The Coal Power Generation Company Bangladesh Limited (CPGCBL) has cancelled the Orion Group’s 27-acre land allotment for further expansion of its power generation project, according to a top official.
“CPGCBL board has cancelled Orion’s land allotment at project site,” CPGCBL Managing Director Md Nazmul Haque told Just Energy News on Wednesday.
He declined to provide further explanation.
He explained that the company plans to expand Phase-2 of the Matarbari power project, which will add another 1,200 MW of combined generation capacity.
The CPGCBL will issue a tender to implement the power plant, subject to approval from the government’s higher authorities.
However, the Japan International Cooperation Agency (JICA) has already rejected funding for Phase-2, according to a Power Division official. “The power generation cost will rise significantly if the company does not proceed with the next phase,” the official added.
Currently, the government is setting the benchmark tariff at Tk 8.40 per kilowatt for the Matarbari plant, while the average tariff for most coal-fired plants is between Tk 12-13 per unit.
Power and Energy Adviser Muhammad Fouzul Kabir Khan recently stated that the government plans to implement a benchmark price to reduce electricity purchase rates and, consequently, electricity subsidies. However, sources indicate that the plant authorities have not yet found a way to determine the final cost.
In addition to the cancellation of Orion’s 27 acres, CPGCBL has plans to expand its generation capacity to 3,992 MW across 4,386 acres of land.
The CPGCBL has prepared the review plan of the site land use after instruction of the government’s high up.
“We are planning to set up 950 MW of solar-based power plants,” a Power Division official said. Of these, 50 MW will be financed privately, and the remaining 900 MW will be developed through a joint venture (JV).
The company also plans to install a 42 MW wind-based power plant at the site, according to the official. Furthermore, a joint venture LNG-based power plant is expected to generate 600 MW at the location.
CPGCBL has already completed a 1,200 MW coal-based power plant and plans to establish another of the same capacity. “We have already submitted our 3,992 MW capacity proposal to the Ministry,” the official confirmed.
