M AZIZUR RAHMAN | April 28, 2020
Most of the ‘expensive’ oil-fired power plants are shut now due to lower electricity demand amid the ongoing countrywide shutdown to combat coronavirus pandemic.
According to the state-run Bangladesh Power Development Board (BPDB), all diesel-fired power plants, having the total generation capacity of 1,140 megawatts (MW), are now shut along with a good number of furnace oil-fired ones.
The BPDB has asked the plant owners to keep majority of the oil-fired power plants shut to save the entity from counting huge payment for electricity purchase. Some other power plants are under maintenance.
The board, however, has to count capacity payment, which it will have to pay to the power plant owners under a contractual obligation as ‘incentives’ for keeping their plants idle.
Capacity payment is a sort of penalty for the BPDB that it has to pay to the plant owners, if the government fails to buy a certain portion of power readily available with them.
As per power-purchase agreements, this penalty is calculated on the basis of around 40 per cent plant factor of the power plants, including the oil-fired rental and quick-rental ones.
Electricity generation across the country fell by around 33 per cent on an average to around 6,000 MW due to demand fall. Most of the industries, offices and businesses are shut now to check spread of the coronavirus pandemic.
According to the BPDB statistics, the countrywide electricity generation during the day peak hours was around 6,070 MW on Sunday, which is around 33 percent less than the generation during pre-holiday period of 9,000 MW. Peak electricity generation was around 7,256 MW on the day.
The day peak and evening peak electricity generation is almost one-third of the country’s overall electricity generation capacity of around 19,580 MW.
However, the less the electricity generation, the less subsidy the BPDB will require from the government, said sources.
The BPDB is the lone buyer of electricity from the power producers across the country. It then sells electricity to the distribution companies that supply it to the end users.
The country’s electricity generating plants run on various energy sources, including natural gas, furnace oil, diesel, coal, hydro and renewable.
Currently, the electricity generation cost at a gas-fired independent power producer (IPP) plant is below Tk 3.0 per unit (1.0 kilowatt-hour).
The cost at a state-run gas-fired power plant is around Tk 3.0 per unit, and at a gas-fired rental power plant around Tk 4.0 per unit.
The electricity generation cost at a government-owned furnace oil-fired power plant is Tk 13-16 per unit, at a rental or quick rental power plant Tk 9.5-13 per unit, and at an IPP plant Tk 9.0-14 per unit.
The electricity generation cost at a diesel-fired power plant ranges between Tk 15-33 per unit.
The cost at the lone hydropower plant – Kaptai – is below Tk 2.5 per unit.
Contribution of renewable energy in the country’s overall electricity generation is very nominal.
