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Mega plan for coal-fired power

Gout to shift from gas-based power generation, set up 10 coal-run plants to generate 7,000MW electricity

Sharier Khan
In line with its latest power sector master plan, the government has rolled out a massive plan to set up within a few years around 10 coal-based power plants having a total production capacity of around 7,000 megawatts, more than the country can now generate.
The plants will run on imported coal, using around 20 million tonnes a year worth $2 billion, which would put tremendous pressure on the country's foreign currency reserve.
The Power Development Board (PDB) believes such a huge spending would be possible given the current pace of export and industrialisation growth. Its belief is seconded by the World Bank's forecast that Bangladesh will join middle-income countries soon after 2016.
Alternatively, if the country does not go for coal, it will have to import petroleum worth $ 8 billion at the present rate to generate as much power. Besides, the cost of not having power will be much higher.
Given the persistent gas crisis which is set to worsen from 2017, the government's new master plan on coal-based power development adopted last year says at least half of the country's demand for power should be met using coal for its cost-effectiveness and stability of supply in the next two decades. More than half of this coal-based power has to be generated using local coal, it says.
By 2020, the plan looks at generating 9,800 MW power from domestic coal and another 7,800 MW from imported coal at a total cost of $ 26 billion. The remaining power will be generated using gas, oil, renewable energy etc and that will need $ 13 billion more in investment.
In the light of this, the government formed the Coal Power Generation Company of Bangladesh two months back. The company's main task is to spearhead all future public sector coal based power projects, says PDB Chairman Alamgir Kabir. In addition, the company will develop local coal fields and import coal,” he said. The Power Division is now holding shares of this company. It (company) will hire a consultant to determine which would be the most suitable coal-field for fast development, and other procedures will follow.
According to the draft coal policy, the measured and probable coal reserves of the country total 3.3 billion tonnes in five fields. The measured coal reserve that can be mined for the time being is estimated to be 1,168 milion tonnes, except in lamalganj where coal seams are located in deep underground.
Meanwhile, the PDB has taken initiatives to set up the 10 coal-fired plants in Khulna, Chittagong, Dhaka, Barisal and Barapukuria in Dinajpur. Except a 225 MW public sector plant in Barapukuria, all other projects are based on
imported coal.
The projects include three 1,300 MW ones, all intended to be implemented with government-to-government cooperation with India, China and Malaysia.
Of these, the PDB has signed a joint venture deal with India to set up a plant in Khulna.
The government has begun primary talks with China and Malaysia for two more plants in Chittagong. It is keeping its fingers crossed about the success of negotiations with the two countries as there are many issues including financing to be resolved first, a power ministry official said.
The PDB has floated tenders for five private sector coal-based plants in Dhaka, Chittagong and Barisal — some having up to 800 MW capacity and some up to 300 MW.
The government has already awarded contract to
local Orion Power to set up three coal-based power plants with a capacity of around 1,200 MW. Coal for these plants expected to start production in 2015 will be imported from Indonesia, costing $350 million.
The PDB believes that transporting coal through the country's river system would be possible. “One must assess how much cement and steel are now transported through the rivers. If that is possible, transporting coal would also be possible,” says the PDB chairman.
The government forecasts the demand for power in 2020 will go up to 17,600 MW. It will jump to 24,956 MW in 2025 and 33,000 MW in2030.
The demand is estimated to be around 6,000 MW in the coming summer.
The country now generates around 5,200 MW of power.