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People's Republic of Bangladesh Power & Energy Sector Master Plan

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People's Republic of Bangladesh Power & Energy Sector Master Plan People’s Republic of Bangladesh Ministry of Power, Energy and Mineral Resources (MOPEMR) Bangladesh Power Development Board (BPDB) People’s Republic of Bangladesh Power & Energy Sector Master Plan (PSMP2016) Final Report Summary September 2016 Japan International Cooperation Agency (JICA) Tokyo Electric Power Services Co., Ltd. Tokyo Electric Power Company Holdings, Inc. BD JR 16-003 Power & Energy Sector Master Plan 2016 Final Report Contents Chapter 1 PSMP2016 Summary ..................................................................................................... 1-1 1.1 Abstract ........................................................................................................................................... 1-1 1.2 Background and Purpose ................................................................................................................ 1-1 1.3 Vision Paper ................................................................................................................................... 1-3 1.4 Policy Vision .................................................................................................................................. 1-4 1.4.1 PSMP2016 Objective .............................................................................................................. 1-4 1.4.2 Five Viewpoints of PSMP2016 ............................................................................................... 1-5 1.4.3 Importance of Contribution and Responsibility to the International Community ................... 1-6 1.5 Practical Vision ............................................................................................................................... 1-8 1.5.1 Relationships between the Five Key Viewpoints and the Master Plan Investigation Items .... 1-8 1.5.2 Methodologies for this Study .................................................................................................. 1-9 1.5.3 Scope of work ........................................................................................................................ 1-12 1.5.4 Survey Implementation Feamework ...................................................................................... 1-14 1.5.5 JICA Study Team ................................................................................................................... 1-16 1.5.6 Past Activities ........................................................................................................................ 1-17 1.6 Focal points .................................................................................................................................. 1-21 1.6.1 PSMP 2010 Review ............................................................................................................... 1-21 1.6.2 Economic Development Policy ............................................................................................. 1-25 1.6.3 Primary Energy ...................................................................................................................... 1-27 1.6.4 Natural Gas (Domestic) ......................................................................................................... 1-30 1.6.5 Natural Gas (LNG Imports) ................................................................................................... 1-33 1.6.6 Coal........................................................................................................................................ 1-35 1.6.7 Oil and LPG ........................................................................................................................... 1-38 1.6.8 Power Development Plan ...................................................................................................... 1-39 1.6.9 Hydropower development ..................................................................................................... 1-57 1.6.10 Renewable Energy ............................................................................................................... 1-61 1.6.11 Power Imports ...................................................................................................................... 1-63 1.6.12 Nuclear Power ..................................................................................................................... 1-66 1.6.13 Power System Plan .............................................................................................................. 1-72 1.6.14 Improvement of Power Quality ........................................................................................... 1-77 1.6.15 O&M Legal Framework ...................................................................................................... 1-84 1.6.16 Thermal Power Plant O&M ................................................................................................. 1-87 1.6.17 Tariff Policy ......................................................................................................................... 1-93 1.7 Road-map ..................................................................................................................................... 1-99 Chapter 2 Recommendations on the Implementation & Monitoring of the Master Plan ......... 2-1 2.1 Capacity building for master plan revision .................................................................................... 2-1 2.1.1 Collaboration and Cooperation between Organizations .......................................................... 2-1 2.1.2 Periodical Rolling Revision of the Milestone Plan.................................................................. 2-1 2.1.3 Strengthening of integrated statistical processing functions.................................................... 2-2 2.1.4 Introduction of Key Performance Indicators ........................................................................... 2-2 i Power & Energy Sector Master Plan 2016 Final Report 2.2 Measures to Facilitate Improvement of Investment Climate .......................................................... 2-3 2.2.1 Outline ..................................................................................................................................... 2-3 2.2.2 Project Implementation Structure ............................................................................................ 2-3 2.2.3 Risks directly concerned with the Government ....................................................................... 2-4 2.2.4 Risks to be controlled mainly by contractors .......................................................................... 2-5 2.2.5 Recommendations for Improvement ....................................................................................... 2-5 2.3 Economic Development ................................................................................................................. 2-6 2.4 Domestic Natural Gas [Gas] ........................................................................................................... 2-7 2.5 LNG Import [Gas] ........................................................................................................................ 2-10 2.6 Renewable Energy [Introduction of energy storage technology] ................................................. 2-12 2.7 Power System Plan ....................................................................................................................... 2-14 2.8 O&M Legal Framework [O&M] .................................................................................................. 2-15 2.9 Thermal Power Plant O&M [O&M] ............................................................................................ 2-16 2.10 Tariff policy ................................................................................................................................ 2-20 2.11 Realization Of Low Energy Consumption Society .................................................................... 2-20 2.11.1 New Technologies for Power Generation with Different Energy Sources .......................... 2-20 2.11.2 New technologies in the electric power infrastructure sector .............................................. 2-21 2.11.3 Responsible Energy Consumption and Development of Bangladesh .................................. 2-22 ii Power & Energy Sector Master Plan 2016 Final Report List of Tables Page Table 1-1 Link between PSMP2016 and the SDGs .............................................................................. 1-7 Table 1-2 Contents of the Study ......................................................................................................... 1-12 Table 1-3 PSMP2010 Review (Economic Development) .................................................................. 1-21 Table 1-4 PSMP2010 Review (Coal Supply) ..................................................................................... 1-22 Table 1-5 PSMP2010 Review (Gas Supply) ...................................................................................... 1-23 Table 1-6 Projection of GDP and GDP per capita up to 2041 ............................................................ 1-25 Table 1-7 Projection of Primary Energy Supply – Scenario 3 ............................................................ 1-29 Table 1-8 3E Evaluation Results of Each Power Development Scenario .......................................... 1-53 Table 1-9 3E Evaluation Results of Each Power Development Scenario .......................................... 1-54 Table 1-10
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