector project, which is expected to be commence operations in June 2014. As of now the in-house feasibility study of the project has been completed and its DPP is being prepared.
Table 5.4: Status of the New Coal Projects Expected Fuel COD Status
Sector
Description
Capacity (MW)
Public
1.
Barapukuria 250-300 MW Coal (3rd Unit) Khulna 150-300 MW Coal Fired Power Plant
250
Coal
June, 2014
In house feasibility completed. DPP is under preparation. PQ & RFP invited: 03.11.2010
2.
150
Imp. Coal
Sept. 2014
3.
150
Imp. Coal
Sept. 2014
PQ & RFP Received: 31.01.2011 Draft Agreement for Joint Venture between NTPC & BPDB is under preparation. NTPC will start feasibility study soon.
Private
1834 Acres of land acquisition at Chalna, Bagerhat under process PQ invited: 03.11.2010
5.
300
Imp. Coal
Sept. 2015
6.
300
Imp. Coal
Sept. 2015
PQ Received: 27.01.2011
7.
Chittagong 1300 MW
1300
June , 2016
Feasibility Study will start soon. 3188 Acres land acquisition under process
Two large projects will are also planned for the Khulna and Chittagong areas. In November 2010, BPDB started the bidding process for two smaller projects in the 150MW to 300MW range for Chittagong and Khulna, and as well as two larger projects in the 300MW to 650MW range for the Chittagong Coastal Area and the Maowa-Munshiganj area; i.e. a total of four imported coal fired power projects on a BOO basis. These projects are expected to be commissioned by 2016. The implementation status of the coal based power projects is shown in Table 5.4. According to BPDBs plans a total 3,750 MW is to be generated using coal based power plants which are expected to be commissioned by June 2016. The PSMP team estimates that the projected demand for coal power in this period will be about 1,325 MW. Thus, the supply plan is well above the projected demand, but it is hard to say whether these projects will be implemented on schedule. 5.3.1.2 Supply of coal based power plants according to Power System Master Plan (PSMP) analysis (2016-2030) To meet the increased demand for coal based power, the PSMP teams suggested specific year-wise coal based power plant additions between 2011 and 2030. Some of the power plants have already been added to the BPDB plan and their procurement process has started as well, as described in the previous section. These projects are in the locations which the PSMP considered for optimal for potential sites for coal power station projects. According to the PSMP, 14 new domestic coal based power plants with the capacity of 10,800 MW and 12 new imported coal based power plant with the capacity of 7,200 MW will be needed within the years 2016 to 2030. So in this period the total supply for coal based power plant would be 18,000 MW. The Table 5A.1 of Appendix 5A gives the detailed list of the projected 18,000 MW coal based power plants planned for the years 2017 to 2030. The commissioning and the retirement years are also given for each power plant. It should be mentioned that the two units of Chittagongs 1,200 MW power plants are already included in the BPDB plan and are expected to start operations by 2016. The total supply would be 16,800 MW against a demand of 18,000 MW. This demand-supply discrepancy will be compensated by the additional supply generated between 2011 and 2016 The following Table 5.5 summarizes the PSMP projections for Coal based power plant additions with respect to the total demand between the years 2017 to 2030.
Table 5.6: Coal based Power Plant Additions FY Unit Addition, Numbers of unit
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Total MW
12,644 14,014 15,527 17,304 18,838 20,443 21,993 23,581 25,199 26,838 28,487 30,134 31,873 33,708 8 4,800 6,000 1 1 2 2 1 6 7,200 1 1 2 2 1
3 1
2 2
2 1 12
In case of public power plants the procurement is done according to the Power Procurement Rules(PPR) 2008. This procurement procedure is already discussed in the Power Generation Chapter (Section 4.2.9).The PPR 2008 is also attached to the Appendix 4L. In case of IPPs a competitive bidding process is followed by BPDB to select the sponsors for the power plants. Once the Letter of Intent (LOI) is issued by the BPDB to the awarded company, the company starts the selection of Engineering and Procurement (EPC) contractor and the Operation and Maintenance (O&M) contractor. The EPC contractor and the O&M contractor then select the major equipment suppliers and spare parts suppliers respectively. Sometimes major equipment suppliers provide the equipment directly to the project company. All the equipment suppliers have to give the price quotation to the EPC/ O&M contractor or to the project company. Then the supplier is chosen according to the cost and quality basis. Sometimes BPDB also specifies the major equipment suppliers or the specific criteria for the major equipment suppliers. The detailed IPP policy is attached to the Appendix 4N.
Threats Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
Table 5.8: SWOT Analysis of Shanghai Boiler Factory / Works Ltd. Strength Diversified and customized product line to meet the clients demand accurately. Campus recruitment program and extensive training on-the-job facilities to build up a tailored workforce. International exposure by becoming one of the top 500 Asian brands. Huge and highly efficient manufacturing facilities as its production of elevator per single factory per day ranks first in the world. Employee motivation through a wide range of entertaining and social activities. Increasing presence in providing and manufacturing the renewable energy services and equipment. Opportunities Equipment manufacturing companies that already have experience in setting up power plants, would be given priority in future power plant construction contracts. Increasing demand for electricity in Bangladesh Government expansion plans and concessions such as tax incentives and guaranteed purchase of electricity Possibilities of importing additional power from India and Myanmar Falling gas supplies in Bangladesh Weakness Difficulty of management because of extensively diversified manufacturing operation and fast growth. Particularly newer in the industry compared to the long-established competitors.
