18 February 2022 | Hasan Mehedi
-------------------------------------------
The Government of Bangladesh (GOB) declared the cancellation of 10 approved coal power plants on 27 June 2021 which had an installed capacity of 8,451 MW (Daily Star 2021). In November 2021, the Minister of State for the Ministry of Power, Energy and Mineral Resources (MOPEMR) also assured that the GOB will not undertake any new coal power plant (AB News24 2021). But two power plants — Gazaria 635 MW Coal Power Plant and Maheshkhali 1320 MW Coal Power Plant — are still on the Planned Power Plant list of the Bangladesh Power Development Board (BPDB). It is to mention that the approved 282 MW coal power plant in the Meghnaghat area proposed by Orion Dhaka Power Limited was on the cancellation list.
The current scenario (13 February 2022) of in-operation, under-construction, and planned coal power plants, are as follows:
1. Power Plants in Operation
Bangladesh entered into coal power generation in 2006. Currently, two coal power plants with an installed capacity of 1,845 MW and derated capacity of 1,738 MW are under operation in Bangladesh. The power plants are Barapukuria Coal Power Plant and Payra Coal Power Plant (Phase-I).
1.1 Barapukuria 525 MW Coal Power Plant
The power plant is operated and sponsored by BPDB and financed by the Export–Import Bank of China (CHEXIM), Hongkong and Shanghai Banking Corporation Limited (HSBC), and the Industrial and Commercial Bank of China (ICBC). The power plant was constructed in three phases and started commercial operation on 1 July 2006 (Unit-I) and 1 January 2018 (Unit-II & III). The power plant supplies 494 MW (derated capacity) while the installed capacity is 525 MW as constructed.
In FY 2019-20, the power plant generated 2,067.03 gWh of electricity at 48.8% Plant Load Factor (PLF), 25.5% efficiency, and a rate of BDT 6.98/kWh. In FY 2020-21, the generated electricity decreased to 1,184.82 gWh at 27.4% PLF, 29.7% efficiency, and a rate of 8.99/kWh.
1.2 Payra 1320 MW Coal Power Plant (Phase-I)
The power plant is operated by Bangladesh-China Power Company Private Limited (BCPCL) and equally sponsored by North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation Limited (CMC). BPDB signed a Power Purchase Agreement (PPA) with BCPCL to supply 1,244 MW (derated capacity) while the installed capacity is 1320 MW as declared. On 31 December 2017, GOB gave a sovereign guarantee for USD 1.0 billion against the ECA loan of USD 1,984 million from CHEXIM, and subsequently, the BCPCL reached financial closure on 3 May 2018.
The scheduled commercial operation date (COD) of the power plant was April 2019 (Unit-I) and October 2019 (Unit-II), but it started operation on 15 May 2020 (Unit-I) and 8 December 2020 (Unit-II). In FY 2019-20, the power plant generated 831.94 gWh of electricity at 16.7% PLF, 36.9% efficiency, and at a rate of BDT 6.27/kWh and received BDT 220.41 crore as capacity charge. In FY 2020-21, the generated electricity increased to 3,811.92 gWh at 35% PLF, 39.7% efficiency, and at a rate of 8.60/kWh, and received BDT 1,996.16 crore as the capacity charge.
2. Under Construction
Currently, seven coal power plants are under construction of which six are in Bangladesh and one in India. The domestic coal power plants have an installed capacity of 6,830 MW (derated capacity 6,462 MW) while Godda Coal Power Plant in Jharkhand, India has an installed capacity of 1,600 MW and derated capacity of 1,496 MW. The under-construction power plants are: (i) Banshkhali 1,224 MW Coal Power Plant; (ii) Barishal 350 MW Coal Power Plant; (iii) Godda 1,600 MW Coal Power Plant; (iv) Matarbari 1200 MW Coal Power Plant (Phase-I); (v) Patuakhali 1320 MW Coal Power Plant; (vi) Payra 1320 MW Coal Power Plant (Phase-II) and (vii) Rampal 1320 MW Coal Power Plant.
2.1 Banshkhali 1224 MW Coal Power Plant
The power plant is proposed by SS Power Limited (SSPL) and sponsored by S. Alam Group (70%), SEPCOIII Electric Power Construction Corporation (SEPCO3) [20%], and HTG Development Group Company Limited (HTGDG) [10%]. BPDB signed a PPA with SSPL on 16 February 2016 to supply 1,224 MW (derated capacity) to the national grid while the installed capacity is 1,320 MW as declared.
In September 2018, the GOB gave a sovereign guarantee of USD 1,250 million for a loan of USD 1,759.07 million from the China Development Bank (CDB), Bank of China (BOC), and China Construction Bank (CCB), and subsequently, SSPL reached financial closure in December 2020.
The expected Commercial Operation Date (COD) of the power plant was November 2019 which was shifted to June 2022 and September 2022. The expected COD has further been shifted to November 2022. As per the latest BPDB report, the progress of construction was 85% till 13 February 2022.
