Renewal of rental plants to save Tk 3200cr in tariff

Public-sector plants may face gas crisis

11th April, 2015 09:43:16 printer

Renewal of rental plants to save Tk 3200cr in tariff

The Power Division has claimed that it will be able to save Tk 3,200 crore as it negotiated lower tariff while renewing the tenure of some 13 rental power plants having capacity to generate 877 megawatts of electricity.
The Power Division has informed the matter to Prime Minister Sheikh Hasina during her visit to the ministry on Thursday.
“We reduced power tariff during the renewal of the tenure of rental power projects through ‘tough’ negotiations,” Power division secretay Monowar Islam told daily sun yesterday.
He said the government has taken the liquid-fuel based power projects as per its master plan for the power sector.
State Minister for Power and Energy Nasrul Hamid said the government will continue purchasing electricity from liquid fuel-based rental and quick rental power projects for another two to three years.
The government has so far allowed 31 rental power projects having capacity to generate 2137MW of electricity.
Of the rental power projects, 13 plants—mostly gas-fired, were extended by two to three years.
Sources said the government so far installed two new base load units at Ashuganj while another two units are on the cards. 
However, the government allowed extension to the 53MW United Ashuganj power plant and 95MW Agreko International power project at Ashuganj stations ignoring gas supply to public sector power plants.
Besides, the government also allowed 110MW NEPC Haripur power project for extension depriving the public-sector Haripur 410MW power project. The Haripur power project, which is considered to be among the most reliable power plants, remains inactive due to lack of attention from the power division.
The power division is focusing more on the 79MW Max power and 145MW Aggreko power projects in Ghorasal ignoring the upcoming units at the Ghorasal power station.
Sources said the tenure of some inefficient power projects was also extended.
The inefficient projects include the 55MW Sikalbaha Energies Power System Limited in Chittagong and 35MW Venture Energies Limited, added the sources.
Besides, four rental power projects sponsored by the Energy Prima Ltd allegedly got undue favour from the government, insiders alleged.
Meanwhile, the government is continuing negotiations with sponsors to set up another four rental power projects having capacity to generate 600MW of electricity under unsolicited deals. 
The power projects include the 200MW Chittagong United Power Plant, 100MW Precession Plant, 100MW Banglacat Power Plant and 200MW Sunedision plant.
Power division officials said they have no other alternative to extending the tenure of rental and quick rental power projects to meet the growing demand for electricity.
The public-sector power plants are often forced to go for maintenance or producing less electricity due to gas crisis.
Bangladesh Power Development Board (BPDB) said they could not produce 1000MW from gas-fired power plants thanks to gas crisis due to the extension of rental plants. 
The government has projected electricity demand to be around 8500MW against the supply of 6800MW during this summer.

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