Threats Highly competitive environment in Bangladesh. Several Chinese companies offer more competitive prices. Delays in project implementation due to lack of transparency, bureaucracy and fund arrangement Lack of quality investors in Bangladesh Weakening financial capabilities of single buyer, BPDB
5.3.3 Main customers of GE today and in the future in the coal power sector
At present, the only coal based power plant is operated by BPDB itself and the electricity is directly synchronized to the national grid. Recently, Orion Group, Bangladesh has been awarded to build two 300 MW and one 650 MW coal based combined cycled power stations on a Build Own Operate (BOO) basis. Off the power plants, one will be in Chittagong with a capacity of 282.67 MW, one in Khulna of 282.67 MW capacity and one in Mawa of Munshiganj of 522 MW capacity. So the Orion Group is the only potential customer for GE at present in this sector. BPDB signed a joint venture deal with Indian state-owned National Thermal Power Corporation (NTPC) for the Khulna South Power Plant with the capacity of 1300 MW. In October 2011, the Bangladesh government sent a technical team to India to prepare an outline on its plan to develop this power plant. A high-level technical team from NTPC is likely to arrive in Bangladesh in the last week of January, 2012 to finalize technical terms and conditions for setting up the power plant. So BPDB, NTPC and other IPPs might be the main customers in future.
5.3.4 Key buying criteria for the customers in the coal power sector
BPDB has the policy of buying power (by initiating a tender) in such a way that the least cost generation expansion is ensured, but due to the acute shortage in gas supply and the absence of coal policy, BPDB
had to make a generation expansion plan based on expensive liquid fuel (HSD, HFO etc.). In future, for a specific area if there is an adequate gas supply and gas infrastructure BPDB will go for gas based power because of its low fuel cost and low tariff rate. If gas is not possible it will opt for coal power and if there is no possibility of getting domestic and imported coal in that area, then BPDB may go for Liquid fuel based power. So tariff will be the most important criterion for BPDB in buying private coal power. For instance, BPDB will buy coal power from the Mawa plant at USD 0.0499 per KWh, from the Chittagong plant at USD 0.0463, and from the Khulna plant at USD 0.0463. This kind of low tariff will influence BPDB to go for more coal based power plant in future. So to quote a competitive tariff the customers (bidders) might look for prospective suppliers who can provide equipment at the lowest cost ensuring the technical compatibilities.
8
Net Generation Total [GWH] 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 35,474 39,467 43,882 48,713 54,047 59,945 66,457 73,671 81,610 90,950 99,838 108,636 118,485 127,368 137,964 147,245 158,456 167,938 180,089 190,752 D-Coal [GWH] 659 659 659 2,306 2,306 2,300 2,086 1,652 9,474 12,931 13,443 17,025 20,407 25,722 26,453 30,166 37,319 48,404 60,352 66,286 I-Coal [GWH] 0 0 0 0 0 8,081 19,496 18,966 18,539 16,075 18,830 17,883 17,992 17,016 17,885 23,577 28,891 28,456 31,473 35,130
Source: PSMP Study
Coal Consumption D-Coal [1,000t/y] 239 239 239 792 792 789 722 588 2,810 3,795 3,938 4,962 5,923 7,470 7,669 8,728 10,748 13,924 17,327 19,023
I-Coal [1,000t/y] 0 0 0 0 0 3,188 7,705 7,590 7,432 6,517 7,542 7,192 7,320 6,964 7,286 9,584 11,740 11,581 12,882 14,335
So according to the fuel diversification scenario, from 2011 to 2030 an additional 19,325 MW coal based power plants will come into operation which will require 110.7 million tons of domestic coal and 128.86 million tons of imported coal. It should be mentioned that as BPDB plans for 250 MW domestic coal based and 3,500 MW imported coal based power plants within 2016, the coal demand in this period might be higher than the projected PSMP demand.
In contrast to the Indian coal, quality is not a concern with Indonesian coal as it exports different grades of coal. The major concerns with Indonesian coal to use in Bangladeshi power sector are hence the price and transportation cost. Indonesian coal Free on Board (FOB) price ranges from USD 50 to USD 130 per MT depending on the quality compared to the price of Indian coal ranging between USD 40 to USD 70 per MT. Indias geographical proximity with Bangladesh also makes it convenient to import coal from India as the import cost from Indonesia would be much higher because of the shipping and transportation cost. However, India itself is short of domestic coal and to meet their increasing power demand India imports huge amount of coal. Therefore, availability of Indian coal is also uncertain.
In case of gas based power plant we considered 32 percent efficiency for the open cycle power plant and 56 percent efficiency for the combined cycle power plant. Using the local and international prices of gas, in case of open cycle power plant the tariff was calculated to USD .011 and USD .082 and in case of combine cycle power plant it was calculated to USD .006 and USD .047 respectively. The following table summarizes the comparative tariff study.
