lukmana l group report
TRANSCRIPT
7/27/2019 Lukmana L Group Report
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Bangladesh, with its 152 million people in a land mass of 147,570 sq km, has shown tremendous
growth in recent years. A booming economic growth, rapid urbanization and increasedindustrialization and development have increased the country's demand for electricity. Presently,
60% of the total population (including renewable energy) has access to electricity and per capita
generation is 292 kWH, which is very low compared to other developing countries.Recognizing the fact the present government has prioritized the power sector right from itselection manifesto. As per the manifesto, electricity generation in the country was supposed to be
5000 MW by the year 2011 and 7000 MW by 2013. The government has been successful in
meeting these targets and has even been able to achieve higher level of precedents. Thegovernment aims to generate additional 15,000 MW electricity, within 2016 under short,
medium and long term plan. This target is much higher than the one stated in the election
manifesto. Assessing the current state of electricity in Bangladesh, this web page disseminates on
how to develop and communicate various strategies and plans and implement moderate growthin demand through increased efficiency. It also investigates on how to combine environmental
goals into planning and operation and tries to find ways on how to ensure sufficient supply
wherever and whenever it is required, as well as on how to handle various other challenges in the power sector. The government has further extended its vision targeting the upcoming years up to
2030 and prepared the Power Sector Master Plan 2010 (PSMP). This plan states that in 2030 the
demand of power would be around 34,000 MW while the generation capacity would be about
39,000 MW. Presently, the generation capacity is nearly 8,500 MW which implies that muchendeavor is required to achieve the goal. Considering the country’s future energy security, the
government has rightly given due importance on renewable energy, energy efficiency as well as
energy conservation. An essential precondition for industrial development is uninterruptedsupply of energy. Although the installed capacity for generation of electricity in the country is
2908 megawatt, the actual production does not exceed 2160 megawatt as against the peak
demand of 2200 megawatt. The average level of system loss is still as high as 33.3%. The
demand for power will increase by 300 MW annually and an investment of about Tk 110 billionup to the turn of the century will be needed to meet it. The government has embarked on a well-
planned policy to generate more energy through higher public and private investment, reduce
system loss to the minimum and harness natural gas, solar power, atomic power andhydroelectric resources. As per private sector power generation policy formulated by the govt. in
October 1996, three barge-mounted power generating units with capacity of 100 MW each
would be set up by private sector entrepreneurs at Khulna, Haripur and Shikalbaha. Other power projects in the pipeline at Meghnaghat, Haripur, Mymensingh and Baghabari will help
Bangladesh attain self-sufficiency in power generation in near future. The private power
generation policy offers attractive incentives including tax holidays for 15 years and one-win-
dow service. The reserve of recoverable natural gas has been estimated at 12.4 trillion cubic feet.After years of commercial exploitation, a reserve of 9.8 trillion cubic feet is still available.
Production-sharing contracts have been signed with local and foreign firms for oil and gas
exploration in 8 blocs out of a total 23 in the country.Currently about 88 percent of power
generation is based on natural gas. About 55% of the country's energy supply is based ontraditional fuels (crop residues, animal dung and fuel wood), 24% on natural gas, 19% on
imported oil and coal and the remaining 2% is hydroelectricity. Natural gas has also contributed
to the rapid growth of the chemical fertilizer industry. The recent discovery of sizable coaldeposits in the northwestern part of the country is of significance. Agreements have been signed
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with some Chinese companies for their extraction. A coal-based power plant is also proposed to
be set up in the area. Abundant supply of coal at home will greatly reduce pressure on imported
oil. Measures are being implemented to take modernized transportation and telecommunicationsystems right up to the village level. The government has given highest priority to speedy
construction of the multi-billion dollar Jamuna bridge which has remained a national dream.
When completed by the middle of 1998 with the assistance of the World Bank, the AsianDevelopment Bank and Japan the bridge over the mighty Jamuna will connect the northern areaswith the rest of the country for direct road and rail communication and gas and power
transmission. This will provide a big boost to the growth of trade and commerce between
different regions of the country. Several other major bridges are being considered to prepareBangladesh for the Asian highway.The Telecommunication sector has been opened up by the
govt. for private sector investment. Two private companies have been given permission to set up
digital telephone exchanges at thana level. A particular company enjoyed monopoly in cellular
telephone business during the rule of previous regime. By breaking this monopoly, four companies have been granted license for providing cellular telephone services.