Home Bangladesh Production costs in Payra increased 3-time in 3-yr
Bangladesh - Power & Energy - January 14, 2024

Production costs in Payra increased 3-time in 3-yr

Zakir Mahmud Salim : The first unit of Payra power plant started production in December 2020. After the commissioning of the second unit in May 2021, power generation started at full speed at the plant. In that fiscal year, the cost per unit of power generation at Payra power plant was an average of Tk 4.56. Its selling price with profit stands at Tk 6.25. However, in the next three years, this expenditure has almost tripled.
By analyzing the accounts of Bangladesh-China Power Company Limited (BCPCL) for the last four financial years, the cost of Payra power plant was found. It can be seen that last financial year, the cost of power generation per unit in Payra power plant has increased to an average of Tk 13.67. Its selling price with profit stands at Tk 18.37. That is, the average cost of power generation has almost tripled. And the income received from the sale price has been almost 1.2 times. Although the price of coal has increased by 3.20 times in three years.
According to the information of BCPCL, 875.2 million units of electricity were produced in Payra power plant in the fiscal year 2019-20. It costs (cost of sale) Tk 398.92 crore. That is, the average cost per unit of electricity production was Tk 4.56. Out of this only the price of coal and fuel cost was Tk 3.58. And by selling 87 crore 52 lakh units of electricity, BCPCL’s income is about Tk 547.30 crore. That is, the average selling price of electricity falls to Tk 6.25.
As a result of the full-scale operation, the production of Payra power plant increased to 382 crore 29 lakh units in the financial year 2020-21. Tk 2,285.53 crore is spent on it. That is, the average cost per unit of electricity production was Tk 5.98. Out of this only coal cost was Tk 3.49. By selling 382 crore 29 lakh units of electricity, BCPCL’s income is about Tk 3,701.45 crore. The average selling price of electricity is Tk 9.68. That is, despite the reduction in energy costs, the average cost of electricity production increased by 31.14 percent and the average selling price increased by 54.44 percent in that financial year.
The production of Payra power plant increased to 399 crore 83 lakh units in 2021-22 financial year. That is, the production increases by 4.5 percent. In that fiscal year, BCPCL spent Tk 4,460,700,000 in electricity production. That is, the average cost of power generation per unit was Tk 11.16. Out of this only coal cost was Tk 7.99. And by selling 382 crore 29 lakh units of electricity, the income is about Tk 5,969.63 crore. The average selling price of electricity is Tk 14.93.
According to this, the average cost of power generation in Payra power plant increased by 86.62 percent in the fiscal year 2021-22. However, the average cost of coal increased by about 129 percent. However, the center’s average selling price of electricity increased by 54.24 percent. This reduces the profit margin of the company.
Meanwhile, 2022-23 fiscal year Payra power plant recorded production. Last financial year the production of the center stood at 655 crore 13 lakh units. That is, the production has increased by about 64 percent. In the last financial year, Tk 8,952.67 crore was spent on power generation in the center. That is, the average cost per unit of electricity production is Tk 13.67. Out of this only coal expenditure was Tk 11.44. That is, the average production cost increased by 22.49 percent. And for coal, the average fuel cost has increased by 43.18 percent.
By selling 655 crore 13 lakh units of electricity, the income of BCPCL in 2022-23 financial year is about Tk 12,036.34 crore. That is, the average selling price of electricity is Tk 18.37. In this, the average selling price of electricity sales of the center has increased by 23 percent.
When asked to know, BCPCL Managing Director Engineer AM Khorshedul Alam told that coal prices tripled last financial year. Because of this, the cost of fuel has increased a lot. This has affected the cost of power generation. However, the price of coal is decreasing in the current financial year. This will reduce production cost in 2023-24 financial year. Besides, the dollar exchange rate has increased a lot. Because of this, the cost of electricity production could not be controlled.
He also said that Payra power plant capacity charge, coal price is paid by the Power Development Board (PDB) as well as the government. BCPCL is trying to cover the rest with its own expertise. In the future, the production cost of the center will decrease.
Incidentally, the average cost of coal used per unit of power generation in Adani’s power plants last financial year was Tk 9.20. And the average cost of coal in Rampal power plant was Tk 10.94. In other words, the price of coal for power generation in Pyara is 24.35 percent higher than that of Adani. This cost was about four and a half percent more than Rampal.

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