Cabinet approves five-year extension of quick rental power plant law

The government is extending by five years the law that introduced quick rental power plants to fulfil demands on an emergency basis a decade ago.

The Cabinet approved the draft of the Speedy Supply of Power and Energy (Special Provision) (Amendment) Act 2010 in a meeting presided over by Prime Minister Sheikh Hasina on Monday.

The extension will ensure power supply without disruptions as Bangladesh aims to become a higher-middle income country by 2030 and a developed nation by 2040, Cabinet Secretary Khandker Anwarul Islam said.   

The law, passed in 2010, was extended for the last time by three years to 2021.

After the Awami League returned to power in 2009, the government began signing deals for renting power plants for up to 16 years. The law was passed to legalise the plants. 

Although the government considers the plants as very useful in maintaining dynamism in the economy with increased power supply, subsidies to pay high cost of electricity from the plants have drawn criticism.

The power, energy and mineral resources ministry in a report to the parliamentary standing committee in March said the plants would be shut down by 2024.

Secretary Anwarul said Bangladesh had surplus power some days ago, but new analysis shows rising demand in industries, and it will continue to rise massively after the Padma Bridge is built.