Editor

Fortnightly Magazine, Vol 15, Issue 3, July 16-31

Mollah M Amzad Hossain
Advisory Editor
Anwarul Islam Tarek
Mortuza Ahmad Faruque
Munjurul H Khan
International Editor
Dr. Nafis Ahmed
Contributing Editors
Saleque Sufi
Dr. A Rahman
Online Editor
GSM Shamsuzzoha (Nasim)
Managing Editor Power sector has achieved a great success in the last eight years. The installed
Afroza Hossain power generation capacity now stands at 15,351 MW. But the government often
Magazine Administrator faces embarrassing situation despite huge surplus generation capacity also due to
AKM Shamsul Hoque constraints in transmission and distribution systems. Over the last three years, the
Reporters government has made extensive plans and arranged investment for upgrading
Md. Nuruzzaman Delowar
power transmission grid and distribution networks to meet the demand. Some
Arunima Hossain
works have already been done for strengthening and upgrading the transmission
Design & Graphics
Md. Monirul Islam grid and distribution networks, and many other projects are in progress. Customer
Photography services have improved to a great extent after power distribution companies
Bulbul Ahmed converted into public limited companies. But still lot of irregularities, corruption
Production and inefficiency are there. Un-interrupted power supply cannot be achieved
Mufazzal Hossain Joy
without addressing these problems with strong measures. For improving quality,
Computer Graphics
Md. Uzzal Hossain
achieving efficiency and ensuring uninterrupted, quality power supply at
affordable cost, letting out power distribution and retail services to private sector
Circulation Assistant
Khokan Chandra Das must be seriously considered. The present commendable success in power
Editorial, News & Commercial generation could be maintained if private sector is engaged in this sector under
Room 509, Eastern Trade Center appropriate policies.
56 Inner Circular Road (VIP Road)
Naya Paltan. GPO Box : 677
Dhaka-1000, Bangladesh
Tel & Fax : 88-02-58314532
Email: ep@dhaka.net
energypower@gmail.com
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41
Hasan Mahmood Raja, Chair-
man, United Gropu said an un-
precedented and commendable
success has been achieved in
the Bangladesh power sector
especially due to opening the
power generation to private
sector under an appropriate
policy. Now transmission and
distribution segments should
also be opened to the private
sector, in an exclusive inter-
view with EP.
31
Australia is blessed with enor-
mous primary energy resources.
The large continent with sparse
population have huge reserve of
coal, natural gas and uranium. It
has huge potential for all type of
renewable energy resources
solar, wind, geothermal, ocean
waves, biogas and hydroelectric-
ity. But for negative public per-
ceptions Australia cannot
develop nuclear power though
possessing the largest reserve...
9
It is by now well accepted that the power
sector has made a commendable progress
over the last eight years. The installed
power generation capacity, including
2,300 MW captive power, now stands at
15,351 MW. Excluding the captive genera-
tion, the grid connected generation capac-
ity is 13,051 MW. The actual average
generation however is far less than the in-
stalled capacity. The highest generation
recorded so far was 9,479 MW on 7 June
2017. The optimum benefit from extensive
investment in increasing the generation...
Encouraged by the readers and patrons, the EP would continue bringing
out Green Pages to contribute to the countrys efforts in its journey
towards environment-friendly energy.
5 WORLD WATCH
Latest Development in
World
6,7 SNAPSHOT
Latest Development
9 COVER
Privatization May Improve
Power Supply Quality
13 COVER ARTICLE
Privatization May Improve
Power Supply Quality
17 SPECIAL REPORT
Power Summit Draws
Investment Interests
REPORT
19 UNESCO Softens Stance as
12 Countries Back Rampal
Project: Tawfiq
21 President Seeks IAEA's
Support for Rooppur Nuclear
Power Plant
22 Power Sector to Get
Tk 5,500cr from BBs IDF
23 Qatar Signals LNG Price War
for Market Share in Asia
24 Rosatom Reassures Rooppur
27 Chinese Firm to Build
Solar Plant at Kaptai
29 Investment in Green
Ventures Increases on
Banks' Push
29 Greenko to Raise $1bn via
Asia's Largest Green
Bond
30 Coal India Betting Big on
Renewables, Says
Minister
Power Plants Highest Safety
Standard
25 Electricity Key to Higher
Income Growth: WB Study
ARTICLE
31 Climate Debate Raises
Crucial Policy Questions
VIEWS
35 Russian Experience of Staff
Training for Foreign NPPs
OPINION
37 Russian Experience of Staff
Training for Foreign NPPs
CLIMATE
39 Bangladesh Listed as One of
7 Climate Change Hotspots
39 G20 Begins Transition to
LowCarbon Economy
40 Concessions Made to US for
Unity at G20
40 1.4b Could Become Climate
Refugees By 2060: Study
INTERVIEW
41 Hasan Mahmood Raja,
Chairman, United Group
 Wo rl dwatc h
A huge power
Central America Hit by outage plunged
Massive Power Outages millions of peo-
ple across Central
America into darkness recently, as authorities from Panama
to Costa Rica to El Salvador scrambled to restore electrical
service.
The blackout affected
some five million people
in Costa Rica alone,
where officials largely
had managed to restore
service after a nation-
wide power outage last-
ing about five hours.
T h e
ADB Approves $150m Loan Asian
Saudi Aramco has let
Aramco Lets $500m a contract to Saipem
in Oshore Contracts for the engineering,
procurement, con-
struction, and installation as well as the
trunklines and installation works in
Saudi Arabia under a long-term agree-
ment in force, renewed in 2015 until
2021.
Aramco also let a contract extension in
Angola for the Gimboa floating produc-
tion, storage, and offloading vessel to
Saipem. Both contracts total $500 million.
The scope of work of the EPCI contract includes the design,
engineering, procurement, construction and installation of a
total of 19 jackets for the development of Marjan, Zuluf, Berri,
Hasbah, and Safaniya fields.

to Improve Nepal's Electricity Devel- Three former power

opment
Bank (ADB) said recently that it has approved a loan of 150
million U.S. dollars to Nepal to help improve the Himalayan
nation's electricity supply and distribution system.
Due to poor distribution mechanism, electricity leakage in
Nepal stands at around 25 percent of total electricity supply,
according to Nepal Electricity Authority (NEA), the state-
owned power utility body of Nepal.
Losses during the transmission of electricity and electricity
theft have remained as a chronic problem of Nepal.
PJSC Gazprom
Gazprom Neft Acquires
Neft has acquired
Stake in EvrotekYugra a 25.02% stake in
Field from Repsol E v r o t e k - Yu g r a ,
which is owned
by Spains Repsol SA and holds exploration and production
rights to seven license blocks in the Khanty-Mansiysk au-
tonomous okrug.
This joint enterprise will continue geological prospecting
works in the Kondinsky district, in the southwest part of the
Khanty-Mansiysk autonomous okrug, where all of the ac-
quired license blocks are located.
Gazprom Neft and Repsol will be jointly managing Evrotek-
Yugra on a parity basis. Gazprom also reserves the right to in-
crease its stake to 50%.
Seismic investigations are under way at all license blocks be-
longing to Evrotek-Yugra, with nine exploration wells drilled
during 2013-16. Ouryinskoye field, with recoverable reserves
of 33.8 million tonnes of oil, was discovered in Karabashsky
1 and Karabashsky 2 fields in 2013.
A final investment decision in the development of Ouryin-
skoye field will be taken at yearend 2019 following comple-
tion of the geological prospecting program.
Tepco Executives on company executives
Fukushima Nuclear have gone on trial in
Japan on charges linked
Disaster Trial to the Fukushima disas-
ter. It is the first criminal
trial over the 2011 meltdown at the nuclear plant.
The meltdown, triggered by an earthquake which caused a
massive tsunami, was the world's worst nuclear accident
since Chernobyl in 1986. All three have pleaded not guilty to
professional negligence resulting in death and injury of pa-
tients evacuated from a hospital near the plant.
The quake and tsunami left about 18,500 people dead or
missing and left large areas uninhabitable. The three former
executives of Tokyo Electric Power (Tepco) are chairman
Tsunehisa Katsumata, 77, and vice-presidents Sakae Muto,
66, and Ichiro Takekuro, 71. If found guilty, they could face
up to five years in prison.
The trial is the first and only one raising criminal charges re-
lated to the Fukushima disaster. Two previous attempts to
press criminal charges against the former executives had been
dismissed by the prosecution as having little chance of suc-
cess.
Tsunehisa Katsumata, Ichiro Takekuro and Sakae Muto have been charged
with professional negligence.

July 16, 2017 5

 S naps ho t
Standard Chartered The High Court
Stanchart Gets Power Bank Bangladesh HC Orders BREB to Pay (HC) recently or-
Deal of Year Award has won Power Shariatpur Youth Tk 5m dered Bangladesh
Deal of the Year at Rural Electrifica-
Asset Triple A Asia Infrastructure Awards 2017 for its role in as Compensation tion Board (BREB)
financing the Northwest Power 225MW Unit 3 CCPP project. to pay Tk 5.0 mil-
Standard Chartered played the role of the lead arranger, lion as compensation to a Shariatpur youth, who got electro-
ECA/MIGA coordinator, Account Bank and Security Agent for cuted by a snapped live wire, resulting in amputation of both
the transaction, said a press release. his arms.

The transaction was closed in the shortest time for any multi An HC division bench comprising Justice Quazi Reza-Ul
export credit agency (ECA) financed power project in Hoque and Justice Mohammad Ullah passed the order, asking
Bangladesh. Unit 3 comes less than a year after the successful BREB to pay the money to Siam Khan within the next 30 days.
closure of North-West Powers Sirajganj 225MW Unit 2 CCPP According the case documents, transmission line of BREB in
project. village Pashchim Bijari was snapped in a storm on April 5 and
The awards were handed over to Naser Ezaz Bijoy, Managing fell on land. A complaint was lodged to local office of BREB
Director and Country Head of Global Banking, Standard on the same day. But the official, who received the complaint,
Chartered Bangladesh at a grand gala event held in Hong didn't bother to register it.
Kong recently. BREB the very next day turned the power again on the
snapped line. Siam (17) accidentally came in contact with the
wire and was severely
burned. He was ad-
mitted to Burn Unit of
the Dhaka Medical
College Hospital
(DMCH), where doc-
tors were forced to
cut both of his arms to
stop infection.

The gas supply at

LAUGFS Gas, a fully Normalcy Back in City CNG refueling sta-
LAUGFS Gas Organizes Sri Lankan owned CNG Stations tions of the capital
has returned to nor-
Dealers Meet business conglomer-
malcy as the produc-
ate, organized pro-
grams with its tion at Bibiyana Gas Field resumed on completion of its
distributors, dealers, key customers and other stakeholders maintenance work.
across the country, a press statement said. A senior official at Chevron said that they have successfully
Being the most preferred source of energy for cooking, run- completed scheduled maintenance works within the dead-
ning automobiles and factories, LAUGFS Gas strengthened its line. Farhan Noor, secretary general of Bangladesh CNG Fill-
bondage with its well-wishers through these relationship ing Station and Conversion Workshop Owners' Association,
building programs. said that the sales of gas to motorized vehicles resumed at the
city's CNG refueling stations.
LAUGFS Gas, which bought 100 per cent ownership from Pe-
tredec Elpiji Ltd with the brand ownership of Kleenheat Gas The CNG refueling stations had to suspend the gas supply for
and Petregaz, is one of the largest LPG operators in 24 hours, following a sudden instruction by the Titas Gas
Bangladesh, the statement added. Transmis-
sion and
Distribu-
t i o n
C o m -
p a n y,
causing
trouble to
many in
refueling
their cars.

July 16, 2017 6

 S naps ho t
A man died after Mutual Trust
Electrocution Kills One being electrocuted MTB Signs Deal with BREB Bank Limited
in Faridpur at Sadardi village in (MTB) signed
Bhanga upazila of an agreement with Bangladesh Rural Electrification Board
Faridpur district recently. (BREB) at the head office of Bangladesh Rural Electrification
Board at Khilkhet in the capital recently.
The deceased was identified as Khokon Molla, 45, hailed from
Nagarkanda upazila of the district. Under the agreement, MTB agent banking centers will now col-
lect the REB bills across the country, said a press release.
Police said Khokon came in contact with a live electric wire
when he was going to work in jute field in the village this Md Hossain Patwary, Director (Finance), FMT Cell, BREB and
morning. Syed Rafiqul Haq, Deputy Managing Director and Chief Busi-
ness Officer, MTB signed the agreement on behalf of their re-
He was rushed to Bhanga Health Complex where on duty spective organizations.
doctor declared him dead.
Md Nazmul Hoque, Controller (Finance and Accounts), BREB,
The body was sent to Faridpur Medical College Hospital Md Abul Kalam Azad, Deputy Director (Finance), BREB, Irfan
morgue for an autopsy. Islam, Head of MTB Cash Management Unit and Privilege Bank-
ing, Azam Khan, Group Chief Communications Officer and
Unipec and Madan Mahan Karmoker, Head of Agent Banking Department
Unipec, Vitol Win Tender Vitol have won of MTB along with other senior officials of both the organiza-
to Supply Oil Products a tender to tions were also present on the occasion.
supply oil
products to Bangladesh, two government sources with direct
knowledge of the matter said recently.
Bangladesh Petroleum Corporation was looking to buy up to
1.06 million tonnes of gasoil, jet fuel and fuel oil, for delivery
in the second half of 2017, in a tender issued last month.
"Unipec and Vitol won the deal as they came up with the
most competitive offers as per weighted average out of 11
companies that competed for the tender," one official said.
Unipec -- trading arm of Chinese state oil major Sinopec --
offered to sell gasoil to Bangladesh at a premium of $2.27 to Green activists re-
$2.47 a barrel to Middle East quotes, versus other offers at Activists Urge Govt to cently reiterated that
$2.47 to $4.65. Shelve Rampal Project the government
should backtrack on
Unipec offered to sell jet fuel at a premium of $2.87 a barrel
the proposed Rampal power plant to be built in the vicinity of
to Middle East quotes.
the world's largest mangrove forest, the Sundarbans, with a ses-
The produc- sion of Unesco World Heritage Committee ongoing over the
Ctg Urea Fertilizer Factory tion of the listing of heritage sites in danger.
Resumes Production state-owned The United Nations and the International Union for Conserva-
Chittagong tion of Nature have already warned the government not to build
Urea Fertilizer Factory Ltd (CUFL) resumed after two and a the plant, but the government is adamant to go ahead overlook-
half year. ing concerns expressed at home and abroad, they said at a press
Production at the factory began following Karnaphulli Gas conference at the Dhaka Reporters' Unity.
Distribution Company Limited supplied 47.72 million cubic The National Committee to Protect the Sundarbans and
feet gas to the CUFL against the demand of 50 million cubic Bangladesh Poribesh Andolon (Bapa) held the press conference
feet recently, said officials of the factory. to inform the media about the 10-day 41st session of the her-
itage committee beginning yesterday in Krakw of Poland.
The factory was shut down after its reactor and Cooling Tow-
ers of Ammonia Speaking at the press conference, economist Prof MM Akash
Plant were damaged said that whether
on January 31, 2015. the Sundarbans was
on the list of World
The government has Heritage in Dan-
recently repaired the ger would be
reactor at a cost of known by July 12,
Taka 19 crore and on the concluding
the plant at a cost of day of the session.
Taka 21 crore.

