World Small Hydropower Development Report 2016 Bangladesh
3.3.2 Key facts Population 160,411,249 1 Bangladesh Shamsuddin Shahid, Universiti Teknologi Malaysia Southern Asia 3.3 Area 147,570 km 2 Climate Topography Rain pattern General dissipation of rivers and other water sources Bangladesh has a tropical monsoon climate characterized by wide seasonal variations in rainfall, high temperatures and high humidity. The average temperature varies between 11 C and 20 C in the winter months (December to February) and between 23.9 C and 31.1 C in the pre-monsoon summer months (March to May). Average humidity varies between 36 per cent in January and 99 per cent July. 3 Situated on the deltas of large rivers flowing from the Himalayas, the topography of most parts of Bangladesh is extremely flat. Approximately 50 per cent of the country lies below 10 m and 90 per cent below 60 m above sea level. Approximately 10 per cent of the land, mostly located in the south-east and north-east, is considered hilly. At 1,052 m, the highest peak in Bangladesh, Saka Haphong, is located in the extreme south-east corner of the country. 4 The annual average rainfall is 2,666 mm. Rainfall varies from 1,400 mm in the north-west to approximately 4,400 mm in the north-east. 3 More than 78 per cent of the total annual rainfall occurs during the monsoon from June to October. Only 3 per cent occurs during the winter months of December to February. 3 The majority of Bangladesh lies in the delta formed by the convergence of the Ganges, Brahmaputra and Meghna Rivers and their tributaries. The country is crisscrossed by numerous rivers, streams and brooks all generally running north to south as they meet up with the Ganges to flow into the Bay of Bengal. In the dry season the numerous tributaries that lace the terrain may be several km wide as they near the Bay of Bengal, whereas at the height of the summer monsoon season they coalesce into an extremely broad expanse of silt-laden water. 5 Electricity sector overview As of October 2015, the total installed electricity generation capacity in Bangladesh was 11,552 MW and the available capacity was 8,177 MW. 6 The total capacity consisted of natural gas accounting for 62 per cent, heavy fuel oil (HFO) 21 per cent, heavy fuel diesel (HFD) 8 per cent, coal 2 per cent, hydropower 1.9 per cent and other renewable energy sources 1.5 per cent (not connected to the national grid). In addition the equivalent of 500 MW was imported from India (Figure 1). 6 FIGURE 1 Installed capacity in Bangladesh by source (MW) Gas HFO HSD Imported Coal Hydropower Other RE sources Source: BPDB 6 230 175 956 500 250 2,507 7,434 As of June 2015, the national electrification rate was 74 per cent (approximately 17.5 million consumers). However, the electrification rate in rural areas, where more than 70 per cent of the population lives, was just 50 per cent. 7,11 Per capita generation of electricity in Bangladesh was 371 kwh. Limited access to electricity, supply-demand imbalance, high dependency on natural gas as an energy source and poor grid reliability are the major problems facing the power sector in Bangladesh. The major challenges are to provide universal access to reliable power supply, ensure availability of energy sources for power generation and long-term energy security. 8 Electric power consumption in Bangladesh is rising by 9.6 per cent each year due to the rapid increase of consumers and GDP growth. The country s available power generation capacity has also risen markedly between 2010 and 2015 with an average growth rate of approximately 10 per cent; increasing generation is a major agenda for the Government which aims to provide 100 per cent access to affordable and reliable electricity by 2021 and stable, high quality electricity by 2030. 12 The energy demand forecast, based upon a 7 per cent GDP growth rate, estimates peak demand in Bangladesh as 17,304 MW by 2020 and 33,708 MW by 2030 (Figure 2). 6 433
