10 costly power plants get nod

block

Anisul Islam Noor :
The Power Division has approved construction of ten new furnace oil and diesel-based power plants in private sector having a capacity of 1,773MW power generation.
Experts and right groups have criticized the decision saying that these costly power plants awarded to give benefits to some business groups ignoring the people’s interest.
Professor Shamshul Alam, Energy Adviser of CAB, said, people are taking the burden of high cost of electricity as power generation by oil-based companies, particularly diesel-based ones, are always high. “Though many countries are now generating cheap cost electricity, we are going for high cost electricity,” he said.
Professor Anu Muhammad, Member Secretary of National Committee for Power, Energy, Mineral Resources, Oil and Ports, said, “We are always opposing the high cost power plants to ensure rights of mass people to get electricity at a cheaper rate.”
“Because of high cost electricity our industrial products will face a stiff competition in the global markets,” he said.
Among the projects, six are furnace oil and four diesel-run power plants. Electricity will be purchased at 2.5 times higher price from diesel-operated power plants that the furnace oil- run power plants, sources said.
Meanwhile, Parliamentary Standing Committee on the Ministry of Power, Energy and Mineral Resources has asked for explanation why the diesel- based power plants were approved even after the cost of electricity production was high. Recently, the 34th meeting of the committee sought the explanation.
According to the Power Development Board (PDB), the production capacity of furnace oil-based power plants is 973 megawatts. Summit Power will set up a 300MW plant at Kodda in Gazipur. PDB will purchase electricity at Tk 8.48 per unit. Electricity will be purchased at the same cost from Confidence Power Plant in Bogra and Orion Power Plant from Khulna. Both of these plants’ generation capacity is 113 MW and 110 MW respectively.
Besides, Midland Power Plant will set be up at Ashuganj having a 150 MW generation capacity. PDB will procure electricity at Tk 8.4 per unit. Electricity procurement from the Acron Infrastructure Service in Chittagong will be of the same rate. Its capacity will be 100MW. The Desh Energy will build a 200 MW power plant at Chandpur. From this plant electricity will be purchased at Tk 8.52 per unit, PDB sources said.
Of the four diesel-run power plants, electricity generation capacity will be 800MW. Among them, APR Energy will build power plant with a capacity of 300 MW generation of electricity in Keraniganj.
 From this plant electricity will be purchased at Tk 20.33 per unit. Bangla Track will build two separate power plants in Comilla and Jessore. Electricty will be purchased at same rate from these plants.
Besides, Agriko International will build another 200 MW diesel run power plants in Keraniganj. PDB will purchase electricity at Tk 20 per unit.
The cost of electricity in furnace oil-based power plants will be more than Tk 8.50 per unit and electricity purchase rate from the diesel run power plant will be maximum of Tk 20.33. That means the cost of electricity from the diesel run power plant will be 2.39 percent additional.
Generally, five things have been considered by the sponsoring company to set up a power plant project in the Build-On-Operate (BOO) system. These are: availability of land, power supply from power plant to grid sub-station and near-sub station, power supply equipment, liquid fuel transport system and number of engine generators and capacity, sources said.
Replying to a query, PDB chairman Khaled Mahmud said that decision to construct some fuel-based power plants in the private sector has been taken as coal-based power plants are delayed.
He said, all the aspects related to the production expenditure have been scrutinized and the final expenditure determined based on the bargain. There is no reason to doubt the cost of producing electricity, he added.

block