July 16, 2017 7

C over

I
t is by now well accepted that
the power sector has made a
commendable progress over the
last eight years. The installed
power generation capacity, includ-
ing 2,300 MW captive power, now
stands at 15,351 MW. Excluding
the captive generation, the grid
connected generation capacity is
13,051 MW. The actual average
generation however is far less than
the installed capacity. The highest
generation recorded so far was
9,479 MW on 7 June 2017. The
optimum benefit from extensive in-
vestment in increasing the genera-
tion capacity cannot be derived
due to short supply of primary fuel,
especially natural gas.

Mollah Amzad Hossain

July 16, 2017 9

The government has to often encounter
embarrassing situation despite huge sur-
plus generation capacity, also due to con-
straints in transmission and distribution
systems. Of course, over the last three
years, the government has made exten-
sive plans and arranged investment for
upgrading power transmission grid and
distribution networks to meet the de-
mand. Some works have already been
done for strengthening and upgrading the
transmission grid and distribution net-
works, and many other projects are in
progress. The Power Cell sources say
there are 10,436 KM transmission line
and 401,000 KM distribution line in
Bangladesh. Around 80% population
now have access to power. The system
loss in power sector is 13.1% and in dis-
tribution it is 10.69%. Per capita power
consumption is 407 kwh.
Along the roadmap of increasing power
generation, the end users started getting
optimistic about uninterrupted power
supply since late 2014. The government
started assuring people that by 2021
quality, uninterrupted power supply to all
would be ensured. This assurance has
made people more optimistic. Plans were
finalized for huge investments in trans-
mission and distribution to achieve the
vision. But till now, the lone state-owned
enterprise (SOE) Power Grid Company of
Bangladesh (PGCB) could not make
transmission grid reliable. It cannot sup-
ply power as per demand to either differ-
ent PBSs of REB in the rural areas or
distribution companies in the city areas.
However, PGCB management disagrees
with the allegation of the distribution
companies. They said that there are some
issues. But these are bare minimum.
Works are in progress for resolving these.
But United Group Chairman Hasan Mah-
mood Raja mentioned: PGCB could not
repair the power transmission tower in
two months after it collapsed in a tor-
nado. This is an evidence of the level of
efficiency of PGCB.
Sector experts find a gulf of difference be-
tween claims of PGCB and the reality.
DESA was created through unbundling
vertically integrated BPDB for facilitating
smooth power distribution in Dhaka city
through managing power pilferage. The
pressure and covenants of the World
Bank had compelled the government in
creating DESA in 1991, ignoring strong
objections of trade union. But DESA
failed to bring desired changes. Conse-
quently, complying with ADB suggestion,
the government had created a 100% gov-
ernment-owned company for power dis-
tribution in Mirpur area. This is DESCO.
The companies started gaining grounds
through outsourcing services to private
companies. The pilferage in the name of
system loss could be greatly reduced.
Recognising the success in Mirpur area
the power distribution responsibility in
Uttara was vested on them in few years.
Now DESCO looks after power distribu-
tion of almost half of the city area in Mir-
pur, Uttara, Tongi, Gulshan, Baridhara
and Purbachal. Among the distribution
companies, DESCO is distributing power
to end users most efficiently. DESCO was
the first distribution company initiating
digital system in bill preparation and col-
lection. DESCO Managing Director Brig
General Md Shahid Sarwar (Rtd) in-
formed that DESCO distribution network
has required capacity for meeting the
present demand of end users. The net-
work is not overloaded. Against their ca-
pacity of 1,000 MW the demand is not
over 870 MW. But it is not possible meet-
ing the demand of Tongi area as PGCB
cannot supply the required power there
for its system constraints. The chief exec-
utive of DESCO acknowledged that qual-
ity power supply to all end users in its
franchise cannot be ensured till all over-
head lines with required redundancy can
be buried, complete expansion of substa-
tions and bring the system under SCADA
monitoring and control. It may take
DESCO another 3-4 years to achieve it.
Success of DESCO led to creation of an-
ceipt point of supply from PGCB is over-
other distribution company DPDC re-
placing DESA. The highest demand of
DPDC is not beyond 1,500 MW. Its net-
work has capacity of distributing 2,000
chise are almost non-existent. Experts ob-
MW. But there remain some issues in get-
ting required supply from PGCB at
Hasnabad point. DPDC could bring
many positive changes in distribution sys-
tem so far. Lot of hustles in getting new
connections have been overcome. Crisis
management time has also been signifi-
cantly reduced. Like DESCO, they have
also leased out maintenance works of the
system and billing works to private com-
panies.
Former Managing Director of DPDC Brig
General Md. Nazrul Hasan (Rtd)) said,
DPDC system is not yet ready for quality
power supply. Some more time is re-
quired for it. Use of power factor im-
prover (PFI) at user HT level must have to
ensure for improving power factor. Entire
distribution system has to be brought
under SCADA. Power interruption has
now been remarkably reduced. Equip-
ment monitoring system needs to be in-
troduced for further improvement. This
could not be done so far. For quality
power supply, efficiency needs to be im-
proved at segments from generation
through transmission distribution to end
users. Bangladesh is still way behind to
that stage.
Almost the entire power distribution
works in the rural areas has been vested
on 80 Pally Bidyut Samities (PBSs) of
Bangladesh Rural Electrification Board
(BREB). BREB is now meeting half of the
nations power demand.
REB Chairman Major General Moin
Uddin informed that REB network now
has capacity of 5,000 MW. The demand
is little over 4,000 MW. They are hopeful
that they can achieve power supply to all
by 2018 although the target for that is set
as 2021. REB has the maximum numbers
i.e. up to 50 MW lifeline consumers.
They have to supply power at lesser than
purchase price. Consequently, other than
12 PBSs, the rest are running at loss. Profit
earning PBSs are subsidising the losing
concerns. As a result, these are relying
exclusively on government allocations
for expansion and improvement of net-
works.
Apart from own system, 40% of the re-
loaded. Upon request of REB, PGCB is
now working on these. But PGCB
claimed that the problems in REB fran-
serve that quality power supply in rural
areas would still take some time.
West Zone Power Distribution Company
(WZPDCL) has been created for power
distribution in the Barisal and Jessore re-
gions of PDB. The latest created distribu-
tion company is North West Zone Power
Distribution Company Limited
(NWZPDCL). They will look after power
July 16, 2017 11
distribution in Rajshahi and Rangpur re-
gion. The functioning of the company
was delayed by a year for impediments
created by BPDB trade union to its cre-
ation. The distribution networks of these
two companies are not reliable now.
Md. Shafique Uddin, Managing Director
of WZPDCL, informed the EP that some
new projects have been taken up for up-
grading the network. He sounded opti-
mistic that by 2021 the system would
become reliable. But the quality power
supply does not depend on efficiency of
distribution system alone. All segments of
power value chain from generation to re-
tail services but be made technically effi-
cient.
Beyond these, BPDB is still distributing
power in remaining districts like Sylhet,
Chittagong and other areas. Over the last
few years, BPDB has implemented sev-
eral projects for system improvement and
many are under implementation. BPDB
claimed that by 2021 the entire power
distribution system would achieve tech-
nical efficiency. But they admitted that
ensuring uninterrupted, quality power
supply may take few more years.
While talking to media, State Minister for
Power, Energy & Mineral Resources Nas-
rul Hamid informed that it will be possi-
ble achieving power supply to all by
2021 or even before that. But for quality
power supply, another 3 years may be re-
quired. While analyzing and reviewing
the situation about the possibility of qual-
ity power supply by 2024, it appears that
as per power system master plan, in-
stalled capacity by that time would be at
least 25,000 MW. According to revised
schedule, at least four 1,200 to 1,320
MW power plants would start commer-
cial operation by 2024. Around 2,400
MW Rooppur Nuclear Power plant is
also expected to come into operation by
then. Around 2,000 MMCFD LNG import
would start by then. Power generation
constraint due to gas supply deficit would
not exist. Entire capacity of gas based
generation would be available. BPDB is
expecting to achieve 10% spinning re-
serve in generation by then.
On the other hand, works for improving
power transmission system to interna-
tional standard would also be completed
by then. Reliable transmission system is a
precondition for evacuating nuclear
power into the grid. The US$ 3 billion
worth of massive works initiated would
be completed by then. Huge investment
has also been made over the past three
years for upgrading distribution networks.
Already some projects have been com-
pleted and the rest would be completed
by 2024. All end users would be pro-
vided with pre-paid meters by then.
There should not be literally any impedi-
ment to supplying quality power to all at
that time. Responding to a query whether
uninterrupted, quality power supply is
possible by power distribution works re-
maining in the exclusive domain of the
SOEs, Power Cell DG Mohammad Hos-
sain said privatization is not the solution.
Countries like Australia and Singapore
have achieved quality power supply by
public sector companies. Rather quality
manpower and efficient network are es-
sential for that. The government is work-
ing to achieve that.
Our next door neighbor India has
achieved success by introducing private
sector companies in power distribution in
major cities. Quality power is being sup-
plied. Relevant power sector experts ob-
served that if Bangladesh desires
uninterrupted, quality power supply to all,
it is not possible achieving with state mo-
nopoly in power sector. They suggested
letting out power distribution to private
sector making smaller zones in the sys-
tem, including Dhaka and other major
cities. The private sector would make sys-
tem more efficient by injecting fresh cap-
ital. The private sector can effectively
control theft and pilferage which are not
possible by public sector companies.
United Group Chairman Hasan Mah-
mood Raja suggested engaging private
sector in power distribution and retail
services, making smaller zones. He sug-
gested letting out power distribution to
Bashundhara City, under development
United City and others to private sectors.
United Group is ready to make invest-
ment there, he said.
Dr M Tamim, former special assistant to
chief advisor of the last caretaker govern-
ment, observed that it will be possible en-
suring uninterrupted, quality power to all
in quick time if power distribution is let
out to the private sector. But before that a
strong regulatory system must be in
place. Otherwise, consumers interest
would not be protected. The private sec-
tor would ensure quality customer serv-
ices. They have to be given scope for
complete commercial operation. Other-
wise, a given margin on distribution may
be allocated to them.
While the matter was referred to the state
minister, avoiding direct answer, he said
bill preparation, bill collections, system
maintenance works have already been
leased out to private companies although
power distribution still remains the re-
sponsibility of the public sector. Four
pilot projects are under implementation
as test case for retailing services in private
sector. Based on its positive outcome,
power retailing in new areas would be
vested on private sector. He said in 10
years the entire distribution system would
go under the private sector.
On comprehensive review of the matter
on the basis of past proven records in
Bangladesh, it has been seen that services
improved expeditiously to a great extent
when the responsibility is vested on pri-
vate sector. There are many evidence in
Bangladesh. Power distribution services
are not an exception. The unbundling
process of vertical integrated power value
chain since 1991 has worked well. Cus-
tomer services improved to a great extent
after power distribution companies con-
verted into public limited companies.
Services of PBSs have vastly improved.
But at the same time, it is also true that in-
ternational standard could not be
achieved yet. Lot of irregularities, corrup-
tions and inefficiency still are rampant. It
cannot be said with assurance whether the
present system can at all achieve uninter-
rupted power supply. For improving qual-
ity, achieving efficiency and ensuring
uninterrupted, quality power supply at af-
fordable cost, letting out power distribu-
tion and retail services to private sector
must be seriously considered. The present
commendable success in power genera-
tion could be achieved through introduc-
tion of private sector under appropriate
policies since 1996. Power generation has
now stood on a solid foundation. Private
sector now contributes about 50% to the
national power generation. The govern-
ment must open distribution segment to
private sector also. Users will get better
services from competition among the pri-
vate and public sector companies.
EP
July 16, 2017 12
 C over Ar t ic l e
Privatization is the Key to Efficiency of
Power Distribution
B
angladesh over the last 8 years has
achieved commendable success
in quadrupling power generation
to over 15,000 MW installed generation
capacity but it can hardly generate and
supply over 8,500 MW consistently.
There are issues with fuel supply, con-
straints in power transmission and dis-
tribution networks and over all sector
planning and management. In the un-
bundling and restructuring process gen-
eration, transmission and distribution
are segmented and separated. Private
sector is introduced alongside state
owned enterprises. But transmission and
distribution still remains state monopoly.
Distribution and retail services still re-
main bundled.
Bangladesh intends to achieve long
term energy security and ensure quality
power supply to all on uninterruptible
basis at affordable cost. Experts believe
that careful privatisation and introduc-
ing competitiveness in the power trans-
Electricity workers in Brisbane
Saleque Sufi
mission, distribution and retail services structured energy and power sector
is the key in achieving success. The management.
Australian model can be ideal to follow
though in many ways situation and cir- Bangladesh on the other hand has over
cumstances differ. 160 million people living in a very small
country. It has almost the entire popula-
Australia is a huge confinement but tion of Australia living in congested cap-
sparsely populated. Only 23 million ital city Dhaka only. It relied almost
people live in a vast continent of 6 states exclusively on mono fuel cheap natural
(5 in mainland and one isolated island) gas for power generation. But the
and two territories. But it is blessed with proven reserve of natural gas is fast de-
huge natural resources. It has abundant pleting. It could not adopt appropriate
reserve of coal, natural gas, uranium to policy so far for exploring and exploit-
fuel power generation. It has enormous ing substantial reserve of high quality
prospect of renewable power genera- coal. Now for achieving power sector
tion -- solar, wind, ocean waves, geot- vision it has adopted a plan for major re-
hermal. But its power generation is liance on imported fuel coal and LNG
almost exclusively dominated by coal. as well as power import from neigh-
Off late Australian Government is in a bouring countries. But there also it has
dilemma whether it should replace its huge challenges as it does not have a
many ageing old technology using coal deep sea port for setting up fuel import
fired power plants with modern High Ef- infrastructures. The coastal areas have
ficiency Low Emission (HELE) power very limited scope for setting up coal
plants or go for relatively expensive re- import terminals. Moreover, fuel and
newable energy. Australia has very well power price in domestic market is well
below economic
price requiring
manyfold adjust-
ment for absorbing
price shock from
imported fuel. But
beside all these
challenges power
transmission and
distribution is a
major challenge
where private sector
needs to be given
access like many
developed and de-
veloping countries.
Private sector will
bring investment,
create competition,
efficiency and relia-
bility if carefully in-
troduced and
regulated.
July 16, 2017 13
Australia Model
There has been dra-
matic change in Aus-
tralia's electricity
industry since the
early 1990s. The elec-
tricity industry has un-
dergone a period of
rationalization, disag-
gregation, corporati-
zation, and in the
case of Victoria, al-
most total privatiza-
tion. This change has
been part of a grow-
ing worldwide trend
towards the restruc-
turing of government
business enterprises
(GBEs) targeted to-
wards increased effi-
ciency and lower
Moghbazar substation
prices. Australia's
electricity industry telecommunications, banking and en- the transmission and sale of electricity
has been part of this revolutionary ergy. The main objectives are to ensure between states (New South Wales, Vic-
process. that customers receive: toria, South Australia and the Australian
Prior to the early 1990s, the Australian choice of supplier; Capital Territory). This market will be
electricity industry consisted of wholly lower cost of service; and extended to include Queensland by
state-owned and managed vertically in- increased range of services 2001 and possibly Tasmania beyond
tegrated electricity authorities responsi- that date. A trial NEM (NEM1) has been
Each of the states has restructured their in operation since May 1997 with the
ble for the generation, transmission,
electricity authorities since the early trading of wholesale electricity between
distribution and retailing of electricity to
1990s and although they are all at dif- New South Wales, Victoria, the Aus-
consumers (commercial and house-
ferent stages in the restructuring process, tralian Capital Territory and South Aus-
hold). GBEs, and electricity authorities
the thrust of the process has involved tralia.
in particular were often motivated by
the separation of single entity vertically
the availability of government guaran- Let us discuss Victoria state where this
integrated monopolistic authorities into
teed capital to finance either new ca- writer lives for the last 12 years
electricity generation, transmission, dis-
pacity or implement programs rather
tribution and retailing components. A
than basing decisions on sound invest- Victoria
national electricity market (NEM) has
ment practices. Each state focused on Under the new competitive structure,
been established and is scheduled to
supplying its own needs and tended to the natural monopoly functions of the
begin operating in May 1998, enabling
develop generation capacity in isola- transmission and distribution of electric-
tion. As a result, ity have been sepa-
substantial over ca- rated from the
pacity was devel- competitive func-
oped in a number of tions of generating
regions. and retailing elec-
The commonly tricity. Generators
stated rationale for and retailers now
restructuring is to in- trade electricity in a
crease microeco- competitive whole-
nomic efficiency sale market (NEM1)
through the intro- as contestability
duction of competi- (the right of the
tion in regulated electricity con-
industries, such as sumer to choose

