Study of Electricity Generation cost Determination

Abstract

The topics of the thesis is on Study of Electricity Generation cost Determination , the tariff construction would comprise of two parts. In the process of bids, the bidders shall offer mass power tariff based on the capacity payment and energy payment that provide the equivalent equity tariff. The capacity payment will be issued in Bangladeshi currency (Taka). This will cover outstanding payment service, return on equity, fixed operation and preservation cost, insurance and other fixed cost. The energy remission will be designated in local currency to the area to which the variable costs are in local currency. Including fuel, this will cover the variable costs of operation and maintenance. The power will be obtained from the IPP at an identified voltage and frequency at the outgoing terminal of the substation of the power plant. The cost of interconnecting avail to outgoing stations of the private power project will be generated by the private power producers. On the other hand, severe power crisis urged the Government to enter into contractual agreements for high-cost temporary solution, such as hire charge power and small IPPs, on an emergency basis, much of it diesel or liquid-fuel based. This has obtruded an immense fiscal pressure. With a power division which is almost rely on natural- gas fired generation (89.22%), the country is challenge a concurrent shortage of natural gas and electricity. Due to shortage of gas supply, nearly 400- 800 MW of power could not be of advantage to from the power plants. Government has no option but to go for fuel diversity option for power generation but other fuels for generating low-cost, base-load energy, such as coal or renewable source like hydropower are not readily available.