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Shahjibazar 86 MW (SPCL) DFG Power Plant

  • 6 days ago
  • 5 min read

Current Status: Operation

Image :Shahjibazar 86 MW (SPCL) DFG Power Plant (Source: youthbd.com)


Shahjibazar 86 MW Gas Power Plant, also known as Shahjibazar Rental Power Plant, is situated at Fatehpur village of Shahjibazar under Madhabpur Upazila in Habiganj District of Bangladesh (Location: 24.2553, 91.3770). The Power Plant was sponsored by Shahjibazar Power Company Limited (SPCL), a subsidiary of Youth Group, as a Rental Power Plant (RPP) for 15 years. SPCL declared its Commercial Operation Date (COD) on 10 February 2009 and, as per schedule, the power plant will retire on 9 February 2024.


Capacity

The installed (gross) and derated (net) capacity of the power plant is 92.80 MW and 86 MW respectively.


Context

The development of power plants in Fatehpur, Shahjibazar, and Hobigonj has been initiated by the Bangladesh Power Development Board (BPDB) and Rural Electrification Board (REB), with the involvement of the private sector. The Ministry of Power, Energy & Mineral Resources has issued an invitation for proposals about a project that aims to deliver power on a purchase basis for a duration of 15 years. The Shahjibazar Power Company Limited expressed enthusiasm in response to the invitation and made a proposal to construct a gas-fired power plant with a total capacity of 92.8 MW. 


Then, On February 14, 2008, the Company entered into a power supply agreement with BPDB, wherein they agreed to provide 86 MW net electrical power on a rental basis for a duration of 15 years on a Build-Own-Operate (BOO) basis.  After the gas supply agreement with Jalalabad Gas Transmission and Distribution System Ltd (JGTDSL), the plant started commercial production on 10 February 2009 (SPCL 2014).  Although the original 15-year rental power agreement expired on 9 February 2024, BPDB subsequently extended the power supply agreement for an additional five years. The extension was formalized on 9 July 2024 through the First Amendment to the Agreement for Supply of Power, allowing the 86 MW Shahjibazar Power Plant to continue supplying electricity to the national grid  (SPCL, 2024).


Land Acquisition

The power plant is located on 7.32 acres of land at Fatehpur village of Shahjibazar under Madhabpur Upazila in Habiganj District, owned by Shajibazar Power Company Limited (SPCL).


Finance

Shahjibazar Power Co. Ltd. does not have a financial lease, but  Shajibazar Power Company Limited (SPCL) does receive project loans from Islami Bank Bangladesh Ltd. and Islamic Finance & Investment Ltd. under the terms of a project loan in accordance with Islami Sariah. In 2007 and 2008, the company drew BDT 1695 million from these two financial institutions (SPCL 2014). According to the company's FY2024 and FY2025 financial disclosures, SPCL continued generating revenue after the contract extension. Annual revenue increased from approximately BDT 11.16 billion in FY2024 to BDT 12.33 billion in FY2025, reflecting continued business operations following the extension of power supply activities (Stock Analysis, 2026).


Sponsors

The Power Plant was sponsored by Shahjibazar Power Company Limited (SPCL), a subsidiary of Youth Group, as a Rental Power Plant (RPP) for 15 years. Shahjibazar Power Company Limited (SPCL), a concern of Youth Group, continues to operate the plant under the extended agreement with BPDB. The company remains listed on the Dhaka Stock Exchange and continues its power generation business alongside other energy-related investments (SPCL, 2024).


Contractors

The Company hired local companies to construct and install the plant in accordance with GE Jenbacher GmbH & Co.'s plant layout design (SPCL 2014).


Fuel Supply

The power plant receives gas from Jalalabad Gas Transmission and Distribution System Ltd (JGTDSL) in accordance with the terms of the gas supply agreement between the two parties, which is in place for a 15 year period (SPCL 2014).


