Local Debonair Padding and Quilting Solution Ltd (DPQSL) signed a long term power purchase agreement (PPA) with MegaRoof Ltd on Tuesday, for a large-scale rooftop based solar plant to be set up at Valuka in Mymensinghon its factory rooftop.
Solaric, renewable energy research and development company, will install the 324 kilowatt-peak (KWp) grid tied solar project on the rooftop of Debonair’s factory which is a metallic roof with a roof space of 40,000 sft. The company aims at implementing the project in three months from the date of deal signing.
MegaRoof Ltd, established and solely owned by Solaric, is the country’s first and only renewable energy service company (RESCO), will be responsible for the operation and maintenance (O&M) of the system for 20 years under a separate O&M contract signed between the parties.
This is the first commercial power purchase deal through a solar plant and a milestone for rooftop solar applications in Bangladesh at the privates sector in particular.
Mohammed Ayub Khan, managing director of DPQSL and Didar Islam, managing director of MegaRoof Ltd, signed the agreement on respective sides’ behalf at Solaric’s head office in Baridhara, Dhaka.
Fahmida Sultana, director of Solaric, Nasir Uddin Ahmed, director of MegaRoof, Farzana Rahman, senior vice-president and head (investment) of renewable energy of Infrastructure Development Company Limited (IDCOL), Mir Suman Hussain, manager (business development) and Shahan Ahmed, manager (marketing) of Solaric, among others, addressed the signing ceremony.
The estimated total cost of the project is Tk2.50crore, of which IDCOL, a government owned non-bank financial institution, will provide 80% as soft loan (10 years tenure) and Solaric will provide 20% as equity.
The financier of the project, IDCOL, has taken front stage in Bangladesh to help finance the dissemination of solar projects in the country. They have already distributed over five million solar home systems around Bangladesh and now, newly add industrial solar rooftop to their portfolio.
Under the agreement, the DPQSL will purchase electricity from MegaRoof’s plant at a cost that is 5% less than national grid connected Bangladesh Rural Electrification Board (BREB) tariff during the PPA tenure and enjoy free electricity after the expiry of the PPA term.
Didar Islam, is also managing director of Solaric said that the product which Solaric calls MegaRoof, is an industrial solar rooftop system that generates large scale electricity from solar energy for the consumption of large factories and machineries, saving electric bill and helps companies ‘go-green”.
The system is designed to operate seamlessly with the government grid system and captive generators. Priority is given to solar as the first level of energy to be consumed to ensure clients save significantly on their monthly electric bill, he said.
Solaric developed the special zero export controller (ZEC) which ensures that the system operates safely without any back-flow of power to the grid or generator especially during holidays and periods of low consumption, he added.
“There are many idle rooftops available in the country which can be used to produce 500 MW of power. There is a huge market to be filled in this sector and has caught the eyes of companies like Solaric who are able to make rooftop solar technology feasible for commercial use,” Didar said.
We hope to make a positive change to Bangladesh’s current power circumstances and help decrease its carbon footprint, he also added.
With the threat of global warming and rising sea levels, it is not only a necessity, but also is an obligation for us to make the transition to solar and other renewables as a source of energy.
Debonair, being the visionary, has taken initiative to be the first commercial group to sign a PPA agreement which they hope to start a new trend in Bangladesh and is hoping to influence many other groups to follow.
After the PPA term has expired, Debonair will assume full ownership of the system where they will then enjoy free electricity for the rest of the plant life which estimated at 20 years.
The teams of each respective group expressed their commitment and determination to see through the success of the project and their commitment of doing many more ventures together.