Table 5.10: Comparison of Tariff for Different Types of Coal and Gas Primary Fuel Price (USD/ MT or USD/ MCF) Calorific Value (kcal/ kg or kcal/ CF) 6200.000 5000.000 6200.000 6200.000 5000.000 6200.000 236.925 236.925 Efficiency Tariff (USD/ kWh) Tariff (BDT/ kWh)
Domestic Coal Indian Coal Indonesian Coal Domestic Coal (> 600 MW) Indian Coal (> 600 MW) Indonesian Coal (> 600 MW) Natural Gas (Local Price) Natural Gas (International Price) Natural Gas (Local Price) (CC) Natural Gas (International Price) (CC)
1.00 7.20
236.925 236.925
0.560 0.560
0.006 0.047
0.531 3.826
Electricity Growth Rate (percent) 4.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 8.6 8.9 8.5 7.6 7.2 6.9 6.5 6.1 5.8 5.8 5.8
Grid System Demand with DSM 6,454 6,765 7,518 8,349 9,268 10,283 11,405 12,644 14,014 15,527 17,304 18,838 20,443 21,993 23,581 25,199 26,838 28,487 30,134 31,873 33,708
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.40 1.35 1.30 1.25 1.20 1.15 1,10 1.05 1.00 1.00 1.00
0.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 6.5 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0
7,454 7,793 8,611 9,515 10,514 11,618 12,838 14,186 15,676 17,322 18,819 20,488 22,233 23,918 25,645 27,405 29,187 30,981 32,773 34,664 36,659
1,000 1,027 1,093 1,166 1,246 1,335 1,433 1,542 1,662 1,794 1,515 1,649 1,790 1,925 2,064 2,206 2,349 2,494 2,638 2,790 2,951
Certain Assumptions:
Demand in 2009 =5500 MW; GDP growth rate =5.5%; Elasticity =1.5; Electricity growth rate =8.25% Demand in 2010 =5500 MW*(1+0.0825)=5954 MW; Captive power =1500 MW; Stand-by = 500 MW; Process industry+ Swing capacity =1000 MW; Waiting demand=500MW Total demand in 2010 including Captive + Waiting =7454 MW
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.
Sl. No 01.
Implementation Time
Original: 2003-04 To
(Rajshahi, Pabna, Sirajgonj, Bogra, Joypurhat, Gaibanda, Nilphamary, Dinajpur, Thakurgaon, Rungpur)
2007-08 Revised: 2003-04 To 2009-10 01-07-2008 To 30-062011 46.18 percent up to February 2011
02.
Emergency Rehabilitation & Expansion of Urban Areas power Distribution system under Chittagong Zone (2nd Revised) Emergency Rehabilitation & Expansion of Urban Areas power Distribution system under Northern Zone (2nd Revised) Central Zone Power Distribution Project Mymenshingh
03.
09-07-2008 To 30-062011
04.
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
05.
Renovation & Augmentation of Distribution Lines & 11/0.4 KV S/S under Sixth Zone of BPDB Pre-payment Metering Project for Distribution Southern Zone Chittagong (Phase-1) Greater Chittagong Power Distribution Project, SCADA Rehabilitation
Source: BPDB
06.
07.
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 below: 28 Nos. 132/33 kV Grid S/S 419 km 132/33 kV X-mission Line 28 Nos. 132/33 KV Poer X-former (Augmentation) 33 KV line with required equipment(6666) 38-Set 33KV River crossing
In North Dhaka Several projects have started for upgrading and expanding their distribution systems by strengthening the Electric Distribution Network. These projects are expected to cost approximately USD 171 million. The 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. The estimated cost of this project is USD 80 million with an expected implementation in June 2012. The distribution company is this zone 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 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 is an ownfinanced project. 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 BDT 12578.2 million with an expected implementation in June 2013. The following table summarizes the ongoing projects in this zone:
Table 7.2: Ongoing Projects in North Dhaka
Sl. No.
Implementati on Period
i) Construction of 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new Substation iii) Installation of HT/LT Composite Distribution line iv) Installation of 11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former
June 2012
i) Construction 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former
June 2012
i) Construction of 33/11 KV (GIS) Substation at Agargoan, Banani, Niketon, Purbachal and Mirpur-6 ii) Rehabilitation & Reinforcement of 33/11 KV (GIS) Substation at Digun, Joarshahara and Tongi
June 2013
Total
Source: Keystone Database 2011
12578.2
In the South Dhaka and Narayanganj there are five ongoing projects, including 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 BDT 8001 million. The detailed statuses of these projects are shown below:
Table 7.3: Ongoing Projects in the South Dhaka and Narayanganj
Sl. No. 1
Estimated Cost (in Million BDT) 1335.0576 (PA USD 12.811M) (GOB 438.2846)
Comments
Construction of 2 nos. 2X50/75 MVA , Construction of 5 nos. 2X20/28 MVA 3 nos. 132/33 kV 50/75 MVA X-former.
01/07/200630/06/2012
Procurement and Installation of 132/33 kV, 50/75 MVA Transformer Project (ADB financed)
01/09/200630/06/2011
Up-gradation of Shyampur BSCIC 11 kV Switching Station to a regular 33/11 kV Sub-station Project (ADB financed)
01/07/200630/06/2011
01/01/201030/06/2012
Total
Source: Keystone Database 2011
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 e-metering 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.
