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[🇧🇩] Energy Security of Bangladesh

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[🇧🇩] Energy Security of Bangladesh
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How China’s green energy strategy can inspire Bangladesh

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China’s model of incentivising renewable energy infrastructure development could be replicated in Bangladesh, encouraging private and public sector investment. PHOTO: REUTERS

China has emerged as a global leader in the green energy sector, making significant strides in transitioning to renewable and sustainable energy sources. This is a crucial part of China's environmental goals and commitment to achieving carbon neutrality by 2060.

Over the past decade, the country has invested heavily in green technologies, such as solar, wind and hydropower, while reducing its reliance on coal. In 2024, China became home to the world's largest solar and wind energy capacities as well as the largest electric vehicle market.

Additionally, it is a major player in the manufacturing of solar panels, wind turbines, and energy storage systems. China's leadership in addressing domestic environmental challenges is positioning the country as a key influence in global environmental policies and technologies.

A central strategy behind the success in green energy is aggressive investment in renewable energy infrastructure. For example, tax breaks and low-interest loans for solar and wind energy companies have spurred innovation and growth. Alongside investments in energy production, China has developed an extensive electric vehicle network to reduce emissions from transportation, one of the largest sources of pollution in the country.

Sichuan Shudao Equipment and Technology Co, a leading company in the renewable energy sector, has made significant strides in promoting green technology, especially in wind and solar energy. The company develops and manufactures advanced equipment for clean energy generation. Its expertise in wind turbine production and solar panel efficiency has positioned it as a prominent player in China's green energy transition, contributing to the country's goal of reducing carbon emissions.

Sichuan Shudao excels in the development of high-efficiency wind turbines, with innovations that increase energy output and lower operational costs, making wind energy more competitive. Its turbines are designed for both onshore and offshore applications, expanding the potential for wind power generation. This technology could also serve as a valuable model for Bangladesh, as we are looking to diversify the energy mix and reduce our environmental footprint.

The company has also advanced solar energy solutions by developing high-performance solar panels using innovative materials and production techniques. These are now deployed in large-scale projects, including solar farms that power entire regions.

Sichuan Shudao is also exploring energy storage solutions to ensure solar energy availability even when sunlight is scarce. This combined focus on generation and storage is key to creating a reliable renewable energy supply.

For countries like Bangladesh, which experience high sunlight levels but face energy access challenges, taking a leaf out of Sichuan Shudao's book on solar technologies could be crucial in meeting the growing demand for clean energy.

With deteriorating environmental conditions, China's green energy methods could provide significant guidance to Bangladesh, which has long struggled with poor air quality, particularly in Dhaka, where pollution levels rank among the worst in the world. This has caused public health issues, including respiratory diseases, cardiovascular problems, and premature deaths.

Additionally, Bangladesh's reliance on coal and fossil fuels significantly contributes to its carbon footprint. Shifting to renewable energy could reduce pollution and decrease dependence on fossil fuels. By taking inspiration from China's green energy strategies, Bangladesh could design measures to reduce its reliance on coal and natural gas. With abundant sunlight and wind resources, the country has the potential to harness these renewable sources.

China's model of incentivising renewable energy infrastructure development could be replicated in Bangladesh, encouraging private and public sector investment. Offering tax incentives for solar panel installation or wind farm development could promote the widespread adoption of these clean energy sources. By investing in energy storage, Bangladesh could ensure renewable energy availability even during low-production periods. Shifting towards green energy would significantly improve air quality, with a reduction in coal-fired power plants and the widespread adoption of electric vehicles.

Furthermore, Bangladesh could learn from China's "green manufacturing" initiatives, where industries are retrofitted with energy-efficient technologies to reduce emissions.

In short, China's leadership in green energy offers a model that Bangladesh could follow to address its air quality issues. By investing in renewable energy, energy storage, and green technologies, Bangladesh could reduce its environmental footprint, improve public health, and build a sustainable energy future. Through targeted policies, incentives, and long-term investments, Bangladesh could not only address air quality problems but also contribute to global climate change efforts.

Naziba Basher is a journalist at The Daily Star.​
 

Petroleum fuel prices to remain unchanged in April
UNB
Published :
Mar 31, 2025 21:46
Updated :
Mar 31, 2025 21:46

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Prices of the petroleum fuels will remain unchanged for the month of April.

As per an announcement of the Energy and Mineral Resources Division, the retail prices of fuel in the country will remain unchanged as per the existing price structure.

