PDB to resume operating oil-fired power plants

Dhaka (Platts)–4 May 2012/ 4:26 am EDT/826 GMT 

Bangladesh plans to resume operating the oil-fired power plants, which it closed early March, after increasing tariff rates for the electricity to be produced by these plants, the Bangladesh Power Development Board chairman said Friday.

“We are hoping to provide uninterrupted and reliable electricity at a tariff similar to our generation costs for oil-fired power plants,” BPDB chairman A S M Alamgir Kabir said.

Kabir said it currently costs Taka 16-20 ($0.19-0.24)/kWh to generate electricity from oil-fired power plants, Taka 2-3/kWh from gas-fired power plants, Taka 4-5/kWh from coal-fired plants and Taka 1/kWh from hydro-power plants.

BPDB’s average electricity selling rate for bulk consumers is Taka 4.02/kWh.

BPDB has submitted a proposal to the country’s energy regulator for higher electricity tariff for power produced from the oil-fired power plants, he said.

As on May 3, 2012, Bangladesh had shut 23 oil-fired power plants — 13 HSFO-fired and 10 gasoil-fired power plants — with a total generation capacity of 1,400 MW.

Due to fast-depleting natural gas resources, Bangladesh had launched a drive to increase the number of oil-based power plants in the country from mid-2010, commissioning work on nearly three dozen new oil-based power plants to be built by 2012.

Bangladesh’s overall electricity demand is now over 6,500 MW.

–Mohammad Azizur Rahman