Bangladesh Energy Regulatory Commission · Bangladesh Energy Regulatory Commission ... Bangladesh...

Bangladesh Energy Regulatory Commission

Ministry of Power, Energy and Mineral

Resources

Energy and Mineral

Resources Division Power Division

BERC

Power Cell CEI

BPDB

PGCB

REB

DPDC DESCO

IPP IPP

PDB Distribution

EGCB APSCL NWPGC

WZPDC PBS

Generators

Transmission

Distribution

Own P/S

Bangladesh Energy Regulatory Commission 2

Acts & Laws: Electricity Act 1910 PO 59 for Creation of Bangladesh Power

Development Board - BPDB Rural Electrification Board Ordinance 1977 Bangladesh Energy Regulatory Commission

Act 2003 Emergency Energy & Power Supply Special Act

2010 Sustainable Renewable Energy Development

Authority Act 2012


Policies:

National Energy Policy 1995 Private Sector Power Generation Policy 1996 Policy Guideline for Small Power Plant (SPP) in

Private Sector 1998 Policy Guidelines for Enhancement of Private

Participation in the Power Sector 2008 Renewable Energy Policy 2008 Policy Guidelines for Power Purchase from

Captive Power Plant 2006 Guideline for Remote Area Power Supply

System (RAPSS) 2009 Power Pricing Framework


Electricity Act 1910, Amended 2006 now under revision

Electricity Rules 1937

Bangladesh Energy Regulatory Act 2003 has taken over following provisions from the Electricity Act: License to Generators, Transmitters and

Distributors- Public and Private Purchase of undertakings by the Licensee Licensee’s activities and reporting Tariff Setting Arbitration and Dispute Resolutions


License Required:

Power generation

Energy transmission

Energy distribution and marketing

Energy supply

Energy storage

Waiver:

Generation < 1 MW

Renewable Energy ≥ 5 MW


Role Player

Planner GoB, BPDB, Power Cell and Public Utilities

Regulator BERC – Bangladesh Energy Regulatory Commission

System Operator NLDC of PGCB

Generator BPDB, IPP, Rental and Cross Border

Transmission PGCB – Power Grid Company of Bangladesh Limited

Distribution Public Utilities, PBSs and Distribution Companies (Disco)


Policy Maker Government of Bangladesh

Implementation Bangladesh Energy Regulatory Commission

Tariff Policies Power Pricing Framework, 2004 Vision 2020 – Tariff guidance BERC Electricity Tariff Regulations:

Generation : BST – Bulk Supply Tariff Transmission : Wheeling Charge Distribution : Retail Distribution Tariff

Principles for Tariff fixation

Principles and Methodologies are set in BERC’s Tariff Regulations. Principles are fixed, but may be changed if necessity arises.

Dispute Resolutions

Bangladesh Energy Regulatory Commission

Interaction with Government

Article 22(i) of BERC Act 2003 : to extend co-operation and advice to the Government, if necessary, regarding electricity generation, transmission, marketing, supply distribution and storage of energy


Act/ Policy Highlights

Power Pricing Framework, 2004

The average end-user electricity tariff for each customer class will be set to fully cover reasonable costs of supplying electricity.

Government decide to subsidize from Budget Differentiated rates for certain cases :

Peak and off-peak Capacity Cost and variable Cost

Vision 2020 : Tariff guidance

Progressively reflect the cost of supply of electricity.

Efficiency, economical use of the resources, good performance and optimum

investment. Interests of the consumers are safeguarded . Generation, transmission, distribution and

supply are conducted on commercial principles. Differential tariff related to time of the day to

facilitate efficient demand side management.


Act/ Policy Highlights

BERC Act 2003 Tariff Issues

Article 22 : (b) to ensure efficient use, quality services, determine tariff and safety enhancement of electricity generation and transmission, marketing, supply, storage and distribution of energy; BERC Electricity Tariff Regulations

BERC Act 2003 Dispute Resolutions

Article 22 : (j) to resolve disputes between the licensees, and

between licensees and consumers, and refer those to arbitration if considered necessary

(k) to ensure appropriate remedy for consumer disputes, dishonest business practices or monopoly

BERC Act 2003 Relationship with Govt.

Article 34 : BERC determines tariff in accordance with government Policies. BERC consults with Govt. in preparing the Tariff methodologies only.


Act of Parliament

1. Bangladesh Energy Regulatory Commission Act, 2003

2. Electricity Act, 1910

Regulations

1. BERC Licensing Regulations, 2006

2. BERC Transmission Tariff Regulations, 2010

License issued by BERC

License to Transmission utility

License Standard and License Conditions

Generation, Transmission and Distribution

PPA and Contract Agreements

Grid Code and Distribution Code


Planning Codes In-built in the BERC Electricity Grid Code

Implementation By the Transmission Licensee

Investment Aided Projects Licensee’s Self-financed Projects

Investment Approval

Aided Projects – by Government

Act and Grid Code have provisions for BERC’s concurrence.

