Andrew DeLeone, GE Regional Leader, Steam power, South Asia: Every country is blessed with certain natural resources. That is the big part of Bangladesh’s story. There are domestic coal reserves, which are untapped. Furthermore, as an energy source, coal is really abundant around the world and Bangladesh is well positioned to receive coal from number of different countries in the region. It is a fuel, which is going to face far less price volatility and geopolitical pressure then other fuels.
The number one question is ‘land’ but there are people with good plans on land. The second question is financing the projects. One of the advantages of working with GE as a partner is we can help our private customers work through those financing challenge that will come with a project.
During his recent visit in Dhaka, Andrew DeLeone, GE Regional Leader, Steam power – South Asia, made the observation in an exclusive interview with Energy & Power Editor Mollah Amzad Hossain.
What is the business plan of GE in Bangladesh?
When you are a huge infrastructure player covering a wide range of sectors from power to aviation and healthcare, Bangladesh is an outstanding place for a company like GE to do business. Given the technology advancements that a growing country like Bangladesh really needs right now, for us it is an incredibly important and focused market. We have been here for 45 years. We actually put our first step here with steam turbine in around 1970. We have a huge footprint in healthcare in the country as well wherein about 700,000 lives are touched by GE Healthcare every month. Just across all sectors, around 60 percent of the aircrafts are powered by GE engines. So, we have deep roots in the country and we care about the country.
The demand for electricity is probably going to grow at a pace with a factor GDP much higher than 1:1 for the next several years. So, power demand growth will be substantial in the country for a long time and we want to help that country to find the right energy system to meet its specific needs. The needs of Bangladesh are different from the needs of India or Vietnam or the UAE. We work with each county and the players across the power sector to say what is the right fuel mix, what is the right curve in the development cycle and that’s really what we recommend. Access with affordability is a huge topic for the country here just like in India. The technology advancement has made new options available to the generating companies and the countries like never before.
We are not biased towards one technology. We don’t set and say that the only right answer is wind energy or the gas power or the coal-fired power stations. We believe in a mix that makes sense. We think about the market, helping the country to make those decisions on what are the right generation sources. How do we do that? How do we bring projects from conceptualization to generation?
That is the journey we are on in Bangladesh. We made a lot of progress in gas in the last several years. When you look at BPDB’s plan or how the country is moving, increasingly coal will be a big part of the fuel mix in Bangladesh. It could be the right source of electricity using modern technology, i.e. air quality control technology, and can be extremely good fuel source for a growing country like Bangladesh.
GE’s involvement in power generation by Bangladesh’s public sector has been shrinking. Instead, the company is expanding its ties with the private sector. Why?
In steam, GE remains engaged in public sector opportunities; we are preparing to participate in the international tenders which are expected in near future, after land acquisition, and have had fruitful discussions on technology advancements which GE has invested in that can bring highest efficiency, lowest emissions steam power to Bangladesh.
GE has so far increased its stakes in Bangladesh, particularly with local private sector players and submitted proposals to form joint ventures with public sector companies to set up highly efficient power plants. But how GE could play its role in enhancing Bangladesh’s power generation efficiency as the government plans to increase the level from 31-32 percent to 50 percent?
Well, I’ll say a few things; first from generation perspective. It has been a great advantage to have active footprint in power generation in so many countries. We run a joint venture with NTPC (National Thermal Power Corporation Limited) in India where we are jointly upgrading, refurbishing the installed base that exists in India’s power generation fleet. You see the Bangladesh-India Friendship Power Company (BIFPCL) and through the same type of company and same type of technology, we can bring similar efficiency benefits here in Bangladesh. We are actively in discussion and intelligent re-powering can make sense. So, those things we can do for installed base and we already are in those active discussions.
Secondly, how do we take generation from where it is today to 24GW by 2021 and scale it in the future? The options reveal that high efficiency in leading technology in gas and steam exist and those are the discussions we are having. It is amazing to see the level of efficiencies that have been reached today with steam technology. So you see the technology bar is substantially increasing around the world. There is no reason why that technology cannot be in Bangladesh very soon. I get the sense that the Bangladesh customer base wants leading edge technologies as they build other sectors.
Right now Bangladesh government is working on another area of power sector. The government formed a committee to find a way out to use the waste heat in other areas like those are needed in industries. Can GE provide any technological solution regarding this matter?
You know there is definitely a way that we can capture that waste heat and use it in another sector. You have to have in-depth knowledge about exactly what the plant is, what are the industrial applications. Certainly, in other parts of the world these are the things we are doing right now.
You have partners in Bangladesh like Summit Group and they are using GE technology for power generation. What about partnering with other private players in Bangladesh?
I have had a number of discussions specifically on how we get the private sector really moving in coal-based generation. I think we have to work through some factors. Number one question is ‘land’ but I see people with good plans on land. The second question is how we are going to finance the projects. One of the advantages of working with GE as a partner is we can help our private customers work through those financing challenge that will come with a project. I think that is the stage we find ourselves in right now. Pretty good condition with the land, I think the PPA (Power Purchase Agreement) and the offtake agreements in the country are at the right price levels for people to invest and an investor can be confident with long-term economic returns. Technology options are certainly there. I think the biggest question is how you bring it together with the right financing structure so the project can take off.
(Abridged) This article has been printed under a syndication arrangement with energy and power