BERC Ministry of Power, Energy and Mineral Resources Energy and Mineral Resources Division Power Division Power Cell CEI BPDB REB Distribution WZPDC PDB Distribution PBS DPDC DESCO Transmission PGCB EGCB APSCL NWPGC Own P/S IPP IPP Generators
Acts & Laws: Electricity Act 1910 PO 59 for Creation of Bangladesh Power Development Board - BPDB Rural Electrification Board Ordinance 1977 Act 2003 Emergency Energy & Power Supply Special Act 2010 Sustainable Renewable Energy Development Authority Act 2012 2
Policies: National Energy Policy 1995 Private Sector Power Generation Policy 1996 Policy Guideline for Small Power Plant (SPP) in Private Sector 1998 Policy Guidelines for Enhancement of Private Participation in the Power Sector 2008 Renewable Energy Policy 2008 Policy Guidelines for Power Purchase from Captive Power Plant 2006 Guideline for Remote Area Power Supply System (RAPSS) 2009 Power Pricing Framework 3
Electricity Act 1910, Amended 2006 now under revision Electricity Rules 1937 Bangladesh Energy Regulatory Act 2003 has taken over following provisions from the Electricity Act: License to Generators, Transmitters and Distributors- Public and Private Purchase of undertakings by the Licensee Licensee s activities and reporting Tariff Setting Arbitration and Dispute Resolutions 4
License Required: Power generation Energy transmission Energy distribution and marketing Energy supply Energy storage Waiver: Generation < 1 MW Renewable Energy 5 MW 5
Role Planner Regulator System Operator Generator Transmission Distribution Player GoB, BPDB, Power Cell and Public Utilities BERC Bangladesh Energy Regulatory Commission NLDC of PGCB BPDB, IPP, Rental and Cross Border PGCB Power Grid Company of Bangladesh Limited Public Utilities, PBSs and Distribution Companies (Disco) 6
Policy Maker Implementation Government of Bangladesh Tariff Policies Power Pricing Framework, 2004 Vision 2020 Tariff guidance Principles for Tariff fixation Dispute Resolutions Interaction with Government BERC Electricity Tariff Regulations: Generation : BST Bulk Supply Tariff Transmission : Wheeling Charge Distribution : Retail Distribution Tariff Principles and Methodologies are set in BERC s Tariff Regulations. Principles are fixed, but may be changed if necessity arises. Article 22(i) of BERC Act 2003 : to extend co-operation and advice to the Government, if necessary, regarding electricity generation, transmission, marketing, supply distribution and storage of energy 7
Act/ Policy Power Pricing Framework, 2004 Vision 2020 : Tariff guidance Highlights The average end-user electricity tariff for each customer class will be set to fully cover reasonable costs of supplying electricity. Government decide to subsidize from Budget Differentiated rates for certain cases : Peak and off-peak Capacity Cost and variable Cost Progressively reflect the cost of supply of electricity. Efficiency, economical use of the resources, good performance and optimum investment. Interests of the consumers are safeguarded. Generation, transmission, distribution and supply are conducted on commercial principles. Differential tariff related to time of the day to facilitate efficient demand side management. 8
Act/ Policy BERC Act 2003 Tariff Issues BERC Act 2003 Dispute Resolutions BERC Act 2003 Relationship with Govt. Highlights Article 22 : (b) to ensure efficient use, quality services, determine tariff and safety enhancement of electricity generation and transmission, marketing, supply, storage and distribution of energy; BERC Electricity Tariff Regulations Article 22 : (j) to resolve disputes between the licensees, and between licensees and consumers, and refer those to arbitration if considered necessary (k) to ensure appropriate remedy for consumer disputes, dishonest business practices or monopoly Article 34 : BERC determines tariff in accordance with government Policies. BERC consults with Govt. in preparing the Tariff methodologies only. 9
Act of Parliament 1. Act, 2003 2. Electricity Act, 1910 Regulations 1. BERC Licensing Regulations, 2006 2. BERC Transmission Tariff Regulations, 2010 License issued by BERC License to Transmission utility License Standard and License Conditions Generation, Transmission and Distribution PPA and Contract Agreements Grid Code and Distribution Code 10
Planning Codes Implementation Investment Investment Approval System Planning Criteria In-built in the BERC Electricity Grid Code By the Transmission Licensee Aided Projects Licensee s Self-financed Projects Aided Projects by Government Act and Grid Code have provisions for BERC s concurrence. Demand Forecast Least Cost Generation Plan Long Term Transmission Plan Incorporation the aforesaid Plans in the Sector Master Plan Outage Criteria Generators: Scheduled Outage Plan As dictated by NLDC. Line: Scheduled Outage Single Contingency Contingency As set in the Grid Code 11
