1. Introduction

Electricity has been the foundation of economic growth of a country, and constitutes one of the vital infra-structural inputs in socio- economic development. The world faces a surge in demand for electricity that is driven by such powerful forces as population growth, extensive urbanization, industrialization, and the rise in the standard of living. In the past three decades, numerous studies have been conducted to examine the relationship between electricity consumption and Industrial Development. The overall findings show that there is indeed a strong relationship between electricity consumption and Industrial Development. For example, Ferguson et al. (2000) examined the issue in over one hundred countries, and found that as a whole there is a strong correlation between electricity consumption and Industrial Development. This fact is also quite true for Bangladesh.

The purpose of this report is to establish a thorough and direct relationship between electricity consumption and rate of industrial development in Bangladesh. In this regard we will venture into history and follow some significant data collected from various studies to verify the fact.

It should be kept in mind that the existence of a strong relationship between electricity consumption and industrial

35

development does not always necessarily imply a causal relationship. The relationship may very well run from electricity consumption to industrial development, and/or from industrial development to electricity consumption. These causality issues, therefore, have been widely investigated in the report. However number of empirical studies indicates that overall, increased electricity consumption often correctly indicates faster rate of industrial development although the causal relationship is not consistent for other countries, but is indeed quite true in general for the perspective of Bangladesh. In order to thoroughly understand the role of electricity in industrialization, the general electricity production, distribution and transmission system in the country, the advantages of using electricity over other traditional means of energy and the historical significances of using electricity must also be taken into account. All these have been rightfully done in this report.

2. History

2.1 History of Electrification in Industries

Electric power is properly considered as a key element of the "Second Industrial Revolution" of the last quarter or

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so of the 19th century and the beginning of the 20th. This revolution, together with the transformation of the chemical industry and the internal combustion engine, redefined the whole set of technological opportunities available to industrializing societies. The electrical and chemical industries shared the important feature that their development was heavily dependent upon scientific progress in the 19th century. It is fair to say that 20th century industrialization has been, in large measure, a protracted working out of the trajectories of economic opportunities that were established by these two major scientific breakthroughs, together with the uniquely-important internal combustion engine.

What is distinctive about the electricity industry, however, is that it was, in all respects, a new industry, a product of 19th century scientific progress. Consequently, it should be dated, with apologies to Volta and Galvani, from Faraday's discovery, in 1831, of electromagnetic induction.

Electricity is, of course, not a primary source of energy. It is, rather, a form into which primary energy sources can be converted. Many of the distinctive advantages of electricity derive specifically from the form that it can take rather than from any narrow efficiency calculation as measured in terms of BTUs. Indeed, one of electricity's greatest, but largely unsung virtues, is that it can make use of many energy sources - fossil fuels (coal, oil, and gas), hydro, nuclear, solar. It therefore makes possible the substitution of one primary energy source for another, a feature that may sometimes be of considerable

35

strategic as well as economic value, although it is easy to underestimate the cost of shifting from one primary energy source to another.

2.2 History of Electrification in Bangladesh

Kaptai Power Project

In 1947 when the British colonial rulers left this country, power generation and distribution were in the hands of private companies. The power supply to then 17 provincial districts was limited. The generation voltage was 400 volts. Power used to be supplied to most of the districts during night time only. The exception was Dhaka City where power used to be supplied by two 1,500 kW generators. Generation voltage was 6,600 volts and this was the highest supply voltage. In aggregate the generation capacity of the country was 21MW. The generation capacity of the power utility companies together was only 7 MW and there were no transmission systems available.

In 1948 the Electricity Directorate was created in order to plan and improve power supply situation. Subsequently, in 1959 the Water and Power Development Authority (WAPDA) was created. In 1960, Electricity Directorate was merged with WAPDA. At that time relatively higher

35

capacity plants were built at Siddhirganj, Chittagong and Khulna.

Construction of Kaptai dam and the commissioning of Dhaka-Chittagong 132 KV transmission line in 1962 was a milestone of power development of the country. In 1972, the Bangladesh Power Development Board (BPDB) emerged as the organization to boost the power sector.

The Power Division was established in 1998 under the Ministry of Power, Energy and Mineral Resources, cabinet division notification no. CD-4/1/94-Rules/23(100), dated 25 March 1998. It is entrusted with the responsibility of overall management of the power sector in Bangladesh.

