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Solar Park:
Utility Scale Solar Power ProjectDevelopment
A S M Alamgir KabirChairman, BPDB
20 September, 2011
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Bangladeshs Power Sector: At a Glance(FY 2010)
Electricity Growth : 10 % in FY-2010 (Av. 7 % since 1990)
Generation Capacity : 6984 MW(16 August, 2011)
Total Consumers : 12.5 Million
Transmission Lines : 8,600 km Distribution Lines : 2,75,000 km
Per Capita Generation : 251 kWh (incl. Captive)
Access to Electricity : 50 %
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Demand Supply Situation
Generation on Jan 6, 2009: 3268 MW(Capacity- 4931 MW)
Generation: 5000 5300 MW(Capacity- 6984 MW)
Highest so far: 5244 MW( August 29, 2011)
Gas shortage causes 400 - 600 MWless Power Generation
Peak Demand: 6000 MW(with DSM)
Load shedding up to800 MWduring hot summer days (with DSM)
Shortage and unreliable power supply has constrainedeconomic growth
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44444
Power Generation Projects up to 2016Calendar Year Wise Projects Completion (From 2010 to 2016)
YEAR
2010
(MW)Commissioned
2011(MW)
2012(MW)
2013(MW)
2014(MW)
2015(MW)
2016(MW)
TOTAL(MW)
Public 2 5 5 1 1 0 7 5 8 2 1 0 4 0 1 2 7 0 4 5 0 1 5 0 0 6 2 0 4
Private2 7 0 1 0 5 1 3 1 9 1 1 3 4 1 0 5 3 1 9 0 0 1 3 0 0 7 0 8 1
QuickRental 2 5 0 1 2 3 8 1 4 8 8
Total 775 2450 1901 2174 2323 2350 2800 14,773
Public Sector : 6204 MW (comm: 360 MW, u/c: 1629 MW, Tender: 1425 MW); (42%)
Private Sector : 8569 MW (comm:1463 MW, u/c: 1667 MW, Tender: 2639 MW); (58%)
January, 2011
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55555
Gen Addition Jan 09 Dec 09 : 356 MW
Gen Addition Jan 10 Dec 10 : 775 MW
Gen Addition Jan 11 Aug 11 : 1048 MW
Total Gen. Addition (Jan 09 Aug 11): 2179 MW
Power Generation Addition From Jan 09 to Aug. 11
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Successful Contract Signed since Jan 2009
Sl.
No.
Descript
ion
No. of
Contract
No. of
Plant
Capacity
(MW)
Commis
. (MW)
01. PrivateSector
25 27 3020 1353
02. PublicSector
17 17 1734 105
Total 42 44 4754 1458
Out of 4754 MW, 1458 MW (18 Plants) already commissioned. 26 Projects with capacity 3296 MW under construction.
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Projects Under Tendering Process: Contract within Next 6Months
Sl.
No Description No. of Projects Capacity(MW)
01. Public Sector 5 1425
02. Private Sector(IPPs)
23 2639
Total 28 4064
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Renewable Energy Policy envisions 5% of total power,i.e. at least 800 MW from renewable sources by 2015.
Solar energy is the most proven source till date
Private sector is the engine of growth in power sectordevelopment of Bangladesh
Solar Park is the concept through which utility scale
solar power project is to be developed through privatesector
Renewable Energy Development in Bangladesh
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Policy, Incentives and Security
Mechanism for Investment inPrivate Power Projects
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Private Sector Power Generation Policy
Tariff based bidding
Sovereign guarantee from the Government for
obligations of Government entities through
Implementation Agreement (IA)
Assistance in getting clearances from various agencies
Attractive incentive packages
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Exemption from corporate income tax for a period of 10years.
Plant and equipment (full value) and spare parts (10% oforiginal plant cost) without payment of customs duties, VATand any other surcharges.
Repatriation of equity along with dividends.
Cont
Major Incentives for IPPs
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Major Incentives for IPPs..contd.
Tax exemption and repatriation facilities on royalties,technical know how and technical assistance fees
Avoidance of double taxation on the basis of bilateral
agreements
The Bangladeshi currency, Taka is freely convertible for
FDI
Duty Exemption for Solar Panel
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Payment Guarantee
Implementation Agreement (IA) and PPA will ensure fair andreasonable risk allocation, and payment by the Purchaser is
guaranteed by GOB
Payments under the PPA will continue in the event of
dispatch failure
Payment under the PPA will be ensured by Letter of Credit
Payment to Escrow Account ensures lenders re - payment
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Why invest in Bangladesh SolarPark ?
Projects will implemented on BOO basis
IPPsare operating about 50 % of total generation and makingprofit;
IPPsand BPDB have met their obligations under the PPA without
problems or controversy and no conflict or major problems/issueshave arisen
Independent Regulation to protect Industry and Consumers
interests
Local engineers, technician and skill workers are available
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Solar Park
Solar Park Demonstration Projects will be in non-
agricultural lands
Two types of Land will be used:
- Government owned land- Railway owned Land.
