Energy Projects:

Bangladesh was suffering from chronic energy security problem for a long time. The demand supply imbalance in power and gas grid created huge operational problems in the operation and management of energy using industries. Investors investing huge investment in setting up energy intensive industries waited for a long time in commencing operation for delayed supply of power and energy. Many even did not get connection yet. The major industrial hub of port city Chittagong continues to suffer from energy crisis. Though government advocates for free flow of FDI in Bangladesh the energy crisis acts as major deterrent. 

The major reasons are
•    Very low energy and power price (uneconomic Price) created mushrooming of energy inefficient industries in energy infrastructure constrained corridors
•    Poor planning, inadequate exploration and exploitation of own energy resources activities created alarming depletion of own primary fuel



•    Confused state of substantial own coal exploitation strategy failed to create to most appropriate fuel diversion option in energy value chain
•    Lack of planning, poor governance created inefficiencies hampered energy projects development delays and impediments.
•    For corruption and beauracratic high handedness, ensuring energy conservation and Energy efficiency became a serious challenge.
•    Politicization of energy sector management created huge brain drain of experienced, committed professionals leaving the sector and the country

The terrorism favoring, corrupt syndicate riding regime of 2002-2006 energy sector observed very uncertain journey of stepping into crisis as no genuine efforts were made to diversify fuel options, explore and exploit own resources or make genuine endeavor for importing fuel from regional / international market. Rather huge downstream demand way above production and transmission capacity was created. Many appropriate power generation and resources exploration endeavors of previous government were suspended merely on political grounds or with evil intentions of squeezing illegal benefits.

In 2009 when a new political government assumed state governance power system was in desperate crisis. The generation came down to 4500 MW against a daily demand of 6500-7000MW. The gas system could only produce and supply about 1700MMCFD against coincident peak demand of 2300MMCFD. The serious energy crisis in 2009 caused almost 8-10 hours nationwide load shedding and chronic gas supply problems to all end users. Government had to initiate several short term expensive contingency actions, mid and long term plans. The imported liquid fuel based rental and peaking plants somehow could halt further decline but failures in planning and implementing management of projects implementation plans caused prolongations of expensive short term actions causing adverse impacts on economy for arranging subsidy. Inordinate delays in LNG import initiative and failure in arranging alternate fuel supply prolonged energy crisis in port city Chittagong. By the end of 2013 though installed capacity of power grew to 11000MW but fuel supply constraint restricted effective generation to around 6500MW -6800 MW. Only on few occasions generation could reach beyond 7000MW.

Own coal exploration and exploitation remained in a very anxious policy decision mess. Government also delayed in adopting proactive initiatives for exploring and exploiting extensive potential hydrocarbon resources of Offshore and still unseen onshore frontiers. Appreciating the fuel crisis at hand and forth coming government should have worked to engage at least 10 exploration rigs working onshore for massive gas hunt from 2010-2011 through engaging IOCs through PSCs. But very unwise decision of relying exclusively on maturing national E& P Company BAPEX only could provide trickles in the big oceans. Politically favored Gas System senior policy makers reinvented the wheels in high voltage amateur announcements of discovering new gas resources and even oil in discovered gas fields. IOCs or more particularly Chevron overtook the Petrobangla Production companies’ in the contributions to national gas production. Chevron from Bibiyana Gas field alone now is capable of supplying of about 11000MW of 2500MMCFD. Such a lone gas field dependent gas supply security is considered extremely vulnerable by energy experts. Any scheduled maintenance or forced outage at Bibiyana may trigger gas system and power system collapse.

