A consortium of ib vogt and AG Agro Industries have won a contract to develop a 50 MW grid-tied solar project in the Chittagong district of Bangladesh.
The company is expected to enter into a power purchase agreement (PPA) with the Bangladesh Power Development Board (BPDP) for 20 years. The project will be developed on a build, own, and operate basis (BOO).
Further, BPDB is expected to procure the power at a tariff of $0.1094/kWh under the condition of ‘no electricity, no payment.’
Renewable energy in the form of biomass is the main source of primary energy in the country, comprising about 35-60% of total primary energy use.
Furthermore, Bangladesh aims to install 2.47 GW of renewable energy projects by 2021. A significant amount of this capacity will be developed through solar and wind projects. This year, the World Bank approved a $185 million loan to facilitate 310 MW of renewable energy generation capacity in Bangladesh to meet the growing demand for electricity in the country.
In February 2019, BPDB announced a tender for 50-60 MW of grid-connected solar PV projects at Rangunia, Chattogram. The projects would be developed on a build-own-operate (BOO) basis for 20 years.
In July 2018, BPDB had tendered 200 MW of solar PV projects to be developed across select locations in the country. Last year, BPDB also entered a 20-year PPA with Teesta Solar Limited, a sister concern of BEXIMCO Group, to procure 200 MW of solar electricity.
Bangladesh has become an attractive investment destination for solar projects in the Indian subcontinent.
In October 2018, IIX global, a Singapore-based organization, announced an investment of $1.66 million under Series A round from the IIX Growth Fund, into off-grid solar energy firm SOLshare in Bangladesh.
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.