The proposed budget for power and energy sector has been increased once again considering power generation as the foundation of the country’s development. The highest priority in budget allocation for the ministry of power, energy and mineral resources (MPEMR) is evident in the size of the proposed budget.
The size of the proposed annual development programme (ADP) of the ministry is TK 29,665 crore, up from the previous fiscal’s allocation of TK 29,575 crore. The allocation for the power sector was only Tk 4,310 crore in 2009-10 fiscal. The government's allocation for the power and energy sector has been rising since then which is a clear indication of the government’s views on giving priority or importance for development of the nation.
An official said power generation capacity is increasing day by day. Bangladesh is now capable for generating sufficient power. However, the government cannot ensure uninterrupted power supply in rural areas due to poor conditions of transmission and distribution cables.
For replacing the cables, the transmission and distribution lines will also get additional fund as the government has a plan to ensure uninterrupted power supply to all by next fiscal year, which was one of the highest allocation for power generation during the last few years. Up to last April, power division has spent 69.24 percent of ADP allocation. On the other hand, energy division has spent 50.52 percent, power and energy division official said.
The Energy Division will implement 13 projects using its own fund during the next fiscal. To this end it has proposed taka 1,402 crore budget.
An official said most of the mega power projects are being implemented as per the schedule. So the budget allocation for these projects will be increased accordingly in next fiscal.
The government plans to provide Tk 8,500 crore subsidy on LNG price which is the main reason behind the rise in the government’s subsidy burden next fiscal, official sources said. In the last 10 years, the number of power plants rose by 5 times and stand at 132. Similarly, the power generation capacity increased 4 folds to 21,629 megawatt and even the maximum power generation reached a record of 12,893MW this year.
The number of power plants was 27 in 2009, now 126. The number of electricity users was about 1 crore 8 lakh, and now the figure stands at 3 crore 34 lakh. The transmission and distribution system losses have been significantly reduced to 11.87 percent during the incumbent government’s tenure, from 16.85 percent.
In line with the ‘Vision 2021’, Power Sector’s vision has been set to ensure reliable electricity to all at an affordable price by the year 2021. Around 93 percent people are now under electricity coverage. Which was 47 percent in 2009. The country’s gas supply capacity has increased more than two-fold over the past 10 years, with four gas fields discovered during the period.
The official said that in 2009, the country’s natural gas production capacity was 1,744 million cubic feet per day. Now it has increased reaching 3,760 million cubic feet. A Power Cell Official said the present government is committed to turn Bangladesh into a developing country by 2021, and by 2041 aiming to transforming it into a developed country. For that, Bangladesh needs to generate 24,000MW, 40,000 MW and 60,000 MW by 2021, 2030 and 2041 respectively.
Official sources said, at present 53 power plants are under construction with a capacity of 13,266MW. Another 19 power plants with 7,568 MW of generation capacity are under tender process. Government has undertaken 13 power generation mega projects in cooperation with India, Japan, China, Malaysia, South Korea and Singapore to set up coal-based power plants.
Eight mega coal-based power plant projects have been taken up in Payra, Rampal, Matarbari and Maheshkhali with a total 9,960 MW generation capacity. It is expected that the first mega project at Payra in Patuakhali of 1300 MW will come into operation this year. Meanwhile, construction of 1,200MW coal-fired power plant at Matarbari is expected to go into operation by 2023. On the other hand, work is going on to set up a 1320 MW power plant at Rampal in Bagerhat. Besides, Rooppur Nuclear Power plant with two units, with the total capacity of 2,400 MW is under construction at Rooppur of Pabna. It would produce and be added to the national grid by 2023-2024.
