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Nov 30, 20234 min read

Fenchuganj 44 MW (Energy Prima) DFG Power Plant

Updated: Sep 22

Current Status: Operation


Fenchuganj 44 MW Gas Power Plant, also known as Energy Prima Fenchuganj Power Plant, is a reciprocating engine-based power plant situated at Fenchuganj Upazila in Sylhet District of Bangladesh (Location: 24.6844, 91.9176). It is sponsored by Energy Prima Limited (EPL), a subsidiary of Hosaf Group, as a Rental Power Plant (RPP) for three years. The sponsor declared its Commercial Operation Date (COD) on 15 February 2012 and, as per schedule, the power plant was to retire on 14 February 2015. However, the phase-out date is extended to 14 February 2024 after 12 years of operation.


Capacity

The power plant's installed (gross) and derated (net) capacity is 50.2 MW and 50 MW respectively.


Context

When the Bangladesh Power Development Board (BPDB) took the initiative to build a 50MW rental plant in Fenchuganj, Energy Prima submitted its proposal for the project. Despite its lack of experience in at least 20 MW rental power generation in the last three years, Energy Prima was awarded four power plants including the Fenchuganj 50 MW power plant in 2007 (Sharier, 2007).


Furthermore, the company has been served with a notice of default and intent to terminate the contract due to failing to provide performance guarantees. Despite reminders and an extension, Energy Prima failed to deposit $3.06 million in bank guarantee for the Fenchuganj project. However, an influential quarter has pressured the PDB not to enforce the termination notice or go for a re-tender of the rental power project (Sharier, 2008). The power plant started commercial operation on 15 February 2012 (BPDB, 2012) and the phase-out date of the company was 14 February 2015. But it was extended several times.


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). The Cabinet Committee on Government Purchase (CCGP) extended the period of the Power Purchase Agreement (PPA) on 24 December 2021 for another three years of the period under the No Electricity No Payment (NENP) method (FE, 2021). Under the new agreement, BPDB will purchase electricity from the power plant at a rate of $0.03397 USD (BDT 2.7176 in 2021) per kWh. As a result, it has to pay BDT 2.79 billion to Energy Prima Limited (EPL) in the period (FE, 2022).


Land Acquisition

According to Google Earth, it is estimated that the power plant is situated at Fenchuganj Upazila in Sylhet district, occupying around 3.84 acres.


Finance

There is not much information found about the finances of the power plant.


Sponsors

The Power Plant was sponsored by Energy Prima Limited (EPL), a subsidiary of Hosaf Group, as a Rental Power Plant (RPP) for three years.


Contractors

There is not much information found about the contractors of the power plant. Supposedly Energy Prima Limited had appointed the contractors of the powerplant.


Fuel Supply

Domestic fossil gas (DFG) is used as the fuel of the power plant. Jalalabad Gas Transmission and Distribution System Limited (JGTDS) is the probable fuel distributor company for the power plant.


Power Generation

It started commercial operation on 15 February 2012 (BPDB, 2012), with a total generating capacity of 50.2 MW. The power plant uses a GE Jenbacher gas engine. The plant can generate 44 MW of electricity which produced 48.44 MW with an 11.1% plant load factor (PLF) in FY 2021-2022.


Capacity charge

BPDB had to pay the sponsor a total of BDT 609.58 crore or around $55.10 million USD (when $1 USD = 110.63 BDT; as per 14 November 2023) capacity charge from the commercial operation (COD). The total power generation of this power plant was 2918.61 gWh and the per unit cost was 3.30 BDT till FY 2021-2022.

Environment

Despite their efficiency and reduced costs, dual-fuel gas engines can have negative environmental impacts due to their reliance on fossil fuels like natural gas and diesel. Although natural gas is cleaner than diesel, it still releases pollutants into the atmosphere, contributing to air pollution and climate change. The extraction and transportation of natural gas can also result in methane leaks, further exacerbating environmental issues. It's essential to implement appropriate regulations and switch to greener options, including renewable energy. As Energy Prima Fenchuganj Power Plant uses DFG as its fuel, it contributes much to polluting the environment. To date, no EIA report has been found. According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, must undergo an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, an IEE or EIA report has yet to be conducted for the power plant.


References

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