2.2 Barishal 350 MW Coal Power Plant
Operated by Barishal Electric Power Company Limited (BEPCL) and 4% owned by ISO Tech Electrification Company Limited (ITECL) and 96% by Sinohydro (Hong Kong) Holdings Limited (SHKHL). The name of Taylor Power Environmental Company Limited (TPEL) is mentioned as a co-sponsor on the website of ISO Tech Group but the stake is unclear as there is no information publicly available. BPDB signed a PPA with BEPCL on 12 April 2018 to supply 307 MW [derated capacity] while the installed capacity of the power plant is 350 MW as declared.
On 23 December 2020, the GOB gave a sovereign guarantee for ECA of USD 380 million and subsequently BEPCL reached financial closure in March 2021. The expected COD of the power plant was 12 January 2022 which was shifted to December 2022. As per the latest BPDB report, the progress of construction was 70% till 13 February 2022.
2.3 Godda 1600 MW Coal Power Plant
The power plant is proposed and sponsored by Adani Jharkhand Power Limited (AJPL) which is a subsidiary of Adani Power Limited of Adani Group. BPDB signed a PPA with AJPL on 5 November 2017 to supply 1,496 MW [derated capacity] to the national grid while the installed capacity of the power plant is 1,600 MW as declared. In April 2018, AJPL reached financial closure with a USD 1,400 million loan from Power Finance Corporation Limited (PFC) and Rural Electrification Corporation Limited (REC).
The expected COD of the power plant was June 2022 which was shifted to July 2022 (Unit-I) and December 2022 (Unit-II). Later, the expected COD again shifted to August 2022 (Unit-I) and December 2022 (Unit-II). As per the latest BPDB report, the progress of construction was 77% till 13 February 2022.
2.4 Matarbari 1200 MW Coal Power Plant (Phase-I)
The power plant is proposed by Coal Power Generation Company Bangladesh Limited (CPGCBL) and sponsored by Japan International Cooperation Agency (JICA) [62%] and BPDB [38%]. BPDB signed a PPA with CPGCBL on 27 July 2017 with CPGCBL to supply 1,200 MW [derated capacity] although the derated capacity is 1,104 MW as per the Revisited Power System Master Plan 2016 (RPSMP 2018).
In February 2014, the GOB gave a sovereign guarantee for an ECA loan from JICA and subsequently, CPGCBL reached financial closure in the last week of June 2015. The expected COD of the power plant is January 2024 (Unit-I) and July 2024 (Unit-II). As per the latest BPDB report, the progress of construction was 52% till 13 February 2022.
2.5 Patuakhali 1320 MW Coal Power Plant
The power plant is proposed by RPCL-Norinco International Power Limited (RNPL) and sponsored by Rural Power Company Limited (RPCL) [50%] and Norinco International Cooperation Limited (Norinco) [50%]. BPDB signed a PPA with RNPL on 5 March 2019 to supply 1,247 MW [derated capacity] to the national grid while the installed capacity of the power plant is 1,320 MW as declared.
On 27 August 2020, GOB gave a sovereign guarantee for an ECA loan of USD 1,777 million from CHEXIM and Bank of China (BOC) and subsequently RNPL reached financial closure on 24 December 2020. The expected COD of the power plant was February 2023 (Unit-I) and August 2023 (Unit-II) which has been shifted to March 2024 (Unit-I) and August 2024 (Unit-II). As per the latest BPDB report, the progress of construction was 51% till 13 February 2022.
2.6 Payra 1320 MW Coal Power Plant (Phase-II)
The power plant is proposed by BCPCL and sponsored by NWPGCL [50%] and CMC [50%]. BPDB signed a PPA with BCPCL on 17 December 2018 to supply 1,244 MW (derated capacity) to the national grid while the installed capacity is 1,320 MW as declared.
In August 2020, the GOB gave a sovereign guarantee for USD 775 million against the USD 1,547 million ECA loan from the Export–Import Bank of China (CHEXIM), and subsequently, BCPCL reached financial closure in March 2021.
The expected COD of the power plant was June 2023 (Unit-I) and December 2023 (Unit-II) which was shifted to May 2024 (Unit-I) and June 2024 (Unit-II). The expected COD has again been shifted to June 2024 (Unit-I) and December 2024 (Unit-II). As per the latest BPDB report, the progress of construction was 21% till 13 February 2022.
2.7 Rampal 1320 MW Coal Power Plant
Formally known as Maitree Super 1320 MW Coal-fired Power Plant, the Rampal Coal Power Plant is proposed by Bangladesh-India Friendship Power Company Limited (BIFPCL) and sponsored by BPDB [50%] and National Thermal Power Corporation Limited (NTPC) [50%]. BPDB signed a PPA with BIFPCL on 12 July 2016 to supply 1,240 MW (derated capacity) to the national grid while the installed capacity is 1,320 MW as declared.
