News | April 19, 2010

GE Gas Engine Technology Helps Reduce Electricity Shortages In Bangladesh Northern Tea-Processing Region

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Sylhet, Republic Of Bangladesh - The Honorable Prime Minister of Peoples' Republic of Bangladesh, Her Excellency Sheik Hasina, recently inaugurated the new Fenchuganj 51-megawatt (MW) Rental Power Plant of Barakatullah Electro Dynamics Ltd. (BEDL), which features GE Jenbacher gas engines. The inauguration, held on April 3, 2010, also was attended by cabinet members, members of Parliament, government high officials, local officials and GE representatives. The power station was designed to help reduce electricity shortages in the country's northeastern Sylhet District, an important tea-producing area.

The new facility in the town of Fenchuganj is the first of several emergency "rental" power plants that the Bangladesh government plans to install to help end widespread chronic energy shortages occurring throughout the Southeast Asian nation. Bangladesh's total demand for power currently exceeds 6,000 MW, but regional power producers are only supplying 3,600 MW to 4,300 MW, creating daily shortfalls of power.

As part of the government's initiative for constructing "rental power plants," the Bangladesh Power Development Board arranges bids for power plants that will be built, owned and operated by independent, third-party power providers, with the energy being sold into the national grid under defined power purchase agreements.

The Fenchuganj 51-MW rental power plant at Sylhet was built by the independent power producer BEDL to overcome the chronic electricity shortages that have frequently interrupted production activities at several tea-processing plants and undermined the local economy. The plant features 19 of GE's low-emission, J620 Jenbacher gas engine generator sets. The government's Bangladesh Power Development Board (BPDB) awarded the "fast track" Fenchugoni project to BEDL and its project partner, STFE Co, Ltd. of Thailand.

The plant also represents the first IPP project in Bangladesh built with the investment from the Non Resident Bangladeshi (NRB) investor. The electricity produced by the power plant, which was commissioned in October 2009, is being sold to the national grid under a 15-year power-purchase agreement.

"These smaller rental power plants are faster to build than larger power stations. GE was able to quickly deliver its Jenbacher gas engines, which allowed us to meet our tight construction schedule. GE's gas engine technology also offers the high efficiency and reliability levels required for this important grid-support project," said Mr. Ghulam Rabbani Chowdhury, managing director of BEDL. Mr. Chowdhury also cited the reputation for reliability that GE's Jenbacher engines have earned for numerous grid support and industrial power projects in Bangladesh.

"GE is extremely pleased to help the government of Bangladesh and local independent power producers like Barakatullah Electro Dynamics address the country's urgent energy security and economic development priorities," said Prady Iyyanki, CEO, gas engines for GE Power & Water.

Orient Energy Systems, GE's official distributor for Jenbacher gas engines in Bangladesh, arranged the order for Barakatullah Electro Dynamics Ltd. and provided complete engineering support for the project. Through Orient Energy, GE also is able to provide prompt and efficient local customer service to BEDL and STFE Co, Ltd.

Jenbacher gas engines in Bangladesh
A growing array of textile producers, food and beverage processing companies and other industrial operators are installing GE's fuel-flexible Jenbacher units at their factories to provide a more reliable, on-site supply of power. More than 500 MW have been delivered in Bangladesh, creating an extensive energy industry awareness of GE's advanced gas engine technology.

"Businesses in Bangladesh need reliable and cost-effective electricity to operate more efficiently and become more competitive, which in turn creates local job opportunities for people and helps improve their quality of life. This is why it is so important for Bangladesh and other developing economies to continue modernizing their energy and water infrastructure," GE's Iyyanki said.

SOURCE: GE