3. Present State of Electrification in Bangladesh

In Bangladesh electricity is the major source of power for country's most of the economic activities. Bangladesh's installed electric generation capacity was 4.7 GW in 2009; three-fourth of which is considered to be available. 40% of the population has access to electricity with a per capita availability of 136 kWh per annum. The Ministry of Power and Energy has been mobilizing Tk 40,000 crore ($5.88 billion) to generate 5,000 MW of electricity to reduce load

35

shedding into a tolerable level within next four and half years during the term of the present government.

  3.1 Electricity Demand and Supply

Per capita generation of electricity in Bangladesh is now about 140 kWh. In view of the prevailing low consumption base in Bangladesh, a high growth rate in energy and electricity is indispensable for facilitating smooth transition from subsistence level of economy to the development threshold. The average annual growth in peak demand of the national grid over the last three decades was about 8.5%. It is believed that the growth is still suppressed by shortage of supply. Desired growth in generation is hampered, in addition to financial constraints, by inadequacy in supply of primary energy resources. The strategy adopted during the energy crisis was to reduce dependence on imported oil through its replacement by indigenous fuel. Thus, almost all plants built after the

35

energy crises were based on natural gas as fuel. Preference for this fuel is further motivated by its comparatively low tariff for power generation.

Electricity Model

Its continuation however has adversely influenced evolution of a judicious energy-mix for the country in the following ways:

Allocation of gas to other value added end-use sectors was reduced; Technologies having lower efficiency often became economic, thereby reducing overall efficiency of the system; Location of power plants often failed to take into consideration the need for equitable distribution of energy; and Growth of the power sector was forced to be

35

linked with the programmes of development of a particular fuel type.

3.2 Electricity Generation, Transmission and Distribution

The responsible authorities for generation of electricity are: Bangladesh Power Development Board, Rural Power Company and Independent Power Producers (IPPs). The total installed capacity of the power plants was about 4680 MW including 1260 MW of the IPPs.

Bangladesh Power Development Board (BPDB), Dhaka Electric Supply Authority (DESA), Rural Electrification Board (REB), Power Grid Company of Bangladesh (PGCB) are responsible for transmission and distribution. The total length of 230 kV and 132 kV transmission lines were 682.5 route km (1365 circuit km) and 2635 route km (4611 circuit km), respectively. The total length of distribution lines comprising 33 kV, 11 kV and 11/.4 kV lines stood at 43059 km at the end of 2002-2003 which was 1404 km higher than the previous year.

The following chart shows the general scenario of electricity transmission and distribution in Bangladesh.

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The transmission and distribution system in the country can be understood more clearly from the following picture:

A map of the Primary Electricity Grid system in Bangladesh as of June 2006 obtained from the directorate of system planning, BPDB is provided in the next page.

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Primary Electricity Grid system

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3.3 Electricity Consumption Patterns in Bangladesh

An overview of the net electricity generation and consumption in the country is required to understand the increasing demand for electricity in the nation’s industrialization process. It correlates the fact that over the years as industrialization process increased so did the demand and consumption of electrical energy throughout the country.

Electricity Consumption Shares

The total number of consumers at the end of 2002-2003 was 1690451 against 1644755 at the end of 2001-2002. This was about 2.78% increase over the year 2001-2002. The total consumption of electricity was about 16331.56 MkWh in 2002-2003, which was 7% higher than the previous year. The consumption patterns in different

Indus-trial29%

Com-mercial

26%

Residen-tial21%

Own Use & Loss11%

Other3%Other

7%

Industrial28%

Com-mercial

6%

Residential25%

Own Use & Loss36%

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end-user categories were as follows: DESA (50.95%), REB (19.43%), domestic (12.21%), industrial and commercial (15.77%), agriculture (0.46%) and others (1.18%).

The following table obtained from BPDB illustrates net peak demand and generation capacity of electricity in Bangladesh over the last 5 years.

Peak Demand and Generation Capacity Based on PSMP-2009 Forecast

Year

Peak Demand (net)

Net Generation Capacity

Net Generation

MW MW GWh2005 4308 4458 21964

2006 4693 4683 23945

2007 5112 5425 26106

2008 5569 6002 28461

2009 6066 7313 31028

2010 6608 7986 33828

From the table it is evident that net demand, generation and consumption have increased substantially over the years.

