Nuclear Power in Bangladesh
(Updated July 2016)
- Bangladesh plans to have two large Russian nuclear power reactors in operation, the first from 2022.
- This is to meet rapidly-increasing demand and reduce dependence on natural gas.
Bangladesh produced 53 billion kWh gross in 2013, giving per capita consumption of 320 kWh/yr. Some 44 TWh in 2013 was from natural gas and 7 TWh from oil (IEA data). Electricity demand is rising rapidly (9% in FY 2013) and capacity was 11.3 GWe in January 2014, plus some 500 MWe of import capacity from West Bengal in India which in 2012 provided over 5% of electricity. Over 30% of the population remains without electricity, and the other two-thirds experiences frequent power cuts. Some 5.0% of government expenditure is being allocated to ‘power and energy’. (See figures published by the Bangladesh government's Power Division.)
The Power System Master Plan 2010 forecast demand of 19,000 MWe in 2021 and 34,000 MWe in 2030, hence requiring generation capacity of 39,000 MWe in 2030. The government aims for 24 GWe of new capacity by 2021, including the first nuclear contribution. The plan is for domestic coal 30%, imported coal 20%, natural gas (including LNG) 25%, liquid fuel 5%, nuclear, renewable energy and power import 20%.
Nuclear power plans
Building a nuclear power plant in the west of the country was proposed in 1961. Since then a number of reports have affirmed the technical and economic feasibility. The Rooppur or Ruppur site in Pabna district about 160 km northwest of Dhaka was selected in 1963 and land was acquired. The government gave formal approval for a succession of plant proposals, then after independence a 125 MWe nuclear power plant proposal was approved in 1980 but not built.
With growth in demand and grid capacity since then, a much larger plant looked feasible, and the government in 1999 expressed its firm commitment to build this Rooppur plant. In 2001 it adopted a national Nuclear Power Action Plan and in 2005 it signed a nuclear cooperation agreement with China.
In 2007 the Bangladesh Atomic Energy Commission (BAEC) proposed two 500 MWe nuclear reactors for Rooppur by 2015, quoting likely costs of US$ 0.9-1.2 billion for a 600 MWe unit and US$ 1.5-2.0 billion for 1000 MWe. In April 2008 the government reiterated its intention to work with China in building the Rooppur plant and China offered funding for the project. The International Atomic Energy Agency (IAEA) approved a Technical Assistance Project for Rooppur Nuclear Power Plant to be initiated between 2009 and 2011, and it then appeared that an 1100 MWe plant was envisaged.
Russia, China and South Korea had earlier offered financial and technical help to establish nuclear power, and in March 2009 Russia made a formal proposal to build a nuclear power plant in the country. In May 2009 a bilateral nuclear cooperation agreement was signed with Russia. In April 2009 the government approved the Russian proposal to build a 1000 MWe AES-92 nuclear plant at Rooppur for about $2 billion, and a year later this had become two such reactors by 2017. A nuclear energy bill was introduced into parliament in May 2012, with work to begin in 2013, and setting up a Bangladesh Atomic Energy Regulatory Authority. Parliament was told that 5000 MWe of nuclear capacity was envisaged by 2030, and a second plant would be built in the south once Rooppur is operating.
In May 2010 an intergovernmental agreement was signed with Russia, providing a legal basis for nuclear cooperation in areas such as siting, design, construction and operation of power and research nuclear reactors, water desalination plants, and elementary particle accelerators. Other areas covered included fuel supply and wastes – Russia will manage wastes and decommissioning.
An agreement with Rosatom was signed in February 2011 for two 1000 MWe-class reactors to be built at Rooppur for the Bangladesh Atomic Energy Commission (BAEC). Rooppur is close to a HVDC link with India and on the route of a planned 600 kV HVDC link running up the western side of the country. Another intergovernmental agreement was signed in November 2011 for the project to be built by AtomStroyExport (which in mid-2012 was merged with Nizhny Novgorod Atomenergoproekt, NIAEP). In 2014 Moscow AEP said that the plant would be AES-2006 with V-392M reactors, with Novovoronezh II being the reference plant.