General Requirements: Application for Connection Site responsibility Schedule Connection Voltage Maintenance Responsibility Data Requirement System Performance : Generator : 47.5 52 Hz, PF 0.8 lag to 0.95 lead Grid Frequency : 49-51 Hz Voltage : ± 5% normal ± 10% emergency System Design Short Circuit Level 12123 MVA (3-Phase) International and Regional Connection: Synchronous or Asynchronous HDVC Connection and Back to Back (B2B) Interface Fault Clearing Time : 400 kv : 100 ms 230 kv and 132 kv : 160 ms 12
In-Built in the BERC Electricity Grid Code Basic principles : Interface point for generators and users is defined and set in the Code Metering is installed at the interface point Metering parameters are set in the Code Other Provisions: Time of day metering Interface metering connected with central server Backup meters as check meters Energy auditing is done at the Grid station s bus. Accuracy class: Meters : 0.5 Instrument transformers : 0.5 [Replacement class : 0.2] 13
Renewable Energy Policy 2008 Achieve the targets for developing renewable energy resources to meet five percent of the total power demand by 2015 and ten percent by 2020 Institutional Arrangement Sustainable Renewable Energy Development Authority (SREDA) Act 2012 Present Status : Total Number of Solar Homes More than 1 Million SHS : 45 MW Solar PV Irrigation, etc. : 1 MW Wind Energy : 2 MW Electricity from Biogas : 1 MW Electricity from Biomass :<1 MW 14
Parameter Frequency Voltage Limits / Range 49.0 to 51.0 Hz ± 5% Normal, ± 10% Emergency Total Harmonic Distortion 400 kv : 1.5% 230 kv / 132 kv : 2.5% Voltage Unbalance Factor Negative sequence : Max 1% Zero sequence : Max 1% Flicker Severity Voltage Fluctuation Short term : 0.8 unit Long Term : 0.6 Unit For every step change 1% of normal Special cases 3% if risk free. Electric & Magnetic Field IEEE C95.1 thru IEEE C95.6 Noise Level Reliability Indices Environmental Laws Availability Factor AACIR - Average Annual Customer Interruption Rate MTTR - Mean Time to Repair MTBF - Mean Time Between Failures. 15
Policy Guidelines for Power Purchase from CPP (Captive Power Plant), 2007.. CPP may transmit power through existing transmission and distribution network... CPP will have to pay the wheeling charges, as fixed by BERC... CPP can use the Distribution utility s network to sell power to an utility other than host utility. Policy Guidelines for Enhancement of Private Participation in the Power Sector, 2008. use transmission and distribution lines... on a nondiscriminatory basis for wheeling of power produced.. PGCB and all Distribution Licensees shall provide nondiscriminatory open access to their transmission and/or distribution system for use by any generation licensee.. 16
Present Wheeling Tariff is Tk. 0.23/kWh which doesn t vary with location and distance. As of today, there is no application with BERC for setting the charges for distribution network usage by CPP or Commercial Power Plants. 17
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Power System Master Plan 2010 includes load forecast till year 2030 Load Demand >> Year 2013 Year 2020 Year 2030 Scenario 1 : Policy 8,349 17,304 33,708 Scenario 2 : GDP 7% 7,837 13,244 28,537 Scenario 3 : GDP 6% 7,436 10,868 18,828 Source : PSMP 2010 19
Year 2030 situation Installed Capacity Target Demand : 38,685 MW : 33,708 MW Fuel Type New Plants (Nos.) Capacity Addition (MW) Domestic Coal 14 10,800 Imported Coal 14 8,400 Gas 5 3,150 Furnace Oil 14 1,400 Remarks Nuclear 4 4,000 By Year 2025 Hydro 1 100 Cross Border 3,000 By Year 2023 Source : PSMP 2010 20
FY Demand (MW) Supply (MW) Reserve Margin [%] 2013 8,349 8,275-2016 11,405 14,943 20.57 2020 17,304 22,509 26.71 2025 25,199 29,717 12.19 2030 33,708 38,685 9.34 Source : PSMP 2010 21
7000 6650 6300 5950 5600 5250 4900 4550 4200 3850 3500 3150 2800 2450 2100 1750 1400 1050 700 350 0 Hour Inter Connectoe East Grid West Grid System Total 22
FY Import Addition (MW) Total (MW) Remarks 2013-250 MW might start in 2014 2016 250 250-2018 500 750-2021 500 1,250-2022 750 2,000-2023 1,000 3,000 Source : PSMP 2010 23
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Generation Scheduling is done in accordance with the BERC Electricity Grid Code 2012 NLDC prepares Yearly, Quarterly, Monthly and weekly schedule of net electrical output based on demand forecast. Generators informs promptly any changes on net output. NLDC issues annual schedule 90 days ahead and the Generators submit monthly estimates. NLDC prepares monthly schedule day by day Day Ahead Schedule Generators provide MW/ MVAR availability Hour by Hour and Unit by Unit 36 hours ahead. Generators follow the despatch instructions of NLDC. Penalties for Deviation : As per PPA 25
