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

Framework for the country studies 97
1.1 Background
CHAPTER 1: FRAMEWORK FOR THE COUNTRY STUDIES
The first task of the ESCAP cogeneration project was to identify two countries, one in South
Asia and the other in South-East Asia, which offer considerable potential for cogeneration
development but have not so far undertaken any methodical study to assess the opportunity
for cogeneration.
Bangladesh was chosen in South Asia because the country is presently facing with electricity
shortage and the government is in the process of developing and implementing policies for
encouraging private sector participation in the power sector. The country is endowed with
natural gas and this gas is already available through distribution networks to many industrial
and commercial customers to mostly meet their thermal energy requirements. The
economic development of the country will see growth of new industries and commercial
buildings as well as expansion of the existing facilities. Some of these enterprises are good
clients for cogeneration. However, the awareness of the benefits of cogeneration appears to
be low among the potential cogenerators as well as the policy makers. No initiatives have
been taken so far by the public authorities to promote cogeneration in a systematic manner.
In the case of South-East Asia, Viet Nam was selected because of its uniqueness among the
South-East Asian countries. The shift from a centrally-planned to a market-based economy
and the more recent integration of the country within the Association of South-east Asian
Nations (ASEAN) have brought in new opportunities and challenges to the much desired
economic development of the country. Sudden spurt of industrial and commercial
developments along with the need for revamping the existing outdated production facilities
has put tremendous pressure on the government. Already facing with the huge task of
assuring the smooth transition of socio-economic development, the public authorities are
short on finances to cope with the incessant need for infrastructure development, particularly
related to the energy sector that is in the process of being restructured. Efforts are being
made at the higher authorities level to look for both supply and demand options to deal with
the present situation and to better prepare for future energy challenges. Though Viet Nam
lags behind most other member countries of the ASEAN which are already at a fairly
advanced stage of propagating policies and measures to facilitate the development of the
market for cogeneration, the country is very much willing to learn from their experiences and
find appropriate solutions in line with the prevailing socio-economic conditions.
The main purpose of the project was to launch national studies primarily to enhance the
national capacity for identifying and assessing the potential for cogeneration. To fulfil this,
study teams were formed in both countries, mainly consisting of researchers and
academicians who are very much interested in the subject and who hold the promise of
sustaining the initial efforts by continued activities in the future to popularize the concept of
cogeneration in their countries.
Expected outcomes of the country studies included widespread dissemination of the findings
and results among various interest groups as follows:
1. national authorities, policy makers, utilities, industry representatives and others for
creating awareness regarding the numerous benefits of cogeneration;
2. potential cogenerators, manufacturers and/or suppliers of cogeneration equipment
(engines, turbines, pressure boilers, absorption chillers, etc.), project developers,