Power Division has decided not to accept any new proposal from Independent Power Producers (IPP) of private sector for the construction of the solar power plant.
The decision was taken at a meeting on the process of processing unsolicited project proposals on April 13, as no satisfactory development was seen in this regard despite giving permission to many non-government entrepreneurs to produce electricity from renewable energy.
Speaking at the meeting, Joint Secretary of Power Division Mohammad Alauddin said so far, the progress of electricity generation from solar power related IPP is not satisfactory. However, every time an unsolicited proposal is being submitted.
Mohamad Hossain, Director General of Power Cell, said out of total power generation by 2020 in the country, the government has set target to produce 10 percent or 2,000 MW of electricity from renewable energy.
Generally, a large part of this electricity will be produced from the solar power stations of the country.
In the meeting, it was also taken decision that the government will encourage private entrepreneurs and they will be provided incentives to produce this electricity.
As part of this, the Power Division, under the speedy supply of power and energy (Special Provision) Act 2010, accepted the proposal of renewable energy-based unsolicited project.
Generally, the project proposal committee headed by the power division secretary decided to undertake a new project after interested entrepreneurs applied to the power division to set up a solar power plant.
Seeking anonymity, a Power Division official said, so far 69 projects have been submitted to the power office.
In the meantime, some 18 proposals received Prime Minister’s approval in principle till April 18, this year.
If these 18 projects are implemented, 1,050 megawatt electricity will be generated.
The power purchase agreement (PPA) of Bangladesh Power Development Board (BPDB) has been signed with the sponsor of four projects, with a total capacity of 302 MW.
But there is no progress in the project so far. No solar power plant could even start electricity production. However, after signing the contract, a 100-megawatt electricity power plant is required for one year.
And they are not responding even though the letter of intent (LoI) is issued in different times for the sponsorship of nine projects of 528 MW capacity. The remaining five projects are under consideration of the processing committee.
Apart from this, some 17 plants of 2,147 MW capacity are under consideration of the land inspection committee to consider the projects under special act. The remaining 34 proposals will not be taken into consideration, according to sources.
In the meeting, the decision was also taken that the sponsor must compulsorily sign the electricity purchase agreement within two months after issuance of the validation of LoI. Otherwise, the LoI will be canceled.
Besides, the projects which are already moved through the special provision act and are now under consideration of the technical committee and land inspection committee will be completed.
The decision was also made in the meeting that the government will appoint a sponsor by floating tender from the private power producers if necessary.