Sl. No. 1
Implementatio n Period
For 10 Nos. 33/11KV S/S 20 Nos. 5 MVA Xformer,14 Nos 10/13.33MVA X-former,63 KM 33 kV New line & 148Km Rennovation line,1210 Km LT New & 1250 Km Rennovation,1100Nos. 3-Phase Distribution X-former
01/01/201131/12/2013
01/01/201130/06/2014 2011-2014
885.5
Solar Energy
10
SCADA SYSTEM
2012-2014
10.8
2012-2014
Total
Source: Keystone Database 2011
5598.1
Sl No. 01 02 03 04
Sl No. 05
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.
Reasons for commercial losses Theft and pilferage account for a substantial part of the high distribution losses in Bangladesh. Theft / pilferage of energy is mainly committed by two categories of consumers i.e. non-consumers and bonafide consumers. Antisocial elements avail unauthorized/unrecorded supplies by hooking or 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:
Making unauthorized extensions of loads Tampering the meter readings by mechanical jerks, placement of powerful magnets or disturbing the disc rotation with foreign matter. Stopping the meters by remote control. Willful burning of meters. Changing the sequence of terminal wiring. Bypassing the meter. Changing the C.T. ratio and reducing the recording. Errors in meter reading and recording. Improper testing and calibration of meters.
7.1.4.1 Losses in transmission sector Transmission loss consists of only technical loss as there is no scope malpractice. Over the years the transmission loss has come down from 3.44 percent in 2005-06 to 2.66 percent in 2010-11 with the construction of more 230 kV transmission lines, the installation of more capacitor banks for shunt compensation, replacing old transformers with higher capacity transformers and also with the construction of new 132 kV lines. Metering systems have also greatly been improved by replacing old meters with three phase four wire programmable digital meters which have also negated or reduced the scope of malpractice. The meter readings for the energy transmitted are taken by committees consisting of engineers from PDB, concerned Power Station personal and the PGCB. Similarly energy received by the distribution companies is taken by committees consisting of representatives of PDB, PGCB and concerned distribution agencies, which further safeguards reduces the issue of malpractice. The following table summarizes the transmission loss for the last five years.
Table 7.6: Technical Losses in Transmission Sector
loss
In the distribution sector the loss has also come down to less than 50 percent in the last ten years. This is because of the planned expansion of the distribution lines, the introduction of efficient metering system (prepaid meters, digital meters, AMI meters etc.) and improved billing and collection efficiency. The following table summarizes the distribution loss in the last 12 years.
Table 7.7: Losses in Distribution Sector
Fiscal Years
Fiscal Years 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Source: Power Cell
System loss ( percent) 26.09 25.34 23.92 21.64 20.04 17.83 16.53 17.14 15.56 14.33 13.49 12.75
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 7.8: Target Loss in T&D Sector Fiscal Years System loss (percent) at 33 kV level 12.10 11.45 10.80 10.20 9.50 Transmission System loss (PGCB) 2.65 2.60 2.55 2.50 2.40 Source: Power Cell 14.40 13.70 13.10 12.40 11.70 Total T&D Loss
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 7.9: Historical Loss in the Distribution Sector
At present 50 percent of the population is covered by the national grid and there is a plan for full coverage by 2021. Presently the transmission lines are (230 kV and 132 kV) 8,662 km long and distribution lines (up to 33 kV) are 278,000 km long. And the total capacity of transmission substations is 17,717 MVA and the capacity of distribution substations is 11,515 MVA. The expected load addition up to 2016 is approximately 12,000MW. As such, two times more distribution lines are required to distribute additional 12,000 MW i.e. 556,000 km extra distribution lines are needed by 2016. Hence as the generation capacity addition will be almost 1.5 times to the current capacity, about 19,000 MVA capacity additions to the distribution substations will be required. The supply plan of the distribution entities are given in the distribution expansion plan table.
B. 132/33 kv 80/120MVA; 66/100MVA; 50/75MVA; 48/64MVA; 35/50MVA; 25/41MVA; 25/33MVA; 15/20 MVA
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. 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:
General experience: Bidder should have construction project management experience of at least 1(one) turnkey project (contract amount should be similar to present contract) outside their own country within the last 10 (ten) years as of the date of opening of technical proposals. The experience should be supported by users certificates indicating their address, telephone & fax numbers and detail of projects. Specific experience: Bidder must have the experience of the successful completion of at least 2 (two) similar or higher capacity projects including engineering, erection, testing and commissioning within the last 10 years as of the date of opening of technical proposals. The experience should be supported by users certificates in their letter head indicating address, telephone & fax numbers of the users and detail of projects. Bidder must furnish copies of ISO 9001/1992 or equivalent certificates of proposed manufacturers of individual equipment. Bidder must provide a supply record of at least 10 (ten) years of equipment of the proposed manufacturers. The said equipment should in satisfactory service of similar or higher specification for a minimum of 3 years as of the date of bid opening. At least one evidence report from end users of satisfactory service should be mentioned as above. Evidence of satisfactory service shall be in the end users respective letter head stationary indicating address, telephone & fax numbers of the users. The bidder should submit satisfactory type test certificates of all equipments except transformers from independent testing laboratory. Typed test certificates or reports of Power Transformer shall be from independent testing laboratory or manufacturers own testing laboratory. Test carried at manufacturers own testing laboratory must have been witnessed by any one or more of the following persons: A representative from independent testing authority/laboratory A representative from independent inspection agency An employers representative
The bidder should provide(in case bidder himself is not manufacture of equipment) manufacturers authorization showing the bidder has been duly authorized by the manufacturer or producer of related plant and equipment or component to supply & install that item in employers country.