Planned nuclear power reactors
||2023 or 2024
||2024 or 2025
An intergovernmental agreement for provision of a $500 million Russian loan to finance engineering surveys on the site, project development and personnel training was signed in January 2013. In August 2012 a financing agreement was negotiated under which Bangladesh would borrow $500 million for a two-year technical and economic study together with design, documentation and training, at 4.5% interest rate, which was subsequently reduced to 3%. Russia would then provide a second loan of over $1.5 billion for 90% of the first unit’s construction. The agreement was signed in January 2013. The $500 million loan will be repaid in 12 years with five years' grace period, In October 2015 the finance minister said that the total cost of the plant would be about $13.5 billion, with $12 billion of this financed by Russia at not more than 4%.
In June 2013, NIAEP-AtomStroyExport signed a contract with BAEC to prepare documentation related to construction and environmental impact assessment for the plant, as well as providing for necessary engineering studies. NIAEP-ASE said that this represented a transition to long-term cooperation. This was followed by a $265 million agreement in October (both part of the $500 million loan facility) for site preparation and detailed design documentation. A $190 million agreement for major site works to prepare for first concrete was signed in June 2014, and BAEC authorized this in September, to be completed by 2016.
The project management company is JSC NIAEP. The main BAEC contract with NIAEP-ASE signed in December 2015 amounts to $12.65 billion, including the first few year’s fuel, with Russia financing 90% of the cost at an interest rate of Libor plus 1.75%, capped at 4%, repayable in 28 years with 10 years' grace period. In June 2016 cabinet approved a draft agreement for Russia to provide $11.38 billion credit facility for the project, and the agreement was signed in July. Bangladesh needs to pay its 10% of the contract value in advance. The Russian Bank for Development and Foreign Economic Affairs and Bangladesh's state-owned Sonali Bank Ltd would work as authorized banks for the state credit.
Construction of the first unit is expected from August 2017, with commercial operation due in 2023, and the second one will be a year behind it. Other projections give 2024 & 2025 commissioning. It is a turnkey project, and Rosatom will maintain the plant for the first year of operation before handing over to BAEC. The IAEA continues its close involvement with the project.
Site works started in October 2013, and were 80% complete in April 2016. A site licence was issued by the Atomic Energy Regulatory Authority in June 2016. In February 2015 Orgenergostroy, a Russian company, won an $18 million tender to carry out an engineering survey, perform environmental monitoring and develop project documents for the plant. In December 2015 Russia’s InterRAO Engineering won a RUR 2.1 billion ($30 million) contract from Atomstroyexport for the concrete foundations.
In June 2014 the government and the Bangladesh Atomic Energy Commission (BAEC) invited the Japan Atomic Energy Agency (JAEA) to explore the possibility of building a second 2000 MWe nuclear power plant in the south of the country.
In May 2015 Bangladesh asked India to help with training its nuclear staff.
All fuel for Rooppur is being provided by Rosatom, and all used fuel is to be repatriated to Russia, in line with standard Russian practice for such countries.
Bangladesh’s development strategy sees the country becoming a middle-income nation by 2021, in large part by emphasis on its science and technology sector to drive economic growth. The ministry of science and technology (MoST) estimated in 2014 that US$ 6.2 billion will be needed in the next decade to achieve the goals of Vision 2021. The Science and Technology Act 2010 is helping to to boost this, and MoST is now allocating over $150 million per year to nuclear technology development as gas reserves become depleted.
The country has had a Triga 3 MW research reactor operational since 1986.
Organisation and regulation
The Nuclear Power Plant Act 2015 sets up the Nuclear Power Company of Bangladesh (NPCB) to run the plant, though ownership remains with the Atomic Energy Commission (BAEC).
In February 2012 the Ministry of Science and Technology signed an agreement with Russia's Rostechnadzor related to regulation and safety "and the provision of advisory support to the Bangladesh Atomic Energy Regulatory Authority (BAERI) on regulation, licensing and supervision." Staff will be trained in Russia.
In May 2016 an IAEA review following up a 2011 IAEA integrated nuclear infrastructure review (INIR) reported that responses to the INIR were in train.
International agreements and non-proliferation
Bangladesh is a party to the NPT and has had a safeguards agreement in force with the IAEA since 1982, and an Additional Protocol in force since 2001.