July 16, 2017 14

their electricity retailer is
phased in over time, while
transmitters and distributors
charge regulated tariffs for
transporting the electricity to customers.
Generation
Most of the electricity consumed in Vic-
toria is produced by coal-fired power
stations located in the Latrobe Valley,
where there are considerable brown
coal reserves. The power stations for the
most part are located adjacent to the
coal mines. Brown coal is considerably
cheaper to produce than black coal and
as such makes the Victorian generators
very competitive. The Victorian brown
coal deposits are relatively close to the
surface and have shallow overburden.
The overburden and the coal are rela-
tively soft and as such can be ripped
prior to transportation in comparison to
the extensive blasting required in the
New South Wales coal fields. In addi-
tion to the coal-fired power stations,
Victoria has two gas-fired power station,
a number of small hydro-electric
schemes and two cogeneration waste
gas plants.
Transmission
The Victorian transmission grid is
owned and operated by GPU Powernet
Pty Ltd. GPU has over 6,400 km of high
voltage transmission lines crisscrossing
Victoria and provides electrical power
to around 4.5 million people. Power-
Net's charges and services are regulated
by the Office of the Regulator General,
Victoria (ORG).
Distribution
All the distribution companies were pri-
vatized by January 1996. Three of five
distribution companies (CitiPower Pty,
Solaris Power Limited and United En-
ergy Limited) are predominantly based
in metropolitan Melbourne, while two
(Eastern Energy Limited and Powercor
Australia limited) operate distribution
networks covering the
rest of Victoria. Eastern
Energy's, for example,
maintains around $1.8
billion worth of distri-
bution assets with the
distribution franchise
area covering approx-
imately 80,000 km2 including Mel-
bourne's outer eastern suburbs, through
to Gippsland in the east and as far north
as the New South Wales border.
Each of the five distribution companies
owns and manages distribution net-
works in the geographic area defined in
theirlicence. For example, United En-
ergy's distribution business, like the
other distributors owns and manages its
network from PowerNet Victoria (PNV)
voltage transformer step down stations
up to and including the meter at the cus-
tomer's premises. The Victorian distribu-
tion businesses also provide a public
lighting service to local councils.
Distribution companies earn income by
charging distribution network charges
for any electricity sold to customers
connected to their network. These
charges are regulated by the ORG. The
regulatory regime defines initial distri-
bution network charges, the formulae to
be used to determine movements in
those distribution network charges over
the period to 31 December 2000, and
the principals and key parameters to be
taken into account by the ORG in future
reviews of distribution prices.
Retail Services
Electricity is transported from the trans-
mission terminal stations to points of use
at the customer's premises by way of the
distribution system. The retail function
however is a separate activity from pure
distribution of electricity. Retailers pur-
chase electricity in the wholesale mar-
ket, arranging for its distribution and
selling it to customers.
Until all customers become 'con-
testable' (see Table 3), the distributor
who controls the relevant franchise area
will provide retailing services in the first
instance. However, customers within a
particular franchise area will
be free to choose any li-
censed retailer regardless of
their base, even including re-
tailers from interstate when they be-
come 'contestable'.
Licensing of retailers provides some
guarantee to customers that they are
dealing with reputable companies that
are financially sound and that they are
committed to good consumer practices.
Other States NSW, Queensland, West-
ern Australia,Southern Australia and
Tasmania has also similar system for
power system operation and business.
What Lesson Bangladesh Can Take
from Australia?
Australia is a huge continent with a
small population spread over entire
continent. Its power and energy system
is huge. But system management and
operation is well managed. Council of
Australian Government (COAG) Energy
Council, Australian Energy Market
Commission (AEMC), Australian Energy
Market Operator (AEMO) and Aus-
tralian Energy Regulator (AER) ensures
that completely privatised Australian
Power sector complies with all rules and
procedures. Energy and power sector is
completely deregulated. Energy Pricing
is market based. Private sector at all seg-
ments of power value chain ensures
competitiveness, efficiency, energy se-
curity and affordability in power supply.
Customer care and customer services
are of exceptionally high quality. It is
only possible for privatizing power dis-
tribution and retail services.
Bangladesh has unbundled power value
chain and opened generation to private
sector. For efficiency and completion
distribution and retail services should be
unbundled and privatised the same way
Australia has done. This would facilitate
attracting investment, ensuring effi-
ciency, supplying
power at affordable
cost through fair com-
petitions.
EP
Saleque Sufi;
Contributing Editor, EP
July 16, 2017 15
 S pec ial Repo r t
Power Summit Draws Investment Interests
A
two-day event titled Bangladesh
Power Summit - 2017 was held
in Dhaka on July 11-12, creating
possibilities for investment in the coun-
trys power generation and transmission
sectors. It also focused on the renewable
energy sector and its development.
Wispool Group in collaboration with
Energy & Power magazine and ExpoNet
Exhibition Bangladesh organized the
summit, where state-owned power
companies, IPPs, worlds leading solu-
tion providers and investors from 20
countries took part showcasing their
products and services on the sidelines of
the event.
At the concluding session, State Minister
for Power, Energy and Mineral Re-
sources Nasrul Hamid spoke about the
current and upcoming foreign invest-
ments in Bangladesh. He said
Bangladesh was changing to become a
most potential country in south Asia for
Investment. Investors from America,
Japan, China, Indonesia, Malaysia and
Sweden were showing their interests to
invest here.
He added that Bangladesh was also
working on importing another 1,000
megawatt (MW)
of electricity
from India, in
addition to the
present import of
650 MW. Power
giant Reliance
Group and
Adani were also
showing their in-
terests to supply
some electricity.
We are looking
for more joint
ventures (JV) in
power genera-
tion and trans-
mission.
The junior minis- Prime Ministers Energy Adviser Dr TawfiqeElahi Chowdhury inaugurates Bangladesh Power Summit
ter also informed 2017 recently in Dhaka
Mohiuddin Miah
the session that the ministry wanted to
arrange at least five programs of this
kind in a year so that the investors and
stakeholders could meet in a platform
and explore more investment opportu-
nities.
He said the ministry was also working
to develop the local human resources.
They have a plan to train up engineers
by sending them abroad for 3-6 months
when they could gather some theoreti-
cal and practical knowledge.
He also hoped that the Excelerate En-
ergy and Summit will be able to inject
1,000 mmcfd of Liquefied Natural Gas
(LNG) by the next year and it will miti-
gate the existing energy crisis.
Earlier, Chairman of the Institute for Pol-
icy, Advocacy and Governance (IPAG)
Syed Munir Khasru made a power point
presentation on Energy for Peace: The
Unexplored Potential of South Asia. He
showed that this region could become
energy sufficient area by sharing its
prospects and opportunities.
Khasru emphasized on power sharing
and inter-connectivity to becoming an
energy independent region. He also
mentioned that south Asia is the fastest
growing economy compared with the
other parts of the world.
Member of the Sustainable and Renew-
able Energy Development Authority
(SREDA) Siddique Zobair spoke on Re-
newable Energy Situation in Bangladesh
and Opportunities where he briefly de-
scribed the present situation and the fu-
ture challenges on this sector.
Zobair informed the meeting that at
present Bangladesh was getting 433
MW of electricity from renewable sector
which is only 3 percent of the total gen-
eration. Bangladesh set a target to gen-
erate 2000 MW by the year 2020 which
will be 10 percent of the total genera-
tion by then.
He said: If we see the world situation,
this target is not difficult one to achieve,
but it is really an ambitious target for
Bangladesh. But we believed that it is
very achievable.
Zobair also mentioned that Bangladesh
is the largest user of solar home system
in the world with around 4.5 million
solar home systems so far installed. Most
of those were set up in the off-grid areas,
which is helping to reach another target
to ensure power access to all by 2021.
He said SREDA
was working to
support the re-
newable energy
sector of
Bangladesh by
making policies,
offering finan-
cial conces-
sions, trying to
form joint ven-
tures (JV) and
bringing the ex-
pertise through
the JV. We were
also working for
developing our
capacity to go
for the sustain-
able development
July 16, 2017 17
ment. ing LNG termi-
Among others, nals is being
Managing Direc- built at Mo-
tor of North West heshkhali to fa-
Zone Power Dis- cilitate import of
tribution Com- gas. He said
pany Zakiul some land-based
Islam; Executive LNG terminals
Director (plan- will also be set
ning and Devel- up in the coun-
opment) of try.
Power Grid Tajul Islam said
Company of that by 2021 our
Bangladesh target is to be-
Chowdhury come a middle
Alamgir Hossain, income country
Managing Direc- and for that we
tor of West Zone State Minister for Power, Energy and Mineral Resources Nasrul Hamid speaks at the closing ceremony of
the Bangladesh Power Summit 2017 Photo:PID
have to do a lot.
Distribution We need calcu-
Company Engr. Shafique Uddin and now 80 percent. We may not able to lative and efficient logistic support.
Chief Engineer (planning and operation) provide quality power but ensure elec- Power and energy sector would be one
of Bangladesh Rural Electrification tricity for all, which will also be a big of the key areas where we should em-
Board Abdus Salam took part in the achievement. phasize. Under these circumstances,
panel discussion. He said investors should not focus only Prime Minister Sheikh Hasina took lot of
Earlier, Prime Ministers Energy Advisor on power generation, but they should steps to accelerate the continuous
Dr. Tawfiq-e-Elahi Chowdhury inaugu- also invest in power transmission sector, progress.
rated the summit as chief guest and as there is huge potential for business in Though we have achieved above
called upon the local and the foreign the sub-sector. 15,000 MW of generation capacity, we
entrepreneurs to come up with innova- Pointing to Bangladeshs success in re- actually are generating less than 10,000
tive ideas and new technologies to in- newable energy, the Energy Advisor said MW on an average. So, we are not
vest in the countrys power sector. the country has implemented the going as per the Power System Master
Chairman of the Parliamentary Standing worlds largest solar home system. Now Plan. Another important thing is that we
Committee on Ministry of Power, Energy Bangladesh has undertaken a solar irri- need to work on efficiency side also.
and Mineral Resources Tajul Islam at- gation project to introduce solar irriga- Director General of Power Cell Moham-
tended the program as special guest. tion system. mad Hossain made a presentation on
Tawfiq Elahi said: Bangladesh needs But the project has been facing chal- Overview of Bangladesh Power Sec-
huge investment in power generation lenge as it needs a suitable financial tor. He showed that Bangladesh is
and transmission. We want private sec- model to run commercially. So, in- heavily dependent on natural gas and
tor to come up with innovative solu- vestors can come up with solutions to they want to shift from gas to coal for
tion. invest in solar irrigation project to run it implementing the fuel mix plan.
commercially, he said. Bangladesh is targeting Australia, In-
Our development strategy was to have donesia for importing high quality coal.
faster economic growth, but without He also emphasized on promotion of
hampering the life style or compromis- research and development (RND) so Bangladesh is also focusing on regional
ing the environmental concerns, he that new challenges could be easily cooperation. Through Bangladesh-
said. overcome in power and energy sector. Bhutan-India-Nepal (BBIN) initiative,
Public and private partnership could Bangladesh is looking for exploring the
If we see our per capita income indica- hydro potential of this region, seasonal
take place in this regard, he added.
tor where we are half of India, but in diversity in energy demand, fuel diver-
human indicator we are ahead of India. After the inauguration, while talking to sity, joint-venture projects.
So, we have to develop a lot of sectors, reporters, he said the government has
he said. been working to resolve the gas crisis by He also noticed that Bangladesh re-
importing LNG. quired around US$40 billion in invest-
We want to bring our country under ment to reach the target in 2041 while
100 percent electricity coverage by Suggesting the countrys investors to be Bangladesh will welcome the foreign in-
2021. This is not a big task as in 2009 patient and wait until 2018 to get the vestment. So, we are making invest-
the ratio was only 40 percent, which is imported gas, he said a number of float- ment-friendly climate for the investors.

