Move to extend deals with 2 pvt power plants
UNB, Dhaka :
A move is underway to extend the agreement of two more power plants in the private sector. The two plants are 110 MW NEPC Barge Mounted Power Plant (BMPP) at Haripur in Narayanganj, and 53 MW Ashuganj United Power Ltd in Ashuganj power station.
Earlier, the government extended the power purchase agreement (PPA) of a good number of private power plants for another five (5) years. Most of these plants are costly rental power plants set up for 3-5 years tenure with a view to tackling the nagging power crisis on short-term basis.
These include Desh Energy’s 100 MW plant; RZ Power’s 50 MW plant; UK-based Aggreko Power’s 55 MW plant; Energies Power’s 55 MW plant; Quantam Power’s 110 MW plant; Khulna Power of United Group’s 110 MW plant; and Precession Energy’s 55 MW plant.
Official sources said that 110 MW NEPC power plant is the country’s first generation private power plant which was set up in 1998 on a first track basis for a 15 years contract.
At that time, two more barge mounted plants — 90 MW Westmont power plant at Baghabari and 105 MW Khulna power plant at Khulna – were set up under 15-year deals for addressing power crisis through private plants.
Official sources said the tenure of the 110 MW NEPC power plant’s power purchase agreement expired last year.
Power Division officials said the government was unwilling to further extend the 110 MW NEPC plant’s deal as its power production cost is relatively higher. But a recent fire incident at 450 MW Meghnaghat power plant prompted the government to move for extending its deal for another one year, They said that following the fire incident, the country’s largest private sector plant – 450 MW Meghnaghat – was shutdown, which led to a big shortfall in power generation.
“To partially manage the crisis, the government considers extending its deal for another year hopping that by this time, the Meghnaghat will resume operation,” said a deputy secretary at the Power Division who deals with the matter.
The official, however, informed that the negotiation with Pendekar Energy, which owns the NEPC plant, is yet to be completed.
“Pendeker offers Tk 15.86 per unit tariff while we’re asking for below Tk 15.30 per unit as most of the rental power plants are selling power to the government at this rate,”, said the official adding, the furnace-oil based NEPC’s present rate is Tk 18 per unit.
The official said the government has concluded its negotiation with 53 MW Ashuganj United Power Ltd about further extension of its deal for another five (5) years.
The gas-fired 53 MW Ashuganj power’s present tariff is Tk 5.20 per unit. Its new tariff has been settled at Tk 3.28 per unit (kilowatt hour), said the official.
The Power Division will place a proposal to the Cabinet Purchase Committee to approve the offer of the United Power for extension of its deal for another five (5) years.
A move is underway to extend the agreement of two more power plants in the private sector. The two plants are 110 MW NEPC Barge Mounted Power Plant (BMPP) at Haripur in Narayanganj, and 53 MW Ashuganj United Power Ltd in Ashuganj power station.
Earlier, the government extended the power purchase agreement (PPA) of a good number of private power plants for another five (5) years. Most of these plants are costly rental power plants set up for 3-5 years tenure with a view to tackling the nagging power crisis on short-term basis.
These include Desh Energy’s 100 MW plant; RZ Power’s 50 MW plant; UK-based Aggreko Power’s 55 MW plant; Energies Power’s 55 MW plant; Quantam Power’s 110 MW plant; Khulna Power of United Group’s 110 MW plant; and Precession Energy’s 55 MW plant.
Official sources said that 110 MW NEPC power plant is the country’s first generation private power plant which was set up in 1998 on a first track basis for a 15 years contract.
At that time, two more barge mounted plants — 90 MW Westmont power plant at Baghabari and 105 MW Khulna power plant at Khulna – were set up under 15-year deals for addressing power crisis through private plants.
Official sources said the tenure of the 110 MW NEPC power plant’s power purchase agreement expired last year.
Power Division officials said the government was unwilling to further extend the 110 MW NEPC plant’s deal as its power production cost is relatively higher. But a recent fire incident at 450 MW Meghnaghat power plant prompted the government to move for extending its deal for another one year, They said that following the fire incident, the country’s largest private sector plant – 450 MW Meghnaghat – was shutdown, which led to a big shortfall in power generation.
“To partially manage the crisis, the government considers extending its deal for another year hopping that by this time, the Meghnaghat will resume operation,” said a deputy secretary at the Power Division who deals with the matter.
The official, however, informed that the negotiation with Pendekar Energy, which owns the NEPC plant, is yet to be completed.
“Pendeker offers Tk 15.86 per unit tariff while we’re asking for below Tk 15.30 per unit as most of the rental power plants are selling power to the government at this rate,”, said the official adding, the furnace-oil based NEPC’s present rate is Tk 18 per unit.
The official said the government has concluded its negotiation with 53 MW Ashuganj United Power Ltd about further extension of its deal for another five (5) years.
The gas-fired 53 MW Ashuganj power’s present tariff is Tk 5.20 per unit. Its new tariff has been settled at Tk 3.28 per unit (kilowatt hour), said the official.
The Power Division will place a proposal to the Cabinet Purchase Committee to approve the offer of the United Power for extension of its deal for another five (5) years.