An overview of the daily load curve shown in the above Figure is proof that in the evening time the demand for electricity is maximum. The main reason for this sharp

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increase is - millions of electric lights are switched on by all types of consumers during that period. According to a preliminary study - the light load contributes about 80% of the peak demand. At present, the maximum peak demand served by BDPB is 3084 MW. This composition of electrical demand by different sectors is shown in the following Table.

Consumer Category

Consumption Consumption Pattern

i) Households 38.76 %(853 MW)

Lighting = 341 MW (40%)Fans & A/Cs =230 MW (27%)Refrigeration =188 MW (22%)Others = 94 (11%)

ii) Agriculture 7.55 %(166 MW)

Pumps =66 MW (40%)Rice Husking = 83 MW (50%)Lighting = 17 MW (10%)

iii) Industry 41.23 %(907 MW)

Motors =635 MW (70%)Lighting =73 MW (8%)Others =200 MW (22%)

iv) CELL 9.44%(208 MW)

Lighting =135 MW (65%)Others = 73 MW (35%)

vi) Public and others

3.02%(66 MW)

Lighting = 26 MW (40%)Water Pump =20 MW (30%)Others =20 MW (30%)

From the table it is clear that the major amount of electricity is consumed in the industrial sector which is about 41.23% of the total electricity produced.

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A more detailed overview of electricity consumption in industries is described in section 7.

4. Features of Electrification

Modern industrial societies are commonly described as energy-intensive, which is, so far as it goes, perfectly accurate. A central feature of industrial development over the past two decades is that it has been characterized by a growth in the amount of energy utilization per worker, or per person. It may also be said, however, that these societies are, more specifically, electricity-intensive. If one considers the experience of Bangladesh, one observes a rise in the ratio of total energy consumption to GNP between 1980 and 2000. It may be said therefore that, in the aggregate, Bangladesh economy since the 1980s has become, simultaneously, less energy-intensive and more electricity-intensive. This is correctly identified by the graph showing increasing electricity consumption over the last 30 years.

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At first glance this seems surprising, because there is many times more energy contained in the primary fuels that is employed in the generation electricity than in the output of electricity actually produced from that energy - which is to say that there are huge thermal losses in the generation of electricity.

In spite of the vast improvements in the course of the twentieth century in convening various fuels into electricity, it remains true that it still requires several BTUs of fuel to produce one BTU of electricity. But thermodynamic efficiency, which may make a great deal of sense in designing an engine, may make no sense at all when applied to a business firm, or to a sector of the economy, or to the economy as a whole. Indeed, the rise in electricity's share of total Bangladesh energy consumption, now around 40 percent, has persisted in spite of the fact that efficiency improvements in generating electricity have stagnated for the last twenty years or so. The key point appears to be that the various advantages of electricity, when the primary energy sources have been convened into the form of electricity, far more than offset the thermal losses that conversion inevitably involves. Thus there has been a significant evolution in the generation of electricity.

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Although electric power generation has fallen off its earlier trajectory of cost reduction, there has been no apparent slowdown in the growing reliance upon electricity-intensive technologies. The persistence and the pervasiveness of the growth of electricity consumption remain most impressive.

Another critical feature of electricity, closely connected with its distinctive form, is that it has brought with it a progressive liberation from the locational constraints that had characterized earlier forms of energy. Electric power generation was far more permissive in terms of the location of manufacturing facilities. To be sure, hydro power was highly location specific, and the huge economies of scale associated with centralized electricity generating plants also meant that electricity was most efficiently produced in a small number of places - again, places where the fuel source could be delivered at low cost. Nor was electric power generation entirely free of dependence on water. Large central power stations required huge quantities of cooling water for their condensers. But a key feature of electricity, after the complex challenges of transmission over long distances had been met, was that it could deliver this form of electricity to a wide range of places where steam engines were, for various reasons, impractical. In this sense, then, although electric power generation became increasingly centralized, it also made

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possible a high degree of decentralization in the location of industrial activity as further reductions in transmission costs were achieved.

5. Industries in Bangladesh

Before liberation Bangladesh, known as East Pakistan, was basically an agricultural area of the Indo-Pak sub-continental. It was the backdrop and an important market for the remaining industrially developed parts like-Bombay, Calcutta, and Pakistan. After liberation, extensive plans for industrialization were undertaken by the Bangladesh government. As a result industries in the textile, engineering and food, and allied sectors have rapidly been established.

In the Chemical sector also a large number of industries like tanneries & dying and printing, soap etc. have been set up.

