The reduction in international coal prices has significantly decreased the production costs of coal-based power plants in Bangladesh. The cost of fuel in these power plants saw a massive reduction of 50% in the price of coal in the international market. This reduction has had a direct impact on the affordability of electricity generation, making it more accessible for consumers. Specifically, the average fuel cost per kilowatt of coal-based power generation has decreased to around 7 taka 30 paise. Previously, electricity prices ranged from 16 to 18 taka per kilowatt due to higher fuel costs.
This decrease in production costs has led to an increase in electricity supply from coal-based power plants, meeting the growing demand across various sectors. For example, the Payra Thermal Power Station has reported improved operational efficiency and reduced energy costs due to the decline in international coal prices.
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