Interview with M. Fouzul Kabir Khan Ph.D, Secretary, Power Division, Ministry of Power, Energy & Mineral Resources

ET: We have been experiencing acute power shortage for quite a long time.

M. Fouzul Kabir Khan (MFKK): Demand for power is increasing steadily but there are constraints of resources to add additional capacity for coping with the situation. Whatever generation capacity we have is uncertain because some power plants are 30-40 years old; sometimes they are shut down without any notice. Because power tariff is low compared to the cost BPDB (Bangladesh Power Development Board) lacks enough resources to maintain this plant properly. However we have now become slightly more efficient than before.

Another problem is insufficient supply of gas. Power plants have a greater capacity to generate electricity but we can not utilize them fully because of shortage of gas.

Load shedding is occurring partly because we are unable to generate adequate electricity. In lots of cases this also happens because of transmission and distribution problem. For example in old Dhaka generally there is load shedding twice a day, once in day time and once at night, but sometimes in between there are many interruptions. These interruptions are not due to load shedding; they are due to infrastructural problem. Either there is problem in some transformer or in the distribution line and substations are overloaded. We are trying to address these issues.

ET: Do you think the private sector has been playing its role properly?

MFKK: Previous governments involved the private sector so that we have large IPP (Independent Power Producers). The present govt. successfully inducted the local private sector into the process. Earlier we had only 3 power plants -- at Ashulia, Chandina and Narshingdi.-in which local entrepreneurs invested. Now we have 10 more small IPP projects. These are all being implemented by local power sector companies. We are also making available 4 rental power plants, which will produce electricity for 15 years. These are being implemented by local private sector companies including one (15MW power plant at Fenchuganj) by a non resident Bangladeshi. We are going to have 3 rental IPPs. Except the 40MW power plant at Khulna, the remaining 2 are 16MW power plants to be put into operation by local private sector companies. So the local private sector is getting involved in power generation in a significant way.

ET: The previous government took a severe lashing from the public for not ensuring adequate electricity supply. The situation by some accounts is worse now.

MFKK: In April 2006 power generation was 3280MW, in April 2007it was 3378MW and in April 2008 it was 3639MW, so power generation has been increased after all. Unavailability of gas, fall in water level at Kaptai and plant repairing and maintenance problem are the main causes of deterioration of electricity supply over the last few months. We hope when monsoon comes we will come up with more electricity. The situation is not that worse but it could have been much better because during this period we have generated record electricity (4,150MW on one particular day). But unfortunately we could not sustain it because of lack of gas, old machines and so on.

ET: What immediate steps do you think should be taken to meet more demand for electricity in the future, given the growth in the economy?

MFKK: Some immediate steps we have already taken include contracting for power generation by short term rentals. In addition there are some upcoming power plants.

Kumargaon 10MW, 26 November 2008

Fenchugonj 50MW, 22 December 2008

Shahjibazar 80MW, 9 January 2009

Most of the 15-year rentals and Small IPPs are expected to be commissioned within this year. But we are facing the problem of gas shortage. Moreover, we need to upgrade our old power plants.

ET: Do you think it is a good policy to reduce power supply in the industrial sector to make up for the shortage in the agriculture sector?

MFKK: This is a big challenge for the power sector because after two floods and cyclone the whole economy is dependent on agriculture. Because of food crisis agriculture has become our number one priority. Regarding the choice between Industry and Agriculture, I think we have to work on both.

ET: What about having a nuclear plant?

MFKK: Power needs inputs like gas, coal, hydro water, and also uranium. The thing is to build a nuclear power plant we need some regulatory approval; we have to work in coordination with the international atomic energy agency. Our Science and Technology department has already started dialogue and we are lookin g forward to its outcome. Necessary uranium has to be imported, for which I think we need to review our power tariff.

ET: What has happened to the much talked-about solar energy project?

MFKK: More than 12 hundred thousand households are using solar power. And 7-8 thousand households have agreed to use it. So it is good progress. To encourage the urban people we are working on Energy Conservation Act. We will talk with the relevant ministry to change the building code particularly in the area of water heating and ground lighting (the use of light in the stair-wall). We will also discuss with REHAB. By consulting all we will build the energy conservation act.

ET: Are we going to see a day without load shedding any time soon?

MFKK: To see a day without load shedding we must not only generate an amount equivalent to demand but more than that. There are countries without any load shedding but their generation capacity is nearly 120% of their demand. To see a day without load shedding we have to increase our power generation capacity. I think that will take some time but what we can do in the mean time is we can reduce this load shedding to an acceptable level.