The Government has undertaken programs for the implementation of 79 industrial estates and 4 export processing zones (EPZ). Of these, 60 Industrial Estates and

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2 (two) EPZs have already been implemented. Private initiatives have supported a number of industrial estate endeavors as well. The major exporting sectors of the country are now textiles, garments, jute and jute products, leather and leather products, tea, etc. The contribution of the industrial sector to the GDP is about 13.03%.

The major industries in Bangladesh are cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar, etc. Different types of industries of Bangladesh are described in detail in appendix 2.

6. Electricity and Industrial Power:

It is the widespread use of electrically-powered machinery in Bangladesh which, among other things, played a major role in the growing recourse to mass

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production technology. In fact, the use of electric motors expanded from slightly less than 5 percent of mechanical horsepower in Bangladesh manufacturing in 1985 to more than 25 percent of the total just two years later. By 1989 the figure was 55 percent, by 1995 it was over 82 percent, and by 2001 it was very nearly 90 percent (see Table).

Table: Electric Motor Use in Relation to Total Mechanical Horsepower in Bangladesh Manufacturing, Selected Years 1985-2001

Year Total (HP) Electric motors(HP)1985 9,811 4751987 13,033 1,5171989 18,062 4,5821991 21,565 8,3921993 28,397 15,6121995 34,359 25,0921997 41,122 33,8441999 49,893 44,8272001 108,362 92,821

But even these figures, by themselves, tell only a part of the story. Throughout industry, electricity also made possible an immense assortment of automatic precision instruments for the monitoring, control and inspection of industrial operations, including the increasingly complicated operations of electric power generating plants themselves. Even more generally, it was electrical automatic controls that made possible the epochal transition

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from small scale batch production to continuous processing in the refining of petroleum products and the paper industry, technological accomplishments that were to achieve an importance comparable to the mass production industries elsewhere in the economy. Eventually, then, the continuous processing technologies to which electricity had given birth were to become standard technologies in a large number of industries committed to bulk materials manufacturing.

However, beginning in the late 1960s to the 1990s, the attachment of electronic digital computers to machine tools made it possible to employ automated, reprogrammable manufacturing technologies in the production of small batches of nonstandardized products -i.e., products of various design features. These features increased the consumption electricity in industries by huge amounts, compared to residential and commercial use.

Electricity's rapid rise to dominance as a source of industrial power, then, was based on a number of compelling advantages. Electricity could be "packaged" in almost any size. Thus, "fractionalized" electric power sources of precisely the right capacity for each industrial application meant large energy and capital savings. Recourse to large steam engines that generated large amounts of power in situations that required only small or intermittent doses could now be avoided. Electricity offered opportunities for "fine tuning" the supply of power to

35

specific needs. Furthermore, the electric motor reduced the requirements for floor space and offered much greater freedom in the organization and layout of the workplace. Electric motors meant that the flow of work in factories did not have to accommodate a clumsy system of overhead belting and shafting in order to transmit power, very wastefully, from a central power source to a large number of machines.

The effects of these industrial applications of electric power on measured productivity growth for the Bangladesh garments manufacturing sector in the aggregate are observed from the late 1990s. The restructuring of a factory, including the flow of work on the factory floor and the larger issues of social reorganization, altered work arrangements, and new patterns of specialization on the part of both workers and management, resulted in greater amount of production and revenues in the garments sector.

The lengthy period of time required for the development of complementary technologies and for the other adjustments that were necessary to realize the full potential of electric power has characterized most major technological innovations in this century. This tendency can be observed not only in electricity-using products but also in the electricity-producing sector itself. Improvements in the production of electric power, like the industrial applications, have relied on a large number of incremental improvements whose development and adoption required decades. The cumulative effect of these numerous small

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improvements, nevertheless, was so great that the long-term rate of growth of total factor productivity in this sector was higher than in any other sector of the Bangladesh economy.

