Payra Power Plant Faces Shutdown Due to Coal Shortage

Industry: Energy & Power, Power

A severe shortage of coal has led to the shutdown of a 660-megawatt unit at the Payra power plant in Bangladesh, marking the first closure in its three-year operation. If the situation persists, the other unit of the plant is expected to cease production within a week. The Payra 1,320MW Thermal Power Plant has been a vital power source for the Barishal region, as well as parts of Khulna and Dhaka. The plant currently has only around 50,000 tonnes of coal in stock, while each unit requires approximately 6,000 tonnes per day.

The Bangladesh-China Power Company Ltd (BCPCL) operates the power plant, with China National Machinery Import and Export Company (CMC) holding a 50% stake and responsible for coal procurement. However, the CMC has imposed a ban on coal supply due to outstanding dues of around $300 million, which the Bangladesh Power Development Board (PDB) has yet to pay. The shutdown of the power plant could result in a three to four-week disruption in operations, further exacerbating the ongoing electricity shortage in the country.

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