Accordingly, the prices of both diesel and kerosene will remain at Tk 105 per liter, octane at Tk 126.00 per liter, and petrol at Tk 122.00 BDT per liter.

These prices will be effective from April 1, 2025.

An order of the Energy and Mineral Resources Division said that the decision was taken to ensure the supply of fuel at a comparatively affordable price for April 2025, in line with the pricing formula that adjusts fuel prices automatically every month based on fluctuations in the global markets.​
 

Govt should hold power-sector foul players to account
30 March, 2025, 00:00

TWO major coal-run power plants — the Rampal power plant owned by a joint venture of Bangladesh’s state-owned Power Development and India’s state-owned National Thermal Power Corporation and the Payra plant owned by a joint venture of Bangladesh’s state-owned North-West Power Generation Company Ltd and China’s state-owned China National Machinery Import and Export Corporation — having blown up their bill by Tk 41.25 billion, as a Power Development Board assessment has found, is worrying. Rampal, owned by the Bangladesh-India Friendship Power Company Ltd, has inflated the bill by Tk 24.78 billion for the 2024 financial year and Payra, owned by Bangladesh-China Power Company, by Tk 15.34 billion for the period of May 2020–June 2023. The overbilling was found when the Power Development Board prepared the assessment in September–November 2024 after the Awami League, which had governed the country in an authoritarian manner for more than a decade and a half, was overthrown in a mass uprising in August that year. There had been no objective evaluation of the financial deals of the power plants during the Awami League’s tenure, when 124 power plants were set up, all in an unsolicited manner.

Eighty-seven privately-owned and two joint-venture power plants, involving the state-owned Power Development Board, were set up during the tenure of the Awami League that have burdened the power board with an overall loss of more than Tk 860 billion. Energy experts say that the findings show how deep the root of financial scams in the power sector is. The case is more serious with private power plants as the producers have had a free rein to do what they liked during the Awami League’s tenure. The Power Development Board on November 21, 2024 notified Bangladesh-India Friendship Power Company of eight discrepancies in its 2023–2024 financial account. The over-billing includes a mismatch of Tk 8.86 billion in energy payment and a mismatch of more than Tk 5.63 billion in return on equity. Bangladesh-China Power Company has submitted an audited account of Tk 218.66 billion in capacity and energy payment for three years since the power plant’s initial operation began on May 15, 2020. The billing demanded more than Tk 75.22 billion in capacity payment, which the power board finds to have been blown up by more than Tk 13.33 billion. Such over-billing appears to have strained the power sector.

The government should, therefore, hold to account the quarters within and outside the public agency for the over-billing in the cases at hand. It should also investigate cases of other power producers to see if there are any issues therein. Finally, it should put in place a mechanism to stop recurrence of such malpractice.​
 

Japan's JERA-acquired gas-fired Meghnaghat plant
Pressure on govt to allow operation, risking capacity payment
Two others already on stand-by there for constraints

M AZIZUR RAHMAN
Published :
Mar 30, 2025 00:22
Updated :
Mar 30, 2025 00:22

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Now pressure builds on the interim government to approve commercial operation date (COD) of a third large LNG-fired power plant at Meghnaghat although the current infrastructure lacks ability to keep it operational alongside already-approved two such plants.

The past Awami League government had previously approved the two similar unsolicited power plants at the Meghnaghat site -- and under contracts that provide for the much-talked-about capacity payment from the exchequer even if no power is produced or purchased.

After several failed attempts by the Meghnaghat 718-megawatt power-plant owner, Japanese energy-biggie JERA, to attain a COD, the Ministry of Economy, Trade and Industry of Japan recently wrote to adviser Muhammad Fouzul Kabir Khan of the Ministry of Power, Energy and Mineral Resources (MPEMR) to have the COD fixed at the earliest, said sources.

They said the incumbent government is now obligated to approve the COD risking the state-run Bangladesh Power Development Board (BPDB) to count capacity-payment burdens although the power board subsequently won't be able to take electricity for supplying to consumers due to the country's perennial gas crisis and pipeline bottlenecks, market insiders said.

"It is the burden left by the previous authoritarian Awami League government that awarded numerous power plants under unsolicited deals without considering feasibility," a senior BPDB official told The Financial Express.

Most of these power plants were awarded on the basis of unsolicited offers under the now-defunct Speedy Supply of Power and Energy (Special Provision) Act 2010 which had a provision of immunity to those involved with the quick-fix remedies.

