Power and energy sector of bangladesh abdullahil mamun, dba, iiuc
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Transcript of Power and energy sector of bangladesh abdullahil mamun, dba, iiuc
Budget for FY2014
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Abdullahil Mamun Assistant Professor of Economics
Department of Business Administration,
International Islamic University Chittagong,
Bangladesh.
Power and Energy Sector
Power and Energy Allocation to Power and Energy
ADP allocated : Tk. 11,308 crore
Non-development budget: Tk.43 crore
Total allocation: Tk. 11,351 crore
13.6% more than FY2013 (revised)
Power sector receives: Tk. 9,060 crore
Energy sector receives: Tk. 2,291 crore
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Actual Allocation 4285 4586 4341 4310 6,114 8,311 9,544 11,351
Revised Allocation 3034 3585 2909 3786 7,256 7,957 9993
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Allocation to Power and Energy Sector
Presently Scenario
Access to electricity: 53%
Per capita generation: only 272 kwh
Installed generation capacity: 8625 MW
Actual generation: 6066 MW (70.33%)
Budget Revision and Implementation is a Major Concern
The proposed allocation marked negative revision almost in all years
In FY2013, there is also an upward revision, utilization is still uncertain
For FY 13, revised ADP allocation will be 90.6% of proposed ADP, of which only 75.5%
will be implemented. Unnayan Onneshan (2012) 2
Reduction of custom duty on solar lantern and LED lamp is appreciable It will help access by low income group people It will reduce kerosene subsidy
But the objective will remain unrealized unless power generation capacity is improved. In FY12, only 70.33% (6066 MW) of installed generation capacity was produced Our actual generation fails to meet the installed generation capacity over the years
(see figure) Therefore, load-shedding has increased over the years.
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2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Installed and Actual Power Generation Capacity
(In MW)
installed generation capacity actual generation
Power and Energy
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Government’s Plan in Budget
Implement a total of 54 project
5 will be completed in FY2014 with capacity of 1480MW
Reality
On an average 72% of our installed generation capacity is achieved (CPD, 2012).
Reasons
A good number of generation units have become very old
They have been operating at a much-reduced capacity.
Their reliability and productivity are also poor.
Actual demand could not be met due to shortfall in available generation
capacity.
Due to shortage of gas supply some power plants are unable to reach their
generation capability
A good number of them are dual-fuel nature, it increases cost (subsidy)
Power and Energy
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Experience of quick rental and peaking plants
the additional cost for FY 2011-12 to refuel the quick rental and peaking plants
was
between Tk. 5200 crore and Tk. 5600 crore
about 0.6 percent or 0.7 percent of the GDP
Government provided a huge amount of money as subsidy
(Energy Bangla, 2012)
Challenge for the Government
Budget proposes Tk.5500 crore (48.5% of power and energy sector budget)
subsidy for continuing those projects. Thereby, it would undoubtedly be very
challenging for the government to implement the ongoing projects with the rest
51.5% fund.
Do’s
The government needs to be creative in renewing and revising strategic
approaches to reduce the power crisis.
Separate allocation for the maintenance, renovation and modernization of age
old power plants is urgently needed
Use the plentiful coal deposit that will create an opportunity in solving the
power crisis with the desirable speed.
Power and Energy
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