In the summer season in the country, the excess demand for electricity during peak hours is, on average, 4000 megawatts. However, the capacity of peak load-based power plants (used when demand increases) in the power generation system is 8500 megawatts. Most of these are privately owned furnace oil-based plants with high production costs. Therefore, according to the plan, these plants should only operate during peak hours (daytime and evening) when the demand for electricity increases. However, due to the fuel crisis at base load-based (always running) plants, the Bangladesh Power Development Board (BPDB) is forced to run high-cost peak load plants. As a result, the financial losses of the organization are increasing.

There are 144 plants involved in electricity production in the country. According to BPDB's calculations, 52 base load-based plants have a total capacity of 19,229 megawatts. On the other hand, 92 peak load-based power plants, built both by the government and private sector, are also present.

After speaking with at least three engineers from BPDB, it was learned that the peak load plants were primarily approved considering the compatibility with the power generation system and the possibility of an immediate increase in demand. However, it has been found that most peak load-based power plants are being used due to the lack of fuel supply at base load plants. These plants are run more during the evening. However, when gas supply decreases in the summer, BPDB uses peak load plants with a capacity of 4500-5000 megawatts. The fact that BPDB is using peak load plants as base load plants has not been denied by these officials, acknowledging the weakness in BPDB's planning.

Energy experts have said that the capacity of baseload plants in BPDB's list of power plants is more than 19,000 megawatts. However, the highest electricity demand in the country so far is around 16,500 megawatts. Power plants with a capacity higher than the demand have mainly been built due to political considerations and unplanned construction. As a result, not only is the cost of electricity production increasing at a high rate, but BPDB is also incurring huge costs by keeping these privately owned plants idle. If these plants were shut down, unnecessary expenses would decrease.

Professor M Tamim, an energy expert, told Bonik Barta, "The production cost of peak-load power plants is always high. Most power plants classified as peak-load plants are used as baseload plants by BPDB. Due to insufficient fuel supply at baseload plants, oil-based peak-load plants are being used. If adequate fuel supply could be ensured, there would not be such a high need for peak-load plants. This would reduce the electricity production cost and BPDB's overall financial pressure."

According to BPDB sources, all coal-based plants in the country are baseload power plants. In addition, gas-based combined cycle power plants are also baseload plants. However, BPDB has never been able to operate these plants at full capacity because it does not have the required funds or fuel. At the same time, the demand for electricity is lower than the capacity of these plants. Therefore, peak-load plants are being used.

In the country, peak load-based plants are used up to 4000 megawatts during peak hours, even in the summer. In winter, this comes down to 1000 megawatts. However, the capacity of peak load plants in BPDB's list of plants is currently 8,597 megawatts. The cost of producing electricity from furnace oil-based plants is BDT 18-20 per kilowatt, whereas the price of electricity per unit from gas-based base load plants is, on average, around BDT 3.5. Therefore, while BPDB is producing electricity at a higher cost, the cost of operating these plants is increasing, and these plants cannot be canceled before the end of their stipulated contracts. However, according to senior executives of the organization, work is underway to exclude inefficient and low-performing power plants from production capacity.

When asked, BPDB's Chairman told Bonik Barta, "Many peak load power plants are being used as base load plants. The main reason for this is the fuel crisis. When there is a gas shortage, oil-based plants have to be used to maintain the electricity supply system. BPDB is operating these plants primarily to maintain the supply system. However, some peak-load power plants have become inefficient, decreasing their efficiency. Those with low plant factors are being reviewed. However, these plants cannot just be canceled; there is no legal provision. Because of this, BPDB has to receive a large subsidy from the government. BPDB wants to remove unnecessary costs, and we are working on those issues."