July 16, 2017 18

Managing Director of Rupantarita
Prakritik Gas Company Ltd (RPGCL)
Engr. Quamruzzaman briefed the pres-
ent gas sector scenario and future of
LNG in Bangladesh.
He estimated that by 2041, the gas de-
mand for Bangladesh will be 6,787
mmcfd. At present the supply is 2,740
mmcfd against the demand of 3,400
mmcfd. So, there is a challenge ahead
of us to narrowing down the demand
and supply gap. Imported LNG would
rationalize the gap along with installing
efficient appliances.
He added that the government was ex-
pecting 1,000 mmcfd LNG to be in-
jected in the countrys energy sector by
the year 2018. Excelerate Energy and
Summit Group were working on it. In
the meantime, a LNG terminal would
be completed for operation.
Senior Advisor (India, Middle-east &
east south Asia) of World Nuclear Asso-
ciation Shah Nawaz Ahmad praised the
government for moving to nuclear
power plant. Ahmed said that as the nu-
clear power is cheaper, affordable and
carbon-free, the world is moving to the
nuclear power. Bangladesh has really
taken a good decision by going for the
nuclear power.
Principal Analyst (LNG- Asia) of Wood-
Mackzine Chong Zhi Xin spoke on
trends in Asias power markets and the
role of LNG. He suggested that
Bangladesh should increase its indige-
nous natural gas price to the interna-
tional level so that it could be
rationalized with the LNG price.
Throughout the summit, the participant
companies introduced their products,
services and solutions. Partner of Mck-
insey & Company Suvojoy Sengupta;
Director of Nepal Electricity Authority
Anil Rajbhandary; Manager (power
projects) of Kirloskar Brothers Ltd Sachin
Karnik; Senior Director of VERTIV Dhi-
man Ghosh; Application Engineering
Manager of Schweitzer Engineering lab-
oratories Sthitaprajnyan Sharma; Tech-
nical Sales Executive of Hadek
Protective System bv, the Netherlands
Bastiaan Vab Der Woude gave presen-
tation on the program.
EP
Rep or t
UNESCO Softens Stance as 12 Countries
Back Rampal Project: Tawq
P rime Ministers Energy Adviser Dr
Tawfiq-e-Elahi Chowdhury today
said that 12 countries raised their voice
in favor of Rampal Power Plant near the
Sundarbas, convincing UNESCO to
give its approval without going for vot-
ing in this regard.
The 12 countries, including Turkey and
Finland, raised their voice which finally
convinced the World Heritage Commit-
tee of UNESCO to withdraw its objec-
tion from the project, he told a press
briefing at Bidyut Bhaban in the capital.
He said the UN organization has also
moved away from its previous stance of
halting the project work and requested
the government to start the project work
only after environmental assessments.
He, however, said UNESCO gave the
government some conditions to fulfill
those for constructing power plant.
The Energy Ministry arranged the press
briefing to clearly communicate the
UNESCO decision and also the govern-
ments measures for protecting the Sun-
darbans.
Earlier on Thursday, a Foreign Ministry
statement claimed that the World Her-
itage Committee of UNESCO has with-
drawn its earlier objection over the
construction of the power plant at its
current location.
Prime Ministers Energy Adviser Dr TawfiqeElahi Chowdhury briefing press about the UNESCO
report of Sundarban the world heritage at Bidyut Bhaban
The decision was made at the 41st ses-
sion of the World Heritage Committee
being held in Krakow, Poland, the For-
eign Ministry added.
A high-level inter-ministerial delegation,
led by the adviser, took part in the meet-
ing to defend Bangladesh's position.
Following the statement, National Com-
mittee to Protect Oil-Gas, Mineral Re-
sources, and Power-Port rejected the
Foreign Ministrys claim and reacted
sharply and announced a fresh action
program reiterating its call to roll back
the project.
Other environmental groups, including
the National Committee to Protect Sun-
darbans and Bangladesh Paribesh An-
dolan, contradicted the governments
statement saying what it said about UN-
ESCO`s withdrawal of objection to the
plant was not correct.
Meanwhile, State Minister Nasrul
Hamid said the government would ful-
fill the conditions set by UNESCO for
implementing the project.
He also claimed that UNESCO retreated
from its earlier position that the plant
cannot be built at Rampal and gave
Bangladesh some conditions regarding
its construction.
EP
Photo: PID
July 16, 2017 19
 Repo r t
President Seeks IAEA's Support for
Rooppur Nuclear Power Plant
P resident Md Abdul Hamid
urged the International
Atomic Energy Agency (IAEA)
recently to provide necessary
support to Bangladesh's Roop-
pur Nuclear Power Plant Proj-
ect.
"Bangladesh is implementing
the Rooppur Nuclear Power
Plant Project to ensure its in-
creased power production.
IAEA's assistance is a must to
implement this project suc-
cessfully and ensure the
peaceful use of nuclear en-
ergy," he said.
President Abdul Hamid hands over the Doctor of Laws Degree to IAEA Director Gen
eral Yukiya Amano
Power Outages after Deadly
Philippine Quake
L arge parts of the central
Philippines remained with-
out power days after a 6.5-
magnitude quake shook the
region and killed two people,
authorities said.
Power plant facilities in the
central island of Leyte, which
provide electricity for the is-
land and neighboring regions,
sustained damage when the
The President mentioned the
peaceful use of nuclear en-
ergy can play an effective role
in meeting the growing elec-
tricity demand.
The President was addressing
a special convocation of
Dhaka University (DU) at the
Nabab Nawab Ali Chowd-
hury Senate Bhaban on the
campus. The convocation was
arranged to confer the Doctor
of Law Degree to IAEA Direc-
tor General Yukiya Amano.
EP
Photo: PID
quake struck, an energy de-
partment statement said.
The geothermal plants, near
the quake's epicenter, were
damaged by both the tremors
and resulting landslides, the
department said.
Leyte, home to some 1.75 mil-
lion people, bore the brunt of
the quake, recording two
deaths and 72 injuries.
Much of Leyte and the sur-
rounding islands of Samar
and Bohol were without
power on Saturday as repairs
were still being conducted,
energy undersecretary Wimpy
Fuentabella said.
EP
Power Sector Engineers to Get
Skills Training Abroad
S tate Minister for Power,
Energy and Mineral Re-
sources Nasrul Hamid re-
cently underscored the need
for building capacity of the
government officials for suc-
cessful negotiation on power
purchase agreements (PPAs)
with the contractors.
The officials must have to im-
prove their needs assessment
and managerial skills to cope
with the new challenges in
the rapidly changing scenario
of the world, he told the in-
augural session of a nine-day
training program on 'Power
Purchase Agreement & Case
Simulation' at BIAM audito-
rium in the capital.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid speaks at
the inaugural session of the program 'Power Purchase Agreement & Case Simula
tion' at BIAM auditorium in the capital.
Petrobangla Blocks $50m Gas
Bills of Chevron
T he state-owned
Petrobangla has so far
blocked the payment of over
$50 million to Chevron
Bangladesh in line with a
court order, as the US oil and
gas company has not con-
tributed to the profit partici-
pation fund for its employees
working in the country.
The money will be used for
payment to the Workers'
Around 180 officials from dif-
ferent state-owned enter-
prises in the power sector
participated in the program,
organized under a project ti-
tled 'capacity building and
implementation support for
power sector agencies'.
The government has taken
steps to send some 300 to
400 engineers abroad next
year for long-term training,
said the junior minister.
Some of them would be
trained on coal-fired power
plants, some on LNG (lique-
fied natural gas) fired power
plants and others on IT (infor-
mation technology).
EP
Photo: PID
Profit Participation
(WPPF).
Fund
"We have blocked over
US$50 million from Chevron
Bangladesh's bill against gas
sales to Petrobangla until
June," said an official.
Petrobangla has subse-
quently informed Chevron
Bangladesh of the blocking
of the money, he added. EP
July 16, 2017 21
 Repo r t
2.6 Lakh to Get Prepaid Gas
Meters Next Year
S ome 2.6 lakh residential
consumers in Dhaka and
Chittagong cities are going to
get prepaid gas meters from
next year under a Japan-
funded project.
According to
sources at Titas
Gas Transmis-
sion and Distri-
b u t i o n
Company, a the next two
Japanese con-
tractor responsi-
ble for
installation of
200,000 gas me-
ters in Dhaka
North City Corporation area
was doing pre-shipment in-
spections of the imported pre-
paid meters, which will reach
the country this month.
Officials at Titas prepaid meter
installation project said that
Major DPDC Power Project Faces Deals with Rental Power Plants
Execution Delays Get Another Five Years Extension
A bsence of proper design
and feasibility study has
virtually stalled execution of
the country's largest Tk
205.02 billion power distribu-
tion project, officials said re-
cently. The Chinese
government will fund the
project.
The state-owned Dhaka
Power Distribution Company
Limited (DPDC) is yet to start
the work on the project as it
finds it impossible to execute
the gigantic project for
strengthening and expanding
distribution network in line
with suggestion coming from
the ECNEC, they said.
Finding serious loopholes in
the project proposal, Prime
Minister Sheikh Hasina-led
they have been conducting a
consumer survey in the se-
lected areas before starting the
installation work.
"Once the meters reach the
country, both the survey and
installation works
will simultane-
ously go on and
the job will be
concluded within
years," said one
of them.
The government
took the project a
few years back as
part of a move to
check the pilferage in gas sup-
ply.
Earlier, under a pilot project,
Titas installed 8,600 prepaid
meters in Dhanmondi, Mo-
hammadpur and Lalmatia
areas in the capital. EP
Executive Committee of the
National Economic Council
(ECNEC) in December last
year asked the DPDC to in-
clude two more provisions in
the design of the project, said
a Planning Commission (PC)
official.
"But the DPDC recently in-
formed us that it will be diffi-
cult for it to implement the
project if it follows the
ECNEC's suggestion. So, it re-
cently sought permission not
to follow the suggestion be-
fore starting the electricity dis-
tribution project," he said.
Actually, the project was taken
in a hurry without proper fea-
sibility study resulting in the
emergence of the latest stale-
mate, he added.
EP
Power Sector to Get Tk 5,500cr
from BBs IDF
T he government will uti-
lize an idle fund of Tk
5,500 crore from Bangladesh
Kabir as member secretary
and representatives from
Bangladesh Bank,
Banks Islamic Development Bangladesh Investment De-
Fund (IDF) to invest in the velopment Authority, Bank-
power sector. ing Division, National Board
State Minister for Power, En- of Revenue (NBR), state-run
ergy and Mineral and private com-
Resources Nasrul mercial banks,
Hamid has en- Bangladesh
dorsed the min- Power Develop-
utes of a meeting ment Board and
in this regard. Securities and Ex-
change Commis-
For utilizing the sion.
fund properly, the
The committee
ministry formed a
will submit its report in 15
10-member committee
working days.
headed by Additional Fi-
nance Division Secretary The committee will make
Jalal Ahmed, an official has recommendations with re-
said. gards to the issuance of long-
term bonds to mobile the
The committee also com-
fund for power sector devel-
prises of Power Division Joint
Secretary AKM Humayun opment. EP
T he Cabinet Purchase
Committee recently ap-
proved extension of deals
AMA Muhith in the chair.
The committee approved
three more proposals of the
with rental power plants for Energy Division to award
another five years. contracts for supply and in-
The committee also ap- stallation of gas pipelines for
proved eight other proposals Anwara-Fouzdarhat and Mo-
including setting up a new heshkhali-Anwara gas trans-
100 MW power plant under mission lines and also
private sector. appointment of a consultant
The approval was given at a for feasibility study of an
meeting of the Cabinet body LNG terminal in Mo-
held with Finance Minister heshkhali area.
All the power
and energy
projects' con-
tracts were
awarded under
Prompt Power
and Energy
Supply (special)
Act 2010.
EP
July 16, 2017 22
 Repo r t
Qatar Signals LNG Price War for
Market Share in Asia
Q atar's plan to boost liq-
uefied natural gas
(LNG) output by 30 percent
is the opening shot in a price
war for customers in Asia pit-
ting the Gulf state against
competitors from the United
States, Russia and Australia.
Qatar, facing regional isola-
tion in a diplomatic dispute
with its Gulf neighbors, took
energy markets by surprise
recently when it said it would
raise its LNG production to
100 million tonnes per year -
Gazprom to Start New Gas
Deliveries to China
R ussia will start supplying
gas to China through a
new pipeline by the end of
2019, state gas giant
Gazprom said recently, as
part of a mammoth $400-bil-
lion deal.
"Today a deal was
signed...about the date of the
start of gas deliveries through
the 'Power of Siberia'
pipeline. It is December 20,
2019," Gazprom boss Alexei
Miller told journalists.
After a decade of negotia-
equivalent to a third of cur-
rent global supplies - within
the next five to seven years.
It suggests the wealthy king-
dom is preparing for a
lengthy battle with Saudi Ara-
bia, Egypt, the United Arab
Emirates and Bahrain, who
were due to meet on
Wednesday to decide
whether to continue sanc-
tions they imposed on Qatar
over accusations it was aid-
ing terrorism and courting re-
gional rival Iran.
Qatar's move will add
gas to an already over-
supplied market in a
thinly disguised chal-
lenge to other ex-
porters who are also
raising their output.
EP
tions, Russia inked a mam-
moth 30-year deal in May
2014 to supply its key eastern
neighbor with natural gas
through a pipeline for the first
time.
Construction began in Sep-
tember 2014 on the 4,000-
kilometre (2,500-mile)
"Power of Siberia" pipeline to
connect Yakutia's gas fields
with the Sea of Japan (East
Sea) and also with the Chi-
nese border.
The agreement between
Gazprom and the
China National Pe-
troleum Corpora-
tion came as part
of a visit to
Moscow by Chi-
nese leader Xi Jin-
ping. EP
China Firms to Carry Out
Feasibility Study on LNG Terminal
T wo Chinese companies
will carry out a study on
the feasibility of constructing
a land-based LNG terminal
in Moheshkhali, charging
around Tk 9 crore. The cabi-
net committee on purchase
recently approved a proposal
in this re-
gard.
The com-
panies
that were
appointed
are China
Huanqiu
Contracting & Engineering
Corporation and China
CAMC Engineering Co Ltd.
On June 14, the committee
gave the go-ahead to another
proposal of a Japanese firm,
Tokyo Gas Engineering Solu-
tion Corporation, to conduct
Chinese Dams to Hit Bangladesh
Harder Than India: Tripura Governor
T ripura governor Tathagata
Roy said recently dams
built by China upstream of
Brahmaputra and other rivers
will hit Bangladesh harder
than India.
He also took a swipe at West
Bengal chief minister Mamata
Banerjee for her opposition to
sharing the Teesta river water
with Bangladesh, according to
a report by
hindustantimes.com.
Roy was speaking at the 8th
a feasibility study on various
sites for Tk 58 crore.
The government aims to set
up four land-based liquefied
natural gas (LNG) terminals
and one or two floating stor-
age and re-gasification units
as part of efforts to alleviate
the coun-
try's energy
shortage.
The sites
being con-
sidered for
the land-
based terminals are located
in Kutubdia, Moheshkhali,
Payra and two other places.
Each terminal will supply
1,000 million cubic feet
(MMCFD) of gas per day, ac-
cording to an energy ministry
official.
EP
India-Bangladesh Friendship
Dialogue where a Guwahati
Declaration was announced
for greater cooperation be-
tween the two countries in se-
curity, communication and
trade.
"China is building a series of
dams on Yarlung Zangbo (up-
stream of Brahmaputra) and
working on river diversion are
serious issues that will affect
Bangladesh the most. India
does not divert water and there
are no barrages on
Brahmaputra," Roy said.
Bangladesh, he pointed
out, depends a lot on
river transport and irriga-
tion that China's plans
will eventually kill.
EP
July 16, 2017 23
 Repo r t

