Power Cell receives EoIs from 15 local, int'l firms
Friday, 27 July 2007
The Power Cell Thursday received Expression of Interest (EoI) from about 15 local and international firms responding to its move to set up rental power plants across the country in the private sector, reports UNB.
Official sources said these firms evinced interest to instal plants having total capacity of approximately 1,500 MW. Each of the proposed plants' capacity varies from 50 MW-300 MW.
As per conditions set by the government, the firms will have to instal the plants by February 2008 and the government will purchase electricity for next three years.
Of the firms, 10 are international ones which directly submitted their EoIs while five local firms submitted EoIs on behalf of their principal companies.
Three firms from the USA, two from the UK, and one each from Singapore, Ukraine, the UAE, India and Malaysia have submitted the EoIs directly while five local firms submitted the EoIs saying that they would bring the plants from their respective principals in India, Russia and Ukraine.
The firms mentioned that they have in possession ready power plants, which are either barge or skid or trailer mounted.
The sources said that although the Power Cell is proceeding with the rental power plant project, it would have to face lot of problems in carrying out the project.
Firstly, the Power Cell is yet to determine suitable locations to instal these huge capacity plants.
Sources said these plants would require such locations where the national power grid and gas transmission lines are available.
Secondly, these plants will consume a huge quantity of gas, which is also not available right at the moment.
The industry insiders are also critical of the rental power plant project and they raised questions about the move.
They said these rental power plants might be suicidal for the power sector and hamper the caretaker government's efforts to buy electricity from the captive power plants already set up by local entrepreneurs.
The tariff of the proposed plants would be relatively higher than the land-based power plants, they added.
Official sources said these firms evinced interest to instal plants having total capacity of approximately 1,500 MW. Each of the proposed plants' capacity varies from 50 MW-300 MW.
As per conditions set by the government, the firms will have to instal the plants by February 2008 and the government will purchase electricity for next three years.
Of the firms, 10 are international ones which directly submitted their EoIs while five local firms submitted EoIs on behalf of their principal companies.
Three firms from the USA, two from the UK, and one each from Singapore, Ukraine, the UAE, India and Malaysia have submitted the EoIs directly while five local firms submitted the EoIs saying that they would bring the plants from their respective principals in India, Russia and Ukraine.
The firms mentioned that they have in possession ready power plants, which are either barge or skid or trailer mounted.
The sources said that although the Power Cell is proceeding with the rental power plant project, it would have to face lot of problems in carrying out the project.
Firstly, the Power Cell is yet to determine suitable locations to instal these huge capacity plants.
Sources said these plants would require such locations where the national power grid and gas transmission lines are available.
Secondly, these plants will consume a huge quantity of gas, which is also not available right at the moment.
The industry insiders are also critical of the rental power plant project and they raised questions about the move.
They said these rental power plants might be suicidal for the power sector and hamper the caretaker government's efforts to buy electricity from the captive power plants already set up by local entrepreneurs.
The tariff of the proposed plants would be relatively higher than the land-based power plants, they added.