Bangladesh Presentation

Government of Bangladesh

07 November 2011, Beijing

BANGLADESH RENEWABLE ENERGY BANGLADESH RENEWABLE ENERGY DEVELOPMENT PROGRAM DEVELOPMENT PROGRAM

Al Mudabbir Bin AnamDeputy Director (Sustainable Energy), Power Cell, Power Division

On behalf of Bangladesh Delegation:

Bangladesh Power Sector Overview

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Bangladesh’s Power Sector: At a Glance (FY 2011)

Electricity Growth : 7.20 % in FY-2011 (Av. 7 % since 1990)

Generation Capacity : 6984 MW (Sept., 2011)

Total Consumers : 12.5 Million Transmission Lines : 8,600 km Distribution Lines : 2,78,000 km Per Capita Generation : 252 kWh (incl. Captive)

Access to Electricity : 50 %

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2000

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10000

12000

14000

16000

2010 2011 2012 2013 2014 2015 2016

Max.Demand with DSM (In April) Dependable Capacity (End of Dec)

Estimated Demand Supply Gap up to 2016 (Calendar Year)January, 2011

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Power System Master Plan (up to 2030)

PSMP 2010 : Long term planning up to 2030 Study completion: February 2011 Findings:

- Generation capacity requirement by 2021: 24,000 MW- Generation capacity requirement by 2030: 39,000 MW- Coal based generation capacity by 2030: 20,000 MW- Coal and Nuclear for base load power requirement- Renewable Energy for balancing the gap- Cross Boarder Trade with neighboring countries

Existing Renewable Energy Development Framework

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RENEWABLE ENERGY POLICYRENEWABLE ENERGY POLICY

Policy envisions: - 5% of total power from renewable sources by 2015- 10% of total power from renewable sources by 2020

Policy demands (as of June 2011 Program):- 800 MW power from renewable by 2015- 2000 MW power from renewable by 2020

A dedicated agency proposed: Sustainable Energy Development Authority (SEDA)

Policy effective in 2009

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Institutional Development Progress

Establishment of SEDA as the Nodal agency is underway

Dedicated Wing has been set up at Power Division underleadership of Additional Secretary

Sustainable Energy Unit has been set up at Power Cell, thetechnical arm of Power Division

Dedicated Directorates have been set up at Utilities (PDB, REB)

Renewable Energy Development Status

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ACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENTACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENT…..…..(JUNE 11)(JUNE 11)

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Category AchievementSolar Home System (SHS) 47 MW

(1 Million Units)Other Solar PV Applications(e.g. Markets, Office Buildings etc.)

1 MW

Roof-top Solar PV Systems of NewElectricity Consumers

3 MW

Wind Energy 2 MWBiomass based electricity 1 MWBiogas based electricity 1 MW

Total 55 MW

92% contribution is from solar PV Technology

WIND POWER DEVELOPMENT WIND POWER DEVELOPMENT PROGRAMPROGRAM

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Source: NREL, Dhaka, 2010

Average Wind Profile

Wind Potential Study under Plan

Proposed Location for Wind Park

Airport

Seaport

Along the seashore

Wind Potential: 177 W/m2 at 50 m

Average Wind Speed 6.5 m/s at 50 m height

Planned Capacity: 50-200 MW

Implementation Authority: BPDB

Implementation: BOO basis

Road and Sea communication available

No resettlement issues

Along the seashore

Wind Potential: 177 W/m2 at 50 m

Average Wind Speed 6.5 m/s at 50 m height

Planned Capacity: 50-200 MW

Implementation Authority: BPDB

Implementation: BOO basis

Road and Sea communication available

No resettlement issues

Wind Project : Wind Project : ParkyParky Beach, Beach, AnowaraAnowara, Chittagong , Chittagong

WASTE POWER DEVELOPMENT WASTE POWER DEVELOPMENT PROGRAMPROGRAM

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Waste to Electricity Project Brief

Project Authority : Dhaka City Corporation

Raw Material : Municipal Solid Waste (MSW)

Prospective Location : Matuail / Aminbazar under Dhaka District

Est. MSW requirement : 1000 Ton per day

Exp. Electricity Generation : 10 MW

Project Implementation : BOO basis- Waste Supply Agreement with DCC

- PPA with BPDB/PGCB - with CDM Benefit

Project Tenure : 20 Years

Prospective Technology : Open (Incineration / Gasification)

Project Completion Period : 2 Years Progress so far : Procurement is under way

SOLAR POWER DEVELOPMENT SOLAR POWER DEVELOPMENT PROGRAMPROGRAM

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LIST OF SOLAR POWER PROJECTS UNDER PIPELINE LIST OF SOLAR POWER PROJECTS UNDER PIPELINE

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Type of Project Capacity Impl. Location Major Source of Funding

Solar Thermal Power Plant 20 MW PrivateSector

Bhaluka,Mymensingh

Private Sector (IPP basis)

Grid Connected Solar PVPower Plant

400 kW BPDB Sullah, Sunamganj Climate Change Trust Fund

1 MW BPDB Rajshahi City Private Sector (IPP basis)

3 MW BPDB Rajabarihat, Rajshahi Private Sector (IPP basis)

3 MW BPDB Sarishabari, Jamalpur Private Sector (IPP basis)

5 MW BPDB Kaptai, Rangamati Asian Development Bank

Solar PV System 28 kW REB REB H/Q GoB

Solar LED Street Light System.

