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Thakurgaon 115 MW (EPVTL) HFO Power Plant

  • Jun 24
  • 4 min read

Current Status: Operation

Source: EVPL


Thakurgaon 115 MW Furnace Oil Power Plant, also known as Energypac Thakurgaon Power Plant, is a reciprocating engine-based power plant situated in Gauripur under Thakurgaon Sadar Upazila in Thakurgaon District of Bangladesh (Location: 25.9739, 88.5139). It is operated by Energypac Power Venture Thakurgaon Limited (EPVTL), a Joint Venture Company (JVC) of Energypac Power Venture Limited (EPVL) and EMA Power Investment Limited (EPIL), as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 28 February 2022, and, as per schedule, the power plant will retire on 27 February 2037.


Capacity

The installed (gross) and derated (net) capacity of the power plant is 115 MW and 108 MW respectively.


Context

The Thakurgaon 115MW independent power plant (IPP), operated by Energypac Power Venture Thakurgaon (EPV Thakurgaon), emerges against a backdrop of challenges and strategic decisions. The power plant, a subsidiary of Energypac Power Generation, faced a two-year delay in its commercial operation, attributed to the global disruptions caused by the Covid-19 pandemic and other adversities. The plant utilizes heavy fuel oil (HFO). EPV Thakurgaon signed a fifteen-year agreement with the Bangladesh Power Development Board (BPDB) for the sale of electricity. The parent company, Energypac Power Generation Limited, has decided to divest its entire shareholding in EPV Thakurgaon, signaling a strategic shift in its corporate structure and business focus (TBS, 2022). Energypac Power Venture Thakurgaon Limited (EPVTL), the entity behind the Thakurgaon 115MW independent power plant, boasts a consortium of notable sponsors facilitating its operations and development. 


Sponsor

The primary sponsor is Energypac Power Venture Limited (EPVL), holding a controlling 51% stake in EPVTL. EPVL, in turn, is majority-owned by Energypac Power Generation Limited (EPGL) with a 90% shareholding. Additionally, EPVTL has attracted international investment, with EMA Power Investment Limited from the United Arab Emirates and DL Energy Company Limited (formerly Daelim Energy) from South Korea holding significant stakes of undisclosed percentages. DL Energy Company Limited invested 16 million, representing a 49% ownership share. DL Energy invested a total of US$ 16 million in the project, with the remaining amount raised through Export Credit Agency (ECA) and Mandated Lead Arranger (MLA) lenders. Construction of the plant started in October 2018 and was originally planned to reach commercial operation in 2020 (EPVL,2022).


Contractors

Energypac Power Generation Limited (EPGL) was appointed as the Engineering, Procurement and Construction (EPC) contractor of the power plant. German company MAN Energy Solutions bagged the order to supply six MAN 18V48/60TS engines with a total output of around 125 MW. (MAN, 2022).


Financiers

The financing for the power plant was secured through a Private Sector & Trade Finance model. The OPEC Fund for International Development approved a loan of US$ 16.5 million on 26 March 2020, which was signed on 25 December 2023. The loan has since been completed. Co-financiers include the Infrastructure Development Company Limited (IDCOL), United Commercial Bank Limited (UCBL), and EPVTL through a working capital facility (OPEC Fund,2020) .


Power Generation

According to the PPA, the scheduled Commercial Operation Date (COD) of the power plant was 15 November 2019. But the date was delayed to 28 February 2022. According to EPGL, the construction process was delayed due to heavy floods, dengue fever during the second half of 2019 and severe impact of COVID-19 in subsequent periods starting from early 2020 (EPGL 2021).


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 1997  (MOEFCC, 1997). But, till date, no IEE or EIA report has been found of the power plant. According to the environmental conservation rule 2023,  the project falls in the “Red category” indicating it as a potential harmful project for the environment (MOEFCC, 2023).

Criticism

It is a part of Bangladesh’s costly fossil fuel–based private power sector. It generates relatively low electricity but creates a high financial burden through expensive fuel imports and capacity payments. 


References

 
 
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