Maheshkhali now hopes to be green power hub

As part of its effort to transition from dirty fuels to renewable energy and supplement its measures against the adverse impacts of climate change, the government is now planning to set up LNG and solar-based power plants, replacing its original plan for coal plants in Cox's Bazar's Maheshkhali power hub.

According to sources at the Bangladesh Power Development Board (BPDB), there is a proposal to establish 1,200MW LNG-based and 50MW solar plants in each of the first seven blocks of the planned hub.

In the master plan, the under-construction power hub was initially designed with nine blocks, of which eight were designated for coal-based plants and one for LNG-fired plants. However, the government has now reconfigured the plan, redistributing it into 11 blocks.

Power Division officials said the distribution of the blocks for LNG and solar plants is still under review.

Blocks eight and nine are currently under consideration for the establishment of large-scale solar power plants. A solar power plant or a power-related manufacturing plant is being considered for block number 10.

Besides, a coal stock and ash dyke area has been proposed in the middle of Block 10, said officials concerned.

And there were no decisions on the utilisation of Block 11.

Power Division Secretary Md Habibur Rahman said the plan to set up block-based power plants in the Maheshkhali power hub has not been finalised yet.

"These issues are being reviewed here. A final decision will be made at the end of the review. Only then it will be known how many LNG and solar plants will be built with how much capacity," he told The Business Standard.

STEAG Energy Services (India) Limited, a consulting firm appointed by the Power Division, had divided the power hub into a total of nine blocks.

It had proposed eight coal plants of 1,320MW each in eight blocks and one LNG plant of 3,000MW in one block. A target was set to generate a total of 13,560MW power from the Maheshkhali Power Hub.

Later, BPDB and Bay of Bengal Power Company – a joint venture between the BPDB and China Huadian Hong-Kong Company – jointly planned coal power plants in two of those nine blocks.

In addition, the BPDB planned to jointly set up coal-fired plants each with Malaysia's Tenaga Nasional Berhad, South Korea's KEPCO, and China's SEPCO.

BPDB officials said although it had signed memorandums of understanding (MoUs) with Tenaga Nasional Berhad, KEPCO, and SEPCO, it has not progressed towards implementation and the deals have expired.

On the other hand, General Electric (GE) signed an agreement with the BPDB in December 2018 to set up a 3,600MW plant in the LNG block. It is said that the process of approval of the joint venture agreement is currently in the Power Division.

In 2021, the government cancelled the construction of eight coal-burning power plants in the power hub.

In February 2022, a committee was formed with BPDB's chief engineer for proper utilisation of the land at the power hub. This new plan is based on the recommendations of that committee.

According to BPDB sources, 5,518.60 acres of land have already been acquired under the project titled "Land Acquisition of Maheshkhali Power Hub" for the purpose of setting up coal and LNG plant plants in Maheshkhali Upazila of Cox's Bazar. Besides, the acquisition of another 97 acres of land left out at various points in the alignment of the power hub design is in process.

Feasibility study starts for LNG, solar plants

According to sources in the Power Division, Bay of Bengal Power Company has already started feasibility studies for setting up a gas-based combined cycle power plant and a grid-tied solar power plant at the power hub.

The Bangladesh-China joint venture company has already been temporarily handed over 400 acres of land at the proposed Block 1. At the end of the study, it has a target to start implementation in the following two years.

135MW solar plant planned

BPDP has taken the initiative to build a solar power plant for the first time at the power hub. It has set a target to complete the 135MW project by 2026 on 410 acres of land in the proposed Block-9 at an estimated cost of Tk1,184.49 crore. Out of this, Tk802 crore has been proposed as a loan from development partners.

The preliminary development project proposal has already been sent to the Planning Commission. After in-principle approval from the commission, the proposal will be sent to development partners through the Economic Relations Division to secure foreign loans, BPDB sources said.

According to the Power System Master Plan 2016, the demand for electricity will increase to 27,400MW and 51,000MW by 2030 and 2041, respectively. So the power generation capacity is required to increase proportionately with the growth of power demand.

In addition to generating electricity from conventional fossil fuels, the master plan also sets out plans and targets for power generation from renewable sources and the import of electricity under cross-border electricity trade.

Bangladesh plans to boost its power from renewable energy to 40% by 2041.

Currently, the country has a power generation capacity of 27,361MW, including captive and renewables, against a demand of 15,500-16,000MW in the peak season.

Bangladesh announced at the Glasgow climate summit in 2021 that it would cut carbon emissions by 89.47 million tonnes by 2030 as part of efforts to promote renewable energy, energy efficiency, and conservation.