225kW PDB& c.corp.

6 City Corporations Asian Development Bank

Solar Powered Irrigation Pump (each 14 kWp )

280 kW REB 8 PBSs Climate Change Trust Fund

Solar Powered Irrigation Pump (each 8 kWp ) & SHS

222 kW REB 7 PBSs KOICA

Solar-Wind Hybrid Power Plant

1 MW BPDB Hatia Island Asian Development Bank

TOTAL (Est.) 35 MW

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Government has a Directive on November/ 2010 to install roof-topsolar panel as a pre-condition of getting new electricity connectionfor load demand of more than 2 kW

Under this directive, nearly 1 MWp Solar PV Systems have beeninstalled by June/2011

Study is underWAY to develop a business model for promotion ofroof top solar solutions

In-built Mechanism for Promotion of Solar Power

500 MW SOLAR POWER 500 MW SOLAR POWER DEVELOPMENT MISSION DEVELOPMENT MISSION

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AT A GLANCEAT A GLANCE

Largest ever Solar Power Development Program in Bangladesh Initiative of Power Division in collaboration with a number of

government ministries and their agencies Strong involvement of private sector in implementation Completion by 2015 Planning to incorporate CDM benefits The Initial Idea had been presented at ADB’s 3rd Asian Solar

Energy Forum in Bangkok, 1-3 June 2011 Preliminary Program outline presented at ADB’s Bangladesh

Solar Energy Development Forum in Dhaka, 20 Sept., 2011

TWO BROAD CATEGORIES TWO BROAD CATEGORIES PROGRAMMEPROGRAMME

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-- COMMERCIAL TYPE COMMERCIAL TYPE -- SOCIAL SERVICE TYPESOCIAL SERVICE TYPE

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Category Status

Commercial Solar PowerProjects

340 MW

Social Solar Power Projects 160 MW

Total 500 MW

PROGRAM TARGETPROGRAM TARGET

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Program Capacity (MW)

1 Solar Irrigation Pumps 150

2 Solar Power Mini Grid System 25

3 Solar Park at govt. and railway land 135

4 Solar Power in Private Commercial and Residential Buildings

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5 Solar Power in Industries 20

Total 340

A. COMMERCIAL PROJECTSA. COMMERCIAL PROJECTS

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B. Social ProjectsB. Social ProjectsProgramProgram Capacity Capacity

(MW)(MW)

1 Solar electrification in Rural Health Center 50

2 Solar Electrification in Remote Educational Institutions

40

3 Solar electrification at Union Information Centers

7

4 Solar Home System in Religious Establishments

12

5 Solar electrification at Remote Railway Stations

10

6 Solar PV system in Government Offices 41

Total 160

Investment Climate in Bangladesh Renewable Energy Development

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3.3

5.04.6

4.1

4.9

4.6

5.4 5.2

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5.9

5.3

4.4

5.3

6.36.0

6.66.4

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5.76.0

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7.0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Rea

l GD

P G

row

th (

%)

Linear Trend line (Real GDP Growth)

GROWTH IS REMARKABLY STABLE AGAINST ALL SHOCKSResilient growth despite regular political, environmental and external setbacks

Source: Bangladesh Bank

Full/ Partial Duty exemption:- Solar Panel- Solar Panel manufacturing equipment- LED Light- Solar Operated Light- Wind Power Plant

Promotional Funds for Renewable Energy Projects through:- Bangladesh Bank- IDCOL- Commercial Banks

Existing Incentives from Government

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Incentives as of Renewable Energy Policy- Electricity generated from Renewable Energy Projects (less than 5 MW)

may be purchased by Power Utility or any Consumer through mutualagreement

- Renewable Energy Project Investors will be exempted from corporateincome tax for a period of 10 years.

- Renewable Energy Equipment and raw materials will be exempted fromcharging 15% VAT

- An incentive tariff may be considered for electricity generated fromrenewable energy sources which may be 10% higher than the highestprice of electricity purchased by the utility from private generators.

Incentives: Private Sector Power Generation Policy

Tariff based bidding Payments under the PPA continue in the event of dispatch

failure Sovereign guarantee from the Government for obligations of

Government entities through Implementation Agreement (IA) Assistance in getting clearances from various agencies Exemption from corporate income tax for a period of 10

years.

Incentives: Private Sector Power Generation Policy

Tax exemption and repatriation facilities on royalties,technical know – how and technical assistance fees

Avoidance of double taxation on the basis of bilateralagreements

The Bangladeshi currency, Taka is freely convertible for FDI Plant and equipment (full value) and spare parts (10% of

original plant cost) without payment of customs duties, VATand any other surcharges.

Repatriation of equity along with dividends.

MESSAGE FOR THE CHINESE MESSAGE FOR THE CHINESE PARTNERS OF DEVELOPMENTPARTNERS OF DEVELOPMENT

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Renewable Energy development is a priority of Bangladesh Governmenton consideration of Energy Security, Environment and Climate ChangeMitigation

Private Sector has been recognized as the key partner in thedevelopment of Renewable Energy in Bangladesh

Government is currently reviewing the existing incentive structureextended to private sector to make it more investment friendly forRenewable Energy Development.

Government is keen on piloting most modern and efficient RenewableEnergy Technologies from the world including best practices

Chinese developers, investors, manufacturers, contractors are welcometo take part in renewable energy development of Bangladesh

Thank youFurther Information:

Al Mudabbir Bin Anam @[email protected]