TA-7889 BAN: Power System Efficiency Improvement Project II

The project – Power System Efficiency Improvement II – will address three key areas in the electricity supply sector:

1. Improving energy use efficiency of thermal power plants

2. Improving the transmission network capacity, and

3. Expanding the renewable energy base.

The project interventions will include:

• Conversion of power plants at Siddhirganj, Baghabari, and Khulna to combine cycle power plants

• Construction of 180 km 132 kV transmission lines and four 133/32 kV substations

• Installation of solar irrigation water pumps; and (iii) capacity development for solar powered irrigation and power plant management.

e.Gen led its effort to conduct a power sector assessment and to develop the following projects worth of $ 350 million covering economic analysis, financial analysis, investment planning, safeguard assessment:

Component 1– Upgrade of four different power plants across Bangladesh considering areas such as status, fuel supply, transmission, land availability for expansion, etc. Power Plants in Khulna, Baghabari, Sylhet and Shajibazar were updated respectively. All four power plants are- Gas-fired, some have a dual-fuel capability; Open cycle combustion gas turbines, hence lower efficiency (about 30%). The project will increase generating capacity by about 50% in each power plant and increase efficiency (to about 50%) by capturing waste heat in the exhaust gas. There will be no additional use of gas and the expansion will generally be located within the existing power plant premises.

Component 2– Transmission improvements performed on the following lines: Mymensingh to Tangail; Chandraghona-Rangamati-Khagrachari; and Brahmanbaria-Narsingdi.

Component 3– Irrigation Water Pumping with Solar Energy- Provide solar photovoltaic (PV) generation at site for about 200 irrigation water pumps; Power to water pumps are presently supplied from the grid; Direct current will be inverted to alternative current on site, and grid connected; The pump will be operated on solar PV system; When the pump is off and during off-season, electricity generated will be sent to the grid; Project identification: Pump locations being identified by REB.

Component 4– Capacity Building by meeting key personnel spreading awareness.