The generation cost at Bangladesh’s Barapukuria coal-fired thermal power plant has risen above that of several imported coal-based facilities, despite the plant using domestically mined coal.
The per-kilowatt-hour tariff at the 525MW Barapukuria plant climbed to Tk13.53 in fiscal year 2024-25 and remained at that level until January 2026, according to plant officials.
“Our generation tariff increased to Tk13.53 per kilowatt hour in FY2024-25 and stayed there until January 2026 after the Energy and Mineral Resources Division fixed the coal price at $176 per metric tonne, whereas imported coal costs around $100 per tonne,” Abu Bakar Siddique, chief engineer of the Barapukuria Thermal Coal Power Company, told Just Energy News.
He said the tariff is expected to be reviewed this month following a recent coal price adjustment order. The plant authority is recalculating generation costs based on a revised coal price of $136 per tonne.
Last Sunday, Bangladesh Power Development Board (BPDB) Chairman Rezaul Karim presented a comparative tariff analysis to newly appointed Power Minister Iqbal Hasan Mahmud Tuku.
According to BPDB data, Barapukuria’s generation cost stands at Tk13.53 per kWh, higher than some imported coal-fired plants.
Electricity generated by Bangladesh-India Friendship Power Company costs Tk12.62 per kWh, while the 307MW Barishal Electric Power Company produces power at Tk 13.42 per kWh. Another imported coal-based plant generates electricity at Tk9.13 per kWh, BPDB figures show.
However, several large imported coal projects still report higher tariffs. The 1,320MW Bangladesh-China Power Company Limited has a tariff of Tk14.58 per kWh, and the 1,320MW SS Power I Limited generates power at Tk14.56 per kWh.
Power imported under the Adani Power agreement remains the most expensive at Tk14.86 per unit.
Officials said the Power Division is considering operating the 444MW Barapukuria unit on imported coal to lower generation costs.
The division has also discussed expanding a 400-metre railway link connected to the Mongla power corridor to facilitate coal supply, as the government’s contract with Chinese contractor CMC is set to expire in 2027.
“If the plan materialises, the generation cost will decline significantly,” a Power Division official told Just Energy News on condition of anonymity.
Talking on the issue, BPDB Chairman Rezaul Karim told Just Energy News that the tariff had been settled at $136 per tonne of Barapukuria coal after three months of negotiations with the Barapukuria coal mine.
“We are now communicating with Bangladesh Railway to install a minimum 7–8 kilometre railway link to enable the plant to run on imported coal,” the chairman said.