A 115MW independent power plant (IPP) belonging to Energypac Power Venture Thakurgaon (EPV Thakurgaon) – a subsidiary of Energypac Power Generation – has finally gone into commercial operation two years behind schedule owing to the Covid-19 pandemic and other adversities.
In a filing on local stock exchanges, Energypac Power Generation said the plant is based on heavy fuel oil (HFO) – an economical fuel for power generation because of its low price and high energy.
The company said the plant, located at Gauripur in Thakurgaon, entered into an initial agreement with the Bangladesh Power Development Board (BPDB) to sell its electricity for fifteen years.
The plant will help the revenue of the company grow further, and hit profitability in the future said an official of the company.
According to its annual report, Energypac Power Generation has two other power generation subsidiaries in Habiganj and Chattogram with the capacity of 11MW and 108MW respectively.
The newly-built plant, which started operation on Sunday, will supply electricity to the national grid.
Energypac Power Generation Limited is engaged in diversified businesses such as trading of standby and base load generators, JAC brand automobiles, John Deere brand agro machinery equipment, JCB brand construction machinery and material handling equipment and operation of CNG stations.
EPV Thakurgaon is a 51%-owned subsidiary of Energypac Power Venture Limited, which was incorporated in 2017.
The company sold 49% of its shares to EMA Power Investment.
To construct its third power plant, Energypac Power Generation had signed a purchase agreement with the BPDP. It was originally scheduled to go into commercial operation on 15 November 2019.
However, heavy floods, dengue fever during the second half of 2019 and the severe impact of Covid-19 early in 2020 along with other factors have delayed commercial production, said the company in its latest annual report.
Later, the management fixed April 2021 as an expected date of commercial operation.
Again, mid-December 2021 was fixed but the company failed to complete the project on time.
Energypac Power Generation entered the capital market last year by raising Tk150 crore for business expansion.
Energypac began its journey in 1995 as an electrical and engineering business.
In fiscal 2020-21, its consolidated revenue declined by 2%, and profit dropped by 33% compared to the previous fiscal year.
The company paid a 10% cash dividend to its shareholders.
In the first three months of fiscal 2021-22, its revenue grew 52% to Tk1,238.24 crore.
Its net profit grew by 16% to Tk24.94 crore. During the same period in the previous fiscal year, its profit was Tk21.49 crore.