World Small Hydropower Development Report 2016 The Bangladesh Power Development Board (BPDB) is the largest single organization in the energy sector of Bangladesh, with 54 per cent of the country s power generating capacity while independent power producers (IPPs) generate the remainder. 6 As a single buyer, the BPDB compensates the IPPs with cost driven prices up to BDT 29.37 (US$0.382) per kwh for HFO powered electricity and up to BDT 28.24 (US$0.367) per kwh for diesel powered electricity. 9 There is no feedin-tariff (FIT) and no regular tendering scheme in place yet for power from renewable energy. The Power Grid Company of Bangladesh Ltd (PGCB) is responsible for transmission, and BPDB, along with some governmentowned companies, are responsible for distribution. BPDB charges BDT 3.33 to BDT 9.80 (US$0.043 to US$0.127) per kwh to end users depending on the type of consumer. 10 FIGURE 2 Demand forecast in Bangladesh 2010-2030 (MW) Source: BPDB 6 Small hydropower sector overview and potential There is no official definition of small hydropower (SHP) in Bangladesh. However, this report assumes a definition of plants with an installed capacity of below 10 MW. Current SHP capacity is 50 kw with a total identified potential of at least 1.4 MW from micro-sites alone. 6 This indicates that, despite the currently low estimated potential, approximately only 3.5 per cent has been developed. Between World Small Hydropower Development Report (WSHPDR) 2013 and WSHPDR 2016, installed capacity has increased 400 per cent (Figure 3). FIGURE 3 SHP capacities 2013-2016 in Bangladesh (MW) 2016 2013 Potential capacity Installed capacity 0.05 0.01 0.15 Sources: BPDB, 6 WSHPDR 2013 21 Note: The comparison is between data from WSHPDR 2013 and WSHPDR 2016. 1.41 The first SHP plant was installed for demonstration purposes at a hilly region of Chittagong with a capacity of 10 kw. 19 Another SHP plant operating in Barkal Upazila of the Rangamati district has a capacity of 50 kw. An additional plant with a capacity of 50-70 kw is under development as part of an irrigation system at Mirersorai, Chittagong. 6 A number of other projects on streams in the south-east hilly regions are also under consideration for development. Potential for SHP in Bangladesh has been explored by different organizations over the last three decades. 19 In 1981, the Bangladesh Water Development Board and BPDB jointly identified 19 prospective sites for installation of SHP plants. In 1984, a foreign consultant team identified 12 potential sites for development of mini-hydropower plants with capacities between 4 kw and 616 kw. In 2004, Local Government Engineering Department (LGED) explored seven sites, mostly located in the hilly region of Chittagong, with capacities ranging between 3 kw and 30 kw. Additionally, the Bangladesh Council of Scientific and Industrial Research (BCSIR) identified two sites in the Chittagong hill tract area with capacities of 5 kw and 15 kw. Combined, these sites suggest a potential of, at least, 1.409 MW. With exception of Chittagong hill tracts region, it is considered that micro/mini-hydro have limited potential in Bangladesh. 6 Nonetheless the Government is planning to establish a hydropower company to explore and generate hydropower potential. SHP installed and potential capacity represents a small fraction of the current total hydropower capacity and potential. The 230 MW hydropower plant located at Karnafuli currently provides the major share of total renewable energy in Bangladesh. BPDB identified two other sites at Sangu (140 MW) and Matamuhuri (75 MW) for large hydropower plants. 6 Renewable energy policy Development of renewable energy is considered an important part of the Government s fuel diversification programme and a scheme to provide clean power to communities with no access to the grid. The Government has set targets to increase the share of renewable energy in the energy mix to 5 per cent (800 MW) in 2015, 10 per cent (2,000 MW) in 2021, and remain at 10 per cent (4,000 MW) in 2030. 12 To achieve this goal, the Government adopted the Renewable Energy Policy of Bangladesh (2009). National plans such as the Five Year Plan and the Power System Master Plan as well as policy documents including the National Energy Policy and Industrial Policy 2010 also emphasize the need for renewable energy. In addition, the Development of the Renewable Energy programme is part of the overall Bangladesh Climate Change Strategy and Action Plan. Renewable energy options are also included in the Bangladesh National Building Code. 14 Bangladesh became one of the initial members of the International Renewable Energy Agency (IRENA). 434