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 in the recent period against different projects/supply through International Competitive Bidding (ICB) are given in the following table.
Table 7.11: Recent Purchase of HV Power Transformer
Name of Project
Date of contract
Name of Manufacturer
Lot-2 24 24.05.2009
Lot-3 21.12.2009 Do
ABB, INDIA
132/33 kV, 25/41 MVA 132/33 kV, 66/100 MVA 230/132 kV, 3x75 MVA 230/132 kV, 150 MVA 230/132 kV, 225/300 MVA
ABB, INDIA
ABB, INDIA
___
Euro 675,055
Hyosung, Korea
Hyosung, Korea
Hyosung, Korea
Hyosung, Korea
Consortium of GS ,Korea & Crompton Greaves, India JV of Shandong Wuzhou Electrical co. ltd. & Shandong Takaoi Power Co ltd. Crompton Greaves, India
___ Dec.,2010 Shandong Takaoi Power Co ltd. 230/132 kV, 225/300 MVA ____ Crompton Greaves, India 132/33kv 50/75MVA USD 6,62,939USD 1,176,591
Supply of Transforme rs
____
*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. It is also observed price of equipment/transformers from European/USA manufacturing factories are higher than those (with identical specification) manufactured in Indian/Chinese factories. For this reason it is difficult to get European/USA manufactured equipment/for transformers through ICB particularly when Indian/Chinese turnkey contractors participated in bidding. It is necessary to have the approval of executive committee of the National Economic Council headed by Prime minister through via the Planning commission for any project where government financing is involved including for projects that have a foreign aid component. For evaluation of bids received trough
ICB, the concerned organization forms a Tender evaluation committee(TEC) which include representatives of the Design, Project and Finance offices of the organization, two representative of different ministries/ organizations and a consultant, if any. Therefore for Govt. financed projects the Ministry of Power, Energy & Mineral Resources (MOPEMR), MO Planning, the Planning commission all have influence with regard to the approval of the project. Concerned donor agencies also have influence in case of a project with a foreign aid component. Generally in PGCB consultants were not engaged in the majority of projects. However the following consultants were in engaged in few projects:a) M/s Mott McDonald, UK b) M/s Nippon-Koei, Japan c) d) e) M/s Fitchners ltd, Germany M/s AE Com (former/s Maun sell), New Zealand for NLDC project. Korean Electric Power co. ltd.(KEPCO),Korea
7.3.2.2 Transformers for distribution (33/11 kV and 11/.4 kV) Initially the projects were financed by Official Development Assistance (ODA) from Japan and UK, the equipment were procured mostly from UK and Japan. In the case of REB, as it was US financed; most of its equipments were procured from US and Canada. In case of ADB financed projects, the competition was open to all and all the entities followed PPR 2006 and PPR 2008 guidelines. In the case of open the tendering process, most of the equipment were procured from China and India. For the last five to six years the key suppliers/ bidders of transformers were CCC, China; GIETC, China; Heavy Electric, India; CGL, India etc. Some parts of transformers like OLTCs (On load tap chargers) and protection devices were procured from European and US companies like MR, Germany; Alstom UK, ABB Switzerland, SEL USA etc. Key customers are the different the distribution entities like BPDB, DPDC, DESCO, WZPDC and REB. Of course, there are a few private customers; IPPs purchase the above items. There are several methods of purchasing these transformers. These are open tendering, limited tendering, two-stage tendering, single stage two envelope tendering, request for quotations, direct procurement and request for proposals. In contrast to open tendering which is open for all competitors, the limited tendering is open to only the parties who are invited to participate in it. In the single step stage two envelopes tendering process the technical and financial proposals are submitted separately in two different envelopes. For smaller purchases, the authorities use request for quotations process and for procurement of intellectual and professional services they use the request for proposals process. Direct procurement is used as sole source procurement in cases 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 Due to the standardization of operating performance and facilities in spare parts requirements, the main protective relays manufactured only by ABB (Switzerland/Sweden), Siemens (Germany), and Areva T&D (France) are procured in the transmission sector. All the products must follow IEC 61850 protocol. Equipment for sub-station automation is the responsibility of concerned Turnkey contractor. But in general, protective relay manufacturer is entrusted by the Turnkey contractor in design, manufacture, supply & commissioning of Sub-station automation equipment. Remote tap changer control of transformer is provided by the transformer manufacturer. Alftom, UK; CGL, India; ABB, Germany and SEL, USA are the major manufacturers of the relays in the distribution substations. 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. NKT, Germany; Prysmian, Spain; LS Cable, Korea; ZTT, China and Taihan Cable are the manufracturer of most of the OPGW cables in the transmission network. 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.
