The global energy landscape and its impact on Bangladesh Dr. Boris Gehring TÜV SÜD Slide 1 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh

Global energy outlook TÜV SÜD Slide 2 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh Source: International Energy Outlook, 2013 Quadrillion Btu 49.5% growth in consumption in 20 years 43.3% growth in consumption projected by 2040 Demand fuelled by coal, oil, gas, and nuclear renewables 49.5% 43.3%

Energy landscape in Bangladesh TÜV SÜD Slide 3 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh 82% increase in energy demand from 2010 to % of energy generation from coal, oil and gas Energy demand 20% higher than capacity in GW of capacity to be installed from 2014 to 2019 Source: Power System Master Plan 2010

Energy landscape in Bangladesh TÜV SÜD Slide 4 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh Source: Enipedia, Energy & Industry group, Delft University of Technology 49% of total capacity of conventional plants near or beyond lifespan Increasing emphasis on clean coal and gas technologies Power plant efficiency levels below world average Proportion of aging conventional plants

Energy efficiency – the fifth fuel TÜV SÜD Slide 5 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh The potential of energy efficiency in Bangladesh Thermal Power Plants  Average efficiency: 28.57%  8 – 10% more power can be generated through better processes and technologies  1% improvement in country-level average gas generation efficiency can translate into USD 66 million in fuel cost savings over 15 years Source: World Energy Council, 2013 Efficiency of Thermal Power Plants %

Objectives  Balancing operational efficiency, availability and compliance to environmental standards  Efficiency: Minimising energy loss in power generation and maximising output % of the power generated in fossil-fuel plants is consumed by the plant’s auxiliary systems.  Availability: Minimising downtime due to unforeseen repairs or maintenance needed due to breakdowns  Compliance to standards: Minimising emissions and ensuring safety to meet national and international standards Solutions  Integrated solutions that focus on operation and implementation synergies  Renovation & Modernisation Include NDT, performance tests, energy audits Increase lifetime of plants by 15 to 20 years Increase rated capacity by 4 – 8% Increase efficiency by 8 – 10%  Asset Integrity Management, Operation & Maintenance Include in-service inspections, preventive & predictive maintenance Maximise productivity, avoid unnecessary shutdown  Independent inspection and assessment Ensure adherance to environmental and safety standards Achieving operational efficiency in existing plants TÜV SÜD Slide 6 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh

Challenges  Managing risk and maximizing investment certainty  Prevention or minimization of project delays Main causes of delays include inaccurate time estimation, poor site quality assurance, delayed approvals and quality control problems 1- year delay in project completion directly led to USD 40 million in cost overrun in Middle East  Uncertainty project costs A study by the US Department of Energy estimates that scope and labour changes, delays, plant performance deviations and other unforeseen costs may add an additional 15% to 20% to plant construction costs Solutions  Having adequate Due diligence services Ensures detail due diligence focusing on technical, environmental, sustainability and commercial  Comprehensive owner’s engineering and supply chain service Ensures smooth project management and quality assurance from project conception to plant commissioning  Comprehensive understanding of grid services To optimise electrical interconnection of your power plants, it is important to analyze grid connection conditions; grid connection application; technical requirements for grid connection and device grid compatibility Ensuring smooth development of new-built plants TÜV SÜD Slide 7 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh

Supply chain solutions for new build plants QA inspection (IQC) Loading/ unloading supervision Pre-shipment inspection Final inspection Verification of Conformity & Procurement certification Stage inspection Site assessment Supply chain audits Market surveillance management Tender & contract management Vendor Qualification & Supplier Valuation TÜV SÜD Slide 8 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh Post-shipment inspection Procurement Assurance

Customised end-to-end solutions From feasibility and planning through to procurement, construction, commissioning, operation, maintenance, and decommissioning, TÜV SÜD ensures improved operational safety, reliability and overall performance of power plants for investors, engineering, procurement and construction contractors, and operators TÜV SÜD Slide 9 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh

Your business benefits TÜV SÜD Slide 10 ‘Safe Future Now’ Summit on Power and Energy in Bangladesh13/10/15 Increase availability, optimize performance TÜV SÜD’s experts help you obtain professional advice in performance optimization to reduce outage time and increase your return on investment. Promote efficiency, reduce emissions Our experts’ impartial perspective fosters cost efficiency in your organisation, while their comprehensive knowledge contributes to your emissions goals. Minimise risk, improve reliability We help you to reduce the risk of conventional power plant incidents, enhance safety for people and the environment, increase process transparency and eliminate interface problems. Strengthen your competitive edge Leverage on our expertise in safety and statutory compliance for legal certainty. Third-party certification by TÜV SÜD demonstrates your commitment to quality.

en/industry/power-energy/conventional-power Thank you for your attention. TÜV SÜD Slide 11 13/10/15‘Safe Future Now’ Summit on Power and Energy in Bangladesh