Power Generation

It started commercial operation on 10 February 2009 (BPDB 2010), with a total generating capacity of 92.8MW. The power plant uses 32 units of JGS 620 GS-N.L model gas engines. The plant can generate 86 MW of electricity which produces 474934.4 MW per hour with a 63.2% plant load factor (PLF)  in FY 2022-2023. The extension of the rental power agreement in July 2024 enabled the plant to continue generating electricity and supplying power to the national grid after the expiration of its original contract. The facility remains one of SPCL's key power-generation assets (Business standard, 2024).


Capacity charge

BPDB had to pay the sponsor a total of BDT 880.91 crore capacity charge from the commercial operation (COD) till FY 2021-2022. The total power generation of this power plant was 7356.41 kWh and the per unit cost was 2.84 BDT till FY 2021-2022. 



Year

Generation (gWh)

Total Cost (crore BDT)

Unit Cost (avg BDT)

Capacity (crore BDT)

FY 2021-2022

619.93

219.44

3.54

78.82

FY 2020-2021

605.48

203.98

3.37

71.09

FY 2019-2020

440.52

172.60

3.92

71.67

FY 2018-2019

474.11

145.26

3.06

67.12

FY 2017-2018

381.56

140.48

3.68

73.25

FY 2016-2017

402.95

125.71

3.12

64.78

FY 2015-2016

553.75

151.61

2.74

66.57

FY 2014-2015

593.04

153.35

2.59

65.38

FY 2013-2014

543.26

143.88

2.65

64.34

FY 2012-2013

584.09

146.47

2.51

62.92

FY 2011-2012

589.43

142.43

2.42

58.29

FY 2010-2011

651.62

148.13

2.27

58.71

FY 2009-2010

635.52

140.30

2.21

56.35

FY 2008-2009

281.15

55.82

1.99

21.62

Total

7356.41

2089.46

2.86

880.91




Year

Generation (GWh)

Total Cost 

(BDT crore)

Unit Cost (BDT)

Capacity charge (BDT crore)






FY 2021-2022

619.93

219.44

3.54

78.82

FY 2020-2021

605.48

203.98

3.37

71.09

FY 2019-2020

440.52

172.60

3.92

71.67

FY 2018-2019

474.11

145.26

3.06

67.12

FY 2017-2018

381.56

140.48

3.68

73.25

FY 2016-2017

402.95

125.71

3.12

64.78

FY 2015-2016

553.75

151.61

2.74

66.57

FY 2014-2015

593.04

153.35

2.59

65.38

FY 2013-2014

543.26

143.88

2.65

64.34

FY 2012-2013

584.09

146.47

2.51

62.92

FY 2011-2012

589.43

142.43

2.42

58.29

FY 2010-2011

651.62

148.13

2.27

58.71

FY 2009-2010

635.52

140.30

2.21

56.35

FY 2008-2009

281.15

55.82

1.99

21.62

Total

7356.42

2089.46

2.84

880.90

Environment

Despite their efficiency and reduced costs, dual-fuel gas engines can have negative environmental impacts due to their reliance on fossil fuels like natural gas and diesel. Although natural gas is cleaner than diesel, it still releases pollutants into the atmosphere, contributing to air pollution and climate change. The extraction and transportation of natural gas can also result in methane leaks, further exacerbating environmental issues. Proper regulation and adopting cleaner alternatives like electric or hydrogen-powered engines are crucial for addressing these issues. As Shahjibazar's 86 MW power plant uses DFG as its fuel, it contributes much to polluting the environment. To date, no EIA report has been found. 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). But, to date, an IEE or EIA report has yet to be conducted for the power plant. According to the environmental conservation rule 2023 the project falls in the “Orange” indicating it as a moderate harmful project for the environment (MOEFCC 2023).


Criticism

No publicly available Environmental Impact Assessment (EIA) report for the project could be identified. Consequently, the environmental compliance status of the power plant remains unclear in the public domain. In addition, continued reliance on natural gas for electricity generation contributes to greenhouse gas emissions and dependence on fossil fuels (IPCC, 2022).


References

 
 
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