Photo: Messenger
Despite having no prior experience in power generation, S Alam, a group of companies frequently criticised for manipulating the country’s banking sector, has been awarded a mega project with a capacity of 1,320 MW, located in Bashkhali, Chattogram. The plant, which has attracted attention for charging the highest price for power, has currently halted generation in the name of maintenance.
Experts believe that the company, under government scrutiny due to various irregularities in its sister concerns, including bank loans, has stopped power generation amid the ongoing turmoil surrounding it. Additionally, the company is owed a substantial amount by the government.
Over the past decade, the private sector has engaged in electricity generation, often generating costly electricity. Among these private plants, SS Power-I Ltd produces the most expensive power.
Tragically, at least three people were killed and dozens injured during protests against the construction of the power plant in Banshkhali in April 2016.
According to the Bangladesh Power Development Board (BPDB), SS Power, a coal-based plant in Bashkhali, Chattogram, spends Tk 7.12 per unit of electricity. In comparison, Rampal spends Tk 6.30, Payra Tk 6.48, and Adani, an Indian coal-based plant exporting power to Bangladesh, spends Tk 6.73. Additional capacity charges are added to the production cost.
Professor Shamsul Alam, an energy expert in the country, told the Daily Messenger, “To facilitate the private sector, the government has awarded power projects randomly. Government officials have awarded power plants to private companies, filling their pockets, without regard for laws or experience.”
Data shows that among the coal-based mega power plants with 1,320 MW, SS Power Pvt Ltd has higher costs compared to other plants in the country, even surpassing the cost of imported power.
Ebadat Hossain Bhuiyan, Chief Financial Officer of SS Power Plant, said, “The price of power from the plant is the lowest. However, the plant has yet to begin full commercial operation. Once operational, the per-unit electricity price will be Tk 12.”
He mentioned that the capacity charge of the plant is $8.259 cents or Tk 9.08. Currently, during peak hours, SS Power supplies 448 MW regularly, but due to maintenance, the plant is not generating power.
Professor Shamsul Alam stated, “As the contract was signed under the Special Act, violating the constitution, the company can set power prices as they wish. There is no competitiveness in the country. Moreover, S Alam is known as a dishonest business tycoon.”
He added that if the government awarded contracts through a tendering procedure, companies and officials could not manipulate the terms of the contracts.
Officials of the Power Development Board (PDB) said, “Production varies according to global energy markets, so the cost of different plants might differ. However, we are currently purchasing cheaper electricity from lower-cost plants. Therefore, not all plants can sell power to us at this time.”
Bangladesh’s S Alam Group holds a 70 percent stake in the power plant, while SEPCOIII Electric Power Construction Corporation and HTG Development Group each hold a 15 percent stake.
The 1,320-megawatt plant in Gondamara, Chattogram's Banshkhali, started commercial power generation on September 18, 2023.
The SS Power Plant is the first sizable private coal-based thermal electricity project in the nation to receive an investment of as much as $2.6 billion (Tk 28,000 crore) from a single private entity.
Despite the country having a 29,727 MW capacity, the government cannot produce enough energy to meet demand. The current demand for power is only 14,000 MW.
BPDB data shows that 52 percent of power is generated from gas, 11.40 percent from coal, 20.71 percent from furnace oil, 11.79 percent is imported, and 0.75 percent comes from renewable sources.
The government is spending about Tk 29.41 crore for the 52.02 percent of total power generated from gas, Tk 32.66 crore for the 20.71 percent from furnace oil, and Tk 52.70 crore for the 11.40 percent from coal per day.
The BPDB and the Power Grid Company Bangladesh (PGCB) signed deals with the S Alam Group to implement the project under the Speedy Supply of Power and Energy (Special Provision) Act 2010, bypassing the tendering process.
Messenger/Disha