7. Electricity Consumption in Industries and Industrial Development

As stated before the major amount of electricity is consumed in the industry sector which is about 41.23% of the total electricity produced. If the development scenario in the industry sector is observed thoroughly it could be perceived that during the past several years there has been a significant growth in electricity consumption with increasing development in this sector. According to the CIA Fact Book this could be illustrated in the following two tables:

Year

Electricity - consumption

Rank Percent Change

Date of Information

2003 14,260,000,000 72   20012004 14,270,000,000 71 0.07 % 20012005 15,300,000,000 69 7.37 % 20022006 16,200,000,000 67 5.88 % 20032007 16,820,000,000 69 3.83 % 2004

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2008 21,370,000,000 65 27.05 % 20062009 21,370,000,000 65 0.00 % 20062010 21,380,000,000 66 0.05 % 2007

This entry consists of total electricity generated annually plus imports and minus exports, expressed in kilowatt-hours. The discrepancy between the amount of electricity generated and/or imported and the amount consumed and/or exported is accounted for as loss in transmission and distribution.

Year Industrial production growth rate

Rank Percent Change

Date of Information

2003 1.80 % 110 2002 2004 1.90 % 111 5.56 % 2003 2005 6.50 % 55 242.11 % 2004 2006 6.70 % 55 3.08 % 2005 2007 7.20 % 46 7.46 % 2006 2008 8.40 % 35 16.67 % 2007 2009 9.70 % 31 17.86 % 2008 2010 10.90 % 17 14.49 % 2009

 This entry gives the annual percentage increase in industrial production (includes manufacturing, mining, and

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construction).

8. Problems in Electricity Production

It has been observed that with increased industrial development there is a major increase in consumption of electricity, but as Bangladesh's energy infrastructure is still quite small, insufficient and poorly managed there is a shortage of adequate electricity supply in the industrial sector. The per capita energy consumption in Bangladesh is one of the lowest (136 kWH) in the world. Noncommercial energy sources, such as wood, animal wastes, and crop residues, are estimated to account for over half of the country's energy consumption. Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption is mostly natural gas (around 66%), followed by oil, hydropower and coal.

In generating and distributing electricity, the failure to adequately manage the load leads to extensive load shedding which results in severe disruption in the industrial production and other economic activities. A recent survey reveals that power outages result in a loss of industrial

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output worth $1 billion a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total transmission and distribution losses in Bangladesh amount to one-third of the total generation, the value of which is equal to US $247 million per year.

9. Conclusions

A country’s infrastructure for electricity supply and consumption has an important bearing on its ability to develop and thus to achieve economic affluence in the contemporary economic context. It has been proved beyond doubt that in the context of Bangladesh with increased industrial development there will be increased electricity consumption. In this regard efforts must be made to encourage government and industry to increase investment in electricity supply and to overcome the constraints on electricity consumption for proactively coping with the increased demand and consumption of electricity that accompanies Industrial Development.

10. Recommendations

In order to sustain a healthy economic growth and steady industrial development growth rate, the government must ensure the supply of uninterrupted electricity to the

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industrial sector. In this regard Reform is required not only for performance improvement but also to match with the outside changes in both national and global development.

To address the issues in electricity generation, distribution and transmission in the industrial sector the following recommendations can be made:

Recommendation 1

Energy efficiency is one of the key elements for sustainable energy development. Energy conservation measures are technically feasible, financially viable and economically profitable. Institutional capabilities of Energy Audit Cell (EAC) should be activated and strengthened to enhance energy conservation activities.

Recommendation 2

Alternate sources of renewable energy for electricity generation should be initiated, such as solar energy, wind energy, etc. Details in this regard are described in Appendix 3.

Recommendation 3

Utilities like BPDB are facing enormous challenge to meet up the electricity demand of the peak hours. Mass introduction of energy efficient devices will decrease this burden to a great extent.

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Recommendation 4

End-user participation in the electricity supply industry should be strengthened and an environment for a regular dialogue between the end-users and utilities should be established.

Recommendation 5

Unplanned interruptions of electricity supply in the industrial sector should be converted to planned outages where possible.

Recommendation 6

An Interruptible Electricity Tariff to industries should be introduced that can absorb planned interruptions without serious disturbance to their production processes.

Recommendation 7

A well-planned load management scheme, particularly to reduce the system peak demand should be introduced.

Recommendation 8

Improvement of power system performance should be made by making appropriate generation and transmission capacity additions, and distribution system improvements.

Recommendation 9

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Detailed technical studies in specific areas identified for performance improvement in the generation, transmission distribution, and supply of electricity should be commissioned. These studies can include activities, such as:

1. Examining ways to improve reliability of transmission and distribution network.

2. Analyzing the present electricity tariff structure and designing an interruptible electricity tariff for industrial and commercial consumers; and

3. Developing institutional and legislative frameworks required for aggressive implementation of energy efficiency programs in the electricity sector.

