SEMINAR ON INVESTMENT IN BANGLADESH

1
SEMINAR ON INVESTMENT IN BANGLADESH Organised
by Indo-Bangladesh Chamber of Commerce and
Industry (IBCCI) High Commission of
India Presentation on Power Sector in
Bangladesh by
R.V. Shahi Former Power Secretary, Govt. of
India Energy Advisor, World Bank South Asia
Regional Projects
(March 29, 2014)
2
COVERAGE OF PRESENTATION

• The Presentation covers
• Bangladesh Power Sector at a Glance.
• Generation Profile including Future Projection.
• Transmission - Present and Future.
• Distribution including Rural Electrification.
• Role of World Bank in Power Sector
• Bangladesh-India-Recent Initiatives on Power
• January 2010 Agreement
• Framework Agreement, September 2011
• Bangladesh India-Cross Border Transmission.
• BPDB-NTPC Joint Venture (1320 MW Khulna Project).
• Bangladesh-India Friendship Power Company.

3
BANGLADESH POWER SECTOR AT A GLANCE
Installed Capacity 10,200 MW (up from about 5,000 MW in last 5 Years)

Transmission Line 400 KV 55 KM

Transmission Line 230 KV 3040 KM

Transmission Line 132 KV 6150 KM

HVDC 500 MW

Grid Sub Station Capacity 230/132 KV 6975 MVA (13)

Grid Sub Station Capacity 132/33 KV 9705MVA (84)

Distribution Line 33 KV below 34800 KM

Consumers 14.2 Millions

Per Capita Power Consumption 321 Kwhr
3
4
HISTORICAL PERSPECTIVE

• Bangladesh Power Development Board (BPDB) started
  with 200 MW Generation Capacity in May 1972.
• BPDB was re-organised (unbundled) into
  Generation, Transmission, and Distribution
  utilities
• Power Grid Corporation of Bangladesh (PGCB).
• Dhaka Power Distribution Company (DPDC).
• Dhaka Electric Supply Company (DESCO).
• West Zone Power Distribution Company (WZPDC).
• Palli Bidyut Samiti (PBS).
• BPDB (Generation, WZPDCL, NWZPDCL, SZPDCL).

5
Power Division (Ministry of Power, Energy
Mineral Resources)
Power Cell
Generation
IPP
RPCL (REB)
BPDB
APSCL
NWPGCL
EGCB
PGCB
Transmission
REB
DESCO
DPDC
BPDB
Distribution
PBS
SZPDCL
NWZPDCL
WZPDCL
6
POWER SYSTEM MASTER PLAN (PSMP)

• PSMP 2010 Long term planning up to 2030
• Study completion February 2011
• Findings generation capacity requirement
• - By 2021 24,000 MW (base) 26,000 MW (high)
• - By 2030 39,000 MW (base) 47,000 MW (high)
• - Coal based capacity by 2030 20,000 MW (base)
• Other Key Findings
• - Coal and Nuclear for base load power
  requirement.
• - Cross Border Trade with neighbouring countries.

7
UNDERLYING PRINCIPLES IN FORMULATING LONG TERM
PLAN

• Present highly skewed fuel mix needs to be
  changed.
• Liquid fuel and later even Gas will be costly.
• Coal needs to occupy a major space to balance the
  cost structure of power.
• Mix of Domestic and Imported Coal needs to be
  appropriately fixed both for optimal cost and
  also for energy security.
• Cross Border and Regional Trade possibility needs
  to be factored.
• Transmission capability enhancement and shift to
  higher voltages will be needed.

8
CAPACITY TILL 2030
Sl. No. Description Capacity (MW)

1. Domestic Coal 11,250

2. Imported Coal 8,400

3. Domestic Gas/LNG 8,850

4. Nuclear 4,000

5. Regional Grid 3,500

6. Others (Oil, Hydro, and Renewable) 2,700

Total 38,700

9
REPOWERING OF GAS BASED POWER PLANTS

• Gas Based Steam Turbine System is inefficient.
• Even open cycle Gas Turbine has been phased out
  in most of the countries (except for peaking
  power).
• Efficiency
• Steam Turbine Less than 30 Efficiency.
• Open Cycle About 40 Efficiency.
• Combined Cycle About 60 Efficiency.
• Ghorashal Repowering Study (World Bank
  Assistance).