State corporation Petrobangla, which was 'made to commit' supplying natural gas to the gas-fired power plants, doesn't have sufficient gas to run the existing gas-fired power plants, says a senior Petrobangla official.

Petrobangla is currently being able to supply only half of the volume of gas required for feeding the gas-guzzling power plants, to the tune of around 1,034 million cubic feet per day (mmcfd), against a total requirement of 2,420 mmcfd, according to official data as on March 24, 2025.

"JERA has already completed all necessary work and is awaiting the opportunity to conduct the final commissioning test, which requires about 10 days' gas supply. However, they have been on hold for more than two and a half months for the commissioning of the final test," the METI letter reads.

The letter is signed jointly by Shirai Toshiyuki, director of international affairs division, agency for natural resources and energy of the MRTI, and Shimano Toshiyuki, director of South East Asia office of Trade Policy Bureau of the METI.

"Further delays in gas supply would incur additional cost for the project and undermine its effectiveness. This type of negative information can spread quickly among investors and dampen their sentiment towards Bangladesh," says the METI letter.

JERA acquired the Meghnaghat 718-MW power plant from Indian conglomerate Reliance and carried out a test run of its power plant in late October but did not get sufficient natural gas to initiate operation.

Since 2019, according to market insiders, the Japanese firm, JERA, has invested $1.0 billion in the project.

The Japan Bank for International Cooperation, a Japanese private development bank like JICA, and the Asian Development Bank have investments in the 718-MW JERA Meghnaghat Power Limited.

Japanese Mizuho Bank, SMBC, MUFG and Societe Generale-all backed by the Nippon Export and Investment Insurance-also invested in the project.

The project has secured major equipment from General Electric (GE), and Samsung C&T Corporation built the power plant as engineering, procurement and construction (EPC) contractor.

When contacted, Smitesh Vaidya, head of contracts & commercial at JERA Meghnaghat Power Ltd, said, "The power plant is just a few days away from achieving commercial operations, subject to uninterrupted gas supply.

"The project has been strongly supported by JERA as sponsor as well as by development- finance institutions, including the Asian Development Bank and the Japan Bank for International Cooperation."

He adds: "We had requested support from the ministry and the BPDB to ensure the COD of the project by the end of December 2024."

He assures that they look forward to making "a significant contribution to the Bangladesh power grid through the state-of-the-art technology, highly efficient turbines and competitive tariff".

Although the project has yet to get COD due to inadequate gas supply, two adjacent gas-fired combined-cycle power plants (CCPPs) -- Summit's Meghnaghat 589-MW CCPP and Unique Meghnaghat 584-MW CCPP -- attained CODs during late April and late January respectively last year.

But, due to gas scarcity and pipeline constraints, both these two power plants are kept idle, mounting a capacity burden on the BPDB.

Sources said the BPDB inked a power-purchase agreement (PPA) in 2019 to buy electricity from the 718-MW plant for 22 years at a levelised tariff rate of 7.3123 US cents (Tk 5.84) per kWh.

State-run Power Grid Company of Bangladesh (PGCB) could not construct six necessary substations, which is necessary for evacuating electricity from the three LNG-based power plants, located near Meghnaghat.

The power substations are unlikely to be readied before August, said sources.

Energy-expert Prof Mohammad Tamim accuses a vested-interest group of projecting inflated electricity demand on money-spinning motives.

"This resulted in the installation of power plants having more than required demand and entailing huge capacity payments," notes Mr Tamim, who was a former special assistant of a caretaker government.​
 

Solar power: Best energy source to bank on
Wasi Ahmed
Published :
Apr 09, 2025 00:10
Updated :
Apr 09, 2025 00:10

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The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distribution network through net metering. Each of the eight operational circles has been designated to generate 15 MW of solar power. To facilitate this, bids have been invited from international engineering, procurement, and construction (EPC) contractors to design, build, finance, operate, and maintain the systems. At a time when the global focus is shifting towards clean energy, this move is poised to significantly strengthen Bangladesh's energy sector. Moreover, DESCO plans to purchase electricity from the contractors at rates lower than the retail electricity prices set by the Bangladesh Energy Regulatory Commission (BERC), making it a cost-effective solution for sustainable power generation.

