Rental Power Status in Bd

Topics: Electricity generation, Fuel oil, Diesel fuel Pages: 4 (1100 words) Published: December 24, 2011
Rental power is typically costlier than conventional power because production of it involves short term deals. A rental power company must have power generation equipment ready in its stock. But none of the dozen plus local companies awarded with rental power contracts have any stock of plant equipment or experience in rental power projects.

The PDB signed the contracts with the two sponsors on February 4 this year asking them to install and commission their respective plants within 120 days (4 months). Both have failed. 

The had PDB moved for setting up the costly eight rental power plants with a total capacity of 530 MW, setting March 30 as deadline to begin their operation. 

The target was set keeping in view the irrigation of last boro crop. But it was missed. PDB could finally sign deals for only 4 projects with a total capacity of 300 MW in February. 

The PDB had flawless success with two rental power contracts with British company Aggreko that had launched their 200MW units ahead of their deadline. Aggreko's units in Khulna and Ashuganj completed full power generation capacity test yesterday.


With the setting up of two power plants with the production capacity of 100 MW each in Bheramara at Kushtia and Noapara at Jessore in an area of 5 acres, the company invested worth Tk 8.0 billion (Tk 800 crore) there, Managing Director of Otobi, Animesh Kundu, told the FE in an interview.


After paying the government Tk 11.55 crore penalty for failing to launch its 110 megawatt rental power plant in Bheramara in time, furniture giant Otobi obtained a court injunction against paying further penalties. Otobi has also sought Power Development Board's permission to convert the same diesel fired plant into a heavy fuel oil (HFO) fired plant and sought a new deadline of October 30 in that light. It has done so as a contractor is allowed 120 days to complete a...
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