Home ›› 26 Jan 2023 ›› Front
Winter is yet to be over, but power outages have already started across the country as coal supply disruption due to foreign currency shortage is severely hampering power generation at the country’s coal-based power plants.
The disruption in coal supply to three coal-based power plants – Paira, Rampal, and Barapukuria – might lead to large-scale power outages in the upcoming summer, apprehend Power Division officials.
On January 14, the production of electricity at Bagerhat’s Rampal Thermal Power Plant was suspended, just 27 days after the starting of commercial production, due to the shortage of coals required for the plant.
The Paira power plant might also be closed soon due to the same reason, said Bangladesh Power Development Board (BPDB) sources.
The sources said Barapukuria power plant, the only power plant run by domestic coal, may also face an energy shortage in the coming summer.
“Due to the phase development of Barapukuria Coal Mine, production will be suspended from March to June,” said Barapukuria Coal Mining Company Limited Managing Director Saiful Islam Sarkar.
“With the coal that will be extracted till February, it will not be possible to continue power generation for 3-4 months,” Barapukuria Power Plant’s Assistant Chief Engineer Abu Bakar Siddique told The Business Post last Sunday.
The BPDB officials said due to the ongoing dollar shortage, Rampal and Paira power plant authorities are unable to place import orders to Indonesia, the major coal-sourcing country for the two plants. BPDB says if the current situation is not improved, the planned shutdown of high-cost diesel-fired power plants in summer will not be possible at all which will increase the cost of power generation further.
According to BPDB sources, the coal-fired power plants meet 15.60% of the total electricity demand of the country, generating 2,185 MW out of 3165 MW capacity.
The power generation cost has already increased due to the record gas price hike by the Energy and Mineral Resources Division recently.
A BPDB official said Paira and Rampal power plants will have to pay huge capacity payments even if they halt production. As a result, BPDB’s financial deficit will increase further.
The official said if production is halted at two units of Paira Power Plant for a month, authorities will have to pay at least Tk 160 crore as capacity payment. Rampal Power Plant will have to pay Tk 80 crore capacity payment for one unit.
As the two projects are half-owned by China and India, the two countries will receive half of the capacity payment. The China and India-owned companies are not helping to ensure coal supply, the BPDB official calimed.
The official, seeking anonymity, said, “Why would they help Bangladesh to buy coal if they get the capacity payment?”
The BPDB official, however, did not agree to tell the responsibility of the Chinese and Indian partners in the contract for fuel supply.
It is a confidential state document, not to be shared with the media, he said.
Power Division Secretary Habibur Rahman told The Business Post, “The main companies of Rampal and Paira power plants are responsible for the coal supply. Neither the parent company nor the country of ownership is liable here. If the company cannot provide electricity, we will fine it.”
“Bangladesh will also have to pay the amount of the fine. Hopefully, the situation will return to normalcy within a month through overcoming the dollar crisis,” he added.
The Rampal coal-fired power plant is a joint 50:50 profit-sharing venture between Bangladesh and India. The first unit of the plant with 660 MW power generation capacity came into operation in December last. Another unit is still under construction.
Syed Akram Ullah, managing director of Bangladesh-India Friendship Power Company Limited (BIFPCL), said coal could not be imported due to the dollar shortage which ultimately led to the halt in production. India’s Exim Bank provided 80 per cent loan on Rampal project, built at a cost of around Tk 20,000 crore. BPDB is the only electricity buyer from Rampal. BIFPCL fears that if power generation is stopped, there may be complications in the repayment of the Indian loans.
Meanwhile, the 1320 MW Paira thermal power plant of two units in Patuakhali is currently producing electricity from one unit of 660 MW. Another unit was shut down for maintenance. It was scheduled to resume operation on January 19 but failed to do so due to a coal shortage, said sources.
Paira power plant is built by Bangladesh-China Power Company (BCPCL) 50:50 joint venture between China National Machinery Import and Export Corporation (CMC) and Bangladesh’s state-owned North-West Power Generation Company Limited (NWPGCL).
A BCPCL source said that the power plant can continue operating for only 15-20 days with the current stock of coal.
What will happen in summer?
According to Power Division data, on January 21, the maximum power demand was 9,000 MW during the daytime while the evening demand was 10,200 MW. At least 1,000 MW of electricity was deficit that day. That is why the residents of Dhaka city have been suffering from periodic power outages for the last few days.
Besides, 335 MW is available against the demand of 635 MW in the agro-based eight northern districts. There is extensive load shedding in these districts even in the extreme winter.
“The power shortage is temporary. Bangladesh has power generation system using alternative fuels like furnace oil and gas. Apart from this, the crisis will be resolved a little when India’s much-discussed Adani Power Plant receives electricity in the summer,” said Mohammad Hossain, Director General of Power Cell.
But several BPDB officials disagreed with him arguing that the power situation is unlikely to improve until the dollar crisis is resolved. At the same time, the officials also blamed the development of the power sector on political considerations.
