Khulna Power Company Ltd (KPCL) said its associate company United Payra Power Plant Ltd began commercial operations on 18 January.
The KPCL, a listed company, holds a 35% share of the new power plant company which earlier had secured a 15-year contract with the government for selling power.
The United Payra Power Plant Ltd is running a 150MW heavy fuel oil or HFO-based power generation facility in Kholishkhali, Patuakhali. The revenue from the plant is expected to help KPCL partially offset any lost revenue if two of its existing plants do not get contract renewals after May this year.
KPCL is the country's first independent power producer in the private sector which commenced operations in 1998. The company's first unit with 110MW power generation capacity at its Khulna plant started in October 2018.
Meanwhile, the company included its unit 2 and unit 3, which have 115MW and 40MW capacities, respectively. Both units' contracts with the government are going to expire in May this year and the company has applied for contract renewal. However, it has yet to receive a response in this regard.