Small power plants fail to meet generation deadline

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M Azizur Rahman
Most small independent power plants (SIPPs) and rental power plants (RPPs) that got approval during the past caretaker government to generate electricity are yet to come into operation despite extending deadline twice, officials said Saturday.
A senior energy ministry official said many of the defaulting companies took court protection to avoid punitive measures from the government following their failure to initiate electricity generation in time.
The government is, however, sitting on a proposal for scrapping contracts with the errant ones.
The state-owned Bangladesh Power Development Board (BPDB) has suggested the power ministry for scrapping deals of the defaulting companies as the ministry decided in principle not to allow any more time.
The BPDB has the right to scrap deals with defaulting companies as the contracts signed
between the concerned power plant companies with the BPDB contain the provision that reads as, 'BPDB shall have the right to terminate the contract' if a company fails to instal plants within the stipulated time.
A senior BPDB official said only few of the SIPPs and RPPs have recently kicked off electricity generation from their plants though almost all of them missed the commercial operation dates (CODs) as was stipulated in the contract.
It was only the Doreen Power that could initiate electricity generation in time from its Tangail 22 megawatts (mw) SIPP, said the official categorically.
"We have sought penalty at US$500 a day from every defaulting companies for their failure in initiating electricity generations. They are supposed to pay the penalty every day until initiation of their commercial operation from the very first day of the CODs," the BPDB official said.
But only the Singapore-based Aggreko International, that initiated electricity generation from its Khulna 40mw RPP, paid the penalty in full worth US$30,000 for its failure to go into operation within the stipulated time, said the BPDB official.
Many of the errant companies have won court injunction against the BPDB's move to penalise them, the BPDB official added.
The caretaker government had approved installation of ten SIPPs and RPPs at high-cost to address the nagging power crisis within the shortest possible time.
The SIPPs were supposed to generate a total of 268 mw of electricity, while the RPPs around 500mw.
But these plants have failed to generate even one-fourth of its committed 180mw in total, an energy ministry official alleged.
Currently the country is reeling under an acute electricity crisis with the generation hovering around 3,500mw against the peak hour demand for over 5,500mw.
The SIPPs that got approval for electricity generation include Ullapara 10mw, Hobiganj 10mw, Feni 20mw, Maona 30mw, Mohipa 10mw, Narsingdi 22mw, Barabkunda 20mw, Rupganj 30mw and Jangalia 30mw.
The RIPPs include Bogra 20mw, Fenchuganj 50mw, Ashuganj 50mw and Bhola 30mw, Shahjibazar 80mw, Kumargaon 10mw and Fenchuganj 50mw.
Sponsors of the SIPPs include Summit Power Ltd, Asian-Entech Power Corporation Regent Power Ltd, Energypac-Confidence Ltd and Saiham Power Ltd.
The RPP sponsors include Energy Prima consortium that consists local Energy Prima and Hosaf Meter along with Russia's Geo-Spectrum group, Aggreko International Projects Ltd, Indonesia-based Kaltimex Energy, Venture-GBB Energy and Desh Energy Ltd.