BANGLADESH: Power System Master Plan (PSMP) 2010

Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Draft Year: 
2010
Effective Start Year: 
2011
Effective End Year: 
2016
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Power
Energy Types: 
Coal, Power, Gas, Renewable, Hydropower, Other
Issued by: 
People’s Republic of Bangladesh Ministry of Power, Energy and Meneral Resources
Source: 
Banagladesh Power Development Board
Banagladesh Power Development Board
File: 
PSMP 2010
Overall Summary: 
The Power System Master Plan (PMSP 2010) is the Study for Master Plan on Coal Power Development in the People's Republic of Bangladesh. The Plan is based on the Vision 2030 Long Term Power Development Strategy for Bangladesh. Its objective is delivering a stable and high quality electricity to the People of Bangladesh via the creation of a power network that will help realize comfortable and affluent lifestyles for all. Six plans are analyzed in a document divided into Volume 1 (Power System Master Plan 2010); Volume 2 (Technical Study for the construction of Coal-Fired Power Station) and Volume 3 (Recommendations for Future Support Measures). After an introduction offered in the Chapter 1, Chapter 2 addresses Viewpoints and Objectives of the Master Plan, Chapter 3 gives an Outline of Bangladesh, Chapter 4 describes the Coal Sector, Chapter 5 the Natural Gas Sector and Chapter 6 Other Primary Energy. Chapter 7 provides for Power Demand Forecasts, Chapter 8 discusses the Power Development Plan and Chapter 9 provides for the Power System Analysis. Finally, Chapter 10 deals with the Financing for Materialization of the Master Plan.
Access
Energy access priorities: 
To promote remote area electrification through power system expansion and power transmission development.
Energy access targets: 
The basic policy in the fields is, for the purpose of supplying high-quality and reliable electric power to all the people with a payable price by 2020. --- To maintain domestic primary energy supply over 50% by 2021-2030.
Efficiency
EE targets: 
To improve thermal efficiency 10 points on average as of 2030.
Renewable Energy
RE targets: 
In the event that fuel diversification advances during the later years, the Master Plan aims to acquire a 25% share of domestic coal and a 20 percent share of domestic natural gas, and a 5% share of national hydropower and renewable energy, thus ensuring the self-sufficiency of the primary energy resource to be over 50 percent by Year 2030.
RE prioritization, portfolio standards: 
Plan 2: To establish the power system portfolio by fuel diversification. Fuel composition ratio as of 2030: coal 50%, natural gas 25%, others 25%.
Environment
Energy environmental priorities: 
To achieve the best mix of energy supply including imported resources, it would be required to use economical and stable power source in consideration of environmental protection.
Pollution control action plans: 
For environmental prevention in the urban areas, utilizing diesel as fuel for transportation is restricted, and the promotion of CNG utilization is underway.
Decarbonization strategy: 
To realize a low carbon society by introducing high efficient power supply and low CO2 emission technology. To rationalize the load dispatch by prioritization of gas allocation to higher efficient power station in order to reduce CO2 emission by 2010. To rationalize at customer side by energy conservation and demand side management in order to reduce CO2 emission by 2030.--- Construction of a high efficient USC power station: to construct a high efficient power station by utilizing USC technology in order to prevent global warming.---Construction of a high efficient USC power station: to construct a high efficient power station by utilizing USC technology in order to prevent global warming.
Pricing
Energy pricing: 
To revise the tariff structure to recover maintenance costs and future investment for plant and equipment. Introduction of Power Development Surcharge into the power tariff (2021-2030). --- The levelized costs during the Master Plan period turns out to be; Tk 6.91/kWh for new plant generation ; Tk 8.17/kWh from existing plants; and Tk 7.84/kWh for purchased power from third parties. The overall cost integrating all of the three is identified as Tk 7.83/kWh which is the value expressed in the FY 2010 constant price without including the inflation and levelization1 for the whole term of the Master Plan. --- The prevalent bulk tariff adhered to by BPDB is Tk 2.37/kWh2. For the power tariff to reach the overall cost of power under the Master Plan at Tk 7.83/kWh, the bulk tariff needs to be raised to 3.3 times the prevailing level.