3.3 The Government has established the Sustainable and Renewable Energy Development Authority (SREDA) to promote renewable energy and energy efficiency. Favourable taxes and duties have been imposed on renewable energy equipment in Bangladesh. A legal obligation to install photovoltaic (PV) power systems on new buildings has been imposed in order to be entitled for grid connection. The Bangladesh Electricity Regulatory Commission (BERC) has prepared draft regulations for the implementation of feed-in tariffs (FITs) for renewable energy projects in order to boost the confidence among investors. 15 The Government has allocated BDT 40 billion (US$520 million) to develop 800 MW of capacity from renewable energy sources within the fiscal year 2014-2015. 16 The installed renewable energy capacity in Bangladesh in October 2015 was 411 MW from hydropower, solar PV, wind power, municipal waste, bio-gas, biomass, and waste residues from industrial processes (Figure 4). Solar PV is considered to have the greatest potential, while biomass and biogas are considered to have the least potential. 17 FIGURE 4 Renewable energy in Bangladesh by source (MW) Hydropower Solar power Biogas Wind power Biomass Source: SREDA 17 1 2 5 167 230 A number of commercial projects such as solar irrigation, solar mini-grids, solar parks and solar rooftop applications have been implemented by the Government and private companies. Approximately 3 million homes in Bangladesh, with aggregated capacity of approximately 135 MW are now powered by solar home systems (SHS). 18 A programme to generate 500 MW of solar-based electricity has been initiated by BPDB. 6 The potential of wind energy in Bangladesh is limited to coastal areas, off-shore islands, riversides and other inland open areas with strong winds. Two pilot wind-power plants with total installed capacity of 1.9 MW have been installed. A project to install a number of wind power plants across the coastal regions of Bangladesh with a total installed capacity of 15 MW is now underway. 6 Legislation on small hydropower Environmental impact assessments (EIA) are mandatory for site selection and construction of any hydropower plant that requires the construction of a dam or any other type of obstacle. Barriers to development of small hydropower High installation costs, lack of quality control, limited knowledge on renewable energy potential, unavailability of land and extreme weather events are the major barriers to renewable energy development in Bangladesh. Key barriers specific to SHP development include: } A lack of studies on the potential of SHP; } A heavily subsidized power sector which discourages the private sector to invest; } A high population density of approximately 1,037 people per km 2 means the availability of land for SHP development is very limited; } High initial capital costs and difficulties in obtaining loans for hydropower investment; } A lack of interest in renewable energy, particularly hydropower technologies; } A flat terrain limiting hydropower potential. 19,20 Southern Asia References 1. Worldometers (2015). Bangladesh Population. Available from www.worldometers.info/worldpopulation/ Bangladesh-population. 2. Bangladesh National Portal (n.d.). Available from www. bangladesh.gov.bd/site/page/812d94a8-0376-4579- a8f1-a1f66fa5df5d/know--bangladesh. 3. Shahid S. (2010). Recent Trends in the Climate of Bangladesh.Climate Research, Vol. 42., Issue 3., pp. 185-193. 4. Shahid, S. (2010). Rainfall variability and the trends of wet and dry periods in Bangladesh.International Journal of Climate Change, Vol. 30., Issue 15., pp. 2299 2313. 5. Bangla2000 (n.d.). Geography. Available fromhttp:// www.bangla2000.com/bangladesh/geography.shtm. 6. Bangladesh Power Development Board (2015). Available from http://www.bpdb. gov.bd/bpdb/index.php?option=com_ content&view=article&id=126&itemid=17. 7. Bangladesh, Ministry of Power, Energy & Mineral Resources (n.d.). Power Sector at a Glance.Available from http:// www.powercell.gov.bd/index.php?page_id=267. 8. Asian Development Bank (2014). Energy Policy Options for Sustainable Development in Bangladesh. Available from http://www.adb.org/. sites/default/files/ publication/31141/ewp-359.pdf 9. BPWD (2014) Annual Report 2013-2014 p. 89, 90 10. Dhaka Electric Supply Company Ltd. (2015). Tariff Rate. Available from https://www.desco.org.bd/?==tariff-rate-2. 435
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