According to the Revised Power Sector Master Plan 2018 (PSMP 2018), the Government planned to establish 34 Coal-fired power plants in the period from 2018 to 2038. The Perspective Plan 2021-2041 (PP2041) echoed with it but emphasized on (i) least-cost power generation (ii) low-cost primary energy (iii) infrastructure (iv) investment balance and (v) energy efficiency along with other targets. During formulation of PSMP 2018, several domestic and overseas companies proposed 14 unsolicited coal power plants and received approval for 12 from the Cabinet Committee.
It is to mention that, none of the unsolicited 14 private proposals managed to show significant progress to construct the coal power plants within 2020. On the other hand, Government signed both non-binding and binding agreement with different public and private companies to establish 18 coal power plants out of 34 including:
- Adani Godda Coal Power Plant with Adani Power Limited
- Banshkhali (S. Alam) Coal Power Plant (1 & 2) with 6 subsidiary companies of S. Alam Group, SEPCO-III and HTG Development Group
- Barapukuria (BPDB) Coal Power Plant (Unit-3) under suppliers credit from Industrial and Commercial Bank of China (ICBC)
- Barisal (BEPCL) Coal Power Plant (Phase-1) with ISO Tech Electrification Company Limited, Sinohydro (Hong Kong) Holdings Limited and Taylor Power Environmental Company Limited
- CPGCBL-Sumitomo Coal-fired Power Plant (Phase-1) with with Coal Power Generation Company of Bangladesh Limited (CPGCBL) and Sumitomo Corporation
- Gazaria (RPCL) Coal Power Plant with Rural Power Company Limited (RPCL) and PowerChina (Power Construction Corporation of China) and Hubei Hongyuan Power Engineering Company Limited (HYPEC)
- Kohelia (CPGCBL-Sembcorp) Coal Power Plant (Phase-1) with with Coal Power Generation Company of Bangladesh Limited (CPGCBL) and Sembcorp Utilities Private Limited
- Maheshkhali (BPDB-CHDHK) Coal Power Plant with China Huadian Hong Kong Company Limited (CHDHK) and CCC Engineering Limited (CCCE)
- Maheshkhali (BPDB-KEPCO) Coal Power Plant Korea Electric Power Corporation (KEPCO)
- Maheshkhali (BPDB-TNB) Coal Power Plant with Tenaga Nasional Berhad (TNB) and Powertek Energy Sdn Berhad (PESB)
- Matarbari (CPGCBL) Coal Power Plant (Phase-1) with Coal Power Generation Company of Bangladesh Limited (CPGCBL) under ODI loan from Japan International Cooperation Agency (JICA)
- Matarbari (CPGCBL) Coal Power Plant (Phase-2) with Coal Power Generation Company of Bangladesh Limited (CPGCBL) under ODI loan from Japan International Cooperation Agency (JICA)
- Patuakhali (APSCL) Coal Power Plant with Ashuganj Power Station Company Limited (APSCL) and China Energy Engineering Corporation (CEEC)
- Patuakhali (RNPL) Coal Power Plant with Rural Power Company Limited (RPCL) and Norinco International
- Payra (BCPCL) Coal Power Plant (Phase-1) with North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import & Export Corporation (CMC)
- Payra (BCPCL) Coal Power Plant (Phase-2) with North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import & Export Corporation (CMC)
- Pekua (EGCBL-Mitsui) Coal Power Plant with Electricity Generation Company Bangladesh Limited (EGCBL) and Mitsui & Company Limited
- Rampal (BIFPCL) Coal Power Plant with National Thermal Power Corporation (NTPC) Limited
Recent newspaper reports revealed several numbers and names of the coal power plants in the cancellation list although nothing disclosed by the authority, except verbal statements of higher officials and the State Minister for Ministry of Power, Energy & Mineral Resources (MPEMR). So, a ground reality check is necessary to get a clear picture of the coal power projects in Bangladesh.
The Planning Ministry cancelled the Pekua Coal power project in October 2019 through stopping finance for the project. In January 2020, the Government decided to scrap Maheshkhali (BPDB-KEPCO) Coal Power Plant and Maheshkhali (BPDB-TNB) Coal Power Plant due to delay in implementation process. The South Korean giant KEPCO and Malaysian state-owned enterprise TNB also decided not to take any new coal project.
The CHDHK couldn’t get necessary approval from Chinese Government to proceed with the coal power project in Maheshkhali. In the meantime, the Government has changed the category of Maheshkhali Island from Industrial Hub to Tourism Hub through cancelling the Sonadia Deep Sea Port project.
The RPCL signed an agreement in September 2018 with Marubeni Corporation to conduct a feasibility study on LNG Based Power Plant on the same site of the coal power project in Gazaria, Munshiganj. Subsequently, it cancelled the coal power project with PowerChina and HYPEC in March 2020 although Chinese counterparts expressed their chagrin on the issue.
The extended timeline of COD for Patuakhali (APSCL) Coal Power Plant is June 2021 now. The sponsor company has taken the land and developed it but yet to form the joint venture company (JVC) or secure any credit for the project. There is very minimal progress shown in the Annual Report 2019-2020 of APSCL.
The land acquisition for both CPGCBL-Sumitomo and CPGCBL-Sembcorp has been done and land filling works were seen on the Sembcorp site even in January 2021. But the JVC and credit is yet to be secured for the projects. It seems that Bangladeshi sponsor CPGCBL is quite hopeful about the projects as per its Annual Report 2019-2020 but both Sumitomo and Sembcorp kept silent about the projects in their latest annual reports.
So, eight coal power projects have either been cancelled or to be cancelled by default. Out of other ten projects, two coal power plants - Barapukuria (Unit-3) and Payra (Phase-1) are under operation now which contribute 8.26% in total energy mix. The under construction coal power plants are:
- Adani Godda Coal Power Plant: Installed Capacity 1600 MW (Derated Capacity 1492 MW): Under Construction
- Banskhali (SSPL) Coal Power Plant: Installed Capacity 1320 MW (Derated Capacity 1224 MW): Under Construction
- Barisal (ITECL) Coal Power Plant: Installed Capacity 350 MW (Derated Capacity 307 MW): Under Construction
- Matarbari (CPGCBL) Coal Power Plant (Phase-1): Installed Capacity 1200 MW (Derated Capacity 1104 MW): Under Construction
- Matarbari (CPGCBL) Coal Power Plant (Phase-2): Installed Capacity 1200 MW (Derated Capacity 1104 MW): Preparation
- Patuakhali (RNPL) Coal Power Plant (Phase-1): Installed Capacity 1320 MW (Derated Capacity 1214 MW): Pre-Construction
- Payra (BCPCL) Coal Power Plant (Phase-2): Installed Capacity 1320 MW (Derated Capacity 1214 MW)
- Rampal (BIFPCL) Coal Power Plant: Installed Capacity 1320 MW (Derated Capacity 1214 MW): Under Construction
Hope the list will help to get a picture of coal power projects in Bangladesh now.