Govt plans to replace 107 costly power plants by 2041 | 2019-07-22

Govt plans to replace 107 costly power plants by 2041

Shamim Jahangir

22 July, 2019 12:00 AM printer

The government is planning to shut 107 power plants, mostly costly oil-fired units, to replace those with low-cost coal-fired power plants by 2041.

The power division has already prepared a retirement plan of the power plants. As per the plan, some 13 power plants having a combined capacity to generate 594MW of electricity will be shut in 2019.

“We have already prepared a list of 113 power plants with a power generation capacity of 12,550MW of electricity. These plants will be replaced by more efficient power plants by 2041,” an official of the power division said.

The government is planning to take the country’s power generation capacity to 60,000MW from low coal-fired power plants by 2041, the official said. 

The existing oil-fired power plants have become a burden as the electricity production cost from those costly power plants have reached Tk 6893.61 crore in the first 11 months of the immediate past fiscal.

Despite having the retirement plan of a series of oil-fired and gas-fired power plants, the government has started negotiating for an extension of the 85MW Aggreko Bramanbaria oil-fired power plant under no electricity no payment basis, another official said.

The power division asked the sponsor of the power plant to lower its monthly capacity payment within 20 per cent.

“We are now allowing extension of power plants under no electricity no payment basis,” the official said.

Oil-fired plants having the capacity of 168MW will retire by 2020, 785MW by 2021, 705MW by 2022, 1552MW by 2023, 1255MW by 2024, 626MW by 2026, 202MW by 2027, 913MW by 2027 and 690MW by 2041.

“Our plan might change in line with the electricity generation plan,” a power division official said.