Energy Supply and Infrastructure
Infrastructure development priorities: 
To actively develop domestic primary energy resources. Target: To maintain domestic primary energy supply over 50%[...] . In the event that fuel diversification advances during the later years, the Master Plan aims to acquire a 25% share of domestic coal and a 20 percent share of domestic natural gas, and a 5% share of national hydropower and renewable energy, thus ensuring the self-sufficiency of the primary energy resource to be over 50 percent by Year 2030.---To establish the power system portfolio by fuel diversification. [...] In this Master Plan, the target composition of power supply as of 2030 is set at 50% for domestic and imported coal, 25% for domestic and imported (in the form of LNG) natural gas and 25% for other sources such as oil, nuclear power and renewable energy. ---Establishment of the imported coal chain: to establish the imported coal chain, which provides a seamless coal delivery system from the mine mouth in the exporting country to the banker at the power station in Bangladesh. --- Construction of a high efficient USC power station: to construct a high efficient power station by utilizing USC technology in order to prevent global warming. --- To build an infrastructure necessary for stable power supply under joint coordination by the multi-sector: To jointly build a deep sea port facility by power, industry and commercial sector. --- Construction of deep sea port (2015-2030). --- 2018: Commencement of a domestic coal P/S first unit. --- Enhancement of gas transmission line by 2030. --- To construct deep sea unloading facilities with sub sea pipe line linkage to ERL for crude oil and refined petroleum products to facilitate a quick and safe discharge. To construct pipe lines including the ancillary facilities for the transportation of petroleum products from Chittagong to Dhaka to ensure the safe and smooth transportation of petroleum products. To increase storage facilities at ERL, Oil Marketing Companies main installation. To establish 2nd Main Installations (MI) at the Mongla port for discharging imported petroleum products as an alternative arrangement to meet emergency requirements. To modernize river transportation and the custody transfer system of petroleum products from MI to secondary and territory depots to minimize the transit loss & pilferage during transportation. To develop railways facilities for the transportation of petroleum products via tanker.
Trade
Energy trade priorities: 
2013: Commencement of cross border power trading. --- Establishment of the imported coal chain: to establish the imported coal chain, which provides a seamless coal delivery system from the mine mouth in the exporting country to the banker at the power station in Bangladesh.
Investment
Energy sector investment priorities: 
The expected total addition of gas needed from new gas fields will be 16 to 33 Tcf, or which will require an investment of about US$5 billion to 10 billion. --- Generation and transmission plants and cost estimates (FY 2010 constant price): Total: - Capacity: 36,434 MW; - Investment Cost (Tk Billion): 3,458; - Investment Cost (US$ million): 49,691. The aggregated investments for the development of the generation, transmission and related facilities are found to be at Taka 4.9 trillion (US$ 70.5 billion). The annual average of the investment amounts to Tk 245 billion (US$ 3.5 billion). The peak of the investment will be reached in FY 2013 for the amount of Tk 347 billion (US$ 5.0 billion) while the bottom will be found during the final couple of years. The amount will be Tk 78 billion (US$ 1.1 billion). --- A production plan has been drawn up to meet the demand by augmenting supply from national gas companies and increasing gas purchases from the IOCs.
Investment climate development: 
To allow private financing in the gas sector in order to reduce dependence on government funds.
Public Private Partnerships: 
Promotion of private investment to realize the Master Plan. --- To allow private financing in the gas sector in order to reduce dependence on government funds. --- The government has been promoting the development of infrastructure through the promotion of Public-Private Partnership (PPP) as the policy to develop public services via private sector investment. The governing rule for PPP is found in the “Private Sector Infrastructure Guidelines of 2004 (PSIG).
Governance
Energy management principles: 
To build an efficient and effective mechanism, organization and regulations for stable power supply (2021-2030). --- Well-balanced development among generation, transmission, and distribution of power will be promoted. --- To reduce the poverty through the growth of socio-economy. To promote the local community and mutual collaboration. --- In order for the government to cope with the acute power shortage, the government has announced the power sector as the priority sector and established a Power Generation System Development Plan. --- Re-evaluation of domestic natural gas reserve: to periodically re-evaluate domestic natural gas reserve in order to forecast future gas supply and justify the development and work over planning.
National policy structure: 
Finalization of Coal Policy: to finalize the current draft Coal Policy and to formulate the laws and/or regulations with regards to domestic coal development or coal mine development. To formulate regulations for compulsory regular inspection of power stations by leadership of government (2021-2030). --- A roadmap for the Master Plan regarding sound implementation guidance has been created based on the discussion with counterparts and the PSMP Study Team. --- To update the road map on gas sector reforms covering 3 years, and outline the latest government’s vision on the gas sector.
Energy institutional structures: 
The Master Plan recommend to set up an organization for coal procurement, [...] for long-term stable fuel supply security. --- Energy & Mineral Resources Division (EMRD) of MPEMR manages the energy sector. EMRD has two corporations- one is Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), another is Bangladesh Petroleum Corporation (BPC).
Technology
Clean energy technology transfer: 
In order to lessen the coal power station’s environmental impact, it is essential to improve thermal efficiency by utilizing the proven Clean Coal Technology that has been established in Japan. [...]. With regards to the comprehensive technology transfer regarding the environmental protection and the promotion of the technology, it makes it possible to achieve 3E, especially simultaneous environmental protection and economic growth, even through utilizing coal.
Low-emission and cleaner coal technology: 
In order to lessen the coal power station’s environmental impact, it is essential to improve thermal efficiency by utilizing the proven Clean Coal Technology that has been established in Japan. ---Feasibility Study for domestic coal power station: to implement the FS for domestic coal power station by using Clean Coal Technology.---Construction of a high efficient USC power station: to construct a high efficient power station by utilizing USC technology in order to prevent global warming.