Shikalbaha 55 MW (Energies) HFO Power Plant
- 7 days ago
- 4 min read
Current Status: Retired
Source: Zobaer Hossain Sikder
Shikalbaha 55 MW Furnace Oil Power Plant, also known as Energis 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 Energis 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. But 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. Plant uses 6 MAN B&W 9L 58/64 HFO engines + 2 Hangzhou steam turbines (Chinese) = 73.8 MWe cogeneration design. Source: ZoomInfo/Energis Power Corporation profile (ZoomInfo 2026).
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 seeked to sell its 55-megawatt (MW) power plant, which had been idle since July 2019 (TBS, 2020).
Land Acquisition
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 (DS, 2009).
Fuel Supply
Bangladesh Petroleum Corporation (BPC) was the fuel supplier of Shikalbaha 55 MW power plant (BCL, 2014).
Power Generation
Total power generation from 2009-10 to 2019-20 was 1,655.05 gWh.
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). But, to date, an IEE or EIA report has yet to be conducted for the power plant. 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 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 a number of 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 in order to make up the funding gap. For the months of 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). 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).
Capacity Charge
BPDB had to pay the sponsor BDT 684.73 crore as a daily capacity charge till 2019-20. Per unit average cost was BDT 13.35 and total cost is 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
Alamgir, N. U. (2009). “2nd 73.8MW rental plant to start power generation in Nov”. The daily star: October 14, 2009.
Aman, A. F. M. S. (2014) “Feasibility Study Of Gas Based power plant Under Private Sector”. Buet Central Library: June 2014.
MOEFCC (1997). ‘The Environmental Conservation Rules’. Ministry of Environment, Forest and Climate Change (MOEFCC): 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
Rasel, A. R. (2013) “Shikalbaha rental plant may get extension”. Dhaka Tribune: 11 October, 2013.
Tuhin, A. H. (2020). “Shasha Denims to sell 55 MW power plant”. The Business Standard: 16 June, 2020.
ZoomInfo. “Energis Power Corp: Overview, news & similar companies”. Retrieved May 20, 2026.