Khulna Power shuts down plants for deal uncertainty

Khulna Power Company Ltd (KPCL) has announced the shutdown of its 115MW KPC Unit II plant in Khulna and the 40MW Noapara plant in Jashore, citing uncertainty over power purchase agreements (PPAs) with the Bangladesh Power Development Board (BPDB).

These plants have been operating on a "no electricity, no payment" basis without guaranteed offtake since April 2024, following a directive from the Power Division of the Ministry of Power, Energy, and Mineral Resources. 

Despite negotiations with BPDB, no formal PPA have been executed, said KPCL in a disclosure on the website of the Dhaka Stock Exchange today. 

The BPDB has not issued electricity demands for these plants, further raising doubts about future agreements. 

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