On 9 April 2017, the GOB gave a sovereign guarantee for a USD 1,600.22 million ECA loan from the Export-Import Bank of India (INEXIM), and subsequently, BIFPCL reached financial closure on the same day.
The expected COD of the power plant was February 2021 (Unit-I) and August 2021 (Unit-II). Later the dates shifted to March 2022 (Unit-I) and July 2022 (Unit-II). In February 2022, the COD date was further estimated as June 2022 and November 2022. As per the latest BPDB report, the progress of construction was 73% till 13 February 2022 although the bidding process for supplying coal is yet to be finished.
3. Planned Power Plants
Although the GOB declared no more installation of coal power plants, two power plants are still in the list along with the 2nd phase of Matarbari Coal Power Plant as per the progress report of BPDB dated 13 February 2022. The power plants are as follows:
3.1 Gazaria 635 MW Coal Power Plant
The power plant is proposed by Orion Power Dhaka-2 Limited (OPDL-2) under Orion Group of Bangladesh. BPDB signed the PPA for the power plant on 21 April 2016. The sponsor company signed an agreement with General Electric (USA) on 28 April 2016 to supply the necessary equipment for the power plant. There is no updated information on the sovereign guarantee or ECA loan for the power plant.
The expected Commercial Operation Date (COD) of the power plant was June 2023 which was shifted to December 2026. As per the progress report of BPDB (13 February 2022), the Power Division recommended shifting the power plant from Gazaria (Munshiganj) to alternative sites in Matarbari or other places in Maheshkhali, Cox’s Bazar.
3.2 Maheshkhali 1320 MW Coal Power Plant
The power plant is proposed and sponsored by BPDB under a loan from an Export Credit Agency (ECA) but hasn't disclosed the name of any specific ECA till 13 February 2022. The expected COD of the power plant was June 2027 which has been shifted to June 2028. BPDB is prepared to float the second round of bidding to select an Engineering, Procurement, and Construction (EPC) contractor as per the progress report of BPDB (13 February 2022).
3.3 Matarbari 1200 MW Coal Power Plant (Phase-II)
The power plant is proposed by CPGCBL and sponsored by JICA [62%] and BPDB [38%]. BPDB has not signed any PPA with CPGCBL to supply electricity from the power plant. No information on the sovereign guarantee or financial closure is available to date. The expected COD of the power plant was June 2029 which has been shifted to June 2030. As per the progress report of BPDB, the feasibility study is going on till 13 February 2022.
4. Recently Cancelled
The GOB canceled 10 power plants in June 2021. Earlier than that several coal-fired power plants were canceled by the sponsors or financing institutions.
4.1 Mirsarai 1320 MW Coal Power Plant
The power plant was proposed in June 2017 by a joint venture of three Chinese companies namely Hangzhou Jinjiang Group Company Limited, Hangzhou Zhengcai Holding Group Company Limited, and Jindun Energy Equipment (Hong Kong) Limited. BPDB issued a Letter of Intent (LOI) to the sponsors on 23 July 2018 to supply 1240 MW (derated capacity) to the national grid from the power plant. The expected COD of the power plant was June 2026 as per the BPDB progress report (December 2021). As per the BPDB report of January 2022, the power plant was dropped from the list (10 January 2022).
4.2 Mawa 522 MW Coal Power Plant
The Power Plant was proposed by Orion Dhaka Power-I Limited (OPDL) and sponsored by Orion Power Meghnaghat Limited (OPML) under Orion Group. Chinese company Fujian Long Energy Company Limited and UAE-based Firstgen Energy were supposed to join OPDL as co-sponsors of the power plant. The power plant was on the list of Planned Power Plants of BPDB until 9 August 2021 even after the government formally canceled it. But the power plant was dropped from the list in September 2021 (3 September 2021).
Earlier, the Government canceled the approval of 10 coal power plants in June 2021. The power plants are:
- Bangladesh-Singapore 700 MW USC Coal-fired Power Plant proposed by CPGCBL and Sembcorp Utilities Private Limited
- Chattogram (Chittagong) 282 MW Coal-fired Power Plant proposed by Orion Group
- CPGCBL-Sumitomo 1200 MW Coal-fired Power Plant proposed by CPGCBL and Sumitomo Corporation
- Dhaka 282 MW Coal-fired Power Plant proposed by Orion Group
- Khulna 565 MW Coal-fired Power Plant proposed by Orion Group
- Maheshkhali 1320 MW Coal-fired Power Plant (1) proposed by BPDB
- Maheshkhali 1320 MW Coal-fired Power Plant (2) proposed by BPDB
- Mawa 522 MW Coal-fired Power Plant proposed by Orion Group
- North Bengal 1200 MW Super Thermal Power Plant proposed by Ashuganj Power Station Company Limited (APSCL) and
- Patuakhali 2X660 MW Coal-fired Power Plant proposed by APSCL