PDB’s losses lower than expected on cheaper oil

The Bangladesh Power Development Board (BPDB) suffered losses of Tk 3,800 crore in power generation and distribution across the country in the last fiscal year. This is less than the government’s expected amount of Tk 5,500 crore. Thanks to the cheaper oil prices in the international market, the losses were lower, a BPDB audit report has revealed.

“The government subsidised the losses, as it has been doing for the last several years, to increase consumption of power generated by mixed fuel, especially oil-based power plants,” a BPDB official told The Independent.
According to the 2015–16 audit report, the per-unit average power generation cost was Tk 5.55 and the selling price was Tk 4.90. The average power generation cost in 2014-2015 was Tk 6.27 per KW.
“International oil prices have shown a continuous downward trend. This has encouraged the government to build more oil-based power generation firms,” the BPDB official said. The Power Division is in the process of finalising 10 more oil-based power plants (100MW each) that are supposed to start generating power in 2018.
The audit report reveals that the most expensive diesel-based power plants are Desh Energy Company (Tk 27.93 per unit), AGGREKO International (Tk 27.32 per unit), DPA Power Generation Company (Tk 26.58 per unit), North West (Tk 26.80 per unit), and Summit Meghnaghat (Tk. 20.40 per unit).
In 2014–2015, AGGREKO’s power price was Tk 24.55 per unit, DPA’s was Tk 23.89 per unit, Desh Energy’s was Tk 25.89 per unit, and Summit Meghnaghat’s power price was Tk 29.77 per unit.
A government official said despite a decrease in oil prices in the international market, the independent power producers (IPPs) are allowed to import furnace oil directly. Hence, furnace oil-based power generation did not come cheap.
In the last fiscal year, the furnace oil-based plant Dutch Bangla’s power was the costliest. It sold power to BPDB at Tk 8.99 per unit. 
Summit Madanganj was another expensive power producer among the furnace oil-based power plants. The price was Tk 8.32. KPCL’s price was Tk 8.18 per unit.
In 2014–15, the prices were as follows: Dutch Bangla: Tk 15.50 per unit, KPCL: Tk 12.25 per unit. Officials said international oil prices helped bring down the cost.
The BPDB’s furnace oil-based power plants were costlier. The Faridpur plant’s power price was Tk 18.79 per unit and Khatakhali plant’s power price was Tk 17.95 per unit. Officials said the state-owned furnace oil-based plants were costlier than the IPPs, as they have to buy the fuel from the Bangladesh Petroleum Corporation (BPC) at Tk 42 per litre. The IPPs are allowed to import cheaper furnace oil directly. It costs them Tk 20–25 per litre.
The state-owned gas-based plants’ average cost was Tk 2.30 per unit whereas IPP United Ashuganj’s gas-based power price was Tk 4.08 per unit. AGGREKO’s price was Tk 3.42 per unit.
Currently, the country has only one coal-based power plant—the Barapukuria Power Co. Ltd. BPDB bought power at Tk 8.93 per unit from the plant, which bought coal at USD 130 per tonne from the Barapukuria Coal Mine Company.
BPDB generated 50193 MKW units in 2015–2016. Gas-based power plants generated 67 per cent of that (33822 MKW units). The furnace oil-based power plants contributed 18.03 per cent (9188 MKW units). The diesel-based power plants generated 1551 MKW units (3 per cent), and coal-based power plants generated 847 MKW units (1.69 per cent). The government imported 3822 MKW units (7.6 per cent) from India, and the hydropower plants generated about 962 MKW units (1.92 per cent) of the total power.
In the 2014–15 fiscal year, gas-based power plants had contributed 61.99 per cent, furnace oil-based power plants accounted for 21.03 per cent, diesel-based power plants contributed 8.47 per cent, imported power was 4.57 per cent, hydropower was 2.10 per cent, and coal power was 1.83 per cent.

PDBs losses lower than expected on cheaper oil

The Bangladesh Power Development Board (BPDB) suffered losses of Tk 3,800 crore in power generation and distribution across the country in the last fiscal year. This is less than the governments expected amount of Tk 5,500 crore. Thanks to the cheaper oil prices in the international market, the losses were lower, a BPDB audit report has revealed. The government subsidised the losses, as it has been doing for the last several years, to increase consumption of power generated by mixed fuel, especially oil-based power plants, a BPDB official told The Independent. According to the 201516 audit report, theper-unit average power generation cost wasTk 5.55 and the selling price was Tk 4.90. The average power generation cost in 2014-2015 was Tk 6.27 per KW. International oil prices have shown a continuous downward trend. This has encouraged the government to build more oil-based power generation firms, the BPDB official said. The Power Division is in the process of finalising 10 more oil-based power plants (100MW each) that are supposed to start generating power in 2018. The audit report reveals that the most expensive diesel-based power plants are Desh Energy Company (Tk 27.93 per unit), AGGREKO International (Tk 27.32 per unit), DPA Power Generation Company (Tk 26.58 per unit), North West (Tk 26.80 per unit), and Summit Meghnaghat (Tk. 20.40 per unit). In 20142015, AGGREKOs power price was Tk 24.55 per unit, DPAs was Tk 23.89 per unit, Desh Energys was Tk 25.89 per unit, and Summit Meghnaghats power price was Tk 29.77 per unit. A government official said despite a decrease in oil prices in the international market, the independent power producers (IPPs) are allowed to import furnace oil directly. Hence, furnace oil-based power generation did not come cheap. In the last fiscal year, the furnace oil-based plant Dutch Banglas power was the costliest. It sold power to BPDB at Tk 8.99 per unit. Summit Madanganj was another expensive power producer among the furnace oil-based power plants. The price was Tk 8.32. KPCLs price was Tk 8.18 per unit. In 201415, the prices were as follows: Dutch Bangla: Tk 15.50 per unit, KPCL: Tk 12.25 per unit. Officials said international oil prices helped bring down the cost. The BPDBs furnace oil-based power plants were costlier. The Faridpur plants power price was Tk 18.79 per unit and Khatakhali plants power price was Tk 17.95 per unit. Officials said the state-owned furnace oil-based plants were costlier than the IPPs, as they have to buy the fuel from the Bangladesh Petroleum Corporation (BPC) at Tk 42 per litre. The IPPs are allowed to import cheaper furnace oil directly. It costs them Tk 2025 per litre. The state-owned gas-based plants average cost was Tk 2.30 per unit whereas IPP United Ashuganjs gas-based power price was Tk 4.08 per unit. AGGREKOs price was Tk 3.42 per unit. Currently, the country has only one coal-based power plantthe Barapukuria Power Co. Ltd. BPDB bought power at Tk 8.93 per unit from the plant, which bought coal at USD 130 per tonne from the Barapukuria Coal Mine Company. BPDB generated 50193 MKW units in 20152016. Gas-based power plants generated 67 per cent of that (33822 MKW units). The furnace oil-based power plants contributed 18.03 per cent (9188 MKW units). The diesel-based power plants generated 1551 MKW units (3 per cent), and coal-based power plants generated 847 MKW units (1.69 per cent). The government imported 3822 MKW units (7.6 per cent) from India, and the hydropower plants generated about 962 MKW units (1.92 per cent) of the total power. In the 201415 fiscal year, gas-based power plants had contributed 61.99 per cent, furnace oil-based power plants accounted for 21.03 per cent,diesel-based power plants contributed 8.47 per cent, imported power was 4.57 per cent,hydropower was 2.10 per cent, and coal power was 1.83 per cent.