Equipment Name 11 KV 630 AMPS Vacuum Circuit Breaker with Cubicles (Indoor Type) for outgoing feeder 11 KV 1250 AMPS Vacuum Circuit Breaker with Cubicles (Indoor Type) for Bus coupler fade outgoing feeder 11 KV 1250 AMPS Vacuum Circuit Breaker with
5,330
Cubicles (Indoor Type) 33 KV Disconnector with Earth Switch 2000A 33KV Isolator without Earthing Blade gang operated Vertical Mounted Vertical Break. 11 KV 100 A Drop-out fuse L.T. Switchgear
Source: Keystone Database, 2011
7.3.4.3 Low voltage panels Low Voltage Panels manufactured by Adex Corporation, TNS engineering & consultants and Energypac are available in the distribution sector of Bangladesh. The average price if AC Distribution Panel is 47 USD and DC distribution Panel is 13 USD.
Turnkey Contractors 1. 2. 3. 4. 5. 6. 7. Energypac, Bangladesh. ABB Ltd., India 12. JV of Energypac, Bangladesh & ABB, India. Basic Engg. Bangladesh China National Electric wire & cable Import / Export Corporation, China (CCC). Siemens, India. Consortium of Siemens, Germany, Siemens, India & Siemens, Bangladesh 13. JV of Samsung &Handbeak co. ltd., Korea KEC , India. 11. Consortium of Hyosung Corporation & Samsung Corporation
14. Crompton Greaves, India (CGL). 15. Consortium of GS E&C,Korea& Crompton Greaves, India. 16. Consortium GS &E C 17. JV of Shandong Wuzhou Electrical co. ltd. &
8. 9. 10.
Consortium of Siemens, Germany & Siemens, Bangladesh HG Power, Malaysia. Hyosung Corporation, Korea.
Shandong Takaoi Power Co ltd. China. 18. Marubeni, Japan 19. Cobra Instalaciones Y Servicios S A, Spain 20. Jyuoti Structure Ltd., India 21. Sanergy, Iran
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. 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 7.13: Manufacturers of Substation Equipment
Product Type
Products
400/132 kV Transformers 230/132 kV Transformer
Manufacturers
Hyosung Corporation, Korea i)Daian, Japan ii) Hyosung Corporation, Korea iii) Crompton Greaves Ltd. (CGL), India iv) ABB Ltd., India v) Shandong Takaoi Transformer Co ltd., China i) TBA, China ii) Crompton Greaves Ltd. (CGL), India iii) ShangdongDachi, China iv) ABB Ltd., India Siemens, Germany i) Siemens, Germany
Circuit Breaker
Product Type
Products
Manufacturers
ii) Crompton Greaves Ltd. (CGL), India iii) New Northeast Electrical (Shenyang) High Voltage Switchgear Co. Ltd., China i) Areva, Germany ii) ABB India iii) Siemens, Germany iv) Crompton Greaves Ltd. (CGL), India v) Shandong Takaoi High Volt Switchgear Co. Ltd., China vi) ABB, Sweden CGL, India i) Crompton Greaves Ltd. (CGL), India ii) ABB, India i) ABB, India ii) Energypac, Bangladesh iii) HenghyangNagfang,China iv) Crompton Greaves Ltd. (CGL), India v) Shandong Takaoi High Volt Switchgear Co. Ltd., China vi) ABB, Sweden i)Siemens, Germany ii)Shandong Takaoi High Volt Switchgear Co. Ltd., China Siemens, Germany i)ABB, Switzerland ii) Areva T&D, France iii) Siemens, Germany
400 kV Instrument Transformer (CT & PT) 230 kV Instrument Transformer (CT & PT) 132 kV Instrument Transformer (CT & PT)
230 kV GIS unit GIS unit 132 kV GIS unit Protective Relay
Conductor
OPGW
Manufacturers i) Steel Products, India ii) KEC ,India iii) Bosung, Korea iv) WeifangChangian 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 ConductorCo.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
Source: Keystone Database 2011
7.3.4.2 Distribution sector There were four major procurements in the last five years in the south zone of Dhaka and Narayanganj. The details of these procurements along with their contract values are given in the Table 7.15. From the table it can be shown that Energypac Engineering Ltd., Bangladesh is the main contractor for these projects. Out of the four procurements they were involved in three of them. ABB Ltd., India was involved with one project with Energypac by forming a consortium. Another project was also solely contracted by them. ArevaEnergietechnik GmbH, Germany was also involved in a project by forming a Joint Venture with Energypac.
Table 7.15: Distribution Efficiency Improvement in the in the south zone of Dhaka and Narayanganj (2009-2011)
SI No
Name of Package
Name of Contractor
Design, Supply, Installation, Testing and Commissioning of 10 nos. upgraded substations. Design, Supply, Installation, Testing and Commissioning of 33/11 kV Substation at Existing Switching Station
12,144,880.87
95,63,91,501.88
Consortium of Energypac Engineering Ltd., Bangladesh and ABB Ltd., India ABB Ltd., India
1,715,282.10
1,59,91,020
13,50,31,597
Design, Supply, Installation of 132/33 kV Transformers and Associated Materials at various 132/33 kV Substations Design, Supply, Installation, Testing and Commissioning of 5 nos. of new 33/11 kV Substations.
4,920,404.64
39,991,986.6 0
38,14,68,068.88
Joint Venture of ArevaEnergietech nik 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 the projects in this zone. 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 these projects. Again, all the distribution transformers (11/.4 kV) are procured from local manufacturers.
