Gas-based plant to replace four old power units at Ashuganj

FHM Humayan Kabir

The government will set up a 450-megawatt (MW) gas-based power plant at Ashuganj, replacing the four old and inefficient units, having an aggregate generation capacity for 274 MW, to help boost supply of electricity, officials said Thursday.

Power Division officials said they have already taken up a project at an estimated cost of Tk34 billion to install the 450MW combine cycle power station by the fiscal year (FY) 2014-15.

The state-owned Ashuganj Power Station Company Ltd. (APSCL) will set up the gas-based power station. The company last month invited tenders from the international bidders.

"As the efficiency of the older power generation units has declined significantly, it has become necessary to replace those units," a senior company official told the FE.

The generation of electricity per day by the four units has dropped to 67 per cent of their capacity while they continue to consume 27 per cent more natural gas than what is normally required for generating the same amount of electricity because of their older age.

APSCL is the second largest power station in Bangladesh, having a total 642MW generation capacity at its eight units. The company meets about 15 per cent of the country's total electricity load.

A senior APSL official said out of three power units each having 150MW capacity, generation of two has dropped to 100MW and 140MW daily, that of two more of 56 MW-capacity each, fell to 40MW and one of 36MW-capacity to 20MW a day.

Three other units, each having 64MW, 64MW and 150MW capacity, have been performing up to the expectation, the official said.

Being one of the lowest-level electricity consumer countries among the developing economies, Bangladesh has been facing a severe energy shortfall in a situation where its annual power demand growth is expanding at a rate of nearly eight per cent.

Industrial growth, business expansion and fast rate of urbanisation over the years have been the major reasons for the surging demand growth.

The supply situation has not improved much over the last one decade or more, leading to the current demand-supply mismatch.

The APSCL official said the Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have already assured the government of providing funds for the power generation project at Ashuganj.

"We have sent the project proposal to the Planning Commission for getting approval of the government's highest economic policy-making body, -- Executive Committee of the National Economic Council (ECNEC)," he said.

"In the meantime, we have floated the tenders to expedite the process for setting up of the power plant at our existing premises at Ashuganj," the official said.

"If we set up the 450MW plant, our power supply will be more reliable and sustainable," he added.

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