Bangladesh has been steadily advancing on solar power generation over the years. Currently, the country's total clean energy generation capacity stands at 1.558 gigawatts, with solar energy contributing 1.264 gigawatts. Notably, Bangladesh is a global leader in the adoption of Solar Home Systems (SHS), a vital segment of renewable energy that has been recognised as the world's largest off-grid renewable energy programme. According to a report by the Paris-based energy think tank REN21, as of 2020, more than six million SHS units and kits were operational worldwide, benefiting approximately 25 million people. Bangladesh alone accounts for over four million of these installations, making it the largest SHS market globally.

This achievement is a testament to the success of the SHS initiative. The Infrastructure Development Company Ltd (IDCOL) has played a pivotal role in spearheading this programme since its inception in 2003. This initiative has illuminated the lives of nearly 18 million people-approximately 12 per cent of the country's total population-which previously relied on kerosene lamps for lighting. The programme, supported by multiple donors, has proven particularly beneficial for inhabitants of isolated char areas and other remote locations where grid connectivity remains a distant dream. Currently, according to the Ministry of Power, Energy, and Mineral Resources, 2.86 per cent of the country's total electricity generation comes from renewable sources, including solar energy.

The REN21 report also highlights the crucial role of micro-credit schemes in expanding the SHS market in Bangladesh. The country's micro-credit model has enabled millions of households to adopt SHS, setting an example for other nations looking to develop decentralised renewable energy solutions. Furthermore, the rise of mini-grids and stand-alone systems, along with pay-as-you-go business models supported by mobile technology, has transformed energy access for many underserved communities.

The impact of SHS in off-grid areas is profound, though often underappreciated by those in urban regions. In the char, island, and haor areas, where conventional electricity access is nearly impossible, SHS has revolutionised daily life. Initially, many residents adopted SHS primarily for lighting. However, over time, the technology has facilitated economic transformation by enabling irrigation, small-scale industries, and other productive ventures. Small businesses, once inconceivable in these areas, are now thriving due to innovative solar-powered solutions.

As the momentum of SHS adoption continues, its expansion is expected to reach an even larger segment of the population. Currently, approximately 38 per cent of Bangladesh's population lacks access to electricity. While grid connectivity is increasing due to new power stations, a significant portion of the rural population will likely remain off-grid. This presents a crucial opportunity for SHS to bridge the electricity gap.

To fully capitalise on the potential of SHS, it is essential to support market expansion through strategic policy interventions. The existing mechanism has already demonstrated its benefits, and with the right measures, further progress is inevitable. However, challenges persist, particularly in balancing imports and local production. Domestic manufacturers are advocating for higher import duties on solar components to protect local investments. Policymakers must carefully evaluate the domestic manufacturing sector's ability to meet growing demand and maintain high quality. Achieving a sustainable balance between imports and local production will require close collaboration among stakeholders, including the government authorities, manufacturers, and energy providers.

Another pressing concern is the integration of solar power with national grid expansion. Reports indicate that in several rural areas, households that invested in solar panels are now facing uncertainty as grid connectivity is being introduced. A lack of coordination in government planning could lead to inefficiencies, resulting in financial losses for SHS users. To mitigate such challenges, a harmonised approach is necessary, ensuring that solar investments complement, rather than conflict with, national electrification efforts.

In conclusion, Bangladesh's progress in solar power adoption, particularly through the SHS initiative, is a remarkable success story in renewable energy.

With DESCO's new on-grid rooftop solar project and the ongoing expansion of SHS, the country is making significant strides towards a cleaner and more sustainable energy future. However, to maximise the potential of solar power, a well-coordinated strategy is essential-one that balances local production with imports, integrates SHS with grid expansion, and fosters innovation through supportive policies. If these challenges are addressed effectively, solar power will not only supplement Bangladesh's energy needs but also serve as a catalyst for economic and social transformation across the country.​
 

H&M, Pran, IFC join hands to promote renewable electricity in RMG sector
The MOU paves the way for piloting the first Corporate Power Purchase Agreement in Bangladesh

FE REPORT
Published :
Apr 10, 2025 08:29
Updated :
Apr 10, 2025 08:29

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H&M Group, Pran Group and IFC teamed up to advance the agenda of renewable electricity in Bangladesh's readymade garment (RMG) sector.

In this connection, the three organisations signed a memorandum of understanding (MoU) to further renewable electricity uptake in the RMG industry, according to a statement.

Energy secretary Muhammad Fouzul Kabir Khan was present at the event held on Wednesday at a session of Bangladesh Investment Summit 2025 held in a city hotel.

