Doreen Power Generations and Systems, a publicly listed company, has ceased operations at its 22MW Narsingdi power plant following the expiration of its power purchase agreement (PPA) with the Bangladesh Rural Electrification Board (BREB).
This comes after the recent shutdown of its 22MW Tangail power plant due to the expiry of the PPA with the Bangladesh Power Development Board (BPDB). Both plants, operational since 2008, had signed 15-year agreements to supply electricity to the government. The closure of Doreen Power’s Feni plant is anticipated in February 2024 as its PPA approaches expiration.
Concerns were raised by ACNABIN Chartered Accountants, the independent auditor, as all three power plants faced closure by February next year due to contract expiry. The shuttered condition will persist until further instructions from the BPDB or the Ministry of Power, Energy, and Mineral Resources. Doreen Power, seeking a contract extension, disclosed its application for the same.
The company, with three subsidiaries collectively producing 225MW, reported that nearly 10% of its consolidated revenue and 23% of its consolidated profit in FY23 were attributed to the three power plants. In the same fiscal year, the consolidated profit fell by 61% year-on-year to Tk64.48 crore, primarily due to foreign exchange losses. Doreen Power has recommended an 11% cash dividend for FY23. The power company’s shares closed at Tk61 each on the Dhaka Stock Exchange.
