10 th Asia Clean Energy Forum 2015

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1 10 th Asia Clean Energy Forum 2015 Mohammad Alauddin Joint Secretary Power Division Ministry of Power, Energy & Mineral Resources Government of the People s Republic of Bangladesh 16 June 2015

2 Outline Bangladesh Power Sector : An Overview Renewable Energy Energy Efficiency Energy Access SHS Program

3 Bangladesh Power Sector: Overview SL# Item 1. Installed Capacity [MW] Maximum Generation [MW] 7817(31 May 2015) 3. Transmission Line [Circuit Km] Distribution Line [Km] 335, Consumer [Million] Per Capita Generation [kwh] 371 Source : Bangladesh Power Development Board

4 Fuel Mix of Power Generation

5 Renewable Energy: Target Renewable Energy Policy of Bangladesh % (800MW) of total power from RE by % (2000MW) of total power from RE by MW Solar Program up to 2016 & Wind Resource Mapping Program facilitate reaching goal

6 Energy Efficiency Target

7 Access to Electricity Access to Electricity is 70% including 10% RE Envision to provide access to affordable and reliable electricity to all by Access to electricity enhancement through BREB in rural area & IDCOL in off-grid area. SREDA is promoting

8 Demand & Generation Capacity Forecast Demand MW Generation Capacity 38,700 MW 33,708MW c 18,838MW 6,765W Generation Capacity 7169 MW Gas 67% 2011 Oil 27% Coal 3% Generation Capacity MW Others 16% Oil 11% Coal 22% Gas 51% 2021 Others 17% Nuclear % Coal 50% Gas/LNG 23% 2030 Others including Renewable Energy, Regional power and oil Source : Power System Master Plan [PSMP] 2010

9 Power Sector: Management Structure Ministry of Power, Energy and Mineral Resources Energy & Mineral Resources Division BERC Power Division Power Cell SREDA CEI BPDP BREB DPDC DESCO IPPs RPCL PBS PGCB APSCL EGCB NGPGCL WZPDCL

10 Renewable Energy: Achievement Category Achievement Solar Wind Bio-mass Biogas Others Hydro Total 165 MW 02 MW 01 MW 01 MW 07MW 230MW 404 MW

11 Renewable Energy: Incentives Exemption from corporate income tax for 15 years. Plants & equipment [full value] & spare parts [10% of original plant cost] without payment of customs duties, VAT & any other surcharges. Tax exemption & repatriation facilities on royalties, technical know-how & technical assistance fees.

12 Renewable Energy: Incentives Repatriation of equity along with dividends. Avoidance of double-taxation on the basis of bilateral agreements. Implementation Agreement [IA] & PPA ensure fair and reasonable risk allocation and payment by the purchaser is guaranteed by the GoB.

13 Renewable Energy: Incentives The BoI provides one stop service. RE projects[5mw] don t need license from BERC. Framing of FiT regulation by BERC is underway. Incentive tariff for RE projects. Duty exemption for 16 items of solar panel [SRO No Law/2000/1832/Duty, Date-18/04/ 2000] Special Act for processing good project proposals.

14 IDCOL s SHS Program Suppliers Provides approval Seeks approval Technical Standards Committee Supply Equipment Pay for Equipment PO Selection Committee Applies Select POs NGO/PO Provide grant & loan Seeks grant & loan IDCOL Sells SHS & provide service Pay downpayment & installment Grant & soft term credit Operations Committee Household Dev. Partner

15 Fund Flow & Role of Partners Multilateral Agencies GoB IDCOL PO Household Provides grant and soft loans Provides technical assistance needed Provides grant and soft loan to IDCOL Provides policy support Provides grants to reduce SHS cost and for capacity building Provides soft loans Provides training, promo support Monitors implementation Identify potential customers Installs SHS Extends micro-credit Provides after sales services Maintain system Repay loan in monthly installments Debt Service Debt Service Debt Service Debt Service

16 IDCOL s SHS Program Program Target : 6 million SHS by 2018 Program Achievement : 3.64 million SHS by April 2015 Number of Beneficiaries : 16.4 million people (10% population) Power Generation Fossil Fuel Saving Job Creation IDCOL Investment : 142 MW : 200,000 ton/year : 70,000 people : About USD 600 million Source: Infrastructure Development Company Limited

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