The MOU paves the way for piloting the first CPPA (Corporate Power Purchase Agreement) in Bangladesh, therefore creating the basis for advancing the legal framework that will enable a systematic reduction of the carbon emissions from this key industry of the country, added the statement.

It added that under this project, with financing from the IFC (International Finance Corporation) and the leading role of Pran RFL Group, H&M Group will connect a number of selected suppliers to a new solar park.

The innovative project will constitute the first off-site solar park that will utilise the grid transmission, reaching several RMG factories, that will immediately reduce their emissions.

Additionally, this project will further facilitate the path of the industry towards electrification.

In order to reduce greenhouse gas emissions, and reach the H&M goal to source 100 per cent renewable electricity in the supply chain by 2030, it is the key that H&M's suppliers have access to renewable electricity and solutions in a shift from fossil fuels.

And for this to be possible Corporate Power Purchase Agreements are a key reform. With CPPA, the factories can selectively buy from the grid the renewable energy, through specific contracts.

This will increase the options available today for suppliers. Indeed, there are at the moment limitations to procuring renewable energy: on-site solar projects are capped by the extent of the available rooftops and the portion of the grid that is renewable is at the moment very low (below 5 per cent).

Additionally, legal developments towards enabling CPPA will ensure the next steps of electrification, which is now proven to be the only possible systemic approach to reducing carbon emissions, added the statement.

"Finally, in this way the industry can diversify its fuel use, which today in Bangladesh is largely dependent on gas."

IFC has been involved globally to support the development of renewable energy aligned to IFC's climate commitments, while Pran Group is a pioneer in the area of renewable energy, it said.

H&M Group will support its suppliers’ connection to the project, therefore immediately supporting its commercial viability.

The participation of the Government at the signing ceremony will make sure that learnings of this project can support the next steps of Bangladesh authorities to make CPPA a reality in the country.

The shift towards renewable energy will be a key to maintaining the competitiveness of the RMG industry of Bangladesh, against changing regulatory environment that will require a reduced environmental footprint for products imported to the European Union markets and beyond, it added.

The statement quoted H&M regional country manager Ziaur Rahman as saying, "One of the major obstacles on our decarbonisation journey is access to renewable alternatives in our supply chain."

That is where most of the greenhouse gas emissions take place, and also where they need to find partnerships and industry-wide solutions, he said.

This MoU paves the way for Bangladesh to advance policy reforms and open up for future opportunities to connect the RMG industry with renewable energy generation.

Citing researches, the statement said the fashion industry is one of the highest emitting industries, responsible for between 5.0 per cent and 10 per cent of global emissions.

More than 60 per cent of a garment's climate impact happens during manufacturing, the so-called scope 3 emissions. The production of fibers, material processing, dyeing, and finishing necessitates a substantial amount of energy and relies heavily on various natural resources.​
 

Power producer to sell directly to consumer
MoU signed between H&M and Pran for floating solar plant

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Yosef El Natour, head of sustainability for production at H&M; Vikram Kumar, director and regional industry head, infrastructure and natural resources for Asia Pacific at the International Finance Corporation, and Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group; sign the agreement during the third day of the ongoing Bangladesh Investment Summit at the InterContinental Dhaka today. Photo: Pran-RFL Group

Bangladesh is getting into the merchant power generation model for the first time with the signing of a memorandum of understanding between an electricity buyer and seller for a solar power plant. It is a model which allows a power producer to sell directly to the consumers.

Swedish multinational fashion retailer Hennes & Mauritz AB (H&M), Bangladesh's Pran-RFL Group and International Finance Corporation (IFC) signed the MoU Yesterday to build a floating solar power plant in Moulvibazar.

Speakers termed the development as a step towards fostering private sector collaboration for renewable energy in Bangladesh.

The MoU was signed on the third day of the Bangladesh Investment Summit 2025 at the InterContinental, Dhaka, during a discussion titled "Unlocking the Potential of Bangladesh for Investors in Renewable Energy".

Muhammad Fouzul Kabir Khan, power, energy and mineral resources adviser, said the government has opened the power sector business for all.

"You can now set up power plants on your own, avoiding red tape, and without seeing my face, and do business and make money," he told the potential investors who joined the summit.

He said the basic difference between the independent power producers (IPP) model and the merchant power producers (MPP) model is that the Bangladesh Power Development Board (PDB) will no longer be the single buyer of the electricity.

