Quick Rental Power Plants in Bangladesh: An Economic Appraisal

One important aspect of recent developments is that a significant portion of the additional electricity generation has come from liquid fuel based power plants which has raised the total contribution of liquid fuels in power generation to 17 percent in 2012 from 13 percent in 2011 and 5 percent in 2010. Moreover, most of the liquid fuel based electricity has come from rental, quick rental, and peaking plants which were undertaken on a fast-track basis to address the nagging power crisis. The present study recommends that new capacity procurement should be based on least cost criteria to minimize the cost of power to the economy to support poverty reduction and improve competitiveness of the economy.