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RURAL ELECTRIFICATION IN BANGLADESH AND TARIFFS-ITS IMPORTANCE ON SUSTAINABILITY OF POWER SECTOR - PowerPoint PPT Presentation


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PRESENTATION ON. RURAL ELECTRIFICATION IN BANGLADESH AND TARIFFS-ITS IMPORTANCE ON SUSTAINABILITY OF POWER SECTOR. SHAH ZULFIQAR HAIDER, PEng General Manager, Noakhali PBS

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PRESENTATION

ON

RURAL ELECTRIFICATION IN BANGLADESH

AND

TARIFFS-ITS IMPORTANCE ON SUSTAINABILITY OF POWER SECTOR

SHAH ZULFIQAR HAIDER, PEng

General Manager, Noakhali PBS

Email. szhaider123@hotmail.com Cell. +880-1552-307218

23 January, 2008


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BRIEF INTRODUCTION OF RESOURCE PERSON

  • General Manager in Rural Electric Societies since 1989

  • Garrison Engineer/Staff Officer-Military Engineer Services

  • Expert-Energy, Infrastructure, Engineering, EE,RE, TQM etc

  • Training- O&M of Utilities from USA & TQM in Japan

  • Facilitator/Member-Nepal, India, China, Bangladesh etc

  • Publications at International level

  • Member:

  • Guide Point Global Advisors, USA

  • American Council for an Energy Efficiency & Economy

  • International Association of Engineers

  • Global Village Energy Partnership (GVEP), UK

  • Infrastructure-India network, etc.


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OBJECTIVE OF THIS SESSION

  • 1. To have an idea about Rural Electrification programme of Bangladesh

  • 2. Importance of Tariff

  • 3. How to minimize Cost of electricity

  • 4. Tariffs for sustainable Power sector


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RURAL ELECTRIFICATION IN BANGLADESH

HOW IT STARTED . . .

  • Bangladesh once Least developed country

  • Provision of electricity constitutional right

  • Electricity distribution was by state

  • How to provide electricity to rural masses?

  • Through Rural Electric Societies (RES)

    or Palli Bidyut Samities (PBS)

  • Rural Electrification turned it to a developing country.


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RURAL ELECTRIFICATION IN BANGLADESH

HOW IT STARTED...(continued)

  • Rural Electrification Board (REB) formed

  • REB helped form RES or PBS

WHAT IS RURAL ELECTRIFICATION PROGRAM?

  • To provide electricity to rural mass:

  • No-loss-no-profit basis

  • Sound financial basis & lowest cost

  • Area Coverage Rural Electrification

  • Poverty alleviation & minimizing disparity

  • Achieved through…

  • Efficient Management, TQM, Service/Training etc


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AREA COVERAGE

RURAL ELECTRIFICATION PROGRAM


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CONSUMER SERVICE

TOP MOST PRIORITY

  • CONSUMER – the only & main source of Income

  • Consumers GOOD LUCK for the organization

  • One Point Service (OPS) for the Consumers

  • The consumer submits his problem

  • OPS staff moves & gives solution to consumer.


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PERFORMANCE TARGET AGREEMENT (PTA)

  • PTA executed between REB & RES

  • Rewards & Financial Penalty

  • Competition developed

The PTA Targets are . . .

  • System Loss

  • Accounts Receivable & Payable

  • Debt Service Coverage

  • Equity status

  • Annual Load Factor

  • Revenue per Km of line, etc.


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OTHER FACTORS FOR SUCCESS OF

RE PROGRAMME

  • DEDICATION

  • MOTIVATION

  • VILLAGE ADVISORS

  • DELEGATION OF AUTHORITY

  • JOB DESCRIPTION

  • THE RES (PBS) BOARD


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CONSUMERS’ PARTICIPATION IN PBS ACTIVITIES

CONSUMER

BOARD DIRECTOR

RES (PBS)

CONSUMER

VILLAGE ADVISOR

VILLAGE ELECTRICIAN

CONSUMER

CONSUMER


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CONSUMER PARTICIPATION-BOARD

RES (PBS) DEMOCTARIC INSTITUTION

1. The RES/PBS divided in Areas-Elaka

2. Max 15 Board Directors

3. Selection through democratic process

4. Consumers Annual General Meeting (AGM)

5. Financial Balance Sheet and Accounts

6. Executive Committee

7. Lady Directors selection


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TARIFF IN R.E PROGRAMME

No-loss-no-profit & Sound financial basis

Tariffs to support these concepts

Electric Extension on Revenue criteria

Line extension on Area Coverage basis

Power purchase rate=Actual cost of Power

Revenue from Electricity sale-main income

Financial picture of RES- Form 550


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IS OUR TARIFF RATIONAL?

The concepts of R.E program are in conflict

Free Electricity (!)

Who will pay?

Lower Domestic vs. Higher Industrial Tariff

Profit by Industrial based cooperatives

What happens to Industries?


