Bangladesh govt procures electricity from Banskhali Coal Power Plants
POWER & RENEWABLE ENERGY

Bangladesh govt procures electricity from Banskhali Coal Power Plants

The Bangladesh government is preparing to purchase 500 MW of electricity from the under-construction Banskhali Coal Power Plant starting from June 13. The plant is owned by the Bangladeshi conglomerate S Alam Group, SEPCO III Electric Power Construction Corporation, and HTG Development Group from China. This project is part of China's Belt and Road Initiative (BRI).

To address the ongoing power crisis, the government will also purchase approximately 400 MW of electricity from the second unit of the Adani Power Plant, which is currently in the testing phase, before the end of this month.

Furthermore, the Power Cell Director General, Mohammad Hossain, stated that an additional 5 per cent or 400 MW of electricity will be obtained from liquefied fuel-based power plants starting the following week. This increase aims to support industrial, commercial, and residential consumers across the country.

Regarding the Banskhali Coal Power Plant, a senior official from the Bangladesh Power Development Board (BPDB) mentioned that although the commercial operation date (COD) for the plant has not been finalised, the government urgently requires power and is expected to receive around 500 MW of electricity soon. The official also mentioned that the payment for the electricity will be based on a "no electricity, no payment" policy. Currently, 200 MW of electricity is being received from this plant.

The Power Purchasing Agreement (PPA) initially projected the COD for the Banskhali plant to be on November 16, 2019, but due to construction delays, the sponsors incurred a penalty of Tk 2.00 billion (US$24 million) on July 12, 2020. They were subsequently granted a two-year extension, allowing them to complete the project by December 2022.

In addition to the Banskhali plant, the second unit of the Adani Power Plant is expected to supply around 400 MW to 500 MW of electricity from the last week of June 2023. If all goes as planned, this additional capacity, along with other power generation projects, will contribute approximately 1,500 MW to the national grid, alleviating the current power shortage.

Officials from the Bangladesh Power Development Board (BPDB) have projected the country's highest power demand to reach 14,500 MW, while the highest power generation capacity is expected to be 12,677 MW, resulting in a shortage of approximately 1,741 MW.

Despite the recent reduction in temperature due to rain, excessive load shedding persists across the country, with power supply remaining low. Rural areas experience more frequent power cuts compared to urban areas, especially in the capital city of Dhaka and other major cities. Some rural areas report power outages lasting over 12 hours per day.

The Godda Power Plant in India, established by the Adani Group, was designed to exclusively supply electricity to Bangladesh with its 1,600 MW capacity coal-fired power plant. The first 800 MW unit began commercial operation in March, while the second unit is currently undergoing testing and generates between 50 MW and 100 MW daily.

Currently, only 49 out of 153 power plants are operating at full capacity, with 53 of the remaining 104 plants shut down for maintenance, rehabilitation, or due to fuel shortages (gas or coal) caused by a dollar crisis. These 53 plants have a combined capacity of 4,930 MW. Among the remaining 51 plants, which have the capacity to produce 7,855 MW, only 3,568 MW is being generated due to fuel shortages.

The Bangladesh government is preparing to purchase 500 MW of electricity from the under-construction Banskhali Coal Power Plant starting from June 13. The plant is owned by the Bangladeshi conglomerate S Alam Group, SEPCO III Electric Power Construction Corporation, and HTG Development Group from China. This project is part of China's Belt and Road Initiative (BRI).To address the ongoing power crisis, the government will also purchase approximately 400 MW of electricity from the second unit of the Adani Power Plant, which is currently in the testing phase, before the end of this month.Furthermore, the Power Cell Director General, Mohammad Hossain, stated that an additional 5 per cent or 400 MW of electricity will be obtained from liquefied fuel-based power plants starting the following week. This increase aims to support industrial, commercial, and residential consumers across the country.Regarding the Banskhali Coal Power Plant, a senior official from the Bangladesh Power Development Board (BPDB) mentioned that although the commercial operation date (COD) for the plant has not been finalised, the government urgently requires power and is expected to receive around 500 MW of electricity soon. The official also mentioned that the payment for the electricity will be based on a no electricity, no payment policy. Currently, 200 MW of electricity is being received from this plant.The Power Purchasing Agreement (PPA) initially projected the COD for the Banskhali plant to be on November 16, 2019, but due to construction delays, the sponsors incurred a penalty of Tk 2.00 billion (US$24 million) on July 12, 2020. They were subsequently granted a two-year extension, allowing them to complete the project by December 2022.In addition to the Banskhali plant, the second unit of the Adani Power Plant is expected to supply around 400 MW to 500 MW of electricity from the last week of June 2023. If all goes as planned, this additional capacity, along with other power generation projects, will contribute approximately 1,500 MW to the national grid, alleviating the current power shortage.Officials from the Bangladesh Power Development Board (BPDB) have projected the country's highest power demand to reach 14,500 MW, while the highest power generation capacity is expected to be 12,677 MW, resulting in a shortage of approximately 1,741 MW.Despite the recent reduction in temperature due to rain, excessive load shedding persists across the country, with power supply remaining low. Rural areas experience more frequent power cuts compared to urban areas, especially in the capital city of Dhaka and other major cities. Some rural areas report power outages lasting over 12 hours per day.The Godda Power Plant in India, established by the Adani Group, was designed to exclusively supply electricity to Bangladesh with its 1,600 MW capacity coal-fired power plant. The first 800 MW unit began commercial operation in March, while the second unit is currently undergoing testing and generates between 50 MW and 100 MW daily.Currently, only 49 out of 153 power plants are operating at full capacity, with 53 of the remaining 104 plants shut down for maintenance, rehabilitation, or due to fuel shortages (gas or coal) caused by a dollar crisis. These 53 plants have a combined capacity of 4,930 MW. Among the remaining 51 plants, which have the capacity to produce 7,855 MW, only 3,568 MW is being generated due to fuel shortages.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement