Bangladesh has adopted a master plan in the power sector giving coal a dominant source as primary fuel for the country’s 50% power generation by 2030.
The new strategy for the country’s latest “Power System Master Plan 2010” has been prepared recently with the financial support and technical assistance from the Japan International Cooperation Agency (Jica).
Japan has been showing special interest in Bangladesh’s development and has already financed a number of projects in the power and communications sectors.
Official sources said the country had chosen the coal as its prime fuel source after a comprehensive study conducted by Jica, which revealed that in the next decades, only coal will be the available and reliable fuel source with stable and cheaper price.
As per the master plan, the country’s power generation will reach over 40,000MW against a demand of 38,000MW by 2030, where half of the generation will come from domestic and imported coal-fired power plants.
“Especially coal will be an important resource as the primary energy supply in Bangladesh due to its price stability and lower volatility compared with oil and natural gas, longer reserve to production ratio compared with oil and natural gas, and its widespread availability throughout the world, and is expected to be supplied stably,” the master plan says.
It also forecast that natural gas supply will drop after 2017 while coal supply will rise as an alternative source of natural gas. In the master plan, the target composition of power supply as of 2030 has been set at 50% for domestic and imported coal; 25% for domestic and imported (in the form of LNG) natural gas; and 25% for other sources such as oil, nuclear power and renewable energy.
As part of the newly evolved strategy, the government has initiated move to set up a number of coal-fired power plants in public and private sector.
Contracts have been signed by the government to award the projects to the sponsors and contractors for implementation. These include 1,320MW coal-fired plant at Rampal in Bagerhat with Indian NTPC; 1,320MW plant at Patuakhali with a Chinese company; and 1,320MW plant at Maheshkhali.
Jica has been conducting a comprehensive study to create a coal-fired power plant in Matarbari area of Cox’s Bazar where the government has planned to create a hub of 9,000MW coal-fired power plant.
As per the recommendation of Jica, officials said the government had already set up a state-owned commercial entity – Bangladesh Coal Power Generation Company Ltd – which will implement the future power plants in Matarbari area.
