Kumargaon 10 MW (Desh Cambridge) DFG Power Plant

Current Status: Operation

Source: Desh Energy

Kumargaon 10 MW Gas Power Plant, also known as Desh Cambridge Rental Power Plant, is a reciprocating engine-based power plant situated at Kumargaon in Sylhet Sadar Upazila in Sylhet District of Bangladesh (Locations: 24.9090, 91.8308). It is operated by Desh Cambridge Kumargaon Power Company Limited (DCKPL), a Special Purpose Vehicle (SPV) of Desh Energy Limited (DEL) under Mohammadi Group, as a Rental Power Plant (RPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 15 March 2009, and, as per schedule, the power plant will retire on 14 March 2024.

Capacity

The installed and net capacity of Kumargaon Power Plant is 11.70 MW and 10.30 MW, respectively.

Context

Mohammadi Group is a well-known conglomerate. With just 52 employees when it began operating in the garment sector in 1986,. Over time, the business has expanded and prospered in real estate and power generation.

Cambridge, Desh a subsidiary of Kumargaon Power Company Limited, is situated at Kumargaon, Sylhet, with a total generating capacity of 11.70MW. Kumargaon substation was built in 1967 with a capacity of 13 MW (Situ, 2020). Based on a 15-year Power Purchase Agreement (PPA) with the Bangladesh Power Development Board (BPDB), the Plant provides electricity to the 11/33 kV Sylhet system operated by BPDB (Lone Star Energy, 2023).

The power plant uses 6 units of brand-new Caterpillar G3520C natural gas-fired generator sets, each rated at 1950 kW at 80% Plant Load Factor (Lagging) at 1500 RPM, 50HZ, and 11KV (Mohammadi Group, 2023).

Land Acquisition

According to Google Earth, the power plant occupies 3.1 acres of land at Kumargaon in Sylhet Sadar Upazila in Sylhet.

Finance

There is not much information found about the finances of the power plant. Desh Energy Limited (DEL) is supposed to be the financier of the power plant.

Sponsors

The sponsor of the power plant is Desh Cambridge. In 2005, Desh Energy Ltd was established. It is a subsidiary of the well-known Bangladeshi multinational Mohammadi Group. Two power plants are now in operation, and this year one more will be installed (Desh Energy, 2023).

Contractors

There is not much information found about the finances of the power plant. Desh Cambridge Kumargaon Power Company Limited (DCKPL) is supposed to appoint the EPC contractor for the power plant.

Fuel Supply

The plant uses natural gas as its principal fuel under a 15-year Gas Supply Agreement (GSA) with Jalalabad Gas Transmission and Distribution Company Limited (Desh Energy).

Power generation

The Plant is based on a 15-year Power Purchase Agreement (PPA) with the Bangladesh Power Development Board (BPDB), which began in March 2009 with an energy price of BDT 1.89 per kWh and continues in November 2023 with an average electricity price of BDT 2.97 per kWh till FY 2021-22. The total power generated from the power plant until FY 2021-22 is 836.43 gWh.

Capacity charge

BPDB had to pay 249.47 crore or around $22.65 million USD ($1 USD = BDT 110.12, according to 13 November 2023) in FY 2021-2022 to the sponsor as the capacity charge per day.

Environment

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, no IEE or EIA report has been conducted for the power plant. DFG-based power plants have potential air pollution impacts such as Carbon dioxide (CO2) released by the combustion of natural gas is one of the main contributors to global climate change. As natural gas is extracted, processed, and transported, methane is also produced and causes environmental pollution.

Criticism

The power transmission capacity of the Kumargaon substation is 220 MW. Apart from Sylhet, Sunamganj, and surrounding areas are also supplied by PGCB. There are two power plants at the Kumargaon substation site. On November 22, 2022, there was a fire incident at the Kumargaon substation. Evidence has been found that Sylhet's Kumargaon power substation does not have a CCTV camera, no auto event recorder. After the incident, these facts came out in the information provided by the investigation committee. The negligence of the Power Grid Company (PGCB) in the security of such a large installation has disappointed the inquiry committee formed by the Electricity Department (Situ, 2020).

References

• DE (2023). “10 MW Power Plant at Kumargaon, Sylhet”. Desh Energy (DE): Accessed on 13 November 2023.

• MG (2018). “Desh Cambridge Kumargaon Power Company Limited”. Mohammadi Group (MG): Accessed on 13 November 2023

• Situ S. (2020). “সিসি ক্যামেরাই নেই পুড়ে যাওয়া সিলেট বিদ্যুৎ উপকেন্দ্রে!”. Bangla Tribune: Accessed on 13 November 2023.

• MOEFCC (1997). ‘The Environmental Conservation Rules’. Ministry of Environment, Forest and Climate Change (MOEFCC) : 27 August 1997.

• MOLJPA (1995). ‘Bangladesh Environment Conservation Act 1995’. Legislative and Parliamentary Affairs Division, Ministry of Law, Justice and Parliamentary Affairs (MOLJPA): 16 February 1995.