10
Formation of PGCBUnder the Process of Power
Sector Restructuring

• As per recommendation of eight member working
  group for Power Sector Restructuring, Govt.
  decided to create Power Grid Company Of
  Bangladesh Ltd. (PGCB) in the ECNEC meeting held
  on 18 September, 1996.
• Power Grid Company Of Bangladesh Ltd. (PGCB)
  established on 21 November96 under the Companies
  Act, 1994.
• PGCB took over the responsibility for whole grid
  network operation maintenance from 31st Dec,
  2002.

11
PGCB

• A public limited company incorporated in 1996
  through sponsorship of BPDB.
• At present 76.25 ownership with BPDB 23.75
  with general public.
• BPDB holding the ownership on behalf of Govt.
• Present head office at Institution of Engineers ,
  Bangladesh (IEB) Bhaban (new), 3rd 4th floor,
  Ramna, Dhaka-1000.
• PGCB is going to achieve ISO 90012008 QMS
  certification.

12
PGCB AT A GLANCE

• Status Public Limited Company
• Business Power Transmission
• Year of Incorporation 1996
• Authorized Capital Tk. 10 Billion
• Present Paid-up Capital Tk. 4190.11 Million
• Turnover (2012-13) Tk. 8742.78 Million
• Net profit after tax Tk. 1010.18 Million
• (2012-13)
• Transmission Line as of March, 2014
• 400kV 54.7 Circuit km
• 230 kV 3038 Circuit km
• 132 kV 6147 Circuit km
• Substations as of March, 2014
• HVDC 01 (500MW)
• 230/132 kV 13 (6975 MVA) 2 No. Switching
• 132/33 kV 84 (9705 MVA)

13
Master Plan Summary2010-2030New
Transmission Lines to be added from 2010-2030
Voltage (kV) 2010 2030 Additional (2010-2030)

Length (Km) Length (Km) Length (Km)

230 2645 9360 6715

400 0 4479 4479
Source PSMP Study Team
14
Master Plan Summary 2010-2030
400 230kV substations required from 2010 - 2030
Voltage East or West Region Additional Number of Substation Additional Number of Substation Additional Number of Substation
230/132kV East Central 8 56 88
230/132kV East Dhaka 25 56 88
230/132kV East Southern 23 56 88
230/132kV West Northern 17 32 88
230/132kV West Western 15 32 88
400/230kV East Central 3 11 14
400/230kV East Dhaka 6 11 14
400/230kV East Southern 2 11 14
400/230kV West Western 3 3 14
Source PSMP Study Team
15
DISTRIBUTION INCLUDING RURAL ELECTRIFICATION

• Town/City Distribution Public and Private
  Sectors.
• Distribution Lines About 35,000 Km (33 KV and
  Below).
• Rural Distribution through Palli Bidyut Samiti
  (PBS).
• JICA and World Bank funding massive strengthening
  of Rural Network.
• World Bank has been assisting in a very large
  Scheme - Solar Home System.

16
ROLE OF WORLD BANK

• Siddhirganj Power Project US 350 million.
  Components Power Generation, Power Evacuation,
  Gas Transmission, and Institutional Development.
  Project is effective since 2009.
• Rural Electrification and Renewable Energy
  Development Project (RERED) - US 432 million.
  Rural network rehabilitation, renewable energy,
  and energy efficiency/demand side management. The
  project is closed in Dec 2012.
• Rural Electrification and Renewable Energy
  Development Project II (RERED-II) - US 155
  million. This is a repeater project continuing
  support for SHS and introducing solar irrigation
  pumps, mini grids, improved cook stoves, bio gas
  digesters, CFLs, and TA. The project is effective
  since 2012.

