REB signs two purchase deals with captive power producers
Monday, 11 June 2007
FE Report
The state-owned Rural Electrification Board (REB) Sunday signed two separate agreements with two captive power producers to purchase about seven megawatts (MW) of electricity during peak hours.
The deals were first ever on the purchase of the captive power between private and public entities.
The Meghna Energy Ltd (MEL) will supply electricity around four MW, while the S Alam Power Plant Ltd (SAPP) three MW during peak hours to REB-owned Narayanganj Palli Biddut Samiti (PBS) and Chittagong PBS respectively. Under the agreements, the MEL and the SAPP will supply electricity at least one MW and two MW respectively to the national grid during the off-peak hours.
The REB Secretary Motija Begum signed the power purchase and sales agreements (PSA) with the MEL general manger Ashraful Amin and SAPP managing director Abdus Samad at a function at the REB office at Nikunja in the city Sunday.
Speaking at the function as the chief guest, the energy and power adviser Tapan Chowdhury termed the electricity purchase from the captive power units a significant event.
"Small quantity though, the initiation of electricity purchase from captive power units will be a milestone for Bangladesh," the energy and power adviser said.
He also urged other captive power producers to come up and help the government tackling the nagging electricity crisis.
The issues like tariff structure, tenure of contracts and license could be settled through discussion, if necessary, he added.
Talking about Sunday's signing of agreements with two entrepreneurs, the REB Chairman Habibullah Majumder said: "This is just the beginning of the utilisation of captive powers to ease the countrywide electricity crisis."
Negotiations with five more entrepreneurs are almost at the final stage and 11 more are in the pipeline for signing similar contracts, the REB chairman said.
Electricity supply of 25MW-30MW could be added to the national grid from captive power generations within next three months, he hoped.
The government adopted the first-ever captive power policy (CPP) within one month after coming to power in January 2007.
The previous four-party alliance government initiated the move to bring captive power in the national grid but failed due to the absence of necessary policy measures, it was alleged.
Considering the country's existing power crisis a number of textile factories are also interested to supply electricity to the national grid from their captive power units provided a few changes are made in the existing CPP, a senior Power Division official said.
The state-owned Rural Electrification Board (REB) Sunday signed two separate agreements with two captive power producers to purchase about seven megawatts (MW) of electricity during peak hours.
The deals were first ever on the purchase of the captive power between private and public entities.
The Meghna Energy Ltd (MEL) will supply electricity around four MW, while the S Alam Power Plant Ltd (SAPP) three MW during peak hours to REB-owned Narayanganj Palli Biddut Samiti (PBS) and Chittagong PBS respectively. Under the agreements, the MEL and the SAPP will supply electricity at least one MW and two MW respectively to the national grid during the off-peak hours.
The REB Secretary Motija Begum signed the power purchase and sales agreements (PSA) with the MEL general manger Ashraful Amin and SAPP managing director Abdus Samad at a function at the REB office at Nikunja in the city Sunday.
Speaking at the function as the chief guest, the energy and power adviser Tapan Chowdhury termed the electricity purchase from the captive power units a significant event.
"Small quantity though, the initiation of electricity purchase from captive power units will be a milestone for Bangladesh," the energy and power adviser said.
He also urged other captive power producers to come up and help the government tackling the nagging electricity crisis.
The issues like tariff structure, tenure of contracts and license could be settled through discussion, if necessary, he added.
Talking about Sunday's signing of agreements with two entrepreneurs, the REB Chairman Habibullah Majumder said: "This is just the beginning of the utilisation of captive powers to ease the countrywide electricity crisis."
Negotiations with five more entrepreneurs are almost at the final stage and 11 more are in the pipeline for signing similar contracts, the REB chairman said.
Electricity supply of 25MW-30MW could be added to the national grid from captive power generations within next three months, he hoped.
The government adopted the first-ever captive power policy (CPP) within one month after coming to power in January 2007.
The previous four-party alliance government initiated the move to bring captive power in the national grid but failed due to the absence of necessary policy measures, it was alleged.
Considering the country's existing power crisis a number of textile factories are also interested to supply electricity to the national grid from their captive power units provided a few changes are made in the existing CPP, a senior Power Division official said.