The state owned Bangladesh Power Development Board (BPDB) signed a power purchase agreement with Southern Solar Power Limited to buy 200 MW of electricity generated from solar power on Monday.
Southern Solar Power Limited, a project company of Singapore-based SunEdison, would implement the largest ever solar power plant of the country with an estimated cost of $ 300 million within 18 months over a land of 1000 acre.
The company also signed a separate contract with Power Grid Company Bangladesh Limited (PGCB) for power transmission.
Mina Masud Uzzaman, company secretary of BPDB and Chief Executive Officer of (South East Asia) Sun Edison Ismael Arias Guerrero, on behalf of Southern Solar Power Limited signed the agreement with their respective sides at Mukti Hall at Bidyut Bhaban.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid witnessed the signing ceremony as the chief guest and said the SunEdison would have to implement the project on time.
He said the government has targeted to generate 10 percent electricity from renewable energy and the solar plant would help to achieve the goal and the plant would be the biggest solar based power plant in the country.
“We would set up a solar park having 1,000 MW capacity. The solar park would be at a suitable place like in Gaibandha and at Mirersorai in Chittagong,” Nasrul said.
According to the contract, the BPDB would purchase the produced electricity from the solar power plant, which would add to the national grid at an exchange tariff of $ 0.17 kilowatt hour.
However, the tariff will be based on “no electricity, no payment method”, and the contract period will be for 20 years.
Under the deal, Southern Solar, completely owned by SunEdison Energy Holding (Singapore) Private Limited, would complete the establishment of the power plant by next 18 months from the project effective date.
A Chinese based solar power company JINKO Solar would supply modules for the project.
A partner of the Southern Solar Feroz Alam said the power plant, which has already received the purchase committee’s approval, would be set up on around 1,000 acres land at Teknaf in Cox Bazar.
Among others, Power Division Secretary Dr Ahmad Kaikaus, BPDB chairman Khaled Mahmood and Abdur Rouf, consultaing director of SunEdison Energy Holding also spoke in the function.