Frequency and Voltage Management are in-built in the BERC Electricity Grid Code, 2012. Under falling frequency conditions, NLDC instructs Distribution Utilities to reduce load demand by appropriate manual and /or automatic load shedding. Under Frequency Tripping devices with set scheme are in place. NLDC is responsible for the coordination, selection among the feeders by rotation and settings of staged automatic relay initiated under-frequency load shedding designed for system protection. 26
Demand Side Management Restriction for Industries to operate during peak hours Differential tariff for peak and off-peak usage Holiday Staggering. Closure of shopping malls and markets early in the evening. Energy efficient and Energy audit campaign Current level of load shedding due to demand supply gap (maximum, last 2 years) : Summer Winter : 1,000 1,100 MW : 305 500 MW 27
There is no documented prioritization except under frequency tripping schemes. Existing practices are to avoid load shedding for the following cases: KPI Key Point Installations (listed) Irrigation loads - from 11 PM to 8 AM during season Educational Institutes During public Examinations 28
There is provision for reviewing protection settings and the Grid Code has imposed this responsibility upon the Transmission Licensee (now PGCB) The Licensee shall be responsible for carrying out any required system studies to determine the necessary protection discrimination settings. PGCB organizes the protection reviews with participations from generators and users. Protection coordination reviews are done prior to summer and prior to Irrigation Season. Also on revision of System Planning. Discussions are documented in the shape of minutes of meeting with resolutions. 29
There is mechanism of reviewing Grid operations. NLDC prepares and submits daily report of grid operations to the stakeholders. Commission Staffs review the NLDC daily reports. Monthly review meetings are participated by the Line Ministry, Energy Sector utilities and Power Cell. Discussions are documented in the shape of Minutes of meetings with resolutions. 30
Emergency Restoration Plan and Black Start Facilities are articulated in the BERC Electricity Grid Code. NLDC prepares, distributes and maintains up-to-date Black Start procedures covering the restoration of the Transmission System following total or partial blackout. Updated Black-Start procedures to be submitted to BERC. NLDC maintains a record of Power Station Black Start capability and associated Power Station Black Start plans. NLDC Maintains a list of essential loads and priority of restoration. There are several plants both public and private power stations with black start facilities. NLDC maintains a record of Power Station Black Start capability and associated Power Station Black Start plans. 31
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FY 2012-13 Utility Bulk Supply Cost of Supply Tk./ kwh Revenue Tk./ kwh Surplus or Deficit per kwh BPDB 5.73 4.70 Deficit Tk. 1.03 Distribution Figures are Tk./ kwh BPDB 6.56 6.30 Deficit Tk. 0.26 REB 6.03 5.89 Deficit Tk. 0.14 DPDC 6.97 6.72 Deficit Tk. 0.25 * DESCO 7.21 6.96 Deficit Tk. 0.25 * WZPDC 6.16 5.94 Deficit Tk. 0.22 * DPDC and DESCO were surplus during FY 2011-12. Last BST hike was influenced by unavoidable Fuel mix 33
Government provide no subsidy for any class of customers but allows: 20% rebate to agro-based industries 100 kwh electricity payment support 200 kwh free electricity to freedom fighters 2% rebate for prepayment metered customers Cross-Subsidy among the consumers is exercised by BERC during Tariff Setting. Government provides subsidy at generation level only on Bulk Supply Tariff (BST). No subsidy to Transmission and Distribution utilities. In addition to Last BST (weighted average Tk. 4.70/kWh) govt. is providing subsidy amounting to Tk. 3,850 Crores. This is a direct subsidy and given as soft loan to the Single Buyer / Bulk Supplier (BPDB) and adjusted through DSL (Debt Service Liability). 34
There is any no restrictions on import / export of power. License from BERC is required for any trading of electricity. Payment of VAT (presently 5%) in addition to energy charges is mandatory only for Retail Customers. 35
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Rehabilitation and resettlement of project displaced personnel not exactly done, however, the affected personnel get due price and compensation as per law. Land acquisition and compensation cost is included in the project costing which varies project to project. 37
Land Acquisition for Public Utility Projects is done by the government mechanism upon receipt of application. Utility has to pay the price and crops compensation as per prevailing rates. Land acquisition is a legal capacity by Land Acquisition and Requisition Act/ Ordinance Under several policy guidelines, Public utilities can acquire land and lease the same to IPP or PPP projects through land lease agreement. Right of way is acquired and maintained by the provisions of Telegraph Act 1885 endorsed to Electricity Act and BERC Act. 38