17th May 2020
EP Report

Most of the 'expensive' oil-fired power plants are shut now due to lower electricity demand amid the ongoing countrywide shutdown to combat coronavirus pandemic.


According to the state-run Bangladesh Power Development Board (BPDB), all diesel-fired power plants, having the total generation capacity of 1,140 megawatts (MW), are now shut along with a good number of furnace oil-fired ones.


The BPDB has asked the plant owners to keep majority of the oil-fired power plants shut to save the entity from counting huge payment for electricity purchase. Some other power plants are under maintenance.


The board, however, has to count capacity payment, which it will have to pay to the power plant owners under a contractual obligation as 'incentives' for keeping their plants idle.


As per power-purchase agreements, this penalty is calculated on the basis of around 40 per cent plant factor of the power plants, including the oil-fired rental and quick-rental ones.


Electricity generation across the country fell by around 33 per cent on an average to around 6,000 MW due to demand fall.

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