Energy and Power Sector

Merchant Power Plant

Government of Bangladesh (GoB) has adopted "Policy Guidelines for Enhancement of Private participation in the Power Sector, 2008" in order to augment generation capacity on priority basis. GoB intends to promote private investors to set up Commercial Power Plants/ Merchant Power Plant (MPP) to
(i) supply electricity to large consumers on mutually negotiated tariffs; and
(ii) supply electricity to the Distribution Licensees at tariffs determined by the Bangladesh Energy Regulatory Commission (BERC).
One of the major initiatives resulting from the energy industry restructuring process is the evolution of the Merchant Power Plant. Merchant plants are defined as power generation facilities that sell all or a portion of their output in a competitive market, without the benefit of long-term contracts to provide a stable revenue stream. Merchant power plants can provide the additional power that Bangladesh needs now and will need in the future.

LNG Terminal
Considering the country's on-going and future gas crisis the government plans to install an LNG terminal in the Bay of Bengal for import of gas, preferably near the off-shore Sangu gas field system. The terminal will help in the easy off-loading of imported LNG into the national gas systems. The terminal should have the capacity to transmit 3.5 million tonnes of LNG and might cost around one billion dollars.

Bibiyana 2 and Meghnaghat 2 (330-450 MW)
Bangladesh Government has taken decision to install two large gas-fired combined cycle power plants with a capacity ranging between 300 MW to 450 MW for Bibiyana-2 and Meghnaghat-2 to develop a 330-450 MW (natural gas run) combined cycle power plant. The Project will be implemented on Build, Own and Operate ("BOO") basis pursuant to a 22-year Implementation Agreement. The estimated investment for such power plant would be around $600 m.

Medium Scale Power Plants
There will be a 150 MW plant in Bhola. The Bhola Plant will use gas from a small gas field discovered nearby. In addition two peaking power plants having electricity generation capacity of 100 MW each will be made in Kaliakoir and Savar aimed at catering to industrial needs, especially for the tannery industries. Both of these plants must have duel fuel capacity so that they operate both on Gas and Oil.

Four Coal Fired Power Plants
Government of Bangladesh has decided to go for four coal-fired power plants each of 500 MW in Meghnaghat, Zajira, Khulna and Chittagong region. The government intends to use supercritical pressure technology for plants to ensure least greenhouse gas emission, while the financing will be done on the basis of public-private partnership. The coal plants will need three billion dollar investment. Coal would be imported from overseas unless Bangladesh's own coal fields can produce enough for these plants. Coal will be transported through waterways.