Small private power plants

By S. A. Mansoor Gulshan, Dhaka
21 May 2005, 18:00 PM
Your staff correspondent's report on the subject (DS: April 24) raises a few issues which needs clarification. These can be briefly stated as follows:

Will the Energy Regulatory Commission introduce and enforce power quality standards, which is totally absent in our public power supply scenario? If this is not done, private power producers when coupled to the utility grid will have to make unnecessary capital expenses for extra protection of their units, apart from its effect on their operation.

The desired power tariff is indicated at 2.73 US cent. Does it mean that the payment, which possibly will be made in equivalent taka, will change according to the US dollar vis-à-vis Bangladesh taka conversion rate? This needs to be clarified.

What are the boundary condition of the statement "The developers must install in their plants a system of supplying power to the national grid". This needs technical specifications and boundary parameters. Will the Energy Regulatory Commission set these?

Duty exemption for import of petroleum alone has been considered for oil-fired plants.

Logically this should have been allowed also for import of coal for coal based power plants which is more logical for western part of Bangladesh located fairly near to Indian coal sources. Later these units can switch over to coal from northern Bangladesh.

Otherwise, we are unfairly penalising the north and western part which even today is more power starved than the eastern part of Bangladesh.

Regarding gas tariff, if it will be at par with PDB gas tariff, then what about running gas power plants installed earlier in the private sector which are paying higher gas tariff compared to PDB? These units in all fairness should enjoy PDB gas tariff.

Will some extra benefits be considered for small units, say, maximum up to rated capacity of 5MW? If this is done there will be promising opportunity for investment for recovering power from gas pressure reducing stations which is a very cost effective but totally unexploited source of power without fuel.

These are some of the important issues that need to be clearly defined in the interest of encouraging quick investment in private power sector.