Government of Bangladesh

20 September 2011, Dhaka

ROAD MAP FORROAD MAP FOR

500 MW SOLAR POWER DEVELOPMENT 500 MW SOLAR POWER DEVELOPMENT PROGRAMME PROGRAMME

Power DivisionMinistry of Power, Energy and Mineral Resources

Tapos Kumar RoyAdditional Secretary

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RENEWABLE ENERGY POLICYRENEWABLE ENERGY POLICY

Policy envisions: - 5% of total power from renewable sources by 2015- 10% of total power from renewable sources by 2020

Policy demands (as of June 2011 Program):- 800 MW power from renewable by 2015- 2000 MW power from renewable by 2020

A dedicated agency proposed: Sustainable Energy Development Authority (SEDA)

Policy effective in 2009

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Existing Incentives from Government- Electricity generated from Renewable Energy Projects (less than 5 MW)

may be purchased by Power Utility or any Consumer through mutual agreement

- Renewable Energy Project Investors will be exempted from corporate income tax for a period of 10 years.

- Renewable Energy Equipment and raw materials will be exempted from charging 15% VAT

- An incentive tariff may be considered for electricity generated from renewable energy sources which may be 10% higher than the highest price of electricity purchased by the utility from private generators.

Full/ Partial Duty exemption:- Solar Panel- Solar Panel manufacturing equipment- LED Light- Solar Operated Light- Wind Power Plant

Promotional Funds for Renewable Energy Projects through:- Bangladesh Bank- IDCOL- Commercial Banks

Existing Incentives from Government…contd.

500 MW SOLAR POWER 500 MW SOLAR POWER DEVELOPMENT PROGRAMME DEVELOPMENT PROGRAMME

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500 MW SOLAR POWER DEVELOPMENT PROGRAM500 MW SOLAR POWER DEVELOPMENT PROGRAM--AT A GLANCEAT A GLANCE

An initiative of Power DivisionLargest ever Solar Power Development Initiative in Bangladesh Adopted in accordance with vision in RE PolicyCollaboration with a number of government ministries and their agenciesStrong involvement of private sector in implementationCompletion by 2015Planning to incorporate CDM componentsThe Initial Idea had been presented at ADB’s 3rd Asian Solar Energy Forum in Bangkok, 1-3 June 2011

ACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENTACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENT……....(JUNE 11)(JUNE 11)

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Category Achievement

Solar Home System (SHS) 47 MW(1 Million Units)

Other Solar PV Applications(e.g. Markets, Office Buildings etc.)

1 MW

Roof-top Solar PV Systems of New Electricity Consumers

3 MW

Wind Energy 2 MW

Biomass based electricity 1 MW

Biogas based electricity 1 MW

Total 55 MW

92% contribution is from solar PV Technology

LIST OF SOLAR POWER PROJECTS UNDER PIPELINE LIST OF SOLAR POWER PROJECTS UNDER PIPELINE

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Type of Project Capacity Impl. Location Major Source of Funding

Solar Thermal Power Plant 20 MW Private Sector

Bhaluka, Mymensingh

Private Sector (IPP basis)

Grid Connected Solar PV Power Plant

400 kW BPDB Sullah, Sunamganj Climate Change Trust Fund

1 MW BPDB Rajshahi City Private Sector (IPP basis)

3 MW BPDB Rajabarihat, Rajshahi Private Sector (IPP basis)

3 MW BPDB Sarishabari, Jamalpur Private Sector (IPP basis)

5 MW BPDB Kaptai, Rangamati Asian Development Bank

Solar PV System 28 kW REB REB H/Q GoB

Solar LED Street Light System.

225kW PDB& c.corp.

6 City Corporations Asian Development Bank

Solar Powered Irrigation Pump (each 14 kWp )

280 kW REB 8 PBSs Climate Change Trust Fund

Solar Powered Irrigation Pump (each 8 kWp ) & SHS

222 kW REB 7 PBSs KOICA

Solar-Wind Hybrid Power Plant

1 MW BPDB Hatia Island Asian Development Bank

TOTAL (Est.) 35 MW

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Category Status

Commercial Solar Power Projects

340 MW

Social Solar Power Projects 160 MW

Total 500 MW

TARGET FORTARGET FOR

500 MW SOLAR POWER DEVELOPMENT PROGRAMME500 MW SOLAR POWER DEVELOPMENT PROGRAMME

TWO BROAD CATEGORIES PROGRAMME TWO BROAD CATEGORIES PROGRAMME

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-- COMMERCIAL TYPE COMMERCIAL TYPE -- SOCIAL SERVICE TYPESOCIAL SERVICE TYPE