Table 7.16: Manufacturer of the different components of the Substations in the south zone of Dhakaand Narayanganj
Manufacturer Pinggago, China; CGL, India; Siemens, Germany; ABB, Germany CGL, India; Siemens, India; ABB, India; Areva, Germany; TBEA, China; TAMCO, Malaysia; Energypac, Bangladesh CGL, India; Siemens, India; ABB, India; Areva, India; TBEA, China; TAMCO, Malaysia; Energypac, Bangladesh; Powerman, Bangladesh; BETELCO, Bangladesh; TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India; Energypac, Bangladesh; ABB, India Local Manufacturers like GEMCO, Energypac, BETELCO, ADEX, POWER-MAN etc.
Source: Keystone Database 2011
11 KV Breaker
The detailed lists of Last five years procurements in the north zone of Dhaka 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. Recently, some 25 kVA Single Phase transformers from GE, Bangladesh are procured 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 these projects:
Table 7.17: Manufacturer of the different components of the projects in the North Dhaka
Item 33 kV GIS Breaker SF6/VCB Breaker (33 kV) 33 KV RTC Panel/OLTC 33 kV RTC Panel, outdoor Breaker 11 kV Breaker
Manufacturer Areva, Germany Compton Greaves, India; Areva, India Compton Greaves, India; Energypac, Bangladesh Compton Greaves, India; Energypac, Bangladesh Tampco, India; Areva, India; Siemens, India
Manufacturer Compton Greaves, India; Energypac, Bangladesh Eaglerise, China; Compton Greaves, India; Energypac, Bangladesh Compton Greaves, India General Electric, Bangladesh Secure, India
Source: Keystone Database 2011
500KVA 3-Phase Transformer 25 KVA Single Phase Transformer 11 KV Metering (Different Ratings)
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 was no major procurement in the west zone of Bangladesh in this period.
7.4
There are also projects to build new substations by 2012-13 including 230/132 KV Substations in Shyampur, Jhenaidah and four new 132/33 kV substations with interconnecting lines in MymensignTangail. There are two more transmission line projects to be finished by 2014-15 which are the AminbazarMaowa -Mongla 400 kV, Mongla -Khulna(S) 230 kV Transmission lines and the Anowara - Meghnaghat 400 kV Transmission lines. These will transmit the power generated by proposed large coal fired Power Stations at Mongla, Khulna &Anowara, Chittagong to Khulna, Dhaka, Chittagong and other areas. Along with these short-term projects, there are three longer term projects to be completed within 2017 including the Khulna(s)-Barisal (N) 230 kV transmission line project, the Ruppur-Bheramara-Zajira 400 kV transmission line project and the Ashuganj-Joydebpur 400 kV transmission line. In the Table 7A.2 of Appendix 7A, projects planned for transmission sector to be implemented during next five years are shown.
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 different distribution entities have plan for several upcoming 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 7.18: Upcoming Projects of BPDB
Sl No
Completi on Date
01
Power Distribution Development project, Mymenshingh Zone Power Distribution Development project, Chittagong Zone Power Distribution project, Cumilla Zone Power Distribution project, Sylhet Zone Power Distribution project, Rangpur Zone Power Distribution Development
2013-14
Construction the distribution lines, substations and renovation works Construction the distribution lines , substations and renovation works Construction the distribution lines , substations and renovation works Construction the distribution lines , substations and renovation works Construction the distribution lines , substations and renovation works Construction the distribution lines ,
02
2013-14
1088.00
03
2013-14
756.00
04
Development
2013-14
410.00
05
Development
2013-14
710.00
06
Development
2013-14
693.00
In the rural areas of Bangladesh, there are another six projects which are to be completed within 201213. 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 7.19: Upcoming Projects in the Rural Areas under REB
Sl No
Completi on Date
01 02
One million new connections project Rural Electrification extension project (Rajshahi, Rangpur, Khulna and Barishal area) Rural Electrification extension project (Dhaka Division-1) Rural Electrification extension project (Chittagong-Sylhet Division-1) Rural Electrification extension project (Rajshahi-Rangpur Division-1) Rural Electrification extension project (Barishal Division-1)
2012-13 2012-13
To connect one million new consumers Substation and distribution lines extension
03
2012-13
498.00
04
2012-13
498.00
05
2012-13
407.00
06
2012-13
268.00
Year wise detailed procurement plan for these projects is given in the Appendix 7E. In the south zone of Dhaka and Narayanganj at least 20 projects including both short-term and longterm ones with several objectives. These projects will increase substation capacity by building 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 North Dhaka and to serve electricity to at least 600,000 new customers there 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 7.20: Upcoming Projects in the North Zone of Dhaka
Sl No
Procurements
DESCO 01 Strengthen of distribution line project 201112 486.00 i) Construction 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former i) Construction 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former i) Construction of 33/11 KV (GIS) Substation at Agargoan, Banani, Niketon, Purbachal and Mirpur-6 ii) Rehabilitation & Reinforcement of 33/11 KV (GIS) Substation at Digun, Joarshahara and Tongi Installation of 11 KV Underground 16 KM Cable
02
201112
595.00
03
20112014
177.00
04
05
Replacement of existing 11 KV overhead line by underground cable in 04 routes Electrification of Uttara 3rd Phase &Purbachal Model Town
180.00
1000.00
06 07
110.00 100.00
1) Construction of 33/11 KV (GIS) Substations. ii) Installation of 33 KV UG Cable as source line for new substation iii) Installation of HT/LT Composite Distribution line iv) Installation of11 KV UG Cable v) 11/.4 KV 200 KVA X-former vi) 11/.4KV 25 KVA X-former Installation of 2,00000 Prepaid meter at Uttara, Mirpur, Baridhara and Gulshan. Equipment for Real Time data acquisition and 33 KV & 11 KV feeder control
According to the three years development plan of DESCO the total year-wise procurement of different equipments is given below:
Sl 1 2 3 4 6 7 8 9
Particulars Source line (33 KV) (km) Distribution line (11 KV) (km) No of substation (33/11 KV) (Nos) No of 11 KV switching station (Nos) Distribution Transformer (11/0.4KV) (Nos) No of feeder (11KV) (Nos) 132/33 KV Grid SS (Nos) Prepaid metering (Nos)
In the west zone of Bangladesh there has been one project 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 7.22: Upcoming Projects in the West Zone of Bangladesh
Sl No
Completi on Date
01
21 district project
electricity
distribution
2012-13
systems and
02 03 04 05
Pre-paid e-metering System Solar Energy SCADA System Video Conferencing System Total Cost
Source: WZPDC
The detailed equipment procurement plan of WZPDC for these projects is given below.
