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Daudkandi 200 MW (Bangla Trac) HSD Power Plant (Unit 1)

Current Status: Retired

Source: eMediaDesk


Daudkandi 200 MW Diesel Power Plant, also known as Bangla Trac Daudkandi Power Plant, is a reciprocating engine-based power plant situated at Solakandi in Gouripur under Titas Upazila in Cumilla District of Bangladesh (Location: 23.5466, 90.7778). It is operated by Bangla Trac Power Unit-1 Limited (BTPIL), a Special Purpose Vehicle (SPV) of Bangla Trac Limited, as a private Independent Power Producer (IPP) for five years. The sponsor declared its Commercial Operation Date (COD) on 27 April 2018 and, according to the schedule, the power plant is to retire on 26 April 2023.


Capacity

The installed and net capacity of the Daudkandi Diesel Power Plant is 215.60 MW and 200 MW respectively.  So the power plant has a capacity of 215.60 (±7%) MW  (BPDB, 2023). 


Context

Bangla Trac Limited operates as the authorized dealer for Caterpillar Inc. USA, trading under the brand name BanglaCAT. As a pioneer in Bangladesh, Bangla Trac Limited is engaged in the marketing, sales, operation, and product support of numerous Caterpillar Inc. products (BTE, 2023). Bangla Trac Power Unit-1 Ltd. was granted a Letter of Intent (LOI) by the Bangladesh Power Development Board (BPDB) under Fast Track Project on August 10, 2017, for the swift execution of a 200 MW High-Speed Diesel (HSD) power plant in Daudkandi, Cumilla. The purpose was to contribute to the national grid and address the escalating power demand in the country. Following the LOI, Bangla Trac Power Unit-1 Ltd. successfully completed the construction of the 200 MW plant within an impressive time frame of just 8 months, obtaining Commercial Operation Date (COD) on April 27, 2018 (AISL, 2023). In an emergency meeting held in the Prime Minister's Office (PMO), the GOB decided to keep the HSD-based power plant closed from 19 July 2022 (Daily Star 2022). 


Fuel Supply

There is no information found exactly about the fuel supplier for this powerplant. Usually, Petrobangla becomes  the fuel supply source of power plants in Bangladesh. 


Land Acquisition

The power plant is situated in a land area of approx. 1.65 acres (Calculated via Google Earth). 


Finance

City Bank, through syndication arrangements, has facilitated long-term financing amounting to BDT 3,420 million and $25 million USD from various banks including Shahjalal Islami Bank Limited, NRB Commercial Bank Limited, The City Bank Limited, Islamic Finance & Investment Limited, IDLC Finance Limited, and Mashreq Bank, a prominent financial institution in the United Arab Emirates. As part of this syndication, Mashreq Bank has contributed $25 million USD in long-term funding for BTP1. In return, City Bank has issued a standby letter of credit (SBLC) Guarantee to Mashreq Bank, securing the Bangla Trac Group's project with a value of $25 million USD (Prothomalo, 2021).


Sponsor

ACORN Infrastructure Services Ltd (AISL) is a progressive electricity producer in Bangladesh, affiliated with the esteemed business conglomerate Bangla Trac Limited, which served as the sponsor for the power plant (AISL,2023).


Contractors

The power plant has a total capacity of 200 MW and is equipped with 154 engines supplied by Bangla Trac which is an authorized dealer for Caterpillar Inc. USA. The Daudkandi plant incorporates advanced technology, employing Caterpillar reciprocating engines that stand out as the most fuel-efficient High-Speed Diesel (HSD) engines ever installed and commissioned in Bangladesh. The plant comprises 99 engines with a capacity of 1.4 MW each, 40 engines with a capacity of 1.5 MW each, and 15 engines with a capacity of 1.05 MW each. The collective fuel storage capacity of the plant amounts to 11,500 metric tons. Furthermore, the plant is connected to the Daudkandi substation, facilitating the supply of electricity to the national grid  (BTE, 2023; AISL, 2023).


Power Generation

The Daudkandi Diesel Power Plant has an installed capacity of 215.60 MW and a net capacity of 200 MW. The power plant is linked to the Daudkandi substation, facilitating the provision of electricity to the national grid.


Environment

Power plants utilizing High-Speed Diesel (HSD) can impart various environmental impacts. The combustion of diesel fuel releases pollutants like nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter into the atmosphere, contributing to air pollution and potential health issues. Moreover, the emission of carbon dioxide (CO2) from diesel combustion contributes to climate change. Water bodies may be affected by the discharge of heated water used in the cooling process, potentially disrupting local ecosystems. Noise pollution and the extensive land use associated with power plant construction can further impact both wildlife and nearby communities. Proper waste management is crucial to prevent environmental harm from the disposal of used oil and other byproducts. So Environmental Impact Assessment is mandatory for this powerplant. But there is no EIA found for this power plant. Addressing these issues necessitates the implementation of technologies and practices that reduce emissions and promote sustainability. Transitioning to cleaner energy sources, such as renewables, remains a key strategy for mitigating the environmental footprint of power generation.


Criticism

According to the requirements specified by the Bangladesh Power Development Board (BPDB), five diesel-fired power plants, including the Daudkandi 200 MW Diesel Power Plant, were planned to commence electricity generation from 9 February 2018. But as it was delayed in operation, the power producers had to pay $200 per megawatt in liquidated damages for missing the deadline (DS, 2018). 


References

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