State-owned Bangladesh Power Development Board (BPDB) signed a 20-year power purchase agreement (PPA) on Sunday with local privately owned Intraco Solar Power Limited to buy electricity from its 30 MW grid-tied solar power plant.
Secretary of BPDB Mina Masud-uz-Zaman and Managing Director of Intraco Solar Power Limited Mohammed Riyadh Ali signed the PPA on behalf of their respective sides.
The company would supply electricity to the national grid within 13 months from the date of signing the agreement and start commercial operation of the plant in September 2018.
The plant Rangpur Gangachara 30-MW (AC) Grid Tied Solar Power Plant will be set up about 17-km away from Rangpur city.
Infrastructure Development Company Limited (IDCOL) will fund the project and the tariff of per kilowatt electricity of the project was fixed at 16 US cents which is equivalent to Tk 12.80.
However, the government will buy electricity from the plant on ‘No electricity, No Payment’ basis meaning that the company will only get payment once it sells electricity.
Intraco also signed an implementation agreement (IA) with the Power Division for the project as part of government`s move to increase the ratio of renewable energy in the country.
Speaking at the contract signing ceremony at Biduyt Bhaban in Dhaka, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said incentives to promote renewable energy would continue, as the government is trying to increase production and use of the green and clean energy comparatively at higher prices.
The state minister expressed his frustration over the delay in implementation of some other solar power projects.
Intraco managing director Riyadh Ali said his company has purchased 143.3 acres of land in Gangachara upazila of Rangpur for the project.
The function was addressed, among others, by Power Secretary Dr Ahmad Kaikaus and BPDB chairman Khaled Mahmood.