Current Status: Retired
Source: Zobaer Hossain Sikder
Shikalbaha 55 MW Furnace Oil Power Plant, also known as Energies Shikalbaha Rental Power Plant, was a reciprocating engine-based power plant situated at Shikalbaha under Karnaphuli Upazila in Chattogram District of Bangladesh (Location: 22.3233, 91.8640). It was sponsored by Energies Power Corporation Limited (EPCL), a Special Purpose Vehicle (SPV) of Shasha Denims Limited (SDL) as a Rental Power Plant (RPP) for three years. EPCL declared its Commercial Operation Date (COD) on 7 May 2010 and, as per schedule, the power plant was to retire on 6 May 2013. However, after an extension of 3 years, the power plant was phased out on 5 May 2016.
Capacity
The installed (gross) and derated (net) capacity of the power plant is 73.8 MW and 55 MW respectively.
Context
After being put into service on January 10, 2010, the plant began producing electricity for the national grid on May 6. On December 28, 2008, Energis and the Bangladesh Power Development Board (BPDB) agreed to a three-year Power Purchase Agreement (PPA) under which Energis would supply 55 MW of net electricity. Then, on May 12, 2014, it was extended for an additional five years. After its power purchase agreement with the government expired, Shasha Denims Limited sought to sell its 55-megawatt (MW) power plant, which had been idle since July 2019 (TBS, 2020).
Land Acquisition
The total land area of this power plant was approximately 0.31 acres (Calculated from Google Earth Pro).
Finance
Energis Power Corporation (EPC), built the plant for BDT 260 crore using cutting-edge German technology (DT, 2009).
Sponsor
The power plant was sponsored by Energies Power Corporation Limited (EPCL), a Special Purpose Vehicle (SPV) of Shasha Denims Limited (SDL).
Contractors
Royce Power, a Hong Kong-based company, provided technical assistance for the project (DT, 2009).
Fuel Supply
Bangladesh Petroleum Corporation (BPC) was the fuel supplier of the Shikalbaha 55 MW power plant (BCL, 2014).
Power Generation
Total power generation from 2009-10 to 2019-20 was 1,655.04 gWh.
Environment
The power station project was supposed to adhere to environmental noise norms using silencers. Although the Shikalbaha community was supposed to experience a brief increase in noise due to construction. Mitigation strategies were supposed to reduce these effects. Additional precautions are supposed to be taken to guarantee adherence to noise regulations when operating close to homes (BCL, 2014). Because of the plant's black smoke hurting nearby power plants, Energies Power Corporation Limited, the plant's owner, has since filed several requests for extensions that have been denied.
Criticism
The government extended the lease on Chittagong's oil-fired Shikalbaha 55 MW rental power plant after declining to extend the power purchase contract six months prior owing to environmental issues. Typically, the state-owned Power Development Board pays rental power plants substantial fees in exchange for their electricity, which is subsequently sold to customers for much less money. This forced the government to significantly subsidize the electrical industry to make up the funding gap. For July and August, the PDB had asked the government for a subsidy of about BDT 10 billion to cover unpaid payments to the "costly" rental, rapid rental, and independent power plants (Dhaka Tribune, 2013).
Capacity Charge
BPDB had to pay the sponsor BDT 684.73 crore as a daily capacity charge till 2019-20. The per unit average cost was BDT 13.35 and the total cost was BDT 2187.75 Crore.
Year | Generation (GWh) | Total Cost (crore BDT) | Unit Cost (avg BDT) | Capacity (crore BDT) |
FY 2019- 2020 | 7.50 | 12.20 | 16.27 | 5.14 |
FY 2018-2019 | 269.94 | 344.09 | 12.75 | 94.74 |
FY 2017-2018 | 252.67 | 310.80 | 12.3 | 98.63 |
FY 2016- 2017 | 229.54 | 234.85 | 10.23 | 72.70 |
FY 2015-2016 | 167.95 | 264.13 | 15.73 | 68.27 |
FY 2014-2015 | 183.62 | 302.98 | 16.5 | 59.11 |
FY 2013-2014 | 0.00 | 0.00 | 0 | 0.00 |
FY 2012-2013 | 82.77 | 199.62 | 24.12 | 90.28 |
FY 2011-2012 | 83.04 | 187.44 | 22.57 | 89.95 |
FY 2010-2011 | 272.22 | 258.17 | 9.48 | 90.14 |
FY 2009-2010 | 105.80 | 73.47 | 6.94 | 15.77 |
Total | 1655.05 | 2187.75 | 13.35 | 684.73 |
References
Aman, A. F. M. S. (2014) “Feasibility Study Of Gas Based power plant Under Private Sector”. BUET Central Library: June 2014.
Alamgir, N. U. (2009). “2nd 73.8MW rental plant to start power generation in Nov”. The Daily Star (TDS): 14 October 2009.
Rasel, A. R. (2013) “Shikalbaha rental plant may get the extension”. The Dhaka Tribune (DT): 11 October 2013.
Tuhin, A. H. (2020). “Shasha Denims to sell 55 MW power plant”. The Business Standard (TBS): 16 June 2020.
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