17
ROLE OF WORLD BANK

• Partial Risk Guarantee (PRG) to Haripur Power
  Plant- Guarantee amount US 60.9. The project
  contributes through 360 MW gas-fired combined
  cycle power plants, owned by Pendekar Energy,
  Malaysia to increased and reliable power supply.
  The guarantee is effective since 2001.
  Outstanding IDA Exposure 9.3m (as of 30 June
  2013). Expiry December 2015.
• Power Sector Development Technical Assistance
  Project (PSDTA) - US 15.5 million. Technical
  assistance to build capacity in the sector and
  support new project development. The project is
  closed in Dec 2012.
• Rural Transmission Distribution (TD) - US600
  million. Rural distribution augmentation,
  transmission enhancement and institution
  building. The project is approved in February
  2014.

18
ROLE OF WORLD BANK

• Project under Preparation
• Power Generation Efficiency Improvement Project
  (300 m). Upgrading the existing Ghorashal Unit 4
  Steam plant to energy efficient combined cycle
  technology and associated institution building.

19
OTHER ASSISTANCE TO POWER DIVISION

• Re-organization of REB.
• Re-organization of BPDB Strategic Business
  Units.
• MOU between Power Division and Companies.
• Advice to BERC.
• Energy Conservation Action Plan.
• ISO Certifications of various Power Companies.

20
INDIA-BANGLADESH RECENT BILATERAL INITIATIVES

• January 1910 Agreement On Power
• Supply of 500 MW.
• Cross Border Transmission.
• Cooperation in Power Generation, Training.
• Joint Steering Committee, Joint Working Group,
  Joint Technical Team.
• September 2011 Framework Agreement
• Sub Regional Cooperation.
• Developing and Financing Projects jointly.
• Cooperation in Generation, Transmission and
• Distribution.
• Power Grid connectivity and Power Exchanges.

21
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
22
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
Outline.

• India Bangladesh Interconnector
• Scope of Works
• 1x 500 MW HVDCBTB Station, Bheramara
• Bangladesh Side T/L
• India Side T/L
• India Side Sub Station at Behrampur

23
Scope of Work for the interconnector project
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector

• Indian Portion
• Transmission Line
• Baharampur(India) Bheramara(Bangladesh) 400kV
  Double Circuit line.
• (Indian Portion) App 71 Kms (Twin ACSR
  Moose Conductor).
• Loop-in and loop-out of Farakka-Jeerat 400kV
  Single Circuit line at Baharampur (India) 3
  Kms

24
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
Scope of Work for the interconnector project

• Indian Portion
• Sub-station
• Establishment of 400kV switching-station at
  Baharampur(India)
• 2 Nos of 400 kV line bays for loop-in and
  loop-out of Farakka-Jeerat 400kV Single circuit
  line
• 1 No. of 80 MVAR Bus Reactor
• Space provision for at least 2 no. of 400kV bays

25
Scope of Work for the interconnector project
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector

• Bangladesh Portion
• Transmission Line
• Baharampur(India) Bheramara(Bangladesh) 400kV
  Double Circuit line (Bangladesh Portion) App 27
  Kms (Twin ACSR FINCH Conductor)
• Loop-in and loop-out of Ishurdi - Khulna South
  230kV Double Circuit line at Bheramara(Bangladesh)
  App 5 Kms

26
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
Scope of Work for the interconnector project
Bangladesh Portion

• Sub-station
• Establishment of 500 MW HVDC back-to-back
  station
• Installation of 500 MW HVDC back-to-back
  terminal.
• 4 nos of 230 kV line bays for LILO of Ishurdi
  -Khulna South 230kV Double Circuit line.
• 2 No of 400 KV Line bays (for Bheramara
  Bherampur D/c line).
• Space provision for at least 2 no. of 230kV bays.

