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

182 Part3: Summary of country studies – Bangladesh and Viet Nam
Co-ordination among the users, suppliers, financiers, developers, etc., is very important and
there is a need to have a facilitator or an intermediary. Cogeneration promotion activities
should be combined with energy conservation and efficiency activities. In other countries,
promoting cogeneration is one of the activities of the National Energy Conservation Agency.
Clear official taxation policies related to profit from energy saving and efficiency improvement
are imperative for the cogeneration promotion.
The long run marginal tariffs for purchased electricity and selling of excess electricity to the
grid are key factors for the cogeneration promotion. It should be issued under price formula
being based on capacity charge and energy charge separately, particularly for long term
contracts.
The official synchronization regulation for small scale decentralized power plant should be
studied and issued.
As natural gas is being recognized universally as the most appropriate fuel for cogeneration,
setting up of local natural gas supply stations, with underground storage tanks, in centralized
industrial parks or export processing zones should be considered.
Institutionally, the support from the Government is necessary in the following areas:
• Interconnection with the national power grid;
• Fixing of tariff for sale of excess power;
• Favourable credit for rehabilitation of existing cogeneration facilities and development of
new cogeneration utilities.
Bilateral and international support should be channelled for setting up cogeneration
demonstration projects using modern technologies in various sectors of activities in order to
achieve rational use of energy.