Power Sector In Bangladesh
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Table of Content
Introduction
Performance of Power Sector
Power Generation
System Loss and Account Receivables
Transmission and Distribution
Power sector in the Budget for the FY 2006-2007
Future of Power Sector
Conclusion
Reference
1. Introduction
The current budget has put 16.1% for the energy and power sector. The purpose of this paper is to look into the power sector for the 1991 to 2005. The paper looks into various aspects of the Power Sector, such as total development of the power sector, records of consumption, records of expenditure and revenue earning in this sector. It also looks into the policy of Government of Bangladesh regarding the Power sector for the last 15 years.
2. Performance of Power Sector
In terms of number of people and coverage, there is lot of progress in this sector. There has been steady growth of coverage from the birth of the nation. But this increase is not as per with the increase in demand of the people and the industry. There are other improvements in terms of reducing system loss and increase in revenue collection. Despite various achievements, the power sector still needs more improvements.
In this section we try to put various tables and graph to show the performance of the Power sector for the last 15 years. The performance of the power sector has been divided into three areas:
Power Generation
System Loss and Account Receivables
Transmission and Distribution
2.a. Power Generation
The Power sector is divided into two zones: Western Grid and Eastern Grid. There is increase in both capacity and generation of electricity. In comparison there is more improvement in the eastern grid than western grid. In FY 2003-04 total installed power generation capacity is 4710 MW of which the public sector accounts for 3420 MW while the private sector accounted for the rest 1290 MW. In the public sector, a good number of generation units have become too old and has been operating at much reduced capacity. As a result, their reliability and productivity are also poor. For the last couple of years actual demand could not be met due to the deficit in generation. Till February 2004 demand for electricity to the tune of 3622 MW had been met [Ref 6].
The following table shows zone wise installed capacity (MW) of electricity.
Table 2A-1: Zone Wise Installed Capacity (MW) of electricity.
Eastern Grid
Western Grid
Total
1990 -1991
1991 -1992
1992 -1993
1993 -1994
1994 – 1995
1995 -1996
1996 -1997
1997 -1998
1998 -1999
1999 – 2000
2000 – 2001
2001 – 2002
2002 – 2003
2003 – 2004
Source: 2004, Statistical Year Book of Bangladesh [Ref 1] [Ref 2]
The major organizations involved in power generation, transmission and distribution activities in our country are Bangladesh Power Development Board (BPDB), Rural Electrification Board (REB) Dhaka Electric Supply Authority (DESA), Dhaka Electric Supply Company (DESCO) and Power Grid Company of Bangladesh (PGCB). However, the nationwide power production and utilization program are being strengthened by involving the private sector during recent time [Ref 5]. A total of 20061 million kilowatt hour (MKWh) net energy, including 12583 MKWh in public sector and 7478 MKWh in private sector, has been generated during FY 2003-2004. This power generation was 8.9 percent higher than that of the previous fiscal year. Of the total net generation public sector and private sector accounts for 62.73 percent and 37.27 percent respectively. According to the official, country faced only 50-100 MW of load shedding in the FY 2003-03. But the unofficial figure is lot higher than this. The following table shows electricity generated by BPDB and Private Generation.
Table 2A-2: Zone Wise Energy Generation (GWH)
Gross Energy Generation of BPDP
Total Private Generation
Total
East Zone
West Zone
Total
1990-1991
1991-1992
1992-1993
1993-1994
9129.04
655.31
9784.35
9784.35
1994-1995
9885.28
921.15
10806.43
10806.43
1995-1996
10734.62
739.59
11474.21
11474.21
1996-1997
10804.7
1052.89
11857.59
11857.59
1997-1998
11789.06
1093.34
12882.4
12882.4
1998-1999
13126.07
746.13
13872.2
578.22
14450.42
1999-2000
13634.19
684.23
14318.42
1244.29
15562.71
2000-2001
13717.26
1110.92
14828.18
2192.68
17020.86
2001-2002
13266.78
1182.78
14449.56
3771.19
18220.75
2002-2003
11302.91
1509.79
12812.7
6298.81
19111.51
Source: 2004, Statistical Year Book of Bangladesh [Ref 3] [Ref 4]
In order to reduce dependence on imported oil, Government has put emphasis on Natural gas based power plant. This has reduced pressure on foreign currency reserve. Of the total power generation 89 percent was gas-based, 3.99 percent hydraulic and 7.1 percent oil-based. The per-capita electricity generation was 144 kilowatt-hour in 2002-2003, which has been