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Program Capacity (MW)

1 Solar Irrigation Pumps 150

2 Solar Power Mini Grid System 25

3 a) Solar Park at govt. land 115

b) Solar Park at Railway Area 20

4 Solar Power in Private Commercial and Residential Buildings

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5 Solar Power in Industries 20

Total 340

A. COMMERCIAL PROJECTSA. COMMERCIAL PROJECTS

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1. REPLACEMENT OF DIESEL IRRIGATION PUMPS WITH 1. REPLACEMENT OF DIESEL IRRIGATION PUMPS WITH SOLAR POWER SOLAR POWER

- 1.34 Million Diesel operated Irrigation Pumps in the country

- 18,700 of them will be replaced with Solar

- The Replacement Pumps include Shallow Tube Wells (STWs) & Low Lift

Pumps (LLPs)

- Average capacity of each solar pump is 8 kWp with Head of 12-15 Meter

- Area coverage on average 8 Hectares of Paddy Fields per Pump

- Total Solar Power Capacity Addition: 150 MW

- A Monitoring Committee will supervise the programme

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ADB & other DPs

IDCOL

Partner Org. (PO)[Equity Participation]

Farmers Group

Gran

t

Low

Inte

rest

Cred

it

Gran

t &

Cred

it Su

ppor

t

Tech

.As

sist.

Impl

.

O&M

Solar Irr. Pump

Wat

er Wat

er T

ariff

Loan

Re

pay.

Loan

Re

pay.

IMPLEMENTATION MODELIMPLEMENTATION MODEL

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2. MINI GRID SOLAR POWER SYSTEM AT REMOTE 2. MINI GRID SOLAR POWER SYSTEM AT REMOTE VILLAGES UNDER RAPSS MODELVILLAGES UNDER RAPSS MODEL

- Guideline for Remote Area Power Supply System (RAPSS) was undertaken in 2007- 30 remote Upazillas have been identified under RAPSS where gridexpansion is not planned for next 10-15 years

- New area identification under process

- Private RAPSS Operator as Area Franchise will be hired through Competitive Bidding - Necessary Grant and credit support will be extended through IDCOL.- REB will supervise the project as well as, will provide tariff subsidy to the RAPSS Operator.

- Total Solar Power Capacity Addition: 25 MW

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Power CellTe

chni

cal

Assis

t.

Selec

ts o

pera

tor

Thro

ugh

bidd

ing

Implementation ModelImplementation Model

ADB & other DPs

IDCOL(As financing inst.)

RAPSS Operator[Equity Participation]

Gran

t

Low

Inte

rest

Cred

it

Gran

t &

Cred

it Su

ppor

t

Gen.

Di

st.

& O&M

Solar Mini Grid Lo

an

Repa

y.Lo

an

Repa

y.

RAPSS Fund(under Power Division/Power cell’s control)

Gran

t

Low

Inte

rest

Cred

it

Loan

Re

pay.

REB

Tarif

f co

llect

ion

Tarif

f Su

bsid

y

Moni

torin

g

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3. SOLAR PARK AT GOVT. LAND 3. SOLAR PARK AT GOVT. LAND Solar Park as Demonstration Projects in non-agricultural landsThe power generated will be fed into the Grid on commercial basisTotal Solar Power Capacity Addition: 115 MW

Primarily 4 potential sites have been identified , may have other location to be identified: Sl. No. Location Land available Est. Gen.

Capacity

1. Rajabarihat, Rajshahi 52 Acres 15-20 MW2. PGCB Grid Sub-station

Compound, Ishwardi, Pabna18 Acres 5-6 MW

3. Rajshahi (Char area at the river 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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BPDBTe

chni

cal

Assis

t.

