asm alamgir kabir - solar projects in bangladesh

8/4/2019 ASM Alamgir Kabir - Solar Projects in Bangladesh

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Solar Park:

Utility Scale Solar Power ProjectDevelopment

A S M Alamgir KabirChairman, BPDB

20 September, 2011



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Bangladesh’s Power Sector: At a Glance(FY 2010)

Electricity Growth : 10 % in FY-2010 (Av. 7 % since 1990)

Generation Capacity : 6984 MW(16 August, 2011)

Total Consumers : 12.5 Million

Transmission Lines : 8,600 km Distribution Lines : 2,75,000 km

Per Capita Generation : 251 kWh (incl. Captive)

Access to Electricity : 50 %



3

Demand Supply Situation

Generation on Jan 6, 2009: 3268 MW(Capacity- 4931 MW)

Generation: 5000 –5300 MW(Capacity- 6984 MW)

Highest so far: 5244 MW( August 29, 2011)

Gas shortage causes 400 - 600 MWless Power Generation

Peak Demand: 6000 MW(with DSM)

Load shedding up to800 MWduring hot summer days (with DSM)

Shortage and unreliable power supply has constrainedeconomic growth



44444

Power Generation Projects up to 2016Calendar Year Wise Projects Completion (From 2010 to 2016)

YEAR

2010

(MW)Commissioned

2011(MW)

2012(MW)

2013(MW)

2014(MW)

2015(MW)

2016(MW)

TOTAL(MW)

Public 2 5 5 1 1 0 7 5 8 2 1 0 4 0 1 2 7 0 4 5 0 1 5 0 0 6 2 0 4

Private2 7 0 1 0 5 1 3 1 9 1 1 3 4 1 0 5 3 1 9 0 0 1 3 0 0 7 0 8 1

QuickRental 2 5 0 1 2 3 8 1 4 8 8

Total 775 2450 1901 2174 2323 2350 2800 14,773

Public Sector : 6204 MW (comm: 360 MW, u/c: 1629 MW, Tender: 1425 MW); (42%)

Private Sector : 8569 MW (comm:1463 MW, u/c: 1667 MW, Tender: 2639 MW); (58%)

January, 2011



55555

Gen Addition Jan 09 – Dec 09 : 356 MW

Gen Addition Jan 10 – Dec 10 : 775 MW

Gen Addition Jan 11 – Aug 11 : 1048 MW

Total Gen. Addition (Jan 09 – Aug 11): 2179 MW

Power Generation Addition From Jan 09 to Aug. 11



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Successful Contract Signed since Jan 2009

Sl.

No.

Descript

ion

No. of

Contract

No. of

Plant

Capacity

(MW)

Commis

. (MW)

01. PrivateSector

25 27 3020 1353

02. PublicSector

17 17 1734 105

Total 42 44 4754 1458

• Out of 4754 MW, 1458 MW (18 Plants) already commissioned.• 26 Projects with capacity 3296 MW under construction.



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Projects Under Tendering Process: Contract within Next 6Months

Sl.

No Description No. of Projects Capacity(MW)

01. Public Sector 5 1425

02. Private Sector(IPP’s)

23 2639

Total 28 4064



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Renewable Energy Policy envisions 5% of total power,i.e. at least 800 MW from renewable sources by 2015.

Solar energy is the most proven source till date

Private sector is the engine of growth in power sector development of Bangladesh

Solar Park is the concept through which utility scale

solar power project is to be developed through privatesector

Renewable Energy Development in Bangladesh



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Policy, Incentives and Security

Mechanism for Investment inPrivate Power Projects



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Private Sector Power Generation Policy

Tariff based bidding

Sovereign guarantee from the Government for

obligations of Government entities through

Implementation Agreement (IA)

Assistance in getting clearances from various agencies

Attractive incentive packages



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Exemption from corporate income tax for a period of 10years.

Plant and equipment (full value) and spare parts (10% of original plant cost) without payment of customs duties, VATand any other surcharges.

Repatriation of equity along with dividends.

Cont…

Major Incentives for IPPs



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Major Incentives for IPPs……..contd.

Tax exemption and repatriation facilities on royalties,technical know– how and technical assistance fees

Avoidance of double taxation on the basis of bilateral

agreements

The Bangladeshi currency, Taka is freely convertible for

FDI

Duty Exemption for Solar Panel



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Payment Guarantee

Implementation Agreement (IA) and PPA will ensure fair andreasonable risk allocation, and payment by the Purchaser is

guaranteed by GOB

Payments under the PPA will continue in the event of

dispatch failure

Payment under the PPA will be ensured by Letter of Credit

Payment to ‘ Escrow Account’ ensures lenders re - payment



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Why invest in Bangladesh Solar Park ?

Projects will implemented on BOO basis

IPPsare operating about 50 % of total generation and makingprofit;

IPPsand BPDB have met their obligations under the PPA without

problems or controversy and no conflict or major problems/issueshave arisen

Independent Regulation to protect Industry and Consumers’

interests

Local engineers, technician and skill workers are available



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Solar Park

Solar Park Demonstration Projects will be in non-

agricultural lands

Two types of Land will be used:

- Government owned land- Railway owned Land.

Power generated will be directly fed into the Grid oncommercial basis

Primarily 8 potential sites have been identified

Estimated Development Target: 135 MW



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Solar Park at Govt. Land

Sl. No. Project Location Land available Est. Gen.

Capacity1. Rajabarihat, Rajshahi 52 Acres 15-20 MW

2. PGCB Grid Sub-station

Compound, Ishwardi, Pabna

18 Acres 5-6 MW

3. Rajshahi (Char area at theriver Padma)

500 Acres 150-160 MW

4. Adjacent area near Bangabandhu Bridge 150 Acres 30-40 MW

TOTAL 200-226 MW



1717

Solar Park at Railway Land

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



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Implementation

To be implemented on BOO basis

Contract period shall be 15-20 years

IPP Operator will be selected through Competitive

Bidding Power Purchase Agreement (PPA) between BPDB and

IPP Operator

Land Lease Agreement with IPP Operator



1919

BPDB

T e c h n i