Bhutan to Supply Hydropower Rosatom Reassures Rooppur Power

to Bangladesh Via India Soon Plants Highest Safety Standard
L eaders of India, Bhutan
and Bangladesh may soon
formally sign and join hands
to build a 1,125 MW hy-
dropower project in Bhutan.
Trilateral memorandum of
understanding (MoU) on this
connection has been final-
ized by the three Asian coun-
tries.
Govt Completes Negotiation
with Lowest Bidder Matarbari
Power Plant
Bhutan would export the
power to Bangladesh pro-
duced from this project, via
R ussia's state nuclear cor-
poration Rosatom has re-
assured that the Rooppur
India, according to a report Nuclear Power Plant (RNPP)
by indiatimes.com. will have the highest safety
Bangladesh plans to invest in standard to protect environ-
the 1,125 megawatt Dor- ment, humans and others
jilung hydropower project in from exposure to any haz-
Bhutan's Lhuentse district. ardous element.
The govern- Rosatom is developing the
ment of Rooppur Power Plant in Pak-
Bangladesh shey of Pabna to produce
earlier ap- 2,400 megawatts of electric-
proved $1.0 ity in two phases in 2022 and
billion for in- 2023.
vestment in
"We have engaged German
Bhutan's hy- and French specialists be-
dropower.
EP
sides our own experts to
build the plant with the state-
of-the-art technologies - en-
suring highest safety
standard," President of JSC
Atomstroyexport (JSC-ASE)
Valery Limarenko recently in
Moscow.
A sister concern of Rosatom,
JSC Atomstroyexport is one
of the leading companies in
nuclear engineering busi-
ness, rendering services of
design, construction and de-
commissioning of nuclear
power plants in Russia and
across the world.
The company holds
nearly 30.0 per cent
share of the world's
nuclear power plant
(NPP) market for de-
sign and construc-
tion.

T he state-owned Coal
Power Generation Com-
pany Bangladesh Limited
Power Division said.
Matarbari power project is a
EP

(CPGCBL) has completed the

'negotiation' process with
Sumitomo Corporation, the
lowest competitive bidder for
the construction of Matarbari
1200- MW ultra- supercriti-
cal power project at Matar-
bari in Cox's Bazar.
"We completed the negotia-
tion. We sent our recommen-
dations to JICA two weeks
back, a senior official of the
top priority government
scheme being implemented
with funding from the Japan
International Cooperation
Agency (JICA).
But uncertainty cast over its
implementation due to
Japanese bidders' reluctance
to submit bid following the
terrorist attack on Holey Arti-
san Bakery at Gulshan on
July 1, 2016 that killed 22
people, including seven
Japanese na-
tionals.
We discuss
230 issues
that took 15
days to com-
plete the ne-
gotiation, the
official
added.
EP
BD Buyout of Chevron Assets
Likely by Outbidding China
G lobally reputed consul-
tancy Wood Mackenzie
has submitted an asset-valu-
ation report on Chevron
Bangladesh to facilitate gov-
ernment decision
on possible buy-
out of the US
firm's stake, offi-
cials said.
It happens to be a
preemptive move
by government's
one energy corpo-
ration to purchase
the international oil major's
operations in Bangladesh's
hydrocarbon turf. Chevron
management has already ne-
gotiated the selloff of its
Bangladesh operations to
China.
"We got the report of Wood
Mackenzie last weekex-
pecting to reach a decision
on purchase of the
US firm's stake
after evaluation,"
Petrobangla offi-
cials said.
The Scottish con-
sulting firm sub-
mitted a 'draft'
report elaborating
on different as-
pects on Chevron
Bangladesh's assets and lia-
bilities, said a senior official
of the state-run Bangladesh
Gas Fields Company Ltd
(BGFCL).
EP

July 16, 2017 24

 Repo r t
Electricity Key to Higher Income
Growth: WB Study
B angladesh can add around
US$ 2.3 billion each year
in terms of income growth
alone by ensuring universal
access to electricity, according
to a recent study by the World
Bank.
Accounting for income
growth alone, the total poten-
tial benefits from achieving
universal access to and im-
proving reliability of electric-
ity supply could reach US$
2.3 billion a year, said the WB
research paper titled "Hetero-
geneous Effects of Rural Elec-
trification: Evidence from
Bangladesh."
It said power outages have a
negative impact on almost all
development outcomes while
some benefits of electrification
accrue only over the long run.
Every one hour increase in
daily power outages is associ-
ated with a 0.3 per cent re-
duction in annual income,
while every one additional
year of grid connection is as-
sociated with a one per cent
increase in income, the study
found.
Using a data set of 7,018
households for 2005 and
2010, the WB researchers ex-
amined a wide range of
household and individual so-
cioeconomic outcomes after
they gained access to the elec-
tric grid, such as per capita in-
come and expenditure, time
spent on studies by boys and
girls, labor force participation
among men and women,
kerosene consumption and
women's empowerment.
EP
Chinese Firms to Build 700
Coal Plants
W hen China halted
plans for more than
100 new coal-fired power
plants this year, even as US
President Donald Trump
vowed to "bring back coal" in
America, the contrast
seemed to confirm Beijing's
new role as a leader in the
fight against climate change.
However, new data on the
world's biggest developers of
coal-fired power plants
paints a very different pic-
ture: China's energy compa-
nies will make up nearly half
of the new coal generation
expected to go online in the
next decade.
These Chinese corporations
are building or planning to
build more than 700 new
coal plants at home and
around the world, some in
countries that today burn lit-
tle or no coal, according to
tallies compiled by Urge-
wald, a Berlin-based environ-
mental group.
Many of the plants are in
China, but by capacity, about
a fifth of these new coal
power stations are in other
countries.
Overall, 1,600 coal plants
are planned or under con-
struction in 62 countries, said
Urgewald, which uses data
from the Global Coal Plant
Tracker portal. The new
plants would expand the
world's coal-fired power ca-
pacity by 43 per cent.
EP
July 16, 2017 25
 Chinese Firm to Build Solar Plant at Kaptai
S tate-owned Bangladesh Power Devel-
opment Board (BPDB) inked a deal re-
cently with Chinese ZTE Corporation to
build a 7.4 megawatt (MW) solar photo-
voltaic (PV) grid-connected power gener-
ation plant near Kaptai of Rangamati
hydropower station area.
The BPDB will purchase electricity from
the plant at Tk 5.48 per kilowatt-hour
(6.79 US cents) for 25 years.
The ZTE would complete construction of
the plant by July 2018 as the engineering,
procurement and construction (EPC) con-
tractor.
Electricity from this plant is expected to
be supplied to the national power grid
from August 2018.
Youth Comes Up With SolarPowered Bike
A Netrakona youth has come up with
a high-speed motorcycle that runs
on electricity and solar energy.
Atiqur Rahman Sharif, a resident of Kazi
Road in Netrakona, completed his BSc
in Electrical and Electronics Engineering
from a private university in the capital.
Since then he had a vision to develop a
bike that is rechargeable.
The eco-friendly motorcycle named E-
bike takes 30 minutes to get charged
with electricity at a cost of Tk 10. Once
The Asian Development Bank (ADB) will
provide loan to complete the project
worth Tk 738 million under the power
system efficiency project.
Interest rate of the loan is LIBOR (London
inter-bank offered rate) plus 0.60 per
cent, which should be repaid with 20
years with five years grace period.
Speaking on the occasion as the chief
guest at Bidyut Bhaban in the city, state
minister for power, energy and mineral
resources Nasrul Hamid underscored the
need for clean energy initiatives.
He urged the country's private sector to
come up with implementing clean energy
projects alongside the government initia-
tives. EP
It will support the expansion of RayGens
recharged, it can travel up to 120 kilo-
metres with a speed of 85-90 kilometres
per hour.
Atiqur Rahman said he took four
months to make the E-bike and it cost
Tk 6.65 million. "Now I am doing re-
search of a four-wheel vehicle, the the-
oretical work of the vehicle is almost
done and it will be implemented after
getting fund from government or any
non-government organizations." 0 EP
Boosting
Victorias Renewable
Energy Exports
T he Andrews Labor Government is
backing a major new solar power
plant that will support local jobs and the
development of Victorias renewable en-
ergy technology exports.
Minister Energy, Environment and Cli-
mate Change Lily DAmbrosio an-
nounced recently that the Labor
Government will put $1 million towards
solar company RayGens new 0.5MW
commercial power plant in Newbridge.
The project will create 22 jobs during the
design, construction and commissioning
phase, and a further three ongoing jobs
once the plant is operational.
export business and projected long-term
growth, and has the potential to create
up to 70 local jobs in product and soft-
ware engineering, manufacturing, and
sales.
RayGens PV Ultra is one of the highest
efficiency solar technologies commer-
cially available, utilising technology typ-
ically used in space applications.
The PV Ultra Module is over 1000 times
more powerful and twice as efficient as
conventional photovoltaic panels.
EP
July 16, 2017 27
Investment in Green Ventures Increases
on Banks' Push
I nvestment in green initiatives has
showed a significant rise in the past
few years as the banks and financial in-
stitutions (FIs) have disbursed low-cost
loan to support eco-friendly industries
and businesses.
The banks and FIs have also adopted
green practices in their day-to-day busi-
ness and long-term operations.
According to Bangladesh Bank (BB), 43
out of 56 banks and 16 out of 33 FIs in
the past five years disbursed over Tk 1.9
trillion to help develop eco-friendly ini-
tiatives in the country covering power,
garment and some major manufacturing
sectors.
"Bangladesh Bank (BB) issued policy
guidelines for Green Banking in Febru-
ary, 2011. Under the guidelines, all op-
erating banks and FIs have introduced
environment-friendly banking activities
in the country," BB spokesperson Sub-
hankar Saha said.
All the 56 banks and 32 FIs have also
developed their own green banking pol-
icy and green office guides. Some banks
opened around 500 solar powered
branches, 249 ATMs and SME units in
different parts of the country. EP
Greenko to Raise
$1bn via Asia's
Largest Green
Bond
L ess than a year after its last offering,
India's leading clean energy com-
pany, Greenko, is raising around $1 bil-
lion via offshore dollar bonds -- the
largest green bond from a corporate en-
tity in Asia till date.
The objective of this fund raising exer-
cise is to refinance the company's first
dollar bond that raised $500 million in
2014. Additionally, it will also help the
company to refinance the debt that it in-
herited along with the acquisition of the
350 MW India portfolio of the bankrupt
Sun Edison last year.

water bills usually were

Californians Take a Shine around $400 a month,"
to Solar Power Barnbrook said. "Right now,
it's $150 a month."

