The Awami League-led alliance government has achieved a major success in addressing the country's power crisis through its short term measure of awarding contracts for rental power projects for three to five years.

However, since it is lagging behind in implementing mid-term and long-term power projects, the government will have to allow operation of different rental power plants with a total generation capacity of around 500 megawatt by the time the nation enters the next general election phase.

Presently, a few dozen rental power plants having more them 1,800 MW gener-

ation capacity are in operation. The contracts with these plants are for two to five years — mostly expiring in 2013.

In gas sector, the government has actually done poorly in increasing its supplies against rising demand. The bulk increase of gas supplies came from US company Chevron while a small portion came from the lone Bangladeshi exploration company Bapex.

Petrobangla, which had earlier given a rosy picture of surplus gas supplies from 2013, has now revised it down by one third. This revised projection will affect the government's plans to ensure low-cost gasbased power generation. Many tenders for

production of gas-based power floated in the last two years will face uncertainty.

Because of implementation delays, a number of large power plants are now expected to come into operation in 2014, after the next general election. This poses a political 'risk' for the ruling AL like the one it faced in the past when in power in 1996-2001. The previous AL government had implemented enough projects to generate surplus power. But a good number of those came into operation after the BNP-led alliance came in power. BNP had claimed credit for this, and this may happen again.

Solving the power crisis through rental power plants, especially those using costly imported petroleum products like diesel or even heavy fuel oil (HFO), had its cosequnces. Because of increased import of fuel, the government was forced to subsidise the power sector by Tk 5,000 crore to Tk 6,000 crore a year. On top of this, it had to increase power tariff many folds.

The cost of power generation, which was around Tk 2.5 per kilowatt hour or a unit back in 2009, has now gone up close to Tk 6 due to power generation by rental plants.

As per a government projection, this cost will start falling from 2014 with the operation of several large gas-based and later coalbased power plants. Power generation cost from gas and coal is the lowest.

But as it stands today, some large power projects have either failed or missed their deadlines by years. The biggest such case is Bibiyana phase one 341 megawatt gas-fired power plant, contract for which was awarded to local company Summit, that could not take off due to several issues like lack of timely financing, delay in handover of land for it etc. Summit is now in the process of withdrawing from this project responding to a government request to pave the way for an alternative deal with any other company.

Another such scheme is for Bhola 225 MW gas-fired plant that had to be retendered twice as the selected bidders backtracked from signing the final contract. The govern-

ment recently signed two new deals for power plants in Bhola, now to generate 450 MW power, but these will come into operation in late 2014 if the contractors do not back out.

Similarly, a 450 MW project in Siddhirganj is being delayed by at least two years. This project was handled Controversially from 2010 to award it to a particular company backed by a ruling party person.

In 2009, the government made a public commitment to build 1,000-MW Rooppur nuclear power plant with Russian help by 2016. But as of today, the project's financing has not been completed, although the government has made a lot of progress in preparing the complicated project. According to Secretary of the Economic Relations Division (ERD) Abul Kalam Azad, the nuclear power deal would be signed in 2013.

While a couple of large gas-based power plants would start partial power generation in 2013, adding at least 500 MW power, the country is also set to import from July 250 MW power from India for the first time. This would greatly ease the country's dependency on fuel-based rental power plants.

In the following year, at least five major power projects are scheduled to come into operation. If it is successful, this would help the government completely overcome dependency on rental power projects and enable it to reduce power tariff.

All coal-based power projects -- which could bring a long-term heavy duty and cost-effective solution to power crisis — would come into operation after 2016 if they are successful.

The AL gave the highest emphasis on tackling the country's severe power crisis (1,200 to 2,000 MW load shedding) when it came to power. As an immediate solution, it opted for costly but short-term rental power plants which could be installed fast while it proceeded with large power projects.

By now, it has implemented dozens of projects to add more than 3,500 MW power, making load shedding almost gone for now.

In all, the government had laid down plans for generation of as much as 1,6000 MW power in the next few years. Former PDB chairman ASM Alamgir Kabir, who implemented a major part of the projects till his retirement a few months back, says, “Even if we fail to implement a small percentage of the projects, we will still have enough power for all connected customers. And if the people have power supply, the economy will grow.”