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part 1: overview of cogeneration and its status in asia - Fire

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Summary <strong>of</strong> country study – Bangladesh 131<br />

CHAPTER 3: SUMMARY OF COUNTRY STUDY - BANGLADESH<br />

3.1 Overview <strong>of</strong> Energy Situations, Policies & Strategies<br />

3.1.1 Overview <strong>of</strong> energy situation <strong>in</strong> Bangladesh<br />

The known conventional energy sources <strong>of</strong> Bangladesh are natural gas, coal, peat, oil,<br />

hydropower <strong>and</strong> biomass fuels.<br />

Natural gas<br />

Out <strong>of</strong> the non-renewable resources <strong>of</strong> energy, only natural gas is be<strong>in</strong>g extracted<br />

commercially. Accord<strong>in</strong>g to Bangladesh natural gas statistics as <strong>of</strong> October 1998, the total<br />

reserve <strong>of</strong> gas is 23.093 tcf (trillion cubic feet) <strong>of</strong> which 13.737 tcf is recoverable; 2.855 tcf<br />

had been extracted up to January 1977. Dur<strong>in</strong>g the last thirty years the Government has<br />

made consistent efforts <strong>in</strong> exp<strong>and</strong><strong>in</strong>g the use <strong>of</strong> natural gas. Its share <strong>in</strong> total primary<br />

commercial fuels <strong>in</strong>creased from 30.7 to 61.4 per cent dur<strong>in</strong>g the period 1973 to 1997<br />

whereas the share <strong>of</strong> petroleum fuel consumption has decreased from 67.7 to 37.6 per cent<br />

for the same period. Dur<strong>in</strong>g the preparatory stage <strong>of</strong> formulation <strong>of</strong> the National Energy<br />

Policy, the constra<strong>in</strong>ts <strong>of</strong> natural gas supply beyond 2010 were highlighted to draw the<br />

attention <strong>of</strong> policy makers. Subsequently the government accepted the f<strong>in</strong>d<strong>in</strong>gs <strong>and</strong> allowed<br />

the <strong>part</strong>icipation <strong>of</strong> International Oil Companies (IOCs) <strong>in</strong> the exploration <strong>and</strong> development <strong>of</strong><br />

hydrocarbon sector.<br />

Coal<br />

Coal resource depos<strong>its</strong> <strong>of</strong> about 1,782 million tons have been discovered <strong>in</strong> three locations.<br />

Total coal reserve at Jamalgonj is about 1,054 million tons whose extraction has not yet<br />

been found to be economically viable. About 285 million tons <strong>of</strong> coal deposit has been<br />

discovered <strong>in</strong> D<strong>in</strong>ajpur. Another coal reserve <strong>of</strong> 400 million tons has been discovered <strong>in</strong><br />

Rangpur. Though there is no power plant operat<strong>in</strong>g with coal as fuel at present, coal m<strong>in</strong><strong>in</strong>g<br />

from Barapukuria will probably take a significant <strong>part</strong> <strong>in</strong> electricity generation after 2000.<br />

More than 80 per cent <strong>of</strong> coal from Barapukuria is expected to be used <strong>in</strong> a 250 MW coalbased<br />

power plant. Total peat reserves <strong>of</strong> Bangladesh have been estimated as 600 million<br />

tons. In some rural areas, locally extracted peat is used for domestic cook<strong>in</strong>g <strong>and</strong> <strong>in</strong> small<br />

<strong>in</strong>dustries.<br />

Oil<br />

A small oil deposit has been discovered <strong>in</strong> Haripur (Sylhet) with an estimated recoverable<br />

reserve <strong>of</strong> 1.6 million tons <strong>of</strong> crude oil. Indigenous oil supply makes very little contribution <strong>in</strong><br />

meet<strong>in</strong>g the total dem<strong>and</strong> <strong>of</strong> petroleum fuels that is met from imported resources.<br />

Bangladesh Petroleum Corporation (BPC) is responsible for overall management <strong>of</strong><br />

petroleum fuels <strong>in</strong> the country.<br />

Electricity<br />

Bangladesh Power Development Board (BPDB) is fully responsible for the electricity<br />

generation <strong>and</strong> distribution network <strong>in</strong> Bangladesh, except Dhaka city area <strong>and</strong> some rural<br />

areas which are managed by Dhaka Electric Supply Authority (DESA) <strong>and</strong> Rural<br />

Electrification Board (REB). Though the <strong>in</strong>stalled capacity is 3,091 MW, maximum<br />

generation on 28 July 1997 was only 1,600 MW aga<strong>in</strong>st the maximum dem<strong>and</strong> <strong>of</strong> 2,168 MW.<br />

On average, there is a shortfall <strong>of</strong> between 300 <strong>and</strong> 450 MW. Only about 19 per cent <strong>of</strong> total<br />

population are electrified at present. The dem<strong>and</strong> for electricity is expected to rise at a rate<br />

<strong>of</strong> 15 per cent annually. Gas-based generation (especially comb<strong>in</strong>ed cycle power plants) has

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