Current Status: Operation
Source: Summit Power International
Barisal 110 MW Furnace Oil Power Plant, also known as Summit Barisal Power Plant, is a reciprocating engine-based power plant situated on Rupatali Gas Turbine Road Road of Rupatali in Barisal City Corporation of Bangladesh (Location: 22.6592, 90.3359). It has been sponsored by Summit Barisal Power Limited (SBPL), a subsidiary of Summit Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 5 April 2016, and, as per schedule, the power plant will retire on 4 April 2031.
Capacity
The installed (gross) and derated (net) capacity of the power plant is 119.53 MW and 110 MW, respectively.
Context
The project is located at 25 No Ward, Rupatali, Barisal City Corporation, Barisal. The proposed power plant would be mostly situated in Rupatali, Barisal, while some land has fallen under the authority of the Nalchity Upazilla in Bangladesh's Jhalokati District of Barisal.
The project is spearheaded by SBPL Summit Barisal Power Limited, a special-purpose vehicle of the renowned Summit Group through a bidding process. The project got its financial backing from Infrastructure Development Company Limited (IDCOL). IDCOL granted a term loan facility of USD 30 million. IDCOL has managed the finance from the Public-Private Infrastructure Development Facility (PPIDF) 2 of the Asian Development Bank (ADB).
The 110 MW power plant utilized heavy fuel oil (HFO) as its primary fuel source. The generated electricity from the project will be sold to the Bangladesh Power Development Board (BPDB) under a 15-year Power Purchase Agreement. The area was plagued with frequent power shortages and disruptions. The plant is connected to the PDB 132 KV Substation, which is close by. The plant will use this substation to transfer its power to the larger Barisal area. Seven (6) Wartsila-made 18V46 reciprocating type heavy fuel engines are part of the project (IDCOL, 2021).
According to Summit report the project generated significant employment opportunities for residents, fostering economic growth and improving livelihoods in the community. But generally, power plants do not appoint employment opportunities to the local people.
Finance
Summit Power International Limited, the project developer, approached Infrastructure Development Company Limited (IDCOL) and other lenders for financial assistance. IDCOL stepped forward to provide a term loan facility of USD 30 million. IDCOL's involvement in the project extended beyond mere financial support. The company utilized its expertise in infrastructure finance to source the required financing from the Ordinary Capital Resources (OCR) fund allocated for large infrastructure projects under the Public-Private Infrastructure Development Facility (PPIDF)-2 of the Asian Development Bank (ADB). (IDCOL, 2021).
Fuel Supply
Summit Oil & Shipping Company Limited (SOSCL), a subsidiary of Summit Group, supplies necessary HFO for the power plant (SOSCL 2022).
Power Generation
The project comprised seven Wartsila-made 18V46 reciprocating type heavy fuel engines, each capable of generating 18 MW of power. These engines operated efficiently and reliably, ensuring a consistent supply of electricity to the surrounding areas. The plant is connected to the nearby 132 kV substation of the Bangladesh Power Development Board (BPDB), enabling the seamless transfer of generated electricity to the national grid.
Environment
Bangladesh Centre for Advanced Studies (BCAS) conducted the Environmental and Social Impact Assessment Report for the power plant. According to the Annual Environmental and Social Compliance Audit Report by Infrastructure Development Company Limited (IDCOL), the project has been classified as a Red Category project under the Environmental Conservation Rules (ECR) 1997 of Bangladesh, indicating the potential for significant environmental impacts. The framework for social and environmental safeguards (ESSF) indicates that the SBPL project appears to be a High-Risk project needing a thorough environmental impact study. The plant has a radiator cooling system which eliminates the need for extracting cooling water from surface sources. This has been claimed to reduce the water pollution impact of the power plant. The stack height was designed at 50 meters to ensure the effective dispersion of emissions (IDCOL, 2021).
References
SOSCL 2022. “Our Business: Fuel Supply”. Summit Oil & Shipping Company Limited (SOSCL): undated (accessed on 15 July 2022)
IDCOL 2021. “Annual Environmental and Social Compliance Audit Report”. Infrastructure Development Company Limited (IDCOL): March 2021.
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