Khulna Power to shut two plants

Khulna Power Company Ltd (KPCL) has decided to shut down its 115-megawatt unit in Khulna and 40-megawatt unit in Jashore, citing uncertainty over its power purchase agreements (PPAs) with the Bangladesh Power Development Board (BPDB).

Both plants were operating on a "no electricity, no payment" basis without guaranteed offtake since April 2024 in line with a directive from the Power Division of the Ministry of Power, Energy, and Mineral Resources.

Despite negotiations with the BPDB, no formal PPAs have been executed so far, the KPCL said in a disclosure on the Dhaka Stock Exchange yesterday.

And as the BPDB has not issued any orders for electricity from these plants, there are doubts about the possibility of future agreements, it added.

Amid these uncertainties, the KPCL said it has decided to keep the plants in "shutdown mode" until the PPA situation is clarified.