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Sep 27, 20233 min read

Bhola 33 MW (Venture) DFG Power Plant

Updated: Oct 16, 2023

Current Status: Operation

Figure: Bhola 33 MW Gas power plant, Source: The Daily Sun, 2020


Bhola 33 MW Gas Power Plant, also known as Venture Energy Rental Power Plant, is a reciprocating engine-based power plant situated at Kheya Ghat of Char Samaia under Bhola Sadar Upazila in Bhola District of Bangladesh (Location: 22.6728, 90.6159). It is sponsored by Venture Energy Resources Limited (VERL), a Special Purpose Vehicle (SPV) of Sinha-Medlar Group, as a Rental Power Plant (RPP) for three years. The sponsor declared its Commercial Operation Date (COD) on 12 June 2009, and according to the schedule, the power plant was to retire on 11 July 2012. But after extending tenure four times, the retirement date has been rescheduled to 11 July 2026, after 17 years of operation.


Capacity

The power plant's installed (gross) and derated (net) capacity is 34.50 MW and 33 MW, respectively.


Context:

Bangladesh Power Development Board (BPDB) signed a Power Purchase Agreement (PPA) with the VERL on 16 January 2008 to install the power plant within four months of the signing date (Khan 2008). At first, the scheduled Commercial Operation Date (COD) of the power plant was 15 May 2008, while it started commercial operation on 12 July 2009, 423 days behind schedule (Daily Star 2009).


In the district's Borhanuddin upazila, the gas-powered power plant that cost Tk 200 crore was built about 33 kilometers from the Shahbazpur Gas Field. According to the plant’s contract, Venture Energy will provide the national grid with power directly through the Bhola-Patuakhali underwater cable links and sell it to the BPDB. Gas supply, building and maintaining the electricity distribution connections, and paying the rent on the plant's leased land will all be covered by the PDB.


Finance

The total budget of the power plant has not been disclosed, but according to the report, Infrastructure Development Company Limited (IDCOL) financed BDT 200 million (USD 1.8 million when USD 1=BDT 109.62) for the project (IDCOL 2022).


Sponsor

The power plant was awarded to Venture Energy Resources Limited (VERL), a Joint Venture Company (JVC) of Kaltimex Energy of Indonesia and GBB Group of Bangladesh. The sponsors sold VERL to Sinha-Medlar Group as they failed to confirm adequate finance for the project. 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). The Cabinet Committee on Government Purchase (CCGP) extended the period of the Power Purchase Agreement (PPA) on 5 January 2022 for another four years of the period under the “No Electricity No Payment” (NENP) method (FE 2022a). Under the new agreement, BPDB will purchase electricity from the power plant at USD 0.03397 (BDT 2.79 in 2021) per kWh. As a result, it has to pay BDT 3.81 billion to Venture Energy in the period (FE 2022b).


Fuel Supply

The power plant requires approximately 10 Mmscfd of Domestic Fossil Gas (DFG) daily. The sponsor signed a Fuel Supply Agreement (FSA) with Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) and Sundarban Gas Company Limited (SGCL) to supply adequate DFG for the power plant.


Power Generation

It could generate 189.6 million units (GWh) of electricity at 66.62% plant load factor (PLF). In this case, BPDB will have to pay BDT 1479.50 million (USD 17.83 million) per year for only this power plant, as estimated (BWGED).


Capacity Charge

BPDB had to pay USD 1542.67 (BDT 169,315 when USD 1=BDT 109.75) in FY 2021-2022 to the sponsor as the capacity charge per day.



References


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