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Chandpur 200 MW (Desh Energy) HFO Power Plant

  • Jun 18
  • 4 min read

Current Status: Operation

Source: (Desh Energy)

Chandpur 200 MW Furnace Oil Power Plant, also known as Desh Chandpur Power Plant, is a reciprocating engine-based power plant situated in Gunrajdi in Natun Bazar under Chandpur Sadar Upazila in Chandpur District of Bangladesh (Location: 23.2241, 90.67383). It is operated by Desh Energy Chandpur Power Company Limited (DECPCL), a Special Purpose Vehicle (SPV) of Desh Energy Limited (DEL) under Mohammadi Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 9 November 2018 and, as per the schedule, the power plant is to retire on 8 November 2033.


Capacity

The installed (gross) and derated (net) capacity of the power plant is 220.98 MW and 200 MW respectively.


Context

On 9 August 2017, the Cabinet Committee on Public Purchase of Bangladesh granted approval for this power plant (Financial Express, 2018). On 4 January 2018, the Power Development Board (PDB), a government-owned entity, entered into a Power Purchase Agreement (PPA) with Desh Energy Chandpur Power Company, a domestic firm, to acquire 200 MW of electricity from them. The signing took place five months following the issuance of a letter of intent for the development of a 200 MW power project in Chandpur. Under the agreement's terms, the Power Development Board (PDB) would buy electricity from Desh Energy Chandpur Power Company at a rate of Tk 8.7 per Kilowatt-hour for a duration of 15 years. The project was scheduled for execution within the subsequent five months and was expected to commence operations in mid-August of 2018 (Daily Sun, 2018). 

The power plant was anticipated to become operational by May 9 of 2018. The Power Division, a part of the Ministry of Power, Energy, and Mineral Resources (MPEMR), chose the contractor to construct the power plant by utilizing the 'Speedy Supply of Power and Energy (Special Provision) Act 2010,' bypassing the conventional tendering process (Financial Express, 2018). Wärtsilä has provided the engines and is expediting the delivery to align with the customer's project schedule of nine months, aiming for complete operational readiness by May 2018. The first batch of engines is scheduled for delivery in November of that year, with the remaining units to follow one month later (Wärtsilä, 2017). 

But the powerplant was unable to reach completion primarily due to sponsors facing difficulties in securing funds or acquiring land having achieved only 60 percent implementation by June 2018 (Prothom Alo English, 2018). The powerplant was commissioned on 9 November, 2018 (BPDB Annual Report, 2021-22). On February 6, 2019, Prime Minister Sheikh Hasina inaugurated these power plants and grid substations via a videoconference from her official residence, Ganabhaban (Jagonews24, 2019). As of 2025–2026, the Chandpur 200 MW (Desh Energy) HFO Power Plant remains in commercial operation under Desh Energy Chandpur Power Company Limited, with no reported changes in capacity, ownership or fuel type after 2024 (BPDB, 2025). 


Land acquisition

The land area of the powerplant is approx. 15.49 acres (Calculated using  Google Earth).  


Finance

No financial documents or news have been found on this power plant.


Sponsors

The powerplant is sponsored by Desh Energy Limited (DEL) under Mohammadi Group (Desh Energy, 2021).


Contractors

Wärtsilä, a technology company, has secured a contract to provide engines for a new 220 MW power plant in Chandpur, Bangladesh. The project, commissioned by Desh Energy Chandpur Power Company, involves twelve 18-cylinder Wärtsilä 50 engines running on heavy fuel oil. This power plant was booked for implementation in August 2017. Wärtsilä is fast-tracking the delivery to meet the customer's nine-month project timeline, with full operational capacity expected by May 2018, and the initial engine delivery set for November of the same year, followed by the remainder a month later (Wärtsilä, 2017).


Fuel Supply

The plant uses natural gas as its primary fuel. Nt much data  has been found on  fuel supply.


Power Generation

The installed (gross) and derated (net) capacity of the power plant is 220.98 MW and 200 MW respectively. The power plant supplies power to 11/33 kV Grid of BPDB in Ramganj and Chowmuhani (Desh Energy, 2021). The plant has a cumulative net energy generation of about 667 GWh, reflecting its total dispatch contribution during recent operational years (BPDB, 2025).  


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, must undergo an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). Adroit Environment Consultants Ltd. (AECL) is preparing (On-going) quarterly Health, Safety and Environmental Monitoring Report of 200 MW HFO-Fired Power Plant of Desh Energy Chandpur Power Company Limited at Gunrajdi ,Chandpur, Bangladesh (AECL, 2023).


Criticism

Of the furnace oil (HFO)-fired fast-track private power plant projects initiated urgently in 2017 to address the crisis, all except one failed to meet their scheduled operational timelines. The remaining 13 projects were unable to reach completion primarily due to sponsors facing difficulties in securing funds or acquiring land. Desh Energy's 200 MW Chandpur project is among these, having achieved only 60 percent implementation by June 2018 (Prothom Alo English, 2018). According to the environmental conservation rule 2023 the project falls in the “Red” indicating it as a potential harmful project for the environment (MOEFCC 2023). Although the plant is operational, continued dependence on Heavy Fuel Oil (HFO) raises concerns regarding carbon emissions, local air pollution, and exposure to imported fuel price volatility. These issues may affect the long-term sustainability of HFO-based electricity generation in Bangladesh's evolving energy transition framework (IPCC, 2022).


References

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