GE Power and Summit, Bangladesh's largest independent power producer, will co-develop a 583-megawatt (MW) combined cycle gas power plant near Dhaka, Bangladesh, the global energy giant announced Monday.
The announcement follows the signing of a 22-year Power Purchase Agreement between Summit Meghnaghat II Power Company Limited, a subsidiary of Summit Group, and the Bangladesh Power Development Board, according to GE's press release.
The Summit Meghnaghat II power plant is expected to become operational by 2022 and will generate the equivalent electricity needed to supply up to 700,000 homes in Bangladesh.
According to the statement, Summit and GE Power signed the equipment and engineering, procurement, and construction scope of the project in 2017 while the services agreement was signed in 2018. Together, the two agreements are worth approximately $390 million, it said.
GE Power will provide the turnkey solution for the Summit Meghnaghat II power project, and is responsible for the facility design, supply and installation of the equipment and commissioning works.
The equipment provided by GE includes one 9HA.01 gas turbine, one heat recovery steam generator, one steam turbine generator, condenser and associated systems, as well as plant solutions.
Additionally, GE will provide services including the maintenance and repairs of the power generation equipment at the facility for a period of 20 years, helping to sustain the efficiency, reliability, performance and availability of the plant. This will also result in a higher plant load factor of the facility over the years, ensuring the lower cost of generation of electricity, it said.
Summit generates around 2 gigawatts for the national grid and is also the largest infrastructure conglomerate in Bangladesh.
By Hale Turkes