Bangladesh PDB Plans Tk 870 Crore Project To Restore 20-30MW At Kaptai Power Plant

Chittagong, September 29, 2026 — The Power Development Board (PDB) has planned a Tk 870 crore rehabilitation project to restore 20-30MW of generation capacity at the Kaptai hydroelectric power plant. Each unit has a generation capacity of 50MW but currently produces only 35-40MW because of extensive damage to structural components, ageing foundations, and outdated control systems.

📊 Kaptai Power Plant Details

• ⚡ Plant type: hydroelectric
• ⚡ Location: Kaptai Dam, Rangamati, Chittagong Hill Tracts
• ⚡ Total units: multiple 50MW units
• ⚡ Current output per unit: 35-40MW (against 50MW capacity)
• ⚡ Capacity loss per unit: 10-15MW
• ⚡ Total restoration target: 20-30MW
• ⚡ Project cost: Tk 870 crore

🚧 Why The Plant Is Underperforming

The Kaptai hydroelectric plant's underperformance is caused by:

• 🚧 Extensive damage to structural components — decades of operation have degraded turbine and generator components
• 🚧 Ageing foundations — the dam and plant infrastructure are decades old
• 🚧 Outdated control systems — legacy technology limiting operational efficiency
• 🚧 Sedimentation — reduced water storage capacity in Kaptai Lake affecting generation

💼 Significance Of Kaptai Hydroelectric Plant

The Kaptai hydroelectric plant is Bangladesh's only major hydroelectric facility:

• ⚡ Commissioned: 1960s-1980s
• ⚡ Total installed capacity: 230MW (multiple units)
• ⚡ Significance: provides renewable, low-cost baseload power
• ⚡ Water source: Kaptai Lake (created by Kaptai Dam on Karnaphuli River)
• ⚡ Unique role: Bangladesh's only significant renewable energy source (beyond solar)

🌏 Bangladesh's Power Sector Context

The Kaptai rehabilitation comes at a critical moment for Bangladesh's power sector:

• ⚡ Energy supply challenges — gas shortages affecting thermal power plants
• ⚡ Fuel price hike — Tk 20/litre increase raising diesel generation costs
• ⚡ LNG subsidy burden — Tk 10,300 crore in three months
• ⚡ IMF pressure — for subsidy rationalisation and tariff increases
• ⚡ Renewable energy target — 20% of electricity from renewables by 2030

📜 Looking Ahead

For Bangladesh's power sector, the Tk 870 crore Kaptai rehabilitation represents a cost-effective investment in restoring existing renewable capacity — rather than building new capacity. The project will:

• 📝 Restore 20-30MW of clean, renewable hydropower
• 📝 Reduce dependence on costly LNG and diesel-based generation
• 📝 Improve grid stability — hydroelectric provides reliable baseload
• 📝 Support renewable energy targets — contributing to the 20% by 2030 goal
• 📝 Extend plant life — ensuring continued operation of Bangladesh's only major hydro facility

The project demonstrates that investing in rehabilitation of existing infrastructure can be more cost-effective than building new capacity — particularly for renewable energy assets that provide low-cost, clean power.