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Nov 1, 20234 min read

Siddhirganj 100 MW (Desh Energy) HSD Power Plant

Current Status: Retired

Representational Photo (Source: DeshEnergy)

Siddhirganj 100 MW Diesel Power Plant, also known as Desh Siddhirganj Rental Power Plant, is a reciprocating engine-based power plant situated in Siddhirganj Industrial Zone under Siddhirganj Upazila in Narayanganj District of Bangladesh (Location: 23.6828, 90.5241). It has been sponsored by Desh Energy Limited (DEL), a subsidiary of Mohammadi Group, as a Quick Rental Power Plant (QRPP) for three years. DEL declared its Commercial Operation Date (COD) on 17 February 2011 and, as per schedule, the power plant was to retire on 16 February 2014. However, after the extension of tenure, the power plant decommissioned on 11 April 2021 after 10 years of operation.


Capacity

The installed (gross) and derated (net) capacity of the power plant was 100.32 MW and 100 MW respectively.


Context

On 17 February 2011, Desh Energy Limited declared the commercial operation of Siddhirganj 100 MW HSD power plant. In the plans for the power sector, the Government emphasizes Dhaka as the city alone consumes 46% of electricity generated in Bangladesh (FE 2021). According to the designated timetable, the power plant was slated for decommissioning on February 16, 2014.


The power plant operates under a Power Purchase Agreement (PPA) with the Bangladesh Power Development Board (BPDB) initially set for 3 years. However, this agreement has been subsequently extended for an additional 5 years, ensuring power supply continuity up to February 2019. The plant serves as a vital source of electricity to BPDB's 132 kV Grid located in Dhaka (MG, 2018).


The Power Plant is equipped with 96 state-of-the-art Caterpillar G3512B diesel generator sets. These units are capable of producing 1200 ekW at a power factor of 0.80 (lagging) when operating at 1500 RPM, 50Hz, and 600V for continuous service. In total, the plant has a generating capacity of 100.32 MW. The power plant produced and supplied electricity to the national grid.


Land Acquisition

According to the estimation from Google Maps around 6.36 acres is the total land area of Siddhirganj (Desh Energy) 100 MW HSD Power Plant.


Finance

Not enough information has been found on the finance of the power plant. Desh Energy Limited is supposed to be the financier of the project.


Sponsor

Desh Energy Limited (DEL), a subsidiary of Mohammadi Group, sponsored this power plant.


Contractors

EPC Contractor of the power plant was Magnus Power Private Limited who have worked to develop this power plant.


Fuel Supply

Diesel was used to generate electricity in this power plant.


Power Generation

The scheduled Commercial Operation Date (COD) of the power plant was 28 February 2011 (BPDB 2010). The total generation of the powerplant in its lifetime is 1587.59 gWh. The per unit average cost is 24.31 BDT.


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. HSD power plants typically require significant amounts of water for cooling purposes. Withdrawal of large volumes of water from local water bodies can disturb aquatic ecosystems. HSD power plants release carbon dioxide (CO2), a major greenhouse gas, and other pollutants like sulfur dioxide (SO2), nitrogen oxides (NOx), and particulate matter into the atmosphere. These emissions contribute to global warming, climate change, and air pollution


Criticism

While quick rental power plants fix energy shortages, their temporary nature can lead to a lack of long-term sustainable solutions. These power plants have potential air, water, noise, and soil pollution. Moreover, the extension of its lifetime required a huge amount of capacity charge which caused huge economic loss. These old and outdated rental power plants will create an additional burden of BDT 2,726 crore (USD 317 million) annually, with BDT 594 crore coming from capacity charges (Mehedi 2022).


Capacity Charge

The capacity charge of the 100 MW power plant of Desh Energy in Siddhirganj is BDT 15 crore 16 lakh per month. And the daily charge of the powerplant is 631.67 dollars. At this rate, the annual capacity charge of the quick rental power plant stands at 181 crore 92 lakh BDT (Ali, 2020). However, after the expiry of the term, the contract of this power plant was renewed in the financial year 2017-18 so the capacity charge had been increased to 1382.98 Crore BDT over its lifetime.

References

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