Current Status: Operation
Source: (Energy and Power 2018).
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
Ali, I. (2020). "২২ বিদ্যুৎকেন্দ্রে বছরে গচ্চা দুই হাজার ৩০০ কোটি টাকা". The Share Biz: 27 July 2020
Amader Barta (2023). “গরিব সেজে হাজার কোটি টাকা ঋণ নিয়েছে সিকদার গ্রুপ, বিপাকে এফএসআইবিএল ব্যাংক”. Amader Barta: 10 April 2023.
Bangladesh Post (2019). ‘PowerPac Holdings to set up two more Power Plants. Bangladesh Post”: 26 December 2019,
BERC (2018). “Minutes of the 75th Open Meeting”. Bangladesh Energy Regulatory Commission (BERC): 26 April 2018
BPDB (2010). ‘Annual Report 2009-2010’. Bangladesh Power Development Board: 1 August 2010
DT (2021). "Government to shut down rental, quick rental power plants by 2024". The Dhaka Tribune (DT): 11 March 2021
DVA (2022). “বিশেষ বিবেচনায় ফার্স্ট সিকিউরিটি ইসলামী ব্যাংকের ঋণ সুদমুক্ত ঋণে স্থানান্তর”. Daily Vorer Akash (DVA): 11 May 2022.
Energy and Power (2018). “PDB to Buy Power from PowerPac for 5 More Years”. Energy and Power. 18 January, 2018.
Imtiaz, H. (2017). "ক্রয় চুক্তির মেয়াদ বাড়ছে আরও চার রেন্টাল বিদ্যুৎকেন্দ্রের". The Daily Samakal: 18 April 2017
Mehedi, H. (2022). “BPDB Trapped by Expensive Rental Power Plants: Rental and Quick Power Plants must be phased out as soon as possible”. Bangladesh Working Group on External Debt (BWGED). 15 March, 2022.
SOSCL (2022). “Our Business: Fuel Supply”. Summit Oil & Shipping Company Limited (SOSCL): accessed on 15 July 2022.
TBS (2023). “BPDB renews PPA with 100 MW PowerPac Mutiara Keraniganj plant for 2 years”. The Business Standard (TBS): 5 April 2023.
Tuhin, A. (2021). "রেন্টাল বিদ্যুৎকেন্দ্রের বিদায় ঘণ্টা". The Desh Rupantor: 1 August 2021.