System Planning Criteria

Demand Forecast Least Cost Generation Plan Long Term Transmission Plan Incorporation the aforesaid Plans in the

Sector Master Plan

Outage Criteria Generators: Scheduled Outage Plan As dictated by NLDC. Line: Scheduled Outage Single Contingency

Contingency As set in the Grid Code


General Requirements: Application for Connection Site responsibility Schedule Connection Voltage Maintenance Responsibility Data Requirement

System Performance : Generator : 47.5 – 52 Hz, PF 0.8 lag to 0.95 lead Grid Frequency : 49 - 51 Hz Voltage : ± 5% normal ± 10% emergency

System Design Short Circuit Level – 12123 MVA (3-Phase)

International and Regional Connection:

Synchronous or Asynchronous HDVC Connection and Back to Back (B2B) Interface

Fault Clearing Time : 400 kV : 100 ms 230 kV and 132 kV : 160 ms


In-Built in the BERC Electricity Grid Code Basic principles : Interface point for generators and users is defined

and set in the Code Metering is installed at the interface point Metering parameters are set in the Code

Other Provisions: Time of day metering Interface metering connected with central server Backup meters as check meters Energy auditing is done at the Grid station’s bus.

Accuracy class: Meters : 0.5 Instrument transformers : 0.5 [Replacement class : 0.2]


Renewable Energy Policy 2008 Achieve the targets for developing renewable energy resources to meet five percent of the total power demand by 2015 and ten percent by 2020 Institutional Arrangement Sustainable Renewable Energy Development Authority (SREDA) Act 2012 Present Status :

Total Number of Solar Homes – More than 1 Million SHS : 45 MW Solar PV Irrigation, etc. : 1 MW Wind Energy : 2 MW Electricity from Biogas : 1 MW Electricity from Biomass :<1 MW


Parameter Limits / Range

Frequency 49.0 to 51.0 Hz

Voltage ± 5% Normal, ± 10% Emergency

Total Harmonic Distortion 400 kV : 1.5% 230 kV / 132 kV : 2.5%

Voltage Unbalance Factor Negative sequence : Max 1% Zero sequence : Max 1%

Flicker Severity Short term : 0.8 unit Long Term : 0.6 Unit

Voltage Fluctuation For every step change 1% of normal Special cases 3% if risk free.

Electric & Magnetic Field IEEE C95.1 thru IEEE C95.6

Noise Level Environmental Laws

Reliability Indices Availability Factor AACIR - Average Annual Customer

Interruption Rate MTTR - Mean Time to Repair MTBF - Mean Time Between Failures.


Policy Guidelines for Power Purchase from CPP (Captive Power Plant), 2007

.. CPP may transmit power through existing

transmission and distribution network.

.. CPP will have to pay the wheeling charges, as fixed by BERC.

.. CPP can use the Distribution utility’s network to sell power to an utility other than host utility.

Policy Guidelines for Enhancement of Private Participation in the Power Sector, 2008.

use transmission and distribution lines ... on a nondiscriminatory basis for wheeling of power produced..

PGCB and all Distribution Licensees shall provide nondiscriminatory open access to their transmission and/or distribution system for use by any generation licensee..


Present Wheeling Tariff is Tk. 0.23/kWh which doesn’t vary with location and distance.

As of today, there is no application with BERC for setting the charges for distribution network usage by CPP or Commercial Power Plants.


Power System Master Plan 2010 includes load forecast

till year 2030

Load Demand >> Year 2013 Year 2020 Year 2030

Scenario 1 : Policy 8,349 17,304 33,708

Scenario 2 : GDP 7% 7,837 13,244 28,537

Scenario 3 : GDP 6% 7,436 10,868 18,828

Source : PSMP 2010


Year 2030 situation Installed Capacity Target : 38,685 MW Demand : 33,708 MW

Fuel Type New Plants (Nos.)

Capacity Addition (MW)

Remarks

Domestic Coal 14 10,800

Imported Coal 14 8,400

Gas 5 3,150

Furnace Oil 14 1,400

Nuclear 4 4,000 By Year 2025

Hydro 1 100

Cross Border 3,000 By Year 2023

Source : PSMP 2010


FY Demand (MW)

Supply (MW)

Reserve Margin [%]

2013 8,349 8,275 -

2016 11,405 14,943 20.57

2020 17,304 22,509 26.71

2025 25,199 29,717 12.19

2030 33,708 38,685 9.34

Source : PSMP 2010


0

350

700

1050

1400

1750

2100

2450

2800

3150

3500

3850

4200

4550

4900

5250

5600

5950

6300

6650

7000

Hour

Inter Connectoe East Grid West Grid System Total


FY Import Addition (MW)

Total (MW)

Remarks

2013 - 250 MW might start in 2014

2016 250 250 -

2018 500 750 -

2021 500 1,250 -

2022 750 2,000 -

2023 1,000 3,000

Source : PSMP 2010


Generation Scheduling is done in accordance with the BERC Electricity Grid Code 2012

NLDC prepares Yearly, Quarterly, Monthly and weekly schedule of net electrical output based on demand forecast.

