top of page
Search
    • Dec 17, 2023
    • 5 min read

Keraniganj 100 MW (PowerPac) HFO Power Plant (Unit 1)

Current Status: Operation


Keraniganj 100 MW Furnace Oil Power Plant (Unit-I), also known as Keraniganj Rental Power Plant (Unit 1), is a reciprocating engine power plant situated under Keraniganj Upazila in Dhaka District of Bangladesh (Location: 23.6473, 90.3477). It is operated by PowerPac Mutiara Keraniganj Power Plant Limited (PMKPL), a Special Purpose Vehicle (SPV) of PowerPac Holdings Limited (PPHL) under Sikder Group, as a Quick Rental Power Plant (QRPP) for five years. The sponsor declared its Commercial Operation Date (COD) on 27 March 2012 and, as per schedule, the power plant was to retire on 26 March 2017. But it went into retirement on 26 March 2022 after 10 years of operation. The power plant again extented for two more years in 5 April 2023, so the powerplant is scheduled to retire on 4 April 2025 after 13 years of operation.


Capacity

The installed and net capacity of Keraniganj Furnace Oil power plant was 109.59 and 100 MW respectively.


Context

PowerPac Holdings Ltd., one of the leading power generation company of Bangladesh, also a concern of the country's leading business conglomerate, 'Sikder Group', has already been running two other power plants in Jamalpur and Keraniganj, generating a total of 200 MW electricity and supplying to the national grid (Bangladesh Post 2019). Keraniganj 100 MW HFO based QRPP, owned by PowerPac-Mutiara Keraniganj Power Limited under PowerPac Holdings Limited of Sikder Group, started its commercial operation on 27 March 2012 with an initial Power Purchase Agreement (PPA) of 5 years, utilising Heavy Fuel Oil (HFO) as its primary energy source (Mehedi, H. 2022).


The BERC gave the licence to PowerPac-Mutiara Keraniganj Power Limited (PMKPL) for generating 109.59 MW of electricity from HFO commercially on 26 April 2018 (BERC 2018). On 11 March 2021, the Ministry of Power, Energy and Mineral Resources (MOPEMR) informed the parliament that it would not extend the tenure of any rental or quick rental power plant (DT 2021).


Originally, the Power Purchase Agreement (PPA) was set for a tenure of 5 years, suggesting a temporary role within the energy infrastructure. BPDB panelized the sponsor for failure to maintain Commercial operation date (COD), drawing excessive fuel and failure to supply adequate electricity as per PPA. The sponsor filed a case againstBangladesh Power Development Board (BPDB) without paying any penalty. Nevertheless, in April 2017, BPDB recommended the Power Division to extend the tenure of the power plant for five additional years (Imtiaz 2017). The initial phase-out date was scheduled for March 26, 2017, but later the power plant completed its last tenure of operation on 26 March 2022 (Tuhin 2021).


Bangladesh Power Development Board (BPDB) has renewed its power purchase agreement (PPA) with PowerPac Mutiara Keraniganj Power Plant Limited for its 100 MW rental plant in Keraniganj for  two more years in 2023. The agreement is titled as the 'Second amendment to the contract for supply of power on rental basis for two years' (TBS, 2023)


Land Acquisition

According to google map the power plant is situated under Keraniganj Upazila in Dhaka District of Bangladesh occupying an area of 13.42 acres. 


Finance

First Security Islami Bank has given opportunity to special groups in providing loans without interest  (DVA, 2022). If someone fails to repay the loan on time, then nothing can be said about him. Basically, this provision has been kept for the vulnerable and poor people of the society. Sikdar Group, a renowned business organisation of the country, has taken a loan of about thousand crore rupees from First Security Islami Bank Limited (FSIBL) by showing itself as distressed and poor under that facility  (AB, 2023). According to the report of Bangladesh Bank, 77 crore 85 lakh has been transferred to credit out of the debt of Powerpac Mutiara Keraniganj Power Plant Limited of 109 crore 55 lakh (DVA , 2022) .


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 scheduled Commercial Operation Date (COD) of the power plant was 30 April 2011 (BPDB 2010). The BERC gave the licence to PMKPL for generating 109.592 MW of electricity from HFO commercially on 26 April 2018 (BERC, 2018). The power plant has generated as a total of 2915.31 gWh of electricity till FY 2022-2023.


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). However, the environmental context surrounding the Keraniganj 100 MW Power Plant is concerning because, as of the present date, neither an IEE nor an EIA report has been conducted for this power plant. One noteworthy aspect of the Keraniganj 100 MW Power Plant is its reliance on Heavy Fuel Oil (HFO) as its primary fuel source. While HFO-based power plants can contribute to energy production, they also raise significant environmental concerns due to the negative impacts associated with this type of fuel.


HFO-based power plants pose a range of negative impacts on the environment. Firstly, their combustion emits harmful pollutants, including sulphur dioxide (SO2), nitrogen oxides (NOx), and particulate matter, contributing to poor air quality and potential health risks for nearby communities. Additionally, these power plants discharge wastewater and cooling water, leading to water pollution that can harm aquatic ecosystems and compromise drinking water sources. Furthermore, Heavy Fuel Oil combustion releases greenhouse gases, notably carbon dioxide (CO2), a significant driver of climate change. Noise pollution from power plants with reciprocating engines can disrupt local communities and wildlife. The construction and operation of such facilities also disrupt natural habitats, potentially harming local flora and fauna. Lastly, proximity to HFO-based power plants can expose communities to health risks associated with air pollutants and potential accidents.


Capacity Charge

According to BPDB the power plant paid a capacity charge of BDT 1292.53 CRORE til FY 2022-2023. Per unit average cost of generation is BDT 16.33 and total cost of the power plant is BDT 4420.26 crore BDT.




Criticism

The absence of an Initial Environmental Examination (IEE) or an Environmental Impact Assessment (EIA) for the Keraniganj 100 MW Power Plant is deeply concerning and represents a significant oversight. This omission reflects a lack of due diligence in evaluating the potential adverse environmental effects of an HFO-based power plant. The negative impacts of such facilities on the environment, including air and water pollution, greenhouse gas emissions, noise pollution, habitat disruption, and health risks, are well-documented. Failing to conduct these essential assessments not only disregards environmental protection laws but also risks the well-being of local communities and ecosystems. It underscores the importance of robust environmental evaluations to ensure responsible and sustainable development, particularly in the context of power generation.


References


454 views

Comentários

bottom of page