27
Details of Various Packages under
the India Bangladesh Interconnector Project
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector

Note Consultancy Assignment for No. 1 2.
28
Overview of Indo Bangladesh 1X500 MW HVDC BTB
Interconnector
Commissioning of the interconnector project
1 400 kV and 230 kV Transmission Lines Charged Successfully on 30.08.2013
2 Regular Power Flow Started 05.10.2013
3 Full Load Power Flow Started 04.12.2013
29
CROSS BORDER TRANSMISSION PROJECT (HVDC)
Important Dates
Tender Process (Two Stage Bid) OBD (1st Stage) May,2010

Loan Agreement with ADB February, 2011

Zero date of Project Contract with M/s. Siemens 1st June, 2011

Commissioning Target July, 2013

Commissioning October, 2013
30
SAVING OUT OF 500 MW POWER IMPORT

• 500 MW means about 4,000 Million Units of Power.
• Average price per year 6 Tk/Kwhr.
• Average price of Liquid Fuel Power 16 Tk/Kwhr.
• Per Unit Saving 10 Tk.
• Annual Saving - Tk 40,000 Million.
• Tk 4,000 Crores.

31
Maitree Super Thermal Power Project
An Era of new Hope
32
Maitree Super Thermal Power Project
Mode of Generation Ratio Worldwide
COUNTRY COAL GAS DIESEL NUCLEAR HYDRO RENEW
USA 45 23 1 20 7 4
UK 35 39 6 5 4 11
GERMANY 41 21 5 13 16 4
SOUTH KOREA 43 18 3 33 1 2
CHINA 67 3 1 1 20 8
INDIA 57 9 1 3 18 12
BANGLADESH 2.5 64.5 26 - 2.5 -
33
Maitree Super Thermal Power Project

• Project Overview
• Project Implementation Bangladesh India
  Friendship Power Co.
  (Pvt.) Ltd.
• Project Cost 1.68 Billion USD (BDT 14510 Crs.)
• Equity 5050 (BPDBNTPC)
• Funding Debt 70, Equity
  30
• Beneficiary 100 Power to
  Bangladesh
• (PPA 25 yrs)
• Mode of Operation Base load
• Year of completion 2018

34
Maitree Super Thermal Power Project Basic Plant
Information
Capacity 1320 MW ( 2 X 660 )
Technology Supercritical Technology
Primary Fuel Quality Source Requirement Sub-Bituminous/Bituminous Coal (GCV 5,500 6,000 kcal/Kg, Sulfur- max. 0.6, Ash Max. 15) Imported 1,2000 Ton/Day (85 plant factor)
Stack height Emission SOx max Emission NOx max Particulate matter 275 m 819 g/s (WB standard 1597 g/s) Less than 500 µg/m3 (WB Standard max conc. 500 µg/m3) 100 mg/Nm3 (DoE standard 150 mg/Nm3)
35
Maitree Super Thermal Power Project Basic
Plant Information
Water Source Requirement Possur River Plant make up 2.5 m3 per sec (apprx. 0.04 of the lowest flow of the Possur River) Flow of the Possur river 6000 m3/s during dry season)
Cooling System Closed Cycle Water is cooled in Cooling Towers and re-circulated.
Discharge of treated waste water At the rate of 1.4 m3 /sec to Possur River satisfying DoEs standard (Ambient Temperature)
36
Bangladesh-India Friendship Power Company (Pvt.)
Limited
Maitree Super Thermal Power Project at Rampal ,
Bagherhat Calendar of Events
03.03.2014
Inter Govt. MOU 11.01.10
MOU Bet. NTPC BPDB 30.08.10
JV Agreement Between NTPC BPDB 29.01.12
JV Company Incorporated 31.10.12
BOI Approval 27.11.12
PPA/IA Signed 20.04.13
Cos Cor. Office Started 05.05.13
Cos Bank A/C Opened 20.05.13
Cos Site Office Started 29.05.13
Promoters Contribution 11.07.13
Apvl. of EIA Report by DOE 05.08.13
EOI for Coal Consultant 31.10.13
1st AGM of Company 31.12.13
OE Bid opened on 13.03.14
37
THANK YOU