"You can now establish a power plant and sell it to the customers of your choice, at a price negotiated between you and the buyer. Only the wheeling charges will be required for the transmission and distribution facilities provided by the government agencies," he said.

Speaking as the keynote speaker, Fouzul said the IPP model has wasted a huge amount of public money over the years and made the electricity prices extortionary. "There was no competition, and there were deals made under the table which increased the power tariff and caused people to suffer. We are paying Tk 3,000 per capita subsidies only for this sector."

With the competitive procurement process, he said, it is possible to provide solar power at a price below the average electricity prices the customers have been paying, he said.

"We have used most of our proven gas reserves… With the current rate of gas extraction, the reserve will last for another eight to 10 years only," he said.

He urged investors to participate in the bidding process for establishing around 5,000 megawatts (MW) solar power plants across the country.

Michael Miller, ambassador and head of delegation of the European Union in Bangladesh, said, "We are committed to helping the interim government deliver reforms in line with the expectations of citizens and of businesses.

"We support a clean economic growth model, reducing carbon emission, enhanced with affordable, secure and clean energy… in return, we need Bangladesh to step up with renewable energy ambitions and to ensure an investment and trade-friendly environment," he added.

During a discussion after the MoU signing, Sarah Negro, global head of public affairs at H&M, said they need to move forward with renewable electricity generation.

"Only the rooftop solar options wouldn't meet our [suppliers] electricity demand. We will need 2,500MW solar just to cover the present use of electricity in our suppliers [garment factories]. Today's MoU wouldn't be able to meet our demand, it is only a start," she said.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said they have 300 acres of water body in Moulvibazar, which would be used for aquaculture and a floating solar power plant.

"I figured that it is a very good business for us as there was no problem with fundings. The IFC and the European Investment Bank were there and there were customers like H&M," he said, adding that the pricing of the electricity from the plant would be cheaper than that of the grid.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said they had taken a very aggressive target to reduce the carbon footprints to 50 percent level in 2030 of what they had in 2019, but did not find a way forward.

"The challenge is in our mobile phones. We are using more and more data, and will be consuming three times more electricity in 2030. And the electricity we use from the grid is not clean. That is why we are planning for alternative energy," he said.

He said there are around 22,000 Grameenphone base stations and some data centres across the country. "It's not possible to install solar plants in all those locations. That is why we need a concentrated location where green energy would be produced."

"When the adviser said the MPP is allowed, it comes as a music to my ear. Now I am thinking it is possible to achieve our targets," he added.​
 

Coal imported for Matarbari power plant sent back due to heavy soil mix

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Matarbari plant in Moheshkhali, Cox's Bazar. File Photo: Nupa Alam/TBS

The Coal Power Generation Company Limited (CPGCL) has rejected a shipment of 63,000 tonnes of coal after detecting a significant presence of soil in the consignment meant for the Matarbari Power Plant in Cox's Bazar.

The cargo has been sent back to the outer anchorage of Chattogram port following the decision.

The Ultra Super Critical Coal-Fired Power Plant at Matarbari, built on 1,600 acres along the Bay of Bengal, has a capacity of 1,200MW. The first unit began commercial production in December 2022, followed by the second unit in August 2023.

According to CPGCL sources, the coal, supplied by an India-based company that won the tender to source the material from Indonesia, was found to be heavily contaminated with soil, rendering it unusable for power generation.

"We declined to receive the shipment and issued an official letter to the supplier on Friday," Nazmul Huq, executive director at Matarbari coal-fired plant project, told The Business Standard.

Chittagong Port Authority (CPA) sources confirmed that the coal-laden vessel was sent back to the outer anchorage following instructions from CPGCL and the shipping company handling the cargo.

The coal was transported aboard the Singapore-flagged MV Orient Orchid, which entered the Matarbari Channel on 17 March. The ship was operated by Meghna Group of Companies.

Ujjal Kanti Barua, deputy general manager (shipping operation) at Meghna Group, declined to comment, stating, "We are in discussions with the CPA, and the port authority is handling the matter."

Meanwhile, port officials said the conveyor belt used to unload the coal frequently broke down due to the excessive soil mixed with the shipment. "During unloading, we found mostly soil rather than coal," said a CPA official, speaking on condition of anonymity.

Captain Abu Sufian, dock master of CPA, confirmed that the vessel was directed to the outer anchorage in compliance with instructions from the shipping company.​
 

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