Background to the KSP-RPCL Proposal
The proposal submitted to the Knowledge Sharing Program (KSP) by RPCL (Rupsha Power Company Limited) is a policy advisory project designed to support reforms in Bangladesh's power sector. RPCL is the operator of an 800MW LNG combined-cycle power plant under development in the Khulna region, and it seeks to draw on Korea's policy and operational experience in LNG-based generation. Through KSP, specialists from KDI and the Korea Energy Economics Institute are expected to advise on plant efficiency, operational improvement, and power mix optimization.
Scope of the Policy Advisory
The KSP advisory is structured around three main workstreams. The first is LNG plant operation optimization, including thermal efficiency and maintenance planning. The second is power mix strategy, focused on the balance among LNG, coal, and renewable energy. The third is electricity market design, including generation tariffs, PPA structures, and grid operation. Operational cases from KEPCO and Korea Southern Power serve as major reference models.
| Area | Current Status | Target | Korean Reference | Timeline |
|---|---|---|---|---|
| Operational optimization | 45% thermal efficiency | Achieve 60%+ | Korea Southern Power | 6 months |
| Power mix strategy | LNG 22% | Define an optimal mix | Korea Energy Economics Institute | 8 months |
| Market design | Single-buyer system | Roadmap toward a competitive market | KPX | 12 months |
| Integrated advisory | - | Policy report + legal recommendations | KDI | 18 months |
Transfer of Korean Power-Sector Experience
Korea previously transitioned from a coal-centered structure toward LNG combined-cycle generation and pursued major electricity market reforms in the 2000s, including the restructuring of KEPCO and the establishment of the Korea Power Exchange. The policy and technical knowledge accumulated through that process is directly relevant to Bangladesh as it manages a comparable transition.
Expected Impact
If the KSP advisory is implemented successfully, RPCL could improve thermal efficiency by 15 percentage points, cutting annual fuel costs by roughly $80 million. At the broader system level, a better optimized power mix could lower generation costs by around 12% and support greater private-sector participation through market reform.