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Oct 19, 20235 min read

Ashuganj 55 MW (Precision) DFG Power Plant

Current Status: Expired

Source: (Anlima, n.d.).


Ashuganj 55 MW Gas Power Plant, also known as Precision Rental Power Plant, is a reciprocating engine-based power plant situated within Ashuganj Power Station Complex in Sonaram under Ashuganj Upazila in Brahmanbaria District of Bangladesh (Location: 24.0432, 91.0149). It is sponsored by Precision Energy Limited (PEL), a joint venture company (JVC) of Anlima Group and Concord-Pragatee Consortium Limited (CPCL), as a Rental Power Plant (RPP) for three years. The sponsor declared its Commercial Operation Date (COD) on 7 April 2010, and, according to schedule, it was to retire on 6 April 2013. However, the phase-out date has been extended to 6 April 2023 after ten years of extension.


Capacity

The power plant's installed (gross) and derated (net) capacity is 60 MW and 55 MW, respectively.


Context

Precision Energy Limited (PEL), despite its lack of prior experience in constructing or operating rental power plants, undertook the construction of this facility. The intended launch date for its commercial operation under a three-year rental agreement with the Power Development Board (PDB) was October 27, 2008. However, the company encountered challenges, particularly its inability to secure project financing, resulting in a lack of progress by late 2008. Consequently, the PDB recommended the termination of the contract.


Following persistent appeals from PEL, the PDB extended a new deadline until March 31, 2009. Despite this extension, the company still faced difficulties and could not meet the established target. As a result, the PDB granted an additional deadline, which was set for December 31, 2009. Construction activities for PEL's plant commenced on June 1, 2009. The facility is designed to accommodate fifteen power-generating units, each with a capacity of four MW, yielding a total power output of 60 MW (Islam, Shahidul 2010). In October 2013, the Power Division decided to extend the tenure of the power plant at a reduced price of electricity (DT, 2013). On 11 March 2021, the Ministry of Power, Energy, and Mineral Resources (MOPEMR) informed the parliament that it would not extend the tenure of any rental or quick rental power plant (DT, 2021).


Land Acquisition

The power plant has been constructed on a one-acre site owned by the Ashuganj Power Station Company Limited (APSCL) on the eastern side (Islam, Shahidul 2010).


Finance

For this power plant, the company spent about BDT 200 crore or around 18 million US Dollars (1 USD = 109.635 BDT according to 19 September 2023) (Islam, Shahidul 2010). The PEL claims that the total cost is around BDT 300 crore or around 27 million US Dollars (1 USD = 109.635 BDT according to 19 September 2023) (PEL, 2010).


Sponsor

It is sponsored by Precision Energy Limited (PEL), a joint venture company (JVC) of Anlima Group and Concord-Pragatee Consortium Limited (CPCL) consisting of 20%, as a Rental Power Plant (RPP) for three years.


Contractors

The engineering and implementation work for power generation was done by the German company MWM, and the substation equipment works were done locally by Energypac Engineering Limited. (Islam, Shahidul 2010).


Fuel Supply

Bakhrabad Gas Distribution Company Ltd. supplied natural gas to the proposed plant, using the existing valve station at Ashuganj, which accesses Titas, Habiganj, and GTCL (Gas Transmission Company Limited) (APSCL, 2016).


Power Generation

PEL claims it has 15 power-generating units each capable of producing 4MW regularly. Of the production, they will commercially supply 55MW to the national grid, and the remaining 5MW will be used for their own purpose. On June 1, 2009, the establishment work of Precision Energy's plant was started on one-acre land leased from Ashuganj Power Station Company Limited (Islam, Shahidul 2010). The power plant started commercial operation on 7 April 2010 (BPDB 2010). According to the PPA, BPDB is liable to purchase electricity from the power plant for three years after it’s COD.


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, no IEE or EIA report has been conducted for the power plant. The notable absence of an Environmental Impact Assessment (EIA) and Initial Environmental Examination (IEE) for this gas-powered facility raises significant concerns regarding potential environmental impacts. These include the emission of air pollutants like nitrogen oxides (NOx) and particulate matter (PM), which, without an EIA, pose difficulties in assessing their impact on local air quality, potentially leading to respiratory issues and smog formation. Moreover, the release of carbon dioxide (CO2) from the combustion of natural gas contributes to greenhouse gas emissions and climate change, with the plant's carbon footprint left unquantified. The unchecked water resource usage, potential habitat disruption, noise pollution, health risks for nearby communities, and concerns regarding waste management further underscore the necessity for thorough environmental assessments to ensure responsible and sustainable industrial operations.


Accident

A transformer caught fire on 30 May 2019 evening, which halted the power generation from Ashuganj Power Hub. No casualties were reported due to the fire (Bdnews24 2019).


Capacity Charge

BPDB had to pay the sponsor USD 466.67 (BDT 33,133.57 when USD 1=BDT 71) the daily capacity charge (Ali, 2020).

Criticism

The transformer fire at Ashuganj Power Hub in May 2019 raises significant concerns. It points to potential safety and maintenance lapses, necessitating rigorous safety protocols in critical infrastructures. Questions arise about emergency response capabilities and the need for comprehensive preparedness reviews. Transparency and accountability are crucial in investigating the incident and fostering trust. To prevent future incidents, proactive measures, like regular equipment checks and advanced fire prevention, are essential. This incident underscores the imperative of safety, preparedness, and prevention in critical infrastructure operations.


The absence of an Environmental Impact Assessment (EIA) and Initial Environmental Examination (IEE) for the gas-powered facility, in clear violation of Bangladesh's environmental regulations, raises serious concerns. This non-compliance questions the accountability and enforcement of environmental laws. Additionally, the plant's contribution to climate change through CO2 emissions remains unquantified. Mismanagement of water resources further compounds these issues. The absence of assessments also signals a lack of transparency and accountability in industrial practices. Overall, this neglect underscores the need for strict enforcement of environmental laws to protect public health, mitigate environmental risks, and address climate change.


References

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