Summit Group's 3 power plants receive nod for further 5 years extension

Three gas-fired power plants, each having 10 MW capacity, of Summit Group received the nod of the Cabinet Committee on Government Purchase (CCGP) for further extension of existing agreements for next 5 years.

Finance Minister Abul Hassan Mahmood Ali presided over the CCGP meeting.

Power Division moved the proposal to the CCGP meeting.

The power plants, located in Ashulia, Madhabdi and Candina, were set up as independent power plants (IPP) in 2003 under 15 years power purchase agreements (PPAs) with Dhaka Palli Biduyt Samity -1, Narshingdi Palli Biduyt Samity -1 and Cumilla Palli Biduyt Samity -1 of the Bangladesh Rural Electrification Board (BREB).

The PPAs were first expired in 2018 and the government expended their tenure for 5 years until August 2023.

"This time the agreements were extended for next five years on "No electricity, No Payment" basis," said an additional secretary of the Cabinet Division who briefed reporters about the decision.

"The new levelised tariff for the plants were settled at Tk5.82 per kilowatt hour which is Tk0.07 lower than the existing bulk power supply tariff," he added.

However, it was not mentioned in the proposal of the Power Division what was the previous tariff.

It is mentioned that the non-fuel component of the tariff is Tk1.75 and fuel component tariff is Tk4.07.

The government will buy electricity worth Tk546.795 crore over the next 5 years from the three power plants of the Summit Group.

Currently Summit Group has been the largest owner of private power plants having 15 plants with about 975.96 MW from which the government has been purchasing electricity.