The Banshkhali 1,320 MW coal-fired power plant has reached full production capacity, providing much-needed respite to Bangladesh’s energy sector amidst the looming uncertainty caused by supply threats from the Indian conglomerate Adani Group.
The Power Development Board (PDB) believes the efficient operation of this plant, known for its cost-effective energy production, will substantially lower the average electricity generation costs.
According to the National Load Dispatch Centre (NLDC), the plant delivered 660 MW from its first unit and 659 MW from its second unit on Thursday (28 November) starting at 10am - marking a critical milestone in stabilising the country's power grid.
Located in the Gondamara area of Banshkhali, Chattogram, the plant is lauded as the most cost-efficient coal-based power facility in Bangladesh, with a per-unit fuel cost of approximately Tk7.56.
In comparison, producing the same amount of electricity with furnace oil would cost nearly Tk18 per unit.
The plant has a monthly capacity to generate around 95 crore units of electricity, saving the government approximately Tk950 crore when compared to furnace oil production.
This economic advantage comes as a relief amid challenges faced by the interim government.
Bangladesh operates four large coal-based power plants, each with a capacity exceeding 1,200 MW, and four smaller units with capacities ranging from 125 MW to 307 MW.
Banshkhali plant's full-scale production is expected to reduce the nation’s overall power generation costs, helping to alleviate the energy crisis.
Meanwhile, tensions persist with the Adani Group, which supplies 1,600 MW of power to Bangladesh.
The company suspended operations at one unit on 31 October, citing overdue payments of nearly Tk10,000 crore.
A second unit shutdown was threatened if payments were not made by 7 November, but this was averted as Bangladesh began partial payments.
The High Court has since admitted a petition challenging the agreement with Adani. The original 2017 agreement mandated that all power generated by the plant would be supplied exclusively to Bangladesh.
However, following recent political changes in the country, Adani secured approval to supply power to India as an alternative arrangement, escalating tensions between the two parties.
In light of the petition, the High Court directed the Power and Energy Secretary to form a high-powered investigative committee comprising international energy and legal experts.
The committee has been instructed to assess whether the 2017 agreement adhered to proper protocols and submit its findings within 60 days of formation.
The uncertainties surrounding the Adani agreement have amplified the significance of the Banshkhali plant’s full-capacity production.
Officials believe that the sustained operation of the plant could bolster the country’s energy stability while reducing reliance on imported power.
