PresentationPDF Available

Cancellation of 10 Coal Power Plants: the Future Pathway

Authors:

Abstract

The State Minister for the Ministry of Power, Energy and Mineral Resources declared cancellation of 10 approved coal power projects on 27 June 2021.
Press Conference
Cancellation of 10 Coal Power Plants:
the Future Pathway
28 June 2021, Monday | 3:30 PM (Bangladesh time)
Thanks for listening to the Call of time
Last few days, we have been listening to different media that approval of 10 coal fired power
plantsare going to be cancelled.
The State Minister for for Power, Energy & Mineral Resources formally declared the
cancellation through a press conference organized yesterday (27 June 2021)
It is also mentioned in different media that fuel of 5 power plants will be shifted from coal to
liquefied natural gas (LNG).
The total capacity of cancelled power plants was 8,711 MW while 5,175 MW is to be
converted from Coal to LNG. In that case, only 3,536 MW fossil fuel power is reduced.
The State Minister also mentioned that 40% of total power will come from Renewables by
2041.It is a significant progress from previous plan of 8-10% RE in the Energy Mix.
The Power Plants Cancelled
SL # Name of the Power Plant Sponsor Capacity
(MW)
01.
Patuakhali
2X660 MW Coal-fired Power Plant
APSCL
1,320
02.
North Bengal 1200 MW Super Thermal Power Plant
APSCL
1,200
03.
Mawa 522 MW Coal
-fired Power Plant
Orion Group
522
04.
Dhaka 282 MW Coal
-fired Power Plant
Orion Group
282
05.
Chattogram (Chittagong) 282 MW
Coal Power Plant
Orion Group
282
06.
Khulna 565 MW Coal
-fired Power Plant
Orion Group
565
07.
Maheshkhali 1320 MW Coal
-fired Power Plant-1
BPDB
-SEPCO 1,320
08.
Maheshkhali 1320 MW Coal
-fired Power Plant-2
BPDB
-TNB 1,320
09.
Bangladesh
-Singapore 700 MW USC Coal Power Plant
CPGCBL
-Sembcorp 700
10.
CPGCBL
-Sumitomo 1200 MW Coal Power Plant
CPGCBL
-Sumitomo 1,200
Total:
8,711
Causes behind Cancelling the Approval
As the Ministry of Power, Energy and Mineral Resources (MOPEMR) said in the Press
Release:
The sponsors could not meet the deadline of Financial Closure Date (FCD)
Global opinion against Coal Power Plant
Mandate of the Paris Agreement to keep the temperature rise bellow 1.5 degree
Celsius
Responsibilities of Bangladesh as the Prime Minister is the Chair of the Climate
Vulnerable Forum (CVF)
But the actual cause maybe the lack of export credits. More than 100 financial institutions
including Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Citi Bank,
European Investment Bank (EIB), HSBC, Japan Bank for International Cooperation (JBIC), Korea
Development Bank (KDB), Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking
Corporation (SMBC) and World Bank already have taken decision for not financing coal.
But after all, it is a positive change... We pay our hearty thanks for that
Planned Coal Power Plants
PSMP 2016 (Revisited 2018): 34 Coal Power Plants: 34,429 MW
Unsolicited MOU Signed: 14 Coal Power Plants: 13,727 MW
-----
Total: 46 Coal Power Plants 48,156 MW
Approved by the Cabinet Committee: 18 Coal Power Plants 20,240 MW
Coal Power Plants in Progress
SL
#Power Plant Status Progress
Capacity
(MW)
Expected
COD
1.
Barishal 350 MW (ISO Tech)
Construction
35% 307
Dec 2021
2.
Rampal 1320 MW (BIFPCL)
Construction
70% 1,224
Mar 2022
3.
Godda 1600 MW (Adani)
Construction
65% 1,492
Jun 2022
4.
Banshkhali 1320 MW (S. Alam)
Construction
40% 1,240
Dec 2022
5.
Matarbari 1200 MW (CPGCBL): Phase
-
1
Construction
45% 1,104
Dec 2023
6.
Payra
1320 MW (BCPCL): Phase-2
Construction