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SUBSIDIES

  • Rich countries provide subsidy

  • Developing countries discouraged

  • Subsidies:

  • a. Lower electric bill- 50 to 100 KWH usage

  • b. Irrigation consumers

  • c. Subsidy to the Utilities

  • How long?

  • Who will pay?


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COST OF ELECTRICITY

  • Cost & Tariff not in harmony

  • Cost of Electricity may be higher:

  • Higher Plant & equipment cost

  • Lack of expertise - Inefficient procurement

  • Improper planning, No Master plan

  • Inadequate remuneration

  • In efficient management, Lack of commitment

  • High losses & pilferage

  • Transparency & Accountability


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HOW TO LOWER COST OF ELECTRICITY-1

Energy Efficiency (EE)& Energy Audit

Lower Generation cost & Improve Transmission

Plant Factor & Load Factor

Power Factor- Consumer to Generation point

Load management

Administrative cost & losses-reduce

Technical & Managerial skills

Reduction of Technical/Non Technical losses.


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HOW TO LOWER COST OF ELECTRICITY-2

Reward, punishment

Transparency & Accountability

Minimum Political interference

Consumer awareness-misuse reduce & EE

Minimum Disconnected consumers

Minimum illegal consumers

Maximum New connection in existing facility


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POWER QUALITY IMPROVEMENT

  • Electricity - Service & again Goods

  • Just in Time Product

  • Improve Power Factor, minimum 95%

  • Intelligent Power Factor controller

  • Minimize Total Harmonics

  • Standardize Electrical products

  • Minimize GHG emission

  • Phase balance, Voltage improve & Lines Clear

  • Adequate grounding


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POWER SUPPLY RELIABILITY

Europe - 99.95+% supply efficiency

  • Load Management

  • Market closure - evening

  • Industries holiday staggering

  • Peak hour heavy use restriction

  • Multi Tariff/TOU/Prepaid meter

  • Consumer education & motivation

  • Demand side management

  • Energy saving lamp & Electronic ballast

  • Efficient equipment & Variable speed motor

  • Industrial cooling, Technical losses reduce etc


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METERING

  • Cash Box

  • Meters always best quality

  • Meters should read at lowest wattage

  • 3 phase meters - 3 element

  • System adequately grounded

  • Multiple Tariff Meter - Demand management

  • Prepaid Meters

  • Tariffs vary for each cooperative

  • Tariff on geo - economic condition

  • No-loss-no-profit concept for tariff


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RENEWABLE ENERGY

  • Renewable energy expensive than Fossil fuel

  • It should be cost effective & competitive

  • Higher tariff will discourage it

  • One time subsidy

  • No alternate to expansion of R E

  • Minimize GHG emission


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PRIVATIZATION OF POWER SECTOR

  • Why privatization?

  • Government owned Utilities inefficiency

  • Huge losses

  • Lack of accountability

  • Lack of commitment

  • Privatization with sufficient protective rules

  • Privatization is not transfer of Government losses to private entity


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NOAKHALI RES TARIFF

  • Sl.CategoryKWH SlabUS CentEuro cent

  • 1 Domestic 000-100 4.0 2.78

  • 2 Domestic 101-300 4.1 2.85

  • 3 Domestic 301-500 5.8 4.04

  • 4 Domestic Above 500 8.4 5.85

  • 5 Commercial 7.3 5.08

  • 6. Irrigation 4.1 2.85

  • 7. Industry 5.7 3.97

  • 8. Large Industry 5.6 3.90

  • 9. Other 4.7 3.26

  • 10 Cost of Electricity 5.5 3.83




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INFRASRTUCTURE AND ENERGY

  • Infrastructure:

    • Electricity-Generation-Transmission-Distribution

    • Energy- Conventional, Renewable, Gas etc.

    • Communication-Road, River, Train and Air

    • Telecommunication & Internet

    • Water supply

    • Rural Infrastructure.

    • (Accountability and Transparency)


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COST AFTER MANAGEMENT

  • Analyze cost

  • Consumer mix and consumption.

  • Formulate Tariff “No-loss-no-profit basis”

  • If Losses exist, enhance Tariff or Subsidy.

  • Analyze economic effect due to electricity

  • If losses continue, analyze the whole system


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CONCLUSION

  • Cost of electricity up to consumer-Minimum

  • Use Superior quality products

  • Renewable, One time subsidy

  • Human Resources Development

  • Adequate remuneration

  • Reward and Punishment

  • Power Factor improvement

  • Load & Demand Side Management

  • Energy efficiency & Energy Audit


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CONCLUSION … continued

  • Reduction of losses

  • Extensive motivation

  • Minimum Political interference or influence

  • Consumer education

  • Pilferage proof good quality meters

  • Infrastructure, Energy master plan

  • Accountability and transparency

  • Cost analysis for tariff fixation

  • Subsidy as required


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THANK YOU

FOR ATTENDING THE SESSION

SHAH ZULFIQAR HAIDER, PEng

szhaider123@hotmail.com

General Manager, Noakhali PBS


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Q&A

We welcome your feedback . . .


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