Summit Meghnaghat Power Company Limited

Debt : April 2014

BIO has granted a USD 17.5 M loan to Summit Meghnaghat Power Company Limited, a 305-335 MW dual fuel combined cycle power plant in Bangladesh.

Amount

€ 12,806,440.00

Type of investment

Debt

Development impacts

Access to basic services & goods

Beneficiary locations

Asia: Bangladesh

Investment field

Infrastructure

Activity

Energy - Thermal Power Plant

Organisation

Summit Meghnaghat Power Company Limited

Website

https://summitpowerinternational.com/summit-meghnaghat-power-company-limited

Domicile

Bangladesh

As a medium term plan to address the growing power crisis in Bangladesh, the government has awarded a number of base load combined cycle power plants.

Bangladesh is not suitable for large scale renewable energy projects. The rather flat geography does not provide sufficient hydropower potential. With a population of 164,5 million and a surface slightly more than Greece, the country is densely populated. This density does not allow large scale wind and solar power stations because these require significant open land areas, which are not available. Wind power turbines cannot operate in urban areas and servicing and maintenance know-how for wind turbines is not available in Bangladesh. Biogas generated from sewage could be an off-grid solution but could not provide electricity on a large scale in order to fill the demand gap. As Bangladesh has large gas reserves, further development of gas-fired power stations is a reasonable strategy to promote access to clean and reliable energy.

Through a competitive international bidding process, Summit Meghnaghat Power Company Limited (SMPCL) was awarded a 22 years license for a 305-335 MW dual fuel combined cycle power plant to supply electricity to the national grid. SMPCL has been founded as Special Purpose Company for this project and acts as borrower.

A dual fuel combined cycle thermal powerplant will generate approximately 50% more electricity out of the same amount of fuel burnt, as the exhaust heat from the gas turbines goes to the steam turbine, generating electricity out of the heat which would otherwise be lost.

100% of the electricity is being sold under a 22 years PPA to the offtaker, the public Bangladesh Power Development Board (BPDB).

This investment is part of an EDFI facility of USD 120 M, lead by DEG, in cooperation with FMO and CDC.

Development impacts

Access to basic services & goods
As medium term plan to address the growing power crisis in Bangladesh, the government has awarded a number of base load combined cycle power plants.