J acquie Barnbrook had grown tired of

the high electricity bills and her gas-
guzzling luxury car when she finally de-
cided to take the plunge last year.
The 52-year-old Los Angeles resident
joined an ever-growing number of Cali-
fornians who are switching to solar
power for their energy needs in a bid to
not only save money but to also do their
part for the environment in a state set-
ting the pace for the rest of the country
in that sector.
"At this time of year, my power and
As for her vehicle, Barn-
brook said she ditched it in favor of a
hybrid one that she now plugs in and
charges at her house.
"I was previously spending $80 dollars
on gas every three or four days and now
I haven't put gas in my new car since the
beginning of March," she noted. "That's
four months ago!"
Nearly 4.9 million homes are powered
by solar energy in California -- the na- Greenko's 7 year bond issue was sched-
tion's green trailblazer and the most uled to be launched recently. It will be
populous state -- and that number is ex- a minimum of $950 million to a little
pected to continue to grow, ac- above $1 billion, said officials in the
cording to the Solar Energy know.
Industries Association, a non- Barclays, JP Morgan, Morgan Stanley,
profit trade association. Deutsche Bank and Investec have been
Even President Donald Trump, mandated for the fund raising.
an avowed sceptic on climate For this latest round of fund raising, the
change, is considering putting company is creating a new pool of
solar panels on the wall he plans around 1 GW (1000 MW) of its diversi-
to build on the Mexican border. fied portfolio into an SPV.
EP EP

July 16, 2017 29

 Coal India Betting Big on Renewables,
Says Minister
C oal India Ltd, the world's largest
miner of the dirty fuel, will generate
1 gigawatt (GW) of renewable electric-
ity this year as part of its plan to produce
as much as 10 GW clean power in total,
a federal minister said recently.
State companies such as Coal India and
NTPC Ltd, the country's biggest thermal
power producer, are planning to aggres-
sively spend on solar projects under
Prime Minister Narendra Modi's per-
sonal push for renewable energy.
"This is a contribution towards a better
planet, towards greening the country
and greening the world," said Piyush
Goyal, Minister for Coal, Power and Re-
newable Energy, at an event.
"It's a little bit of a contradiction that I
have to keep the coal industry also
going while I ensure large-scale out-
reach in the renewable sector ..."
He did not give a timeline for Coal
India's 10 GW target.
EP
Chinese Province
Runs on 100%
Renewable Energy
for a Week
A Chinese province with a population
of 5.8 million has run entirely on re-
newable energy for seven days in a row
as part of a test to show if the electricity
grid can cope without fossil fuels.
Hydro-electric schemes provided more
than 72 per cent of the electricity in
Qinghai between 17 and 23 June, with
wind and solar supplying most of the rest,
according to Climate Action, a group
which works with the United Nations En-
vironment Program to share knowledge
about new technologies that can help
combat climate change.

The Minister of State for Power, Coal, New and Renewable Energy and Mines (Independent Charge) India , Piyush
Goyal releasing the report Pathways to Integrate 175 Gigawatts of Renewable Energy into Indias Electric Grid
National Study, in New Delhi on June 29, 2017.

Investments in Renewable Energy to Top

US$7 tn by 2040
T he 2017 edition of Bloomberg's
'New Energy Outlook' estimates that
through 2040, US$10.2 trillion will be
invested in electric power generation,
7.4 trillion of which will go to renew-
able energy.
While falling costs of solar and wind
power will accelerate a global energy
transition, an additional US$5.3 trillion
is required to put the power sector on a
trajectory to limit global warming to
2C, according to the report.
The European Bank for Reconstruction
and Development, the Asian Develop-
ment Bank and the World Bank have
undertaken renewable energy projects
in Turkey, China and Solomon Islands,
respectively.
June 2017: Could the
wave of news on financ-
ing for renewable energy
deployment be the begin-
ning of a surge? Ac cord-
ing to the outlook, yearly
investments in renew-
ables can be expected to
grow 2-3% per year
reaching US$400 billion a
year in 2040.
EP
Quan Shenming, general manager of the
Qinghai Electric Power Corporation,
said: Being the first trial of this kind in
the country and a major step in the trans-
formation of energy supply, it will be of
great importance in promoting the use of
clean energy in China in a sustainable
and effective way.
The company said 1.1 billion kilowatt
hours of electricity was used during the
period; about 535,000 tonnes of coal
would be needed to generate the same
amount.
In May, nearly 83 per cent of the
provinces electricity came from solar,
wind and hydro power.
EP

