More Investment On Cards
IPPs now dominate country’s power generation
Private sector power generation through Independent Power Producers (IPP) now accounts for over 55 per cent of the country's total power generation, knowledgeable sources said.
Their share to the total power generation is continuously increasing with fresh investments to newer projects. The sources said once the under construction plants will start power generation the overall share of IPP to total power generation in the country would exceed 60 per cent.
A retired power division official said the growth is supported by a favorable investment policy of the government to private sector investors over the past decade.
According to Bangladesh Power Development Board (BPDB) sources Bangladesh's power sector first crossed the 12,000 MW mark on June 24 last year and after that the record-breaking generation took place to hit 14,796 MW point in later of May this year. It included both public and private sector capacity.
Prior to that, 11,534MW was the maximum power generation recorded on September 17, 2017 with the previous highest generation being 11,387MW on July 18,2018. Bangladesh's power sector touched the 11,000MW mark on July 7, 2017.
Earlier, Bangladesh crossed the 10,000MW mark for the first time on March 19, 2017, before which the country would generate 9,000MW power as on June 30, 2016.
As per power cell officials Bangladesh's total installed power generation capacity, including captive power and renewable energy now stands at 21,419 MW.
The BPDB has taken up an extensive capacity expansion plan to add another 11,600 MW over the next five years, aiming to generate 24,000MW of electricity by 2021, and 40,000MW by 2030, for which a mammoth investment of around $80 billion is needed, the officials said.
Currently the share of state- owned power plants to total power generation stands around 45 per cent down from 100 per cent several years ago. Than the private sector investment in power generation started to grow turning the contribution of state owned power plants to steadily decline.
The massive private sector investment plan is apparently meant to ensure uninterrupted power supply as part of the government plan to ensure 100 per cent electricity coverage to the nation by 2021. Currently 90 percent of the population has access to electricity. But in the process the ownership of the country's power generation is passing to private sector.
Touhidul Islam a former official of the BPDB said the rapid development of the private sector power producers was possible for government's strong support behind them.
He said so far the private sector has invested over $12 billion in the last decade by setting up more than 52 power plants.
A senior office bearer in Bangladesh Independent Power Producers Association (BIPPA) said the favorable energy policy helped private sector investment in power generation. He said they have a plan to invest $50 billion in the next 12 years to keep up the lead of the private sector's participation in power sector development.
The IPPs are investing under Public Private Partnership initiatives and they want to set up more power plants. He said if they are given the opportunity to invest, achieving 40,000 MW power generations by 2030 will be possible. It will create 40,000 more direct jobs and another 300,000 indirect jobs across the country.