Power Purchase Agreement for 200 MW Solar Project Signed in Bangladesh
A Power purchase agreement (PPA) to procure power generated from a 200 MW grid-connected solar project has been signed in Bangladesh. This is the first mega-solar project for which a PPA has been signed in the country.
As part of the government’s move to increase the share of renewable energy in the country, the Bangladesh Power Development Board (BPDB) signed a 20-year contract with privately owned Teesta Solar Limited, a sister concern of BEXIMCO Group, to procure 200 MW of solar electricity, according to Bangladesh Sangbad Sangstha (BSS).
According to the contract, Teesta Solar Limited would construct the 200-MW Sundarganj Solar Power Project at Latshal, Sundorgonj in Gaibandha within 18 months. The company would also supply electricity to the national grid at a rate of $0.15 kWh for 20 years under the ‘no electricity no payment method.’
BPDB secretary, Mina Masud Uzzaman, and Managing Director of Teesta Solar Limited, M Rafiqul Islam, signed the power purchase agreement, while Sheikh Faezul Amin, joint secretary of the power division and M Ashraf Hossain, company secretary of Power Grid Company of Bangladesh (PGCB) signed the Implementation Agreement on behalf of their respective sides.
“Currently, the world is moving for clean energy, so we have to follow,” said State Minister for Power, Energy and Mineral Resources Bangladesh, Nasrul Hamid. The United Kingdom and Sweden along with some other countries have already transformed their motor vehicles into electric charge vehicles instead of oil dependency. The government has fixed the goal of providing electricity to all by 2021 at a reasonable and affordable price, added Hamid.
According to sources, BEXIMCO Power and Xinjiang Sunoasis will bear the costs for purchase/lease of the land, and construction of a sub-station and transmission lines to evacuate power from the solar project.
Currently, Bangladesh’s generation capacity stands at 15,821 MW. The country plans to add 2,500 MW of electricity generation capacity to the grid every year starting 2018. The Bangladesh government plans to generate 10 percent of power from renewable sources by 2021 especially solar.
Image credit: flickr
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.