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A review of renewable investment and power system operational issues in Bangladesh

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  • Nikolakakis, Thomas
  • Chattopadhyay, Deb
  • Bazilian, Morgan

Abstract

Generation investments, especially large-scale variable renewable energy, requires careful scrutiny of the state of the power system. Power system planning and operations in a developing country like Bangladesh can often achieve significant improvements in economics and security of supply, through modest and prudent investments. A review of the Bangladesh power sector is presented in this paper that highlights: (a) changes to dispatch protocols to undertake fuel-constrained dispatch optimization and ancillary services co-optimization and pricing; (b) issues related to the allocation of natural gas between sectors; and (c) a technology neutral investment framework. The study uses an hourly dispatch and ancillary services co-optimization model that also optimizes short to medium term investment decisions. The results demonstrate Bangladesh can: (a) reduce its production costs by 63% through more efficient dispatch; (b) reduce production costs by 77% by using an additional natural gas quota of 212mmcfd (or a 23% increase); and (c) should have invested in power import and baseload gas/coal rather than expensive solar PV projects (proposed in 2011 at substantially higher cost at the time). When a carbon price is imposed in the model, the implied break even cost to justify the solar program is very high – in excess of $150/tonne.

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  • Nikolakakis, Thomas & Chattopadhyay, Deb & Bazilian, Morgan, 2017. "A review of renewable investment and power system operational issues in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 650-658.
    • Handle: RePEc:eee:rensus:v:68:y:2017:i:p1:p:650-658
    DOI: 10.1016/j.rser.2016.10.016
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    4. Hao Chen & Chi Kong Chyong & Jia-Ning Kang & Yi-Ming Wei, 2018. "Economic dispatch in the electricity sector in China: potential benefits and challenges ahead," Working Papers EPRG 1819, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Das, Anjana & Halder, Arideep & Mazumder, Rahul & Saini, Vinay Kumar & Parikh, Jyoti & Parikh, Kirit S., 2018. "Bangladesh power supply scenarios on renewables and electricity import," Energy, Elsevier, vol. 155(C), pages 651-667.
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