July 16, 2017 30

 Ar tic l e
Climate Debate Raises Crucial
Policy Questions
Khondkar A Saleque
A
ustralia is blessed with enormous
primary energy resources. The
large continent with sparse pop-
ulation have huge reserve of coal, natu-
ral gas and uranium. It has huge
potential for all type of renewable en-
ergy resources solar, wind, geothermal,
ocean waves, biogas and hydroelectric-
ity. But for negative public perceptions
Australia cannot develop nuclear power
though possessing the largest reserve of
uranium. Coal remains the dominating
fuel for power in Australia. Over the last
four years coal is contributing about
72% of fuel mix in power generation.
There was significant spinning reserve
in national power grid for responding to
contingencies. But situation changed
dramatically last year when ambient
temperature soared to all time high in
some states causing shut down of some
large thermal power plants. States of
Victoria and South Australia are at a risk
of damaging blackouts following shut
down of Hazelwood coal power station.
Australia is a signatory of Paris Climate
Agreement. It has to honour its commit-
Hazelwood coal power plant, Australia
ment for achieving emissions target.
Chief Scientist Alan Finkel has recently
submitted a report of review of Aus-
tralian future electricity market. His re-
port is extensively debated in Australian
federal parliament, print, electronic and
social media. Finkel report in summary
sounded alarm on power generation.
The report has something for everyone
(loosely being yes to coal but not too
much, yes to renewables provided they
have gas and storage backup). Few
asked questions whether the report
would bring to an end political climate
wars that have been waged for more
than a decade in Australia. Federal Gov-
ernment power bill is expected bringing
some energy reforms in the power bill.
If approved, households stand to gain
hundreds of dollars in lower energy
bills. Questions are being asked
whether renewables solar, wind and
others can provide reliable power at af-
fordable cost? Whether Ultra Super Crit-
ical Technology and CCS can bring
down emissions meeting the committed
emissions target?
The leading Australian daily The Aus-
tralian in editorial wrote With national
political debate being overwhelmed
once more by climate and energy pol-
icy, perhaps it is time to go back to first
principles. Instead of political jousting
between technical prescriptions clean
energy target versus emission intensity
scheme versus renewable energy target
versus emission trading versus carbon
tax we should ask ourselves what the
policy is designed to achieve.
Current Prime Minister Malcolm Turn-
bull and his predecessor Tony Abbott
are leading two schools of thought in
the debate. Australias position is really
critical following US President Donald
Trump announcing withdrawal from the
Paris Agreement.
Prime Minister Turnbull spoke of
trilemma of security, affordability and
emissions reduction. Australia may not
need to worry about long term energy
security and affordability as being
blessed with huge coal and gas re-
sources. The energy security and afford-
ability according to The Australian
has only been compromised through
government interception for delivering
reduction in CO2 emmissions.
The concerns of security and affordabil-
ity are unreal. Tony Abbott repealed the
carbon tax introduced by Kevin Rudd.
But he signed the emissions target under
Paris accord and stuck with the renew-
able energy target. The daily
The Australian suggested
Tony Abbott for agreeing with
Malcolm Turnbull plan for
meeting the agreed emmis-
sions target. Whether or not
the energy policy would be
updated adopting all recom-
mendations in Alan Frankel
strategy can be discussed.
The situation is that the
largest polluters would con-
tinue expanding their emis-
sions over the next 15 years
and US has also withdrawn.
Australia does not contribute
that much compared to USA
and China. The newspaper in
editorial asked questions
whether it will be appropriate
July 16, 2017 31
for Australia not going for su-
perior technology using mod-
ern coal fired power
generation while China and
India would continue ex-
panding economy and emis-
sions using Australian coal. If
Australia imposes trade
penalties on coal export the
impacts on economy is un-
derstandable. Australia is re-
alistically facing an economic
tipping point. Power price
is souring. At this moment
there need to meeting of
minds on this critical national
issue or Australian economy
would be dipped in reces-
sion. The situation has been
reached from policies for re-
ducing emmissions and re-
strictions on exploitation of gas
resource. There must be credible cost
benefit analysis done on emissions re-
duction target. Australians need reliable
power at affordable cost. Whatever en-
vironment friendly it may be renewables
on standalone basis cannot be reliable
as base load power generation option.
It may not be affordable compared to
USC technology adopting coal power
generation. Australians need the fairest,
cheapest and the most efficient policies
to achieve them so that the damage is at
least minimised.
Before going into discussions about
Australian government policy priorities
let us discuss the salient aspects of
Frankel report. One gentleman Michael
Asten from Victoria has referred to four
crucial numbers relating to cost and ef-
ficiency of new coal fired system. ap-
pearing in the appendices of the review.
Finkel report observed that if power
companies do not respond to high
prices by installing new capacity the re-
liability of the new work could be com-
promised over the long term. Australian
Energy Market Operator (AEMO) has
initiated actions for shoring up supplies,
banning any scheduled summer main-
tenance of generators and requiring any
mothballed plants to be made avail-
able from October 2017.
Finkel report made the following recom-
Grasmere Wind Farm in Perth, Western Australia
mendations.
Emission Reduction: Introduce a
clean energy target requiring retailers to
purchase clean energy certificates from
generators producing emissions below
the target level. Government to produce
an economy wide emmissions reduc-
tion strategy by 2020.
Preparation for 1017-18 Summer:
Closercollaboration with Bureau of Me-
teorology on heatwave forecast and op-
erate system with increased margin of
safety while ensuring adequate fuel sup-
ply.
Strengthening Long Term Security:
Transmission companies required to
keep spare capacity that can be brought
on line rapidly. A new generator relia-
bility obligation to guarantee capacity.
Rejects creating a market for new ca-
pacity but calls for study of a strategic
reserve generating capacity.
Cyber Security: Annual review of
cyber security in National Energy Mar-
ket.
Coal Fired Power: No recommenda-
tion on phasing out coal fired power
Gas Power: Energy market operator to
have power to force existing gas fired
generators to maintain supply in times
of gas shortage.
technology meets the emissions target.
Consumers: Better information in
electricity prices.
Governance: All Council of Aus-
tralian Government (COAG) leaders to
agree to nationally consistent energy
policy, consistent with Paris Commit-
ments.
The shift to a new scheme would en-
courage wind, solar and gas for power
generation amidst political row over
whether coal would be shut out of re-
form. Dr Finkel presented his blue print
to Australian Prime Minister, state and
territory leaders.Then the matter was re-
ferred to a ministerial meeting for de-
bate. Australian Federal Parliament is
now debating on new clean energy tar-
get.
Dr Finkel said, it did not matter what
form of energy is used if it meets the
goals of improving affordability and re-
liability while meeting Australias stated
goal of reducing emmissions. He also
said fuel mix is not as important as out-
come. According to him the clean en-
ergy target is market based mechanism
that sent a price signal. It is not carbon
tax; it is an incentive to encourage in-
vestors to fill the void when existing
large generators exit the market. He sug-
gested for bringing in new generation
that would be low emmissions type.
Frankel found nothing wrong with coal
fired power generation if advanced
Frankel report if adopted would lead to
policy reforms providing 42% contribu-
tion coming from renewable by 2030.
July 16, 2017 32
Australian Prime Minister Confronting
Huge Opposition from His Party MPs
Some members of Federal parliament
belonging to ruling coalition govern-
ment has warned the Prime Minister
against embracing a clean energy target
that hits consumers with higher prices.
The want PM ruling out reforms that
would hurt coal and gas power and
urged upon PM to put a priority on driv-
ing down prices rather than meeting tar-
gets for cutting greenhouse gas
emmissions. Australian Prime Minister
has to adopt a pragmatic approach
that would not impose any penalty on
coal power during drafting the reform.
Modern Coal Fired Technology Has
Irresistible Appeal
Australians in general are voicing their
views about energy policy reforms and
emissions target. Michael Asten of Vic-
toria quoting Frankel report said,
power costs of Ultra Super Critical
(USC) coal generators are 13% lower
than the equivalent for wind power be-
fore accounting for additional costs of
transmission, back up, energy storage
required for distributed wind turbines.
Coal fired power plants can keep lights
on for 24/7. He also identified four crit-
ical numbers in the appendices of the
report relating to cost and efficiency of
new coal fired system. By switching to
new generation coal generators (ultra-
super critical from conventional coal
generators (sub critical) emissions are
reduced by 26%. Such plants are now
in use in North America, Europe and
China. Australia does not have any. Re-
placing all existing coal fired power sta-
tions (73% of national power grid) in
phases with modern ultra-super critical
generators would reduce about 19% of
present emissions. This happens to be
very close to 26-28% target under the
Paris agreement as Australia in 2017 has
already achieved a third of the target.
Another gentleman Victor Diskordia
from Canberra viewed that wind and
solar power as far as can be seen, utterly
impracticable as significant source of
energy. Any industry that does not earn
its cost of capital, that is, a return that
offsets investment in fixed and working
capital needed to generate and com-
pensates investors for risks and inflation,
is not economically viable.
Don Higson from NSW said, Mainland
Australia has four options available for
reliable supply of electricity. Coal, the
cheapest, gas which releases about half
as much CO2 as coal but is getting ex-
pensive and of doubtful reliability, wind
and solar power with hideously expen-
sive storage in batteries and nuclear
power. He observed that nuclear power
is an established and mature technology
around the world, particularly suited to
providing affordable and reliable base-
load generation of electricity. Moreover,
it has almost zero GHG emmissions. It
is safe despite of three accidents that
would not happen in modern nuclear
plants. But Australia has to repeal the
anti-nuclear legislation.
What Lessons Bangladesh Can Take?
Bangladesh in contrast to Australia has
huge population living in a much
smaller country. Unlike Australia it is
not energy rich. It has limited reserve of
gas and coal. Bangladesh off course has
almost non-existent carbon foot print
unlike Australia. But it has high risks
from adverse impacts of global GHG
emissions. The energy demand grew at
exponential rate over the last 15 years
with consistent growth of economy. To
achieve is national vision of reaching
mid income group by 2021 and devel-
oped country status Bangladesh needs
to expand its power generation base to
60,000 MW by 2041. It has to rely al-
most exclusively on imported energy. It
has revised fuel mix from exclusive re-
liance on gas to coal, LNG& Gas, Nu-
clear, Renewable and Power Import.
Bangladesh must closely follow how the
emission target and energy policy de-
bate evolve in Australia. Bangladesh
must use advanced technology in all its
planned coal fired power plants and im-
port only superior quality coal or use its
own coal. Reliability and affordability
must be the major focus.
EP
Khondkar A Saleque;
International Energy Consultant
July 16, 2017 33
 View s
Russian Experience of Staff Training
for Foreign NPPs
Interview with Sergei Liashchenko, Foreign NPP Personnel
Training, Project Office Director
Question: How important is staff train-
ing in the NPP safety management sys-
tem?
Sergei Liashchenko: Nuclear energy is
one of the industries using potentially
hazardous technologies. Respectively,
safety and reliability requirements are
higher. Staff training is one of the key
tasks of ensuring NPP safety.
Question: The Russian nuclear tech-
nologies are considered to be among
the safest nuclear technologies in the
world. What role does staff training play
in this process?"
Sergei Liashchenko: Providing the NPP
with qualified staff is an extremely, if not
the most significant aspect of safe oper-
ation. Therefore, special attention is
paid to staff training. When offering nu-
clear technologies, Russia implements a
comprehensive approach. The inte-
grated offer of the ROSATOM State
Atomic Energy Corporation includes not
only the design and construction of the
plant, supply of the equipment and fuel,
and training of NPP operating staff, but
Foreign students during a practical class
also the training of regulatory body or
operating organization staff, if needed.
Question: How many people have been
trained in Russia?
Sergei Liashchenko: Russia has huge ex-
perience in NPP staff training, including
foreign staff. The figures speak for them-
selves: the number of experts who have
been trained in the NPP staff training
system is over 60 thousand with more
than 5 thousand from all over the world,
including 1,071 from Bulgaria, 143
from Germany, 952 from Czech Repub-
lic and Slovakia, 869 from Hungary,
707 from Cuba, 155 from Finland,
1,042 from Iran, 323 from the PRC, and
135 from India.
The approximate number of staff that is
going to be trained for the Bangladesh
NPP is 1,712 people."
Question: How does the staff training
process go?
Sergei Liashchenko: Staff training is a
long, demanding and labour-intensive
process. It precedes the pre-commis-
Sergei Liashchenko
sioning works and starts immediately
after the contract is signed for the con-
struction of an NPP.
At stage 1, the Customer and our com-
pany determine the positions for which
training is needed. Then those positions
are singled out the training for which
would be held in Russia. After that, the
groups are formed."
Question: What should the beginner
countries do, the ones where there are
no university courses in nuclear special-
ities or they have been started only re-
cently?
Sergei Liashchenko: The candidate's
level of education is indeed taken into
account when making a choice.
Each speciality has the minimum
level of education required. When
there are no specialized educa-
tional institutions in the country,
one can be educated in Russia.
For the last three years, Russia has
been annually inviting 15 thou-
sand foreign citizens to receive
higher education free of charge.
More than 400 Russian universi-
ties participate in this process.
In MEPhI alone (National Re-
search Nuclear University
"Moscow Engineering Physics In-
stitute") over 800 people from
about 40 countries are study-
ing nuclear specialities, in-
cluding around 40 people from
July 16, 2017 35
Bangladesh. In 2018, the first 12 of them
will graduate with a master's degree.
Most of students first spend a year study-
ing the Russian language, though one of
the options gives students the opportu-
nity to study and receive education in
nuclear specialities in English.
Question: How long do they study?
Sergei Liashchenko: Depending on the
position, initial studies last for 3 to 8
months. Mind that after the NPP staff be-
gins to work independently, their train-
ing continues during the whole period
of their occupational activity in form of
qualification maintenance and refresher
training and regular knowledge tests.
Question: What does the training for the
position include and who conducts it?
Sergei Liashchenko: The training is con-
ducted in the NPP training centres. It
consists of theoretical courses, practical
studies in the training workshops and
laboratories, trainings on a full-scope
simulator, on-the job training at the
NPP, and it is completed by testing
(exams) of knowledge and skills in the
examination commission.
The training is conducted by training
centres instructors. Their qualification
requirements are very high, including
experience of work at an NPP, as well
as psychological and pedagogical
preparation.
Question: When the construction of an
NPP plant has started, at which stage
does an expert trained in Russia return
to the site?
Sergei Liashchenko: At the stage of the
commissioning works. By that moment,
equipment is being installed at the site,
and the construction of the training cen-
tre where the candidates study the dif-
ference between contract and reference
power units is about to finish. Those
who pass thistraining successfully and
undergo verification in the operating or-
ganization are allowed to participate in
the commissioning works.
Question: What happens at the stage of
the commissioning works?
Sergei Liashchenko: It is the period of
equipment and systems acceptance,
pipelines flushing, protections and inter-
locks adjustment, equipment and safety
systems check-ups, putting the process
systems into operation, and tests prior to
fuel loading. At this stage, the candi-
dates receive practical experience, con-
solidate the technological process
operating skills received during training
and improve them further. This activity
is already considered to be independent
work.
The training is over after the licensing
examination in the operating organisa-
tion commission.
The exam consists of the exam on a full-
scope simulator and the theoretical
knowledge test and is held in the pres-
ence of a regulatory body representa-
tive.
If all tests are completed successfully,
the regulatory body grants the expert a
licence for performance of works in the
sphere of nuclear energy use.
By the moment the fuel loading into the
reactor begins, the operating staff of the
plant should be fully staffed.
Question: How does the Russian staff
training system correspond to the inter-
national safety requirements?
Sergei Liashchenko: The staff training
system fully meets the international re-
quirements of the IAEA and has been
checked several times by the OSART
and WANO international missions.
The whole training process is open to
international and internal check-ups.
Question: What are the main benefits of
the Russian staff training system, in your
opinion?
Sergei Liashchenko: Not only does Rus-
sia train the necessary number of ex-
perts (normally stated in the Contract),
but it also hands over to the Customer
the whole system of training and quali-
fication maintenance of the NPP oper-
ating staff. The training centre that we
are building at the site is being equipped
with technical training facilities, com-
puter rooms, workshops and laborato-
ries, documentation and a full-scope
simulator. This allows the Customer to
train new specialists without our help,
and to maintain qualification of those
who are already trained.
Another benefit is, without any doubt,
the fact that psycho physiological exam-
ination is used to select the candidates;
it is a Russian know-how. Personality
factors are also taken into consideration,
and this, in the long run, allows to de-
crease the risk of incidents caused by
the operating staff.
EP
July 16, 2017 36
 O pinio n
Battery Powered River & Bay
Crossing Vessels
Engr. S. A. Mansoor
T
he eye-opining AFP news from Oslo,
Norway about the ferrying passen-
ger and cargo across the North sea
was published by a local English daily on
May 11th. Unfortunately and very sadly
there was no reaction on this critical fuel
saving simple idea, either by our IWTA au-
thorities or the ministry responsible for in-
land water transport over the last two
months. Adopting this simple and very
cost effective and environmentally clean
transport idea, for us in Bangladesh could
well usher a new era, for providing pollu-
tion and smoke free motive power for
small coastal self propelled marine ves-
sels, and possibly all of our river crossing
ferries that hauls cars, buses and trucks
across many rivers in Bangladesh; that
have no bridges; but roads are there on
both banks of the river; and vehicles are
ferried across.
Imagine having a battery operated, smoke
and pollution free self propelled coastal
vessels and river crossing vehicle ferries.
Today, all our rivers crossing barges and
ferries, are usually propelled by diesel en-
gines -- that are in service across many
river crossings and small coastal cargo
boats -- all across Bangladesh. If these ves-
sels were powered by batteries charged at
