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    • Mar 6
    • 5 min read

Payra 1320 MW (BCPCL) Coal Power Plant (Phase 1)

Updated: Mar 7

Current Status: Operation

(Source: NS Energy)


Payra 1320 MW Coal Power Plant (Phase-I), also known as Payra 1320 MW Thermal Power Plant (1st Phase), is an ultra-supercritical (USC) coal power plant situated in Modhupara, Char Nisanbaria and Nisanbaria Village of Dhankhali Union under Kalapara Upazila in Patuakhali District of Bangladesh (Location: 22.0015, 90.3059). It is sponsored by Bangladesh-China Power Company Private Limited (BCPCL), a joint venture company (JVC) of North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import & Export Corporation (CMC), as a private Independent Power Producer (IPP) for 25 years. The first unit (622 MW) of the power plant started commercial operation on 15 May 2020 while the second phase on 8 December 2020. As per schedule, the units will retire on 14 May 2045 and 7 December 2045 respectively.


Capacity

The installed (gross) and derated (net) capacity of the power plant is 1320 MW and 1244 MW respectively.


Context

The Payra 1320 MW (BCPCL) Coal Power Plant is a significant infrastructure project that embodies the collaborative efforts of the governments of Bangladesh and China to meet Bangladesh's growing electricity demands. In March 2014, the state-owned North-West Power Generation Company (a subsidiary of the Bangladesh Power Development Board) and CMC - China National Machinery Import & Export (Group) Corporation signed a Memorandum of Understanding to construct a 1,320 MW coal plant in Patuakhali's Kalapara upazila (DT 2014). 


In March 2016, an engineering, procurement, and construction (EPC) contract of $ 1.56 billion for the power station was signed. A consortium of China Energy Engineering Group Northeast No.3 Electric Power Construction Co. Ltd. (NEPC) and China National Energy Engineering and Construction Co. Ltd. (CECC), both Chinese state-owned enterprises, were awarded the contract (New Age 2016).


The first phase of the power plant inaugurated in May 2020 after a test run from January that year marked a major milestone in the project's development, as it added a substantial 1,320 MW of capacity to Bangladesh's power generation capabilities (UNB 2019). However, The Prime Minister of Bangladesh formally inaugurated the Power Plant on 21 March 2022 (FE 2022c). The power plant could not be run at full capacity as the 164.6 km of 400 kV double-circuit transmission line is not ready (FE 2022b). As a result, BPDB has to pay BDT 1.30 billion every month even when it can’t evacuate the generated power (FE 2021b). The Power Grid Company of Bangladesh Limited (PGCB) tried to develop an alternative transmission line to evacuate the electricity from the power plant by December 2021. Still, the plan failed (Rahman 2021). Electricity generated by the power plant is fed to the national grid via double-circuit 400kV transmission lines connected with the 400kV Patuakhali grid substation of the Power Grid Company of Bangladesh (PGCB).


Land Acquisition

The power plant is situated 13 km from the administrative center of Kalapara Upazila and 3 nautical miles from Patuakhali District in Bangladesh at Dhankhali Union, Kalapara Upazila, next to the Kazol River or upstream of Rabnabad Channel on 982.77 acres of land (Sohrab 2021). 


Finance

The £1.5 billion (USD 2 billion) Payra power project is funded by a 70% debt loan from Chinese banks, with Chinese Export-Import (Exim) bank serving as the lead lender, and a 30% equity investment from BCPCL partners (NS Energy).


Sponsors

The power plant is sponsored by the Bangladesh-China Power Company Private Limited (BCPCL), North-West Power Generation Company Limited (NWPGCL), and China National Machinery Import & Export Corporation (CMC). The sponsors signed a PPA with BPDB and PGCB in December 2015 to supply 1,320  MW of electricity for 25 years from the Commercial Operation Date (COD) of  15 May 2020 (Unit - 1) and 8 Dec  2020 (Unit - 2) (BCPCL). 


Contractors

The consortium of China Energy Engineering Group, Northeast Electric Power Construction Co Ltd, and China National Energy Engineering and Construction Company Limited was the engineering, procurement, and construction contractor of the project (NS Energy).


Fuel Supply

The estimated annual coal required by the plant is 4.12 million tonnes (Mt/y), which will be supplied from Australia, China, and Indonesia (NS Energy). An agreement to import coal for use was inked on 17 June 2019 by Bangladesh-China Power Company Ltd (BCPCL) and PT Bayan Resources Tbk, an Indonesian company. According to the agreement, the Indonesian company PT Bayan Resources Tbk will provide the power plant's Unit-1 with the necessary coal so that it may begin producing electricity in December 2019 (Energy Bangla 2019).


Environment

South Asia's coal-fired power plants emit significant amounts of mercury, posing a high environmental risk. The high emissions scenario from the 07 plants in Payra, including the Payra 1320 Coal Power Plant, are projected to contribute to air pollution-related deaths over an operating life of 30 years.  According to the EIA report, the daily ash generation of the plant is about 1440 tons at 100% MCR, with 20% being bottom ash and 80% being fly ash. Other health impacts include 71,000 asthma emergency room visits, 15,000 new cases of asthma in children, 39,000 preterm births, 26 million days of work absence (sick leave), and 57,000 years lived with disability related to chronic obstructive pulmonary disease, diabetes, and stroke. Fly ash particles are very fine and tend to remain airborne for a long period, promoting chemical and physical injuries and small necrotic dark brown spots on the leaves of many vegetables. Changes in soil properties caused by fly ash may directly or indirectly affect microbial activity and the root growth of plants. The power plants expose millions to elevated pollution levels. The source of water for the project is the Andharmanik River, which is sensitive to water temperature and can cause harm to small fishes and microorganisms in river water. The 2x660 MW power units have a yearly coal consumption of 4.11 MT, which can also ruin water quality (EQMS 2019).


Criticism

In July 2021, Stephan Doempke, President of World Heritage Watch further criticized the GOB for constructing Barisal Coal Power Plant, Payra Coal Power Plant, and Rampal Coal Power Plant which will seriously harm the Sundarbans mangrove forest (FE 2021a).


References

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