Selec

ts

IMPLEMENTATION MODELIMPLEMENTATION MODEL

ADB & other DPs

Solar Park IPP [Equity Participation]

PRG

PCG

BPDB

Guar

ante

eFe

e

Tarif

f

15 Y

rsPP

A

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4. SOLAR PARK AT RAILWAY AREAs4. SOLAR PARK AT RAILWAY AREAs

- Bangladesh Railway has many unutilized lands- Solar PV Park may installed at those areas- Project may be implemented on IPP basis- Generated Power may be fed into the grid on commercial basis- BPDB will buy the power from the IPP

- IPP Developer would have land lease agreement with Railway

- Total Solar Power Capacity Addition: 20MW

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List of Potential Railway Sites for Solar Park

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

Primarily 4 potential sites have been identified:

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BPDBTe

chni

cal

Assis

t.Se

lects

Implementation Model

ADB & other DPs

Solar Park IPP [Equity Participation]

Low

Inte

rest

Cre

dit

BPDB Lo

an R

epay

men

tTa

riff

15 Y

rsPP

A

RAILWAY

Land

Lea

se

Fee

15 Y

rsLL

A

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- Government has a directive to install solar panel to meet certain percentage of load demand as a pre-condition to get new electricity connection- Solar Power System will reduce load demand on Grid Electricity- Nearly 3 MWp Solar Panel already installed through out the country under the Directive

- Project aims to extend Credit facility to the Consumers as an incentive- Commercialization of the Program is under study- Est. Solar Power Capacity Addition: 10 MW

5. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS 5. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS ON COMMERCIAL AND RESIDENTIAL BUILDINGSON COMMERCIAL AND RESIDENTIAL BUILDINGS

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6. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS 6. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS IN INDUSTRIESIN INDUSTRIES

- Government is encouraging Industries to install solar panel to meet certain percentage of their load demand- Solar Panel will be installed at the unutilized roof-top of industries- Solar Power System will reduce load demand on Grid Electricity- Total no. of Industries targeted: 400- Average capacity of each system is 50 kWp- Est. Solar Power Capacity Addition: 20 MW

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ADB & other DPs

IDCOL/ Bangladesh Bank

Project Participant[Equity Participation]

Power Division /SEDA

Low

Inte

rest

Cred

it

Cred

it Su

ppor

t

Impl

.

O&M

Solar Roof-top Solutions

Loan

Re

pay.

Loan

Re

pay.

Implementation Model

Tech. Support

Tech

nica

lAs

sista

nce

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B. Social ProjectsB. Social Projects

Technical Assistance (Project dependent):- Project Design - Preparation of Standard Procurement and Contract

Documents- Detail Feasibility Study- Capacity Building

Grant SupportLow Interest Credit Support (For Capital Cost Buy down)

Technical Support

Financial Support

ADB & DPS SUPPORT EXPECTEDADB & DPS SUPPORT EXPECTED

GOVERNMENT SUPPORT OFFEREDGOVERNMENT SUPPORT OFFERED

1. Implementation Support2. Fiscal Incentives for Project Investors and Operators3. Import Duty Exemption (Full/ Partial) for certain technology

and equipment4. Land Acquisition (Project Dependent)5. Institutional Support

SUMMARY OF PROJECT FINANCINGSUMMARY OF PROJECT FINANCING

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SUMMARY OF PROJECT FINANCINGSUMMARY OF PROJECT FINANCING ………….CONTD..CONTD.

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SUMMARY OF PROJECT FINANCINGSUMMARY OF PROJECT FINANCING ………….CONTD..CONTD.

Capacity Addition under Consideration: 500 MW

Total Investment requirement: 2.76 b USD • Commercial Projects: 1.77 b• Social Projects: 0.99 b

ADB & Other DP Finance: 2.23 b USD (81%)• Grant: 1.38 b (62%)• Credit: 0.85 b (38%)

GOB and Private Sector Participation : 0.53 b (19%)Grant Support would also be required to undertake integrated Capacity Development Project

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CAPACITY DEVELOPMENT SUPPORT CAPACITY DEVELOPMENT SUPPORT

Requires Institutional capacity building support both in public and private sector. Strong R&D support also needs to be facilitatedCapacity development support for CDM project preparationAn Integrated Capacity Development Project may include all those essentials Setting up institution for the Standardization of equipment

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WAY FORWARDWAY FORWARD

This initiative would be considered as a landmark success story for the govt. Its success will be rest upon the govt. development partners and the private entrepreneurs initiatives by working together very closely. Development partners support will be very much needed to go for this programme.

It would be a model for other developing countries who envisage making a mass break-through in solar power development.

Let Sun Power Our FutureLet Sun Power Our Future

Thank You.