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    • Oct 14, 2023
    • 5 min read

Ashuganj 53 MW (United) DFG Power Plant

Current Status: Retired


Ashuganj 53 MW Gas Power Plant, alternatively called United Ashuganj Power Plant, is a reciprocating engine-based power plant situated beside Ashuganj Bazar under Ashuganj Upazila in Brahmanbaria District of Bangladesh (Location: 24.0413, 91.0044). It has been sponsored by United Ashuganj Power Limited (UAPL), a subsidiary of United Group, as a Rental Power Plant (RPP) for three years. The sponsor declared its Commercial Operation Date (COD) on 22 June 2011, and according to schedule, it was to retire on 21 June 2014. However, the tenure of operation was extended several times, and the retirement date was rescheduled to 21 January 2026.


Capacity

The power plant's installed (gross) and derated (net) capacity is 56 MW and 53 MW, respectively.


Context

The Ashuganj Thermal Power Plant first began operations in 1966. A 311-acre tract of land was purchased to the northeast of the Meghna Railway Bridge to aid this initiative. The building of two units, Unit-1 and Unit-2, each with a power generation capacity of 128 MW, began with financial aid from the German government. Following that, in 1968, the primary equipment was established, leading to the commissioning of the two units in April and July of 1970. Following the liberation struggle, the Ashuganj Power Station played a critical role in the post-conflict rehabilitation and economic progress of Bangladesh. After independence, Bangladesh's economic environment experienced instability. The need for power gradually increased over time. The Ashuganj Thermal Power Plant developed a thorough expansion strategy to meet the increased demand for power. Following a detailed examination of the viability of expanding the Ashuganj Thermal Power Plant, a plan for the construction of three units, each capable of generating 150 MW of power, was developed.


The implementation of these three units (named Ashuganj 3, Ashuganj 4, and Ashuganj 5) occurred between 1986 and 1989 with financial aid from a variety of sources, including IDA, the KfW (German Government), Kuwait, OPEC Fund, and ADB. In the timeframe spanning from 1982 to 1986, a significant milestone was achieved in Bangladesh. The establishment of the nation's first Combined Cycle Power Plant boasted a power generation capacity of 146 MW. This accomplishment was made possible through financial backing from the British Government. In 1989, the Ashuganj Thermal Power Plant established a total of 724 MW of generation capacity.


Between 1989 and 2010, no new plants were established in Ashuganj. The Bangladesh Power Development Board was in charge of the Ashuganj Thermal Power Plant until June 2000. In 2011, a new unit with a generation capacity of 53 MW was established using the company's funds following the restructuring of the power plant (PGDP, 2012). The Cabinet Committee on Government Purchase (CCGP) extended the period of the Power Purchase Agreement (PPA) on 24 December 2021 for another five years under the No Electricity No Payment (NENP) method (FE, 2021). Under the new agreement, BPDB will purchase electricity from the power plant at USD 0.034 (BDT 2.79 according to 2021) per kWh. As a result, it will have to pay BDT 4.51 billion to UEL in the period (FE, 2022).


Sponsor

The sponsor of the power plant is Standard Chartered Bank, Mauritius, United Ashuganj Power Limited (UAPL), and United Group. Other sponsors are the World Bank under the Investment Promotion and Financing Facility (IPFF), the International Finance Corporation (IFC), Deutsche Investitions (DEG), and Finnvera a Finnish state-owned financing company.


Contractors

The EPC contractor of this power plant is Neptune Commercial Limited (NCL).


Finance

The financing for this project was provided by APSCL, in collaboration with Standard Chartered Bank. The responsibility for executing the EPC contract rested with TSK, a renowned company based in Spain. The signing of the contract agreement on the 25th of July 2010 marked the official commencement of this project (PGDP, 2012). The Engineering, Procurement, and Construction (EPC) contract price amounted to USD 40,925,000 along with BDT 202,914,500 reflecting a substantial investment in this project. BPDB now possesses ownership of 99.99% of the overall shares of the company. In contrast, the remaining shares are held by various divisions of the Government of the People's Republic of Bangladesh, including the Finance Division, Planning Division, Power Division, and Energy and Mineral Resources Division (APSCL, 2020–2021).


Fuel Supply

Natural gas will be used as the fuel for the Ashuganj 53 MW (United) DFG Power Plant. The gases were supplied from the TITAS gas field, located in Brahmanbaria, which is the largest gas field in Bangladesh (Khandakar et al., 2012).


Power Generation

Total power generation till 2020-21 is 2173.49 gWh. Gas engines on natural gas typically have 35-45% electrical efficiency, with the best products reaching 48% (Khandakar et al., 2012). According to Zahid et al. (2020), the efficiency of the Ashuganj 53 MW power plant is 40.17%


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA, 1995). However, no EIA report was found for this power plant. According to their annual report, they claim that APSCL has built more efficient and environmentally friendly power plants to reduce energy demand and greenhouse gas emissions in Bangladesh. While they have no Environmental impact assessment report of the power plant the company has achieved the "Green Era Award" and the "Best Project for Exemplary Environmental Safeguards" for its environmental practices in their another project called Ashuganj 450 MW CCPP (North) project. APSCL also ensures health and occupational safety management and pollution prevention in line with ISO 9001, ISO 14001, and ISO 45001 requirements (APSCL, 2020- 2021).


Capacity Charge

BPDB had to pay the sponsor USD 870.22 as a daily capacity charge till 2020-21.


References


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