Ghorashal 108 MW (Regent) DFG Power Plant

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Current Status: Operation

Ghorashal 108 MW Gas Power Plant, also known as Regent Ghorashal Power Plant, is a reciprocating engine-based power plant situated in Ghorashal under Palash Upazila in Narsingdi District of Bangladesh (Location: 23.9708, 90.6414). It has been sponsored by Regent Energy & Power Limited (REPL), a subsidiary of Habib Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 15 July 2014, and, as per schedule, the power plant is to retire on 14 July 2029.

Capacity

The installed (gross) and derated (net) capacity of the power plant is 113.9 MW and 108 MW, respectively.

Context

Regent Energy & Power Limited (REPL) is one of the leading power-generating companies in the private sector in Bangladesh and acts as an independent power producer (IPP). The Letter of Intent (LOI) for the Ghorashal 108 MW power plant, sponsored by REPL, was issued on 23 November 2011.. Regent Energy & Power Limited (REPL) had signed a 15-year Power Purchase Agreement with the Bangladesh Power Development Board (BPDB) on 12 December 2011.

In 2008, Bangladesh purchased 8 Jenbacher JGS 620 GS-N.L gas engines for their power plant in Sitakunda, Chittagong, and installed 34 units in 2014 for their 108MW power plant in Ghorashal, Norshingdi, each with a capacity of 3.35 MWe (EX, 2016 ). Notably, major components sourced from Austria, Germany, India, and Thailand contribute to the project's technological diversity, emphasizing its global approach to creating a sustainable and efficient power generation infrastructure. An Equipment Supply Contract was signed with these companies on 08 December 2011 (ADB, 2014). The Commercial Operation Date (COD) of the power plant was 15 July 2014.

The project was funded by numerous national and international organizations like IDCOL, IFC, and the Bangladesh Bank's Investment Promotion Financing Facility. As the primary fuel of the power plant is natural gas, a Gas Supply Agreement (GSA) was signed with Titas Gas Transmission and Distribution Company Ltd. (TGTDCL), ensuring a structured and seamless operation. However, the company is to retire on 14 July 2029 after 15 years of operation.IDCOL approved a term loan facility of USD 30 million under the Public–Private Infrastructure Development Facility (PPIDF) of Asian Development Bank (ADB) (ADB, 2014) .

Land Acquisition

The power plant covered about 5 acres of land adjacent to Ghorashal Palash highway road, which was purchased from private owners at village Garpara of Palash Upazila, under Narsingdi district of Bangladesh (ADB, 2014).

Finance

The project was funded by IDCOL, IFC, and the Bangladesh Bank's Investment Promotion Financing Facility (IPFF) (ADB, 2014) where IDCOL contributed a USD 30 million (BDT 3.29 Billion; 1 USD = 109.68 BDT on 29 November 2023) term loan facility from the Asian Development Bank's Public-Private Infrastructure Development Facility (PPIDF) for a large infrastructure project (ADB, 2014) . Besides, Bangladesh Infrastructure Finance Fund Limited (BIFFL) and International Finance Corporation (IFC) jointly provided USD 24 million for the project (IDCOL 2022).

Contractors

The 34 generator set (GenSet) units are produced by GE Jenbacher GmbH & Co. OG, headquartered in Austria. Siemens (India), TM Engineering, and Orient Energy Systems Limited are additional prominent contractors (Operation & Maintenance) contributing to the project.

Fuel Supply

The primary fuel of the power plant is natural gas. Titas Gas Transmission and Distribution Company Ltd. (TGTDCL) Supplies gas to the power plant (ADB, 2014).

Power Generation

The GE Jenbacher engines (JMS 620 F101) from Austria, renowned for their reliability and efficiency is used to produce energy. Besides, Cummins (AVK) in Germany provides the robust generators (DIG 142) that complement the engines seamlessly. Siemens, a global leader in electrical engineering, contributes significantly with both the main transformer (11/230 kV, 75 MVA) manufactured in India and the 230 kV SF6 circuit breakers from Germany (IDCOL, 2019). The power plant generated 466,912,412 kWh of electricity in FY 2022-2023 with 49.4% Plant load factor (PLF) (BPDB, 2023).

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 1997 (MOEFCC, 1997). Though Adroit Environment Consultants Limited (AECL) was engaged as an Environmental Consultant, had conducted a detailed environmental impact assessment, and prepared the Initial Environmental Examination (IEE) Report, the report was not found. However, ADB published an annual environmental and social compliance audit report prepared by IDCOL. According to that report, the ambient air quality met DOE's permissible standard during the operation period, however, noise levels exceeded it. REPL has installed crucial silencers, styrofoam, buffer walls, and planted trees along the project site's perimeter. They are currently investigating additional measures to fully comply with noise limits, such as hiring an international acoustic expert to undertake a technical study and installing appropriate noise-attenuating devices. The quality of surface and groundwater is stated as within the DOE guidelines (ADB, 2017). 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).

Criticism

The Ghorashal 108 MW (Regent) DFG Power Plant has a significant installed capacity (113.90 MW gross and 108 MW net), but the provided generation data show very low utilization with many days of zero generation. The plant appears to operate intermittently rather than as a regular power source. Despite limited electricity generation, the plant receives capacity payments under the IPP agreement, which raises concerns about economic efficiency and the financial burden on the power sector. Better dispatch planning and evaluation of capacity payment mechanisms are needed to ensure effective use of the installed infrastructure.

References

ADB (2014). “Resettlement Plan Implementation Monitoring Report- Regent Energy and Power Limited ”. Asian Development Bank (ADB): February 2014.
ADB (2017). “Annual Environmental and Social Compliance Audit Report – Regent Energy and Power Limited”. Asian Development Bank (ADB): March 2017.
EX (2016). “Regent Energy & Power Limited- IPP”. Energy XPRT (EX): 18 July 2016 .
IDCOL (2019). “Annual Environmental and Social Compliance Audit Report”. Infrastructure Development Company Limited (IDCOL): March 2019.
IDCOL (2022). Projects and Programs: Power. Infrastructure Development Company Limited (IDCOL): Undated (accessed on 13 June 2022)
MOEFCC (1997). “The Environment Conservation Rules, 1997” The Environment Conservation Rules: 27 August, 1997.
MOEFCC (2023). “The Environmental Conservation Rules”. Ministry of Environment, Forest and Climate Change (MOEFCC): 5 March 2023.
MOLJPA 1995. Bangladesh Environment Conservation Act 1995. Legislative and Parliamentary Affairs Division, Ministry of Law, Justice and Parliamentary Affairs (MOLJPA): 16 February 1995.