Table 7.23: Procurement & Installation Item from 2011 to 2013 for the West Zone of Bangladesh
Sl No. 01 02 03 04 05 06 07 08 09 10
Item Description 5 MVA X-former 10/13.33 MVA X-former 33 KV Line( New+ Renovation) 11,11/.4,0.4 KV line( New & Renovation) 11/.4,3-Phase Distribution X-former 1-Phase Meter 3-Phase Meter Solar Energy SCADA System Video conferencing System
Source: Keystone Database 2011
Quantity 20 Nos. 14 Nos. 211 KM 2460 KM 1100 Nos. 105000 Nos. 10,000 Nos. 20KW 12 nos. L/S
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 7.24: Procurement & Installation Item from 2014 to 2017 for the West Zone of Bangladesh
Sl No. 01 02 03 04
Item Description 5 MVA X-former 10/13.33 MVA X-former 33 KV Line( New+ Renovation) 11,11/.4,0.4 KV line( New & Renovation) 11/.4,3-Phase Distribution X-former 1-Phase Meter 3-Phase Meter SCADA System Total Cost
585.0
05 06 07 08
1700 Nos. 140000 Nos. 14,000 Nos. 36 nos. 3.24 706.82 118.58
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.
few projects through their own financing. In addition, one project was financed by the PalliBidyutSamity (PBS), Dhaka 1. The Government of Bangladesh has always supported PGCB by financing the local currency portion of the total project costs (on the basis of 60 percent equity and 40 percent loans). At present, different projects are being financed by the ADB, JICA, World Bank, EDCF (Korea) and the KFW. Negotiations are going on with the local branch of a foreign commercial bank for financing the BarisalBhola-Bahauddin 230 KV double CKT Transmission Line. 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. JICA is almost certain to finance National Power Transmission Network Development Project. ADB and World Bank also have shown the indication of financing a few projects respectively. For financing other projects, discussions are going on with the ADB, World Bank and the JICA through the EconimicRealtions Divisions (ERD) of the GoB. One or two small projects may be funded by the PGCB itself. There is also 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 713.84 million and USD 958.82 milion in local and foreign currency will be required to implement the upcoming next five years projects.
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. 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.
7.5.4 Plans being formulated for distribution to incorporate variable distributed generation
There is not specific plan to incorporate distributed generation system (solar, biogas, micro-grid etc.). Still BPDB has some upcoming projects planned on grid connected solar PV. The Government also has recently published the Renewable energy policy. It is taking different steps by which 5 percent of total generation by 2015 will be met from renewable energy and 10 percent by 2020. According to the GoB
plan 500 MW from Solar, 200 MW from wind and 100 MW from biomass, in total 800 MW of distributed generators will be added within the next five years. Some of these projects are outlined below.
Sl. NO. 1 2 3 4 5 6 7 8 9 10 11
Location of the Project Parki Beach, Chittagong[Pilot Basis] Parki Beach, Chittagong Moghnamoghat, Coxs Bazar Hatia, Sandwip, St. Martin and Monpura Islands Kaptai, Rangamati Sarishabari, Jamalpur RTC, Rajshahi Rajabarihat Goat Development Farm, Rajshahi Kaptai Grid S/S [Pilot basis] St. Martin Island Wind Mapping Study for Coastal Region
Source: BPDB
Type of Project Wind Power Wind Power Wind Power Wind Power Grid Connected Solar PV Grid Connected Solar PV Grid Connected Solar PV Grid Connected Solar PV Grid Connected Solar PV Wind and Solar Hybrid FS
These distributed generator systems are planned in different areas based on the Government 2020 plan for energy saving, solar home system (privately), Clean Development Mechanism (CDM) through renewable energy and the policy for new grid connection (3 percent of total load for domestic and 5-7 percent for commercial).