3-yr rental power being extended for 12 years

Most rental power plants get extension due to poor policy

Special Correspondent

5th October, 2020 04:38:51 printer

3-yr rental power being extended for 12 years

A gas-fired rental power plant in Bhola, supposed to run for three years, is getting extension for 12 years thanks to transmission capacity shortfall.  

Not only the 34.5MW Bhola rental plant but also most of the three or five years rental or quick rental power plants have seen time extensions over the years due to faulty policy with regard to extending capacity of existing transmission and distribution lines. 

Due to the delay in making transmission line ready, Rooppur nuclear power plant and some other upcoming mega power plants will also remain idle primarily despite their commissioning according to schedule, sources said.         

The government is likely to extend 34.50MW Bhola rental power plant’s tenure for another two years starting from July, 2019 after it enjoyed three time extensions over the years, sources added. 

The power plant, sponsored by Venture Energy Resources Ltd, is supplying electricity to BPDB through mutual understanding with Bangladesh Power Development Board (BPDB) for over a year without any extension.

Then, BPDB has set tariff for per kilowatt of electricity from the plant at 3.8419 US cents or Tk 3.0735 effective from July 12, 2019.

Besides, fresh tariff will be settled 3.4994 US cents or Tk 2.7995 that can be effective from June 22, 2020. The government had allowed the power plant in January, 2008 that has already enjoyed three times extension.

It will be fourth time extension, according to power division. The BPDB board has already agreed on extending time for the power plant, sources said.

After two years fresh extension, the government will require to pay Tk 1,479.52 million to pay production tariff.

Despite the fresh extension, the government expects to save Tk 80.8 million tariff benefits from fresh tariff negotiation with the power plant.

“We are taking decision to extend the period of the plant for another two years as the supply of electricity from BPDB owned plant may delay due to low capacity of substation,” BPDB chairman Balayet Hossain told daily sun yesterday. He added the BPDB could not be able to extend the tenure of the plant due to COVID-19 crisis and other factors.

The government has already taken decision to shut all the rental and quick rental power plants within 2021.

The BPDB has already made a proposal before the power division in this regard.