Delay in implementation of transmission infrastructures caused serious problems in evacuation of stranded gas at source while many end users continued to remain gas starved for restricted supply of gas. Energy supply in Chittagong region continued to remain in a serious spot of bother. Gas supply to power and fertilizer plants requires alternating. During winter irrigation time and summer gas supply to five of the seven urea fertilizer plants remains suspended. In remaining time a substantial capacity of power generation remains unutilized for lack of gas supply. Various expensive gas transmission infrastructure development projects have failed to resolve gas supply crisis in Chittagong area. Rather unimaginative project like Bibiyana Dhanua Pipeline has rather created operational issues for Ashuganj Gas Transmission Pipeline Compressor station and made Elenga Compressor a virtual unnecessary infrastructure.



Desperate government has initiated the following Mega Energy Projects
•    Imported Coal Based Power Plant at Rampal
•    Imported Coal based power plants at Matarbari and Maheskhali
•    LNG Import Terminal at Maheskhali
•    Nuclear Power Plant at Rooppur

We admire the courage of adopting these mega projects. We like to believe that all these projects have been initiated through extensive techno economic feasibility studies, risks analysis. We hope government is moving ahead setting up competent project development authorities with required qualification and skills. We hope extensive human resource development for managing, these mega projects, operation and maintenance have also been initiated.

This writer still believe that relying on own coal resource for providing the back bone of national energy security could be the ideal option. But government remaining confused about mining own coal has driven policy makers to adopting costlier options of relying on imported fuel from highly volatile international fuel market. Moreover, Bangladesh will require expensive import infrastructure development like Coal port and LNG import facilities. This section of the write up will now address the specific challenges of the mega energy projects.

Rampal Power Plant:



The present oil tanker capsize in Shela River of Sundarbans and its associated major environmental disaster must have given a wrong signal to all about the similar mishaps happening while transporting huge amount of coal from Akram Point to coal terminal of Rampal Power Plant. We hope policy makers appreciate the issues and challenges of coal transportation. Can Bangladesh manage the safe transportation of coal along the canals and rivers through environment sensitive Sundarbans? Can we risk Sundarbans ecosystem to coal transportation? We are sure policy makers will rethink about Coal Transportation. Can alternate route of coal transportation from Akram Point to Rampal be worked out?

As far as technology is concerned this writer is little bothered about emissions. Using less sulfur, less ash, higher heating value coal, using desulfurisation plant, adoption of ultra-super critical pressure technology, treatment of effluents before discharge can address all these. But Coal Transportation will remain a huge challenge. This writer would love to see credible risks analysis done and effective manageable risk management protocol is in place for emissions control and coal transportation impacts management are put in place.

This project is an India –Bangladesh Joint Initiative. BPDB and NTPC have formed a joint venture company. We understand a German Company is working as Clint Engineer and another company is sourcing coal for the plant. The FEED of the plant is in process. The EPC Contractor which will be selected will carry out detail engineering and upon approval of client would construct the plant. The project cost and cost of power generation is still a long time to find out. The project company has to source and firm up financing. There are so many issues and challenges which the policy makers are still not fully appreciating it appear.

Rooppur Nuclear Plant:



The Russian Government supported Rooppur power plant is possibly much better structured and is progressing well. All required documentations for achieving the IAEA regulatory body are being prepared. After initial surveys the works of infrastructures for the plant is going to start soon. A comprehensive capacity development plan for different categories of professionals and managers for construction supervision and operation are in place. Recruitment process is ready. Russian implementing authority ROSATOM will adopt well proven VVER technology. It will bring partially processed nuclear fuel and at regular frequency will transport back the nuclear refuge. A survey of water availability in Padma River flowing beside the plant location over the leanest periods evidenced enough water for use in the plant at full capacity. More sources will be established for contingency requirement. Extensive dredging of some sections of river channel will be made for transporting heavy nuclear reactors from Bangladesh port of entry to Rooppur plant location. Various MOU and protocol with Russian counter parts have already been initialed or are ready to be initialed. The interactions of this writer with Project Director convinced this professional that Rooppur Power Plant is proceeding right on track.

To Be Continued

** Vision 2021: Issues and Challenges

BDST: 1220 HRS, DEC 14, 2014