Photo: Messenger
Bangladesh Power Development Board (BPDB) has not been able to pay the dues of private power plant owners for two years. Already, over Tk 50,000 crore is due. Even though the government is issuing bonds, the situation is not improving. But in the meantime, the government has started again the process of extending the terms of six oil-based rental power plants for another five years.
Last month, when the summary of the extension was sent to Prime Minister Sheikh Hasina, who is also the minister of power, energy and mineral resources, she gave her approval. The proposal will be taken up in the cabinet committee on procurement next month. It is said to be more likely to be approved there as well. However, Consumer Association of Bangladesh (CAB), a non-governmental organisation working on consumer rights, said this initiative is controversial and against public interests.
The six power plants that may see their terms extended are Madanganj 102 MW power plant of Summit Narayanganj Power Limited, Meghnaghat 100 MW power plant of Orion Power Meghnaghat Limited, Siddhirganj 100 MW power plant of Dutch-Bangla Power and Associates Limited, Khulna Power Company Limited's Noapara 40 MW power plant and Khulna 115 MW power plant, and Acorn Infrastructural Services Limited's Julda Chittagong 100 MW power plant.
The term of Madanganj power plant ended on March 22. Meghnaghat, Siddhirganj, Noapara, and Khulna power plants expired on March 23 while Julda power plant expired on April 16. However, this time, these power plants are being renewed under the “no electricity no payment” agreement. That is, these power plants will not have to pay any capacity payment if they do not provide electricity as per the previous agreement.
According to sources, due to the increase in the price of the dollar, the cost of generating electricity from these plants has become Tk 16 to 18 per unit. However, the government has shut down most of the diesel-based power plants. The cost of power generation with oil is very high. Apart from this, there are demands from various quarters to stop oil-based rental power plants.
An official of the Power Division said that the government has decided to keep oil-based, especially furnace oil-based power plants, for the sake of emergency power supply. Emergency crisis was solved by keeping oil-based power plants operational along with coal and gas-based power plants.
In this regard, CAB's energy advisor Professor M Shamsul Alam told The Daily Messenger, “The talk of frequency to extend the duration of furnace oil-based rental power plants is not correct at all. Before the rental power plant came, the grid was there and the frequency was also there. Basically, the term of these rental power plants is being extended to provide convenience for the businessmen supported by the government.”
“Besides, the work is being done under the special law of power and energy sector so that no controversy arises on the matter. The period of these has been extended in special laws before. It is still happening.”
Energy experts said that the power generation capacity in the country is not fully utilised due to the energy crisis. According to the government, the power generation capacity is 26,000 megawatts. But due to energy crisis, more than 15,000 megawatts cannot be produced on average. Rental power plants and capacity charges have become a bottleneck for the country's power and energy sector. It is necessary to get rid of it as soon as possible. Repeated extension of term without doing so will increase the burden on the sector.
Energy expert Professor Ijaz Hussain told The Daily Messenger, “I do not support the need to run high-cost rental power plants for frequency. Apart from this, BPDB will buy electricity from such expensive power plants. How will it pay?”
He also said that only 3 per cent of the world's electricity is produced using fuel oil. “In our country, it is 30 per cent. As far as I know, India does not have any oil-based power plants on the grid.”
Messenger/Disha