Generators informs promptly any changes on net output.

NLDC issues annual schedule 90 days ahead and the Generators submit monthly estimates.

NLDC prepares monthly schedule day by day Day Ahead Schedule

Generators provide MW/ MVAR availability Hour by

Hour and Unit by Unit – 36 hours ahead.

Generators follow the despatch instructions of NLDC.

Penalties for Deviation : As per PPA


Frequency and Voltage Management are in-built in the BERC Electricity Grid Code, 2012. Under falling frequency conditions, NLDC instructs Distribution

Utilities to reduce load demand by appropriate manual and /or

automatic load shedding.

Under Frequency Tripping devices with set scheme are in place.

NLDC is responsible for the coordination, selection among the feeders by rotation and settings of staged automatic relay initiated under-frequency load shedding designed for system

protection.


Demand Side Management Restriction for Industries to operate during peak hours Differential tariff for peak and off-peak usage Holiday Staggering. Closure of shopping malls and markets early in the

evening. Energy efficient and Energy audit campaign

Current level of load shedding due to demand supply gap (maximum, last 2 years) : Summer : 1,000 – 1,100 MW Winter : 305 – 500 MW


There is no documented prioritization except under frequency tripping schemes. Existing practices are to avoid load shedding for the following cases: KPI – Key Point Installations (listed) Irrigation loads - from 11 PM to 8 AM during season Educational Institutes – During public Examinations


There is provision for reviewing protection settings and the Grid Code has imposed this responsibility upon the Transmission Licensee (now PGCB) The Licensee shall be responsible for carrying out any required system studies to determine the necessary protection discrimination settings. PGCB organizes the protection reviews with participations from generators and users. Protection coordination reviews are done prior to summer and prior to Irrigation Season. Also on revision of System Planning. Discussions are documented in the shape of minutes of meeting with resolutions.


There is mechanism of reviewing Grid operations. NLDC prepares and submits daily report of grid operations to the stakeholders. Commission Staffs review the NLDC daily reports. Monthly review meetings are participated by the Line Ministry, Energy Sector utilities and Power Cell. Discussions are documented in the shape of Minutes of meetings with resolutions.


Emergency Restoration Plan and Black Start Facilities are articulated in the BERC Electricity Grid Code. NLDC prepares, distributes and maintains up-to-date Black

Start procedures covering the restoration of the Transmission System following total or partial blackout.

Updated Black-Start procedures to be submitted to BERC.

NLDC maintains a record of Power Station Black Start capability and associated Power Station Black Start plans.

NLDC Maintains a list of essential loads and priority of restoration.

There are several plants both public and private power stations with black start facilities. NLDC maintains a record of Power Station Black Start capability and associated Power Station Black Start plans.


Utility Cost of Supply Tk./ kWh

Revenue Tk./ kWh

Surplus or Deficit per kWh

Bulk Supply

BPDB 5.73 4.70 Deficit Tk. 1.03

Distribution

BPDB 6.56 6.30 Deficit Tk. 0.26

REB 6.03 5.89 Deficit Tk. 0.14

DPDC 6.97 6.72 Deficit Tk. 0.25 *

DESCO 7.21 6.96 Deficit Tk. 0.25 *

WZPDC 6.16 5.94 Deficit Tk. 0.22

Figures are Tk./ kWh FY 2012-13

* DPDC and DESCO were surplus during FY 2011-12.

Last BST hike was influenced by unavoidable Fuel mix


Government provide no subsidy for any class of customers but allows: 20% rebate to agro-based industries 100 kWh electricity payment support 200 kWh free electricity to freedom fighters 2% rebate for prepayment metered customers

Cross-Subsidy among the consumers is exercised by BERC during Tariff Setting.

Government provides subsidy at generation level only on Bulk Supply Tariff (BST).

No subsidy to Transmission and Distribution utilities. In addition to Last BST (weighted average Tk. 4.70/kWh)

govt. is providing subsidy amounting to Tk. 3,850 Crores. This is a direct subsidy and given as soft loan to the Single

Buyer / Bulk Supplier (BPDB) and adjusted through DSL (Debt Service Liability).


There is any no restrictions on import / export of power.

License from BERC is required for any trading of electricity.

Payment of VAT (presently 5%) in addition to energy charges is mandatory only for Retail Customers.


Rehabilitation and resettlement of project displaced personnel not exactly done, however, the affected personnel get due price and compensation as per law. Land acquisition and compensation cost is included in the project costing which varies project to project.


Land Acquisition for Public Utility Projects is done by the government mechanism upon receipt of application.

Utility has to pay the price and crops compensation as per prevailing rates.

Land acquisition is a legal capacity by Land Acquisition and Requisition Act/ Ordinance

Under several policy guidelines, Public utilities can acquire land and lease the same to IPP or PPP projects through land lease agreement.

Right of way is acquired and maintained by the provisions of Telegraph Act 1885 endorsed to Electricity Act and BERC Act.

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