APPENDICES

A3. Renewable Energy Sources

1. Solar Energy

Bangladesh Government has taken a solar energy development programme in the Chittagong hill tracts area. These projects are being financed by the fund allocated from the hill tracts ministry. The project is constituted by 2(two) phases. The first phase has already been completed

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in Juraichhri area of Rangamati district. As many as 400 nos of solar panels have been installed there. Installation work of the 2nd phase has also been taken up in Thanchi Upozila of Rangamati district. About 400 no of panel have been installed there within last 6 months. The total project includes, 600 Solar Home Systems of 120 Wp each, 20 sets Solar PV Street Light Systems of 75 Wp each, 2 set Solar PV Submersible Water Pumps of 50,000 liters per day lifting capacity of each pump of 1800 WP (15X120Wp) each, 6 Sets of Solar PV Vaccine Refrigerators for the Health Care Centers of 360 Wp(3X120Wp) each .1 Sets of 10 KW Centralized AC Market Electrification Systems for the electrification.

Another Solar Electrification project is going on at Thanchi Upozila at Rangamati district. It consists 600 Sets Solar Home system of 120 Mp each, 2 Sets of Solar PV Vaccine Refrigerators for the Health Care Centers of 360 Wp(3X120Wp) each , 10 sets Solar PV Street Light Systems of 75 Wp each, 1 set Solar PV Submersible Water Pumps of 50,000 liters per day lifting capacity of each pump of 1800 WP(15X120Wp) each.

2. Wind Energy Program Taken Up By BPDB

Bangladesh government has taken up a project for installation of 8 x 225 KW wind mills in different places of coastal area. Before installation of wind mills a wind profile survey program was taken up in the financial year 2003-04. The source of fund was from GOB won resource. Although a fund of about 1.9 crore has been allocated by the government for the installation of wind measuring towers and wind study, no such fund was allocated for installation of wind mills. Bangladesh power Development Board has taken up a pilot project for installation of 4x225 KW wind energy power station at Muhuri Dam area of feni district from its own source of revenue fund. The machines have already been installed there. Provisional test run shows satisfactory performance of the mills. These machines were hooked up with nearby REB 11 KV feeder. 4 nos of wind measuring tower at a height of 50 meters were installed at Muhuri Dam (feni), Moghnama ghat (Cox-bazar), Purki Saikat (Patenga) and Kuakata area. The speed and direction of wind is being measured by two anemometers in each place at a height of 30 and 50 meters respectively. A comparative and comprehensive study of the data available shows that there exist a satisfactory potential of installation of wind mills in Bangladesh. A project has been taken from BPDB own fund at Kutubdia

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island named “1000 KW Wind-Battery Hybrid Power Plant Project”. Tender evaluation is under process for this project.

3. Micro hydro project

Some small potential of mini hydro power generation are available in hill tracts area of Bangladesh. At Borcol area of Rangamati district a 50 KW generator has been installed. No fund has yet been allocated from the government for this purpose. BPDB has completed a pilot project for installing 1x 50 KW mini hydro plant at Borcol water fall from its own revenue fund.

4. CFL (compact florescent lamp)

Bangladesh government has allocated an amount of 1(one) crore taka from its own source of fund against greater Chittagong power distribution project. A comprehensive study on the requirement and capacity of the lamps was completed. According to the requirement 21000 nos of 23 watt and 3000 nos of 14 watt lamp have already been procured and installed.

5. Sugar Co-generation

There is a good prospect of sugar Co-generation power plant installation in 50 sugar mills in Bangladesh. If government allows and allocate fund for feasibility study and there after installation of as many as 10-15 nos. of generator having 10-15 MW capacity each in the northern zone of Bangladesh. This type of generation will help minimizing the low voltage problem in the remote and national grid. Cost will also be economical compared to the cost of generation of electricity by using fuel oil.

LIST OF REFERENCES

Ahmad, Q.K., Ahmed N., and Rasheed, K.B.S., 1994,Resources, Environment and Development in Bangladesh,Academic Publishers, Dhaka, Bangladesh

Bangladesh Ministry of Energy and Mineral Resources,1996, Private Sector Power Generation Policy of Bangladesh,Dhaka.

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Bergey, M.L.S., Village Electrification and Hybrid Systems,Bergey Wind power, for Wind Energy Applications andTraining Symposium, Boulder CO, March 20,1995.

