Underutilized Plants Spike Electricity Production Costs

Industry: Power

Many power plants in Bangladesh are operating below capacity, resulting in high electricity production costs. For instance, the Tongi Gas Turbine Power Plant, designed to generate 105 MW, is currently producing only 80 MW and generated a mere 483,829 units last financial year, equating to just 0.07% of its capacity. This inefficiency led to a production cost of approximately 1,234 Taka per unit.

Similarly, the Shikalbaha dual-fuel plant in Chittagong generated only 235,855 units (0.01% of capacity) and incurred a cost of 732 Taka per unit due to minimal operation on diesel. The North West Power Generation Company’s 230 MW combined cycle plant in Khulna utilized just 6% of its capacity, generating 11.25 crore units at a fuel cost of 27 Taka per unit.

Other plants, like Barapukuria and various furnace oil plants, have also demonstrated low utilization rates and high per-unit costs. These inefficiencies underscore the urgent need for improvements in the energy sector to optimize operations and reduce costs.

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