night, when electric power demand is at
its lowest; with many generators of both
Sun21 the first solar power boat across the Atlantic Ocean in 2007
Ampere Worlds First AllElectric BatteryPowered Ferry
public and private power plants running
well below their minimum load - and thus
having higher specific fuel consumption -
because of low loads. This could well be
a nationally cost effective solution and cut
down on our overall consumption of im-
ported diesel fuel for running these barges
or river plying cargo boats. The charging
of batteries could lead to quite economic
- reducing overall operating costs, cutting
down all consumption of imported diesel
fuel, engine oil and lubricants for the large
diesel engines (the prime movers); that we
now consume nationally for these ferries
Energy Expert
and coastal small vessels.
Additionally by increasing minimum
power plant load say from 10pm to 6am
(for battery charging) it will provide
needed load for some of our power gen-
erating plants, that usually all run at these
hours (11pm to 5am) on minimum and un-
economical load; and thus necessary con-
sume more fuel at these low load periods.
Norway has set the idea to a reality; based
on their experiments with battery operated
shallow draft coasters on their shores, and
many car ferries across their fjords, all over
the coastal areas of Norway. We could
easily adopt this idea for our coastal area
water transport vessels and the many fer-
ries that are crossings many rivers all
across Bangladesh.
The authorities of IWTA and R&H, who
are custodian of coastal trade and river
crossings should go ahead with top prior-
ity to implement this proposal at the earli-
est to contain our increasing dependence
on imported liquid fuel for these works
now. I will implore the Hon. Prime Minis-
ter in overall national interest to ensure
that this matter is implemented at the
soonest; more so; as no high technology is
involved; and our ship and dock yards can
easily do this modification work. This mat-
ter will curtail the import of diesel fuel na-
tionally, by eliminating the need of diesel
engines for coastal vessels and river cross-
ing ferry's and powered barges; all across
Bangladesh.
EP
Engr. S. A. Mansoor;
July 16, 2017 37
 C l im ate
Bangladesh Listed as One of 7
Climate Change Hotspots
B angladesh has been fea-
tured on The Guardian's
recent list of seven climate
change hotspots.
Changing climates will mean
more extreme weather that
would see from heat waves
to hurricanes and floods to
famine.
The subjective appraisal of
the climate hotspots say delta
regions, semi-arid countries,
and glacier - and snowpack -
dependent river basins are all
in the frontline.
Tropical coastal regions and
some of the world's greatest
forests and cities are facing
the threat.
Although low-lying
Bangladesh contributes little
to global warming, it is nev-
LDCs Launch Capacity Dev Initiative
to Tackle Climate Change
T he 48 Least Developed
Countries (LDCs) an-
nounced a major new South-
South initiative on
knowledge sharing and ca-
pacity development to tackle
climate change, said a press
release.
The LDCs Universities Con-
sortium for Climate Change
(LUCCC) was launched in
Kampala, Uganda recently at
the opening of the 11th Inter-
ertheless one of the worst cli-
mate change victims.
The country faces major risks
from sea level rise, worsening
storms, floods, droughts and
other climate change im-
pacts.
Changing climate has made
it difficult for residents of
coastal areas to grow crops,
forcing many of them to try
their lucks somewhere else -
most choose Dhaka.
Saleemul Huq, director of In-
ternational Centre for Cli-
mate Change and
Development, told The
Guardian that they expected
five to 10 million people to
move from the coastal areas.
He said the coast was the
most vulnerable area in
Bangladesh,
a climate
hotspot. Most
people leav-
ing their
homes to try
their luck
prefer Dhaka,
the capital
city.
EP
national Conference on
Community Based Adapta-
tion by the Chair of the LDC
Group Gebru Jember from
Ethiopia.
The Secretariat of LUCCC is
headquartered at the Interna-
tional Centre for Climate
Change and Development (IC-
CCAD) at the Independent Uni-
versity, Bangladesh. Dr
Saleemul Huq, director of ICC-
CAD, spoke at the event. EP
G20 Begins Transition to
LowCarbon Economy
G 20 countries
stepped up green fi-
have
nance, but their investment in
fossil fuels remains so high
that the well below 2 degree
warming limits set in the Paris
Agreement will be missed by
a wide margin, says this years
Brown to Green Report
from Climate Transparency.
The "Brown to Green-Report:
The G20 transition to a low-
carbon economy 2017" is the
third annual stocktake of the
G20s climate efforts by the
Climate Transparency global
partnership, released recently
ahead of this years meeting of
G20 leaders in Hamburg.
It has been developed by a
group of experts from the G20
countries Argentina, Brazil,
UPS Bets on Alternative Fuels to Cut
Global Ground Emissions by 12%
U PS announced aggres-
sive new sustainability
objectives to add more vehi-
cles powered by alternative
fuels (including CNG, LNG
and biomethane) to its fleet
while increasing its reliance
on renewable energy
sources.
The goals, available in the
companys 2016 Corporate
Sustainability Report, support
UPSs commitment to reduce
its absolute greenhouse gas
(GHG) emissions from global
ground operations 12% by
C h i n a ,
France,
G e r m a n y,
India, In-
donesia,
Mexico, South Africa and the
UK.
The report provides the most
comprehensive - yet concise -
overview on G20 countries
transition to a low-carbon
economy. It rates their per-
formance in emissions reduc-
tions, climate policy, finance,
and decarbonisation, and pro-
vides graphic factsheets on
each G20 country.
The G20 economies are be-
coming more efficient they
are beginning to decarbonize,
but not enough to meet the
goals of the Paris Agreement,
said Alvaro Umaa, Co-Chair
of Climate Transparency and
former environment minister
of Costa Rica.
EP
2025, a goal developed using
a methodology approved by
the Science Based Targets ini-
tiative.
By 2020 UPS plans that one
in four new vehicles pur-
chased annually will be an
alternative fuel or advanced
technology vehicle, up from
16% in 2016. The company
also set a new goal that by
2025, 40% of all ground fuel
will be from sources other
than conventional gasoline
and diesel, an increase from
19.6% in 2016. EP
July 16, 2017 39
 C l im ate
Global Companies Pledge
Transparency on Climate Risk
M ultinationals worth
$3.5 trillion and finan-
cial institutions managing
$25 trillion in assets pledged
recently to follow new guide-
lines for disclosing exposure
to climate change risk in both
operations and investments.
Spearheaded by former New
York mayor Michael
Bloomberg, recommenda-
tions by the Task Force on
Climate-related Financial
Disclosures should help
shareholders determine if
businesses are aligned with
the global shift toward a low-
carbon economy, and not
unduly burdened with assets
that could be stranded during
that transition.
"Climate change present
global markets with risks and
opportunities that cannot be
ignored, which is why a
1.4b Could Become Climate
Refugees By 2060: Study
A round 1.4 billion people
could be climate
refugees by 2060, driven
from low-lying coastal cities
due to rising sea levels, says
a new study.
By 2100, the global popula-
tion may reach 11 billion and
there could be 2 billion cli-
mate refugees, it says.
To feed those 9 to 11 billion
people expected in the sec-
ond half of the century, farm-
ers will have to grow as
much food in 40 years as
they have grown in the last
8,000 years or so.
"The colliding forces of
human fertility, submerging
coastal zones, residential re-
treat, and impediments to in-
framework around climate-
related disclosures is so im-
portant," Bloomberg said in a
statement. "The Task Force
brings that framework to the
table."
Financial and insurance
companies whose CEOs
have endorsed the recom-
mendations, laid out in a 75-
page report, include Bank of
America, Barclays, AXA
Group, Allianz SE, and In-
dustrial and Commercial
Bank of China.
Industrial powerhouses such
as Unilever, Dow Chemical
Company, Tata Steel and
PepsiCo have also backed
the move towards climate
transparency, along with the
"Big Four" professional serv-
ices giants, and ratings agen-
cies Moody's and S&P
Global.
land resettlement are a huge
problem," Charles Geisler,
professor emeritus of Devel-
opment Sociology at Cornell
University in New York, was
quoted as saying.
In any concerted attempts to
contain the climate change
Concessions Made to US for
Unity at G20
W orld leaders recently
made concessions on
trade and climate language
to Donald Trump at the end
of the most fractious and riot-
hit G20 summit ever, in ex-
change for preserving a
fragile unity of the club of
major industrialized and
emerging economies.
In a departure from final sum-
mit declarations that tend to
outline consensus on issues
that range from fighting ter-
rorism to financial gover-
nance, the extraordinary
conclusions this year spelled
out differences on core is-
sues.
It acknowledged Trump's de-
cision to go his own way on
taking the United States out
of the 2015 Paris climate ac-
and limit global warming,
climate scientists have to
consider two major aspects -
- how to reduce use of fossil
fuel drastically and how to
cord and clearly stated Wash-
ington's wish to continue
using and selling fossil fuels
that are a main driver of
global warming.
The declaration also stated
for the first time the right of
countries to protect their
markets with "legitimate trade
defense instruments" -- word-
ing that essentially gives
Trump wiggle room to push
on with his "America First"
policy.
Trump, carried to the White
House on a wave of public
fury over deindustrialization
in vast areas of the United
States, had launched "Buy
American" and "Hire Ameri-
can" campaigns.
The nationalistic stance has
set him on colli-
sion course with
many of Amer-
ica's allies, who
warned Trump
against an isola-
tionist path and
starting a round
of trade war.
EP
ensure most efficient use of
the land surface so it con-
sumes atmospheric carbon
dioxide.
Professor Geisler and his co-
author Ben Currens, an earth
and environmental scientist
at the University of Kentucky,
stressed the need for viewing
the larger picture of land use
in the long term.
In their report in the journal
Land Use Policy, they con-
sidered the implications of an
ever faster rate of global sea
level rise, as atmospheric
temperatures rise and gla-
ciers melt. EP
July 16, 2017 40
 Int er view
Power Transmission,
Distribution Should be Opened
to Private Sector
A
n unprecedented and commend-
able success has been achieved
in the Bangladesh power sector
especially due to opening the power
generation to private sector under an
appropriate policy. Starting with the for-
eign private sector, almost the entire pri-
vate sector generation is now managed
by local private sector. Now transmis-
sion and distribution segments should
also be opened to the private sector if
the government intends to achieve un-
interrupted supply of quality power to
all citizens within the next four to five
years.
Hasan Mahmood Raja, Chairman,
United Group, said this in an exclusive
interview with Energy & Power Editor
Mollah Amzad Hossain. He said that
BPDB had to account for a huge
amount of financial loss due to going for
dual-fuel power generation system. He
suggested not to going for any dual-fuel
generation plant in future.
Following is the excerpts:
EP: The government received a lot of ac-
colades for its success in the power sec-
tor. But it also embraced a lot of
criticism for diabolic power system fi-
asco in the early parts of this summer.
How do you look at it?
HMR: There is no scope at all to under-
mine the success of the government in
the power sector. People pin greater ex-
pectations on those who can do it. From
that consideration, I feel the government
should have adopted a well-coordi-
nated long-term sustainable work pro-
gram. The plan could be finalized
through extensive discussion with rele-
vant stakeholders. The government fail-
ures in mid and long term power
generation plans, despite success in
short term contingency plan, must be
objectively assessed. This failure led to
extending terms of special power act for
speedy power generation and fuel sup-
ply. It would not be necessary if the gov-
ernment could achieve all out success
in its power system mega plan.
Let us give some examples. A power
transmission tower was collapsed by
Nor-westerly cyclone. It was told that it
cannot be repaired in less than three to
four months. Why? The government
Hasan Mahmood Raja
must investigate whether any conspir-
acy or vested interest was behind this.
There could be 20% generation margin
by now if plans were appropriately im-
plemented. I think for a sustainable so-
lution of this crisis,the Prime Minister
The matter is advancing in a very un
should take initiatives for finalizing planned manner at this stage. One
plans and implementation strategy upon
after another, unsolicited proposals
discussions with the stakeholders. Oth- are coming for LNG import and sell
erwise, such crisis will continue hap-
ing, and the government is accepting
pening in future too. those. These may not bring any
EP: Why power sector could not be- happy news in the future. The gov
come efficient? Lot of time has already ernment must have a proper policy
elapsed. Are there flaws in the planning? for LNG import.
HMR: Look no country can achieve sus-
tainable success in anything without
long term planning and continuity in
implementation. Bangladesh so far
gets costlier for inefficiency of BPDB
failed to achieve continuity in imple-
and its companies. What are your ob-
mentation. Power sector is not an iso-
servations?
lated island. It lacks proper planning for
creating a solid foundation. HMR: There must be a thorough audit-
EP: Tariff structure has been adjusted ing system for assessing whether BPDB
over the past eight years. What are your generation costs are appropriate or not.
views? But the decision for dual-fuel power
generation and continuation of the pro-
HMR: Power sector in Bangladesh had gram would increase average genera-
huge subsidy. Tariff has been adjusted tion cost. I think besides enhancing
despite significant political risks. But efficiency through avoiding wastages in
subsidy is essential for supplying power BPDB generation, arrangement must be
at affordable price to lower income ensured for purchasing power from IPPs
group. That money can be recovered at competitive price. On top of these,
through cross subsidy. Meaning that power retailing opportunities may be
higher tariff needs to be introduced for created keeping a 10% margin over av-
the affluent citizens. BERC is endeav- erage generation cost of BPDB. Other-
ouring for it in phases. wise,the single buyer of power, PDB,
EP: It is often alleged that power system will lose financial capability.
July 16, 2017 41
EP: You have talked about dual-fuel gen-
eration. Will you clarify it in detail?
HMR: Please note that, keeping natural
gas as prime fuel power plants have been
set up in dual mode either based on fur-
nace oil or diesel. We have heard the
government has plans for more plants
like this.
My position is very clear here. Domestic
natural gas reserve is fast depleting. LNG
is being imported to meet the deficit. At
the same time furnace oil based plants
are also being constructed. In this situa-
tion, permissions for dual-fuel gas and
diesel based power -- plant must not be
given. Single fuel based power genera-
tion either gas/ LNG or liquid fuel must
be the lone future option. This would
allow power availability at affordable
price in future.
EP: The government has plan for import-
ing 4,000 MMCFD LNG by 2041. What
is your view?
HMR: The matter is advancing in a very
unplanned manner at this stage. One
after another, unsolicited proposals are
coming for LNG import and selling, and
the government is accepting those. These
may not bring any happy news in the fu-
ture. The government must have a
proper policy for LNG import. The gov-
ernment in the LNG import planning
process must decide the time frame
when and through what kind of terminal
they would import how much LNG? Set-
ting up FSRU on rental basis one after
another may not bring lasting benefit to
the country. Rather efforts must be di-
rected towards land-based terminals.
I think the government should leave the
entire LNG value chain from LNG import
to trading to private sector. An appropri-
ate policy may regulate LNG business
and private LNG traders may use the
government-owned gas transmission and
distribution networks for their business.
EP: There is plan for setting up 3,000
MW imported LNG based power plants
at Maheskhali, Coxs Bazar. How do you
look at it?
HMR: In my opinion, it is not at all a
right policy. If LNG-based power plants
are at all required, these must be near the
growth centres. The national gas trans-
mission grid can transport the LNG-con-
verted gas from source to destination.
From commercial consideration, LNG-
based power plants away from growth
centres are not acceptable.
EP: United group also submitted a pro-
posal to the government for setting up
power plants through importing LNG.
What is the status of that proposal?
HMR: We have given a proposal for a
500 MW LNG based power plant
through setting up a mini LNG terminal
at Anowara in Chittagong. We have plan
for adding new units of power plants in
phases. That could bring down genera-
tion costs. We have not received any
government response as yet.
EP: The draft PSMP 2016 provides for
35% i.e. 22,000 MW of power genera-
tion from coal by 2041. PSMP 2010 pro-
vided for 50% i.e. 20,000 MW power
generated from coal. What are your
views?
HMR: Let me come from reverse direc-
tion. There is significant challenge to
agriculture and water resource manage-
ment in local coal mining. The govern-
ment is reviewing that. Local coal could
be preferred option for energy security.
But like many other countries, we can set
up power plants through importing coal
as well.
But the greatest challenge for Bangladesh
is that we do not have any infrastructure
for coal import till now. Anchoring large
coal carrying vessels in deep sea and
transhipment would add significant costs
and during monsoon rough sea such
transportation would remain suspended.
We have to set up deep sea coal terminal
facilities. If the government alone cannot
do it, this may be left to private sector or
there can be private public partnership
for it for effective coal transportation sys-
tem.
EP: In recent years, the performance of
transmission and distribution segments of
power sector could not match genera-
tion. What are your views?
HMR: In modern world, the government
alone cannot bear all the expenses re-
quired for setting up every infrastructure.
In every country private sector play a
pivotal role. IPP policy 1996 created op-
portunity for private sector investment in
power generation. Foreign companies
invested in the beginning. We also made
limited investment. Now private sector
contributes 50% of total power genera-
tion. Most of it again coming from local
private sector. We have replaced foreign
companies through competition.
Power transmission is in the government
domain. It is a state monopoly. I think
under a policy,the private sector must be
given opportunity here as well.
EP: Few companies have been created in
power distribution. Why do you think
private sector involvement is required
there? Public sector companies are also
working like private sector. What do you
say?
HMR: The government has a vision to
supply power to all by 2021.REB through
PBS is working to achieve that. Four dis-
tribution companies are working in cities
and suburbs. They are working in larger
areas. I am not sure that under the pres-
ent structure, quality and uninterrupted-
power to all can be ensured by 2021.
The government should leave power dis-
tribution and infrastructure development
responsibilities in smaller areas like Ba-
sundhara City, United City andcanton-
ment by creating smaller units. In longer
terms, all the PBS of REB may also be pri-
vatized. If that can be done in a planned
manner, new investments would come
and quality, uninterrupted power supply
can be ensured through enhanced effi-
ciency. Such privatization has achieved
success in different countries.
EP: Will private sector invest in power
distribution segment?
HMR: Why not? If the government de-
sires, United Group would also invest. Of
course, every house in the city is a power
plant. Failure of distribution companies
for supplying uninterrupted power has
created such situation. But when distribu-
tion responsibility goes to private sector,
such generator based power system for
new houses wont exist. Old users would
also get relief from it.
Even local private sector, generating
power as IPP, can also be associated with
public distribution companies. This
would greatly assist the government in
achieving quality power supply to all vi-
sion by 2021.
EP
July 16, 2017 42