Home Power & Energy Private sector goes ahead in power generation
Power & Energy - May 12, 2022

Private sector goes ahead in power generation

Special Correspondent: Private participation in power generation has increased in recent time. According to the power department, the government participation has always been higher than, but this time the private partnership has surpassed the government share.
According to the Power Development Board, the total capacity of the country’s power plants, including imports, is 22,031 MW. Of this, government power plants are generating 46 percent (10,146 MW).
Private power plants directly owned by local entrepreneurs account for 43 percent (9,481 MW). Apart from this, there are 6 percent (1,244 MW) power plants of joint venture. The government also owns half of the joint plants. The other half is foreign ownership. As such, three-quarters fall into the private sector.
The government is also importing 1,160 MW of electricity from India, which is 5 percent of the total power generation. In other words, it is not directly owned by the government.
As per these, government share in power generation is 49 percent and private share is 51 percent. Prior to that, private equity was always below 40.
According to the power sector plan, 32 power plants are under construction now. Of these, the capacity of 11 government centers will be 4,338 MW. The capacity of 18 private centers will be 4,898 MW.
Three more joint venture plants are being set up. The production capacity of which is 3 thousand 731 MW. Here too half the ownership belongs to a different country. The profit of that part will not be deposited in the government treasury.
Although there is no problem in production between public and private power plants, electricity is available from government power plants at affordable prices.
On the other hand, a portion of the profits of government power plants are deposited directly in the state treasury. With which the government also does other development work. For this, mainly government power plants are encouraged.
Experts have demanded that the government look into how private participation increased even after investing in the construction of the center. They say that through this, the power generation sector may lose its balance.
A PDB official said that private participation in the power sector has increased as part of the government’s plan. Without them, today’s huge power generation capacity would not have developed.
The official further said that now some big plants of government and joint ventures have started coming into production. When these come into production, I hope to be able to provide electricity at affordable prices.

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