12% 1,240
Dec 2023
7.
Patuakhali 1320 MW (RNPL): Phase
-1
Construction
23% 1,224
Dec 2024
8.
Matarbari 1200 MW (CPGCBL): Phase
-
2
Pre
-construction --- 1,104
Dec 2028
8,935
Cumulative Electricity Generation from Coal
-
2,000
4,000
6,000
8,000
10,000
12,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
10,700
Now the Loopholes are...
1. Some of the cancelled coal power plants have already been shelved or cancelled by the
sponsors. i.e. Chittagong 282 MW, Khulna 565 MW
2. Some of the coal power plants which have already been shelved or cancelled by the
sponsors but not included in this cancellation list. There is a chance of revitalizing those
power plants. i.e. Pekua (EGCBL), Gazaria (RPCL)
3. Some of the coal power plants are in the plan but neither signed any agreement nor
cancelled. Patuakhali (RNPL) Phase-2, Dighipara (NWPGCL)
4. The GCM resources has signed several agreement with PowerChina for 6000 MW Phulbari
Mine-mouth coal power plants. There was no clear direction about the deals.
5. Only Payra Power Plant (Phase-1) is taking BDT 150 crore as capacity charge without
supplying a single unit of electricity.
6. According to BPDB, we will have 15,750 MW idle power plant in 2025. That means capacity
charge of BDT 14,500 crore. There is no mention of economic burden of these power plants.
7. What is the signal? There should be clear picture on the all power plants planned under
PSMP.
Proposed to be converted from Coal to LNG
SL # Name of the Power Plant Sponsor Capacity
(MW)
01.
Patuakhali
2X660 MW Coal-fired Power Plant
APSCL
1,320
02.
Maheshkhali 1320 MW Coal
-fired Power Plant-1
BPDB
-SEPCO 1,320
03.
Bangladesh
-Singapore
700 MW USC Coal Power Plant
CPGCBL
-Sembcorp 700
04.
CPGCBL
-Sumitomo 1200 MW Coal Power Plant
CPGCBL
-Sumitomo 1,200
05.
Gazari
a 635 MW (Orion) Coal Power Plant
Orion Group
635
Total:
5,175
Danger of LNG Based Infrastructure & Power Plants
Market Volatility: Price of LNG fluctuated 1000%at spot markets in 2020 only. The Oman Trading
International stopped supplying LNG several times in 2020 although Bangladesh had a long-
term agreement with them. Per unit LNG price increased 200%in last two months.
Expenditure of Infrastructures: LNG infrastructures, including Terminal and pipeline, are highly
expensive that translates as a burden on the end consumers. Capacity charge of the Terminals
are also a burden on the economy.
Price of Power: Per kWh power from LNG costs BDT 11-15 while DFG costs BDT 2.30-3.10. Price
reduced to BDT 5.5 - 6.5 through mixing DFG with LNG.
Pressure on National Economy: Currently LNG import takes around BDT 6,300 crore a year for 4.2
Million Tons. 30 Million tons by 2030 will cost around BDT 45 thousand crore.
Emission:LNG is not as clean as said by the authorities. LNG based power plants emit 585.6 kg
per mWh where coal emits 962.1 kg. Transportation and transmission of LNG will emit more.
Heat: LNG contains 85-90% Methane which absorbs 10 times more heat than carbon di-oxide.
Demands
Cancel all coal based power plants to ensure the targets of Paris
Agreement
No extension of the required COD of coal power plants. Cancel
the agreement according to the options given in the PPA and IA.
Don't go for suicidal LNG from Coal
Plan and necessary institutional arrangements for 100% renewables
by 2050
Start subsidy for community based and distributed renewables
THANK YOU!
ResearchGate has not been able to resolve any citations for this publication.
ResearchGate has not been able to resolve any references for this publication.