Photo: Messenger
Over the past decade, the private sector has played a pivotal role in electricity generation, albeit at a higher cost. Among these private ventures, SS Power-I Ltd. stands out for producing electricity at the highest expense.
According to the Bangladesh Power Development Board (BPDB), SS Power, a coal-based plant in Bashkhali, Chattogram, incurs a cost of Tk 7.12 per unit of electricity produced, surpassing other plants such as Rampal (Tk 6.30), Payra (Tk 6.48), and even Adani, an Indian coal-based plant exporting power to Bangladesh, which spends Tk 6.73 as of February 11th. It's noteworthy that these costs will further escalate with the addition of capacity charges.
Data indicates that among the coal-based megapower plants with a capacity of 1,320 MW, SS Power Ltd. incurs higher expenses compared to others in the country, including imported ones. Despite this, S. Alam plans to expand its operations to generate an additional 3,000 MW in Bashkhali, leveraging the vast barren land available in the region.
State Minister for Power, Energy, and Mineral Resources Nasrul Hamid told The Daily Messenger, “The fluctuating nature of production costs in the global energy markets causes the costs of different plants to vary accordingly. However, the current trend indicates that cheaper electricity is being sourced from more cost-efficient plants. Consequently, not all plants are able to sell power to the national grid at this juncture.”
Ebadat Hossain Bhuiyan, Chief Financial Officer of SS Power, emphasized to the Daily Messenger during a recent visit to the plant in Bashkhali, Chattogram, that the price of power generated by their plant is the lowest. He revealed that the capacity charge for the plant stands at $8.259 cents, or Tk 9.08. Currently, during peak hours, SS Power reliably supplies 448 MW of electricity.
In response to the situation, the advisor to the Bangladesh Consumers Association (CAB), Prof. Shamsul Alam, raised concerns about the lack of competitiveness in the country's energy sector, citing the contractual arrangements made under the Special Act that allow companies to set power prices at their discretion. He remarked that if the government had awarded contracts through a tendering procedure, such manipulation of contract terms by companies and officials could have been avoided.
Ownership of the 1,320-megawatt SS Power Plant in Gondamara of Chattogram's Banshkhali is primarily held by Bangladesh’s S Alam Group, with a 70 percent stake, while SEPCOIII
Electric Power Construction Corporation and HTG Development Group hold the remaining 30 percent.
The SS Power Plant, inaugurated on Monday, September 18th, is hailed as the first sizable private coal-based thermal electricity project in the nation, attracting a substantial investment of $2.6 billion (Tk28,000 crore) from a single private entity.
However, due to a coal crisis, the plant will not be participating in selling electricity during the summer months. The power ministry has projected a record demand for 17,500 MW of electricity during the summer, while the current generation capacity stands at 10,500 MW, leaving a significant gap to be addressed.
Though the country has 29,727 MW of capacity, because of the energy crisis, the government cannot produce as per demand. Thus, 19,227 MW of capacity was sitting idle in the winter.
BPDB data shows that 52 percent of power is being generated from gas, 11.40 percent from coal, 20.71 percent from furnace oil, 11.79 percent imported, and 0.75 percent renewable.
The government is spending about Tk 29.41 crore for 52.02 percent of total power generated from gas, Tk 32.66 crore for 20.71 percent burning furnace oil, and Tk 52.70 crore for 11.40 percent burning coal per day.
Messenger/Disha
