Sigma Powertech has selected Wärtsilä for the construction of a 40MW power plant in Dhaka, the capital city of Bangladesh.

Finland-headquartered Wärtsilä will provide four natural gas engines and related technologies for the plant before the end of 2021. The project is expected to be operational by the end of June 2022.

The plant will be located at Adamjee Export Processing Zone (EPZ) to ensure a reliable and efficient supply of electricity. The project is expected to encourage more investments, industrial activities, and job creation in the EPZ.

The announcement comes at a time Bangladesh is struggling to provide reliable electricity to its 160 million customers. The country is turning to coal and energy imports to address power shortages.

Despite the efforts by the government, power outages remain a common thing and are hindering foreign investments to be made within the economy, according to the IEEE Sprectrum.

Mohammad Moyeen, Chairman of Sigma Powertech, said: “This is an important project for the region and for the continued economic growth of Bangladesh through export enhancement as per government’s initiative.

“Growth throughout the industrial sector is very much dependent on having a reliable power supply, and the new power plant will provide this.”

With the majority of energy generation infrastructure in Bangladesh aging and energy demand increasing, the development of new assets and modernisation of existing ones is critical for a secure energy supply.

The International Trade Administration is working with the government of Bangladesh to raise $70 billion over the 15 years to increase power generation capacity. Demand for electricity in Bangladesh is projected to reach 40 GW by 2030.

Henri Boxtel, Energy Business Director for South Asia at Wärtsilä, said projects like Adamjee EPZ “represent a new kind of industrial development concept for Bangladesh and we expect more of those to come”.

“Typically, these developments require the power generation to be flexible, efficient and reliable, and our technology fits these needs perfectly.”

The project will be the fourth Bangladeshi EPZ project for which Wärtsilä has supplied power generating capacity.