Current Status: Operation
Image :Shahjibazar 86 MW (SPCL) DFG Power Plant (Source: youthbd.com)
Shahjibazar 86 MW Gas Power Plant, also known as Shahjibazar Rental Power Plant, is situated at Fatehpur village of Shahjibazar under Madhabpur Upazila in Habiganj District of Bangladesh (Location: 24.2553, 91.3770). The Power Plant was sponsored by Shahjibazar Power Company Limited (SPCL), a subsidiary of Youth Group, as a Rental Power Plant (RPP) for 15 years. SPCL declared its Commercial Operation Date (COD) on 10 February 2009 and, as per schedule, the power plant will retire on 9 February 2024.
Capacity
The installed (gross) and derated (net) capacity of the power plant is 92.80 MW and 86 MW respectively.
Context
The development of power plants in Fatehpur, Shahjibazar, and Habiganj has been initiated by the Bangladesh Power Development Board (BPDB) and Rural Electrification Board (REB), with the involvement of the private sector. The Ministry of Power, Energy & Mineral Resources has issued an invitation for proposals about a project that aims to deliver power on a purchase basis for a duration of 15 years. The Shahjibazar Power Company Limited expressed enthusiasm in response to the invitation and made a proposal to construct a gas-fired power plant with a total capacity of 92.8 MW.
Then, On February 14, 2008, the Company entered into a power supply agreement with BPDB, wherein they agreed to provide 86 MW net electrical power on a rental basis for a duration of 15 years on a Build-Own-Operate (BOO) basis. After the gas supply agreement with Jalalabad Gas Transmission and Distribution System Ltd (JGTDSL), the plant started commercial production on 10 February 2009 (SPCL 2014).
Land Acquisition
The power plant is located on 7.32 acres of land at Fatehpur village of Shahjibazar under Madhabpur Upazila in Habiganj District, owned by Shahjibazar Power Company Limited (SPCL).
Finance
Shahjibazar Power Co. Ltd. does not have a financial lease, but Shahjibazar Power Company Limited (SPCL) does receive project loans from Islami Bank Bangladesh Ltd. and Islamic Finance & Investment Ltd. under the terms of a project loan in accordance with Islami Sariah. In 2007 and 2008, the company drew BDT 1695 million from these two financial institutions (SPCL 2014).
Sponsors
The Power Plant was sponsored by Shahjibazar Power Company Limited (SPCL), a subsidiary of Youth Group, as a Rental Power Plant (RPP) for 15 years.
Contractors
The Company hired local companies to construct and install the plant in accordance with GE Jenbacher GmbH & Co.'s plant layout design (SPCL 2014).
Fuel Supply
The power plant receives gas from Jalalabad Gas Transmission and Distribution System Ltd (JGTDSL) in accordance with the terms of the gas supply agreement between the two parties, which is in place for a 15 year period (SPCL 2014).
Power Generation
It started commercial operation on 10 February 2009 (BPDB 2010), with a total generating capacity of 92.8MW. The power plant uses 32 units of JGS 620 GS-N.L model gas engines. The plant can generate 86 MW of electricity which produced 474934.4 MW per hour with an 63.2% plant load factor (PLF) in FY 2022-2023.
Capacity charge
BPDB had to pay the sponsor a total of BDT 880.91 crore capacity charge from the commercial operation (COD) till FY 2021-2022. The total power generation of this power plant was 7356.41 gWh and the per unit cost was 2.86 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. Proper regulation and adopting cleaner alternatives like electric or hydrogen-powered engines are crucial for addressing these issues. As Shahjibazar's 86 MW 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
BPDB (2010). “Annual Report 2009-2010”. Bangladesh Power Development Board: 1 August 2010
SPCL (2014). “Prospectus of Shahjibazar Power Co. Ltd”. Shahjibazar Power Co. Ltd. (SPCL): 18 February 2014
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.
Commentaires