Power generated will be directly fed into the Grid oncommercial basis
Primarily 8 potential sites have been identified
Estimated Development Target: 135 MW
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Solar Park at Govt. Land
Sl. No. Project Location Land available Est. Gen.
Capacity1. Rajabarihat, Rajshahi 52 Acres 15-20 MW
2. PGCB Grid Sub-station
Compound, Ishwardi, Pabna
18 Acres 5-6 MW
3. Rajshahi (Char area at theriver Padma)
500 Acres 150-160 MW
4. Adjacent area near Bangabandhu Bridge 150 Acres 30-40 MW
TOTAL 200-226 MW
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Solar Park at Railway Land
Sl. No. Location Land available Est. Gen. Capacity
1. Azampur Railway Station,Dhaka
52 Acres 12-15 MW
2. Halishahar RTA, Chittagong 42 Acres 8-10 MW
3. Pahartoli Railway Station,Chittagong
25 Acres 5-7 MW
4. Kumira Railway Station,Chittagong 30 Acres 6-8 MW
TOTAL 31-40 MW
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Implementation
To be implemented on BOO basis
Contract period shall be 15-20 years
IPP Operator will be selected through Competitive
Bidding Power Purchase Agreement (PPA) between BPDB and
IPP Operator
Land Lease Agreement with IPP Operator
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1919
BPDB
Technical
Assist.
Select
s
Implementation Model: Government Land
ADB & other DPs
Solar Park IPP[Equity Participation]
PRG
PCG
BPDB
Guarantee
Fee
Tariff
15Yrs
PPA
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2020
BPDB
Technical
Assist.
Select
s
Implementation Model: Railway Land
ADB & other DPs
Solar Park IPP[Equity Participation]
LowI
nterestCredit
BPDB
LoanRepaym
ent
Tariff
15Yrs
PPA
RAILWAY
LandLease
Fee
15Yrs
LLA
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Summary of Project Financing
Sl.
No.
Types Est.
Capacity(MW)
Est. Invest.
Req.Mil. US$
Est. Loan
Mil. US$
Est. Equity
Mil. US$
1 Solar Park at Govt. Land 115 546 382
(70%)
164
(30%)
2 Solar Park at Railway Land 20 95 66.5
(70%)
28.5
(30%)
Sub-total 135 MW 641 448.5
(70%)
192.5
(30%)
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.
Site Details
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Rajabarihat, Rajshahi
Land available : 52 Acres- .
Land Status:- Land is under Ministry of
Fisheries and Livestock- Land uncultivated since 1988- Land available in a single plot- High Land and ready to use- Land transfer under process
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PGCB Grid Substation Compound,
Ishwardi, Pabna
Land available :
Spot 1- Near Grid Control Room: 3 acres
Spot 2- North side of Rest House: 3 acres
Spot 3- Play ground & adjacent area:7 acres
Spot 4- About 5 acres
Total area available: 18 Acres (Approx.)
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PGCB Grid Substation Compound,
Ishwardi, Pabna Contd.
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PGCB Grid Substation Compound,
Ishwardi, Pabna Contd .
Spot: 1 Spot: 2
Spot: 3 Spot: 4
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Rajshahi
Char area in the river Padma
Prospective Locations:
Char Mazerdiar: 200 acres (50-60MW) Char Ashariadah: 300 acres (80-100MW)
- Sub-station and Transmission System is to be
developed- River crossing Power evacuation system isnecessary
Ch a r i s a St r i p o f Sa n d y L an d r i s i n g o u t o f a r i v e r b e d .
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Chak Asharia
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Char Mazerdiar
Chak Asharia
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Adjacent area near
Bangabandhu Bridge, Sirajgonj
Land available for Solar PV System :
East Side of Banghabondhu Bridge (Towards North) : about30 acres
- Prospective location for 10 MW East side of Banghabondhu Bridge (Towards South) : about
10 acres- Prospective location for 3MW
West Side of Banghabondhu Bridge (Towards North) besidesEcopark : about 50 acres
- Prospective location for 15 MW Sirajgonj embankment adjacent area (paikpara) : about 20
acres- Prospective location for 7MW
Area adjacent to NWZPGCL Grid sub-station: 25-30 acres -Prospective location for 10 MW
Total area available: 150 Acres (Approx.)
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Adjacent area near
Bangabandhu Bridge, Sirajgonj
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East Side
West Side
Paikpara Near NWPGCL
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Expected Intervention from ADB and
other Development Partners
Technical Assistance :- Comprehensive Feasibili ty Study- Project Design- Preparation of Standard Procurement Documents
- Capacity Building
Low Interest Credit Support Partial Risk Guarantee Partial Credit Guarantee
Technical SupportTechnical Support
Financial SupportFinancial Support
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.
Thank you