ESCAP, 1996, Population Data Sheet, Economic and SocialCommission for Asia Pacific, Population Division.

Flavin, C. and Lens- N., 1994, Power Surge: Guide to theComing Energy Revolution, Worldwatch Environmental AlertSeries, WW Norton and Co, NY.

Foley, Gerald, 1996, Photovoltaic Applications in RuralAreas of the Developing World, World Bank TechNet PaperNumber 304, Energy Series. World Bank, Washington DC.

Ibrm personal communication Nov 20, 1996.Jargstorf, B e n j w 1996, Wind Energy Utilization in ThirdWorld Countries - Experiences of GTZ, presented at WindEnergy Workshop at SPARRSO, 28 October 1996, DhakaBangladesh.

Khan, S.D., 1996, comments made at the First Seminar onWind Energy Study, 28 October, SPARRSO AuditoriumDhaka, Bangladesh.

Bangladesh Power Development Board.

BIBLIOGRAPHY

PDB, 1995, Annual Report 1993-1994, Bangladesh PowerDevelopment Board, Government of Bangladesh.

Rahman, Md. Fazler, 1996, “Prospects of Wind Energy inBangladesh”, Bangladesh Atomic Energy Commission.

REB, 1994, Annual Report 1993-1994, Rural Electrification

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Board, Bangladesh.

Statistical Yearbook of Bangladesh, 1994, BangladeshBureau of Statistics, 15th edition.

Task Forces, 1991, Bangladesh Development Strategies forThe 1990s. Vol 14. University Press LTD, Dhaka.

US Agency for International Development, 1988, RenewableEnergy- for Agriculture and Health, Washington DC.

World Bank, 1992, World Development Report 1992:Development and the Environment, Oxford University Press,NYNY

Yakub Nerun, 1995, Prospects for Renewable EnergySources, Bangladesh Observer, April 7, 1995, magazineSection.

GLOSSARYIndustrial Development: The process of industrialization of a country, and the developments in this sector.

Capacity: The instantaneous power output at any given time normally measured in kilowatts (KW) or megawatts (MW), of a power plant.

Distribution system: Electrical lines, cables, transformers and switches used to distribute electricity over short distances from

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substations to the customers generally at voltages lower than 69 KV.

Energy: The amount of electricity produced or used over a period a time usually measures in KWh, MWh or GWh.

Load: The amount of electricity required by a customer or group of customers.

Load shedding: Occurs when power authorities manage excess demand by eliminating powers to regions or neighborhoods on a rotating basis.

Power: The instantaneous rate at which electrical energy is produced, transmitted or consumed, typically measured in watts (W), kilowatts (KW), megawatts (MW).

System loss: Technical system loss refers to the energy that is lost as heat in electrical equipment and along transmission lines due to resistance as electricity is transferred from one location to another.

Transmission line: Electrical facilities used to transmit electricity over long distances, usually at voltages greater than 69 KV

Voltage: Electromotive force or potential difference expressed in volts (V).

INDEX

A

Acknowledgement · 7agrarian economy · 11

B

Bangladesh Power Development Board · 21

BPDB · 21

35

C

capacity · 21consumption · 6

D

DESA · 21Development · 12distribution · 21

E

economic growth · 12Electric power · 14Electricity · 11Electricity and Industrial Power ·

36electricity consumption · 13, 28Electricity Demand and Supply ·

19energy-intensive · 29

F

Features · 29fuels · 30

G

garments manufacturing sector · 39

GDP · 45generation · 21GNP · 29Grid · 23

H

History · 14History of Electrification in

Bangladesh · 16History of Electrification in

Industries · 14

I

industrial development · 13industrial societies · 29Industries in Bangladesh · 33inefficient distribution system · 45

L

load · 45load curve · 27load shedding · 45

M

Micro hydro project · 52

O

outages · 47

P

per capita energy consumption · 44power generation · 16Power Grid Company of

Bangladesh (PGCB) · 21Preface · 6Primary Electricity Grid system ·

23

35

Problems in Electricity Production · 44

R

renewable energy · 46Rural Electrification Board · 21Rural Power Company · 21

S

socio- economic development · 12Solar Energy · 51Sugar Co-generation · 52sustainable energy development ·

46

System loss · 55

T

transmission · 21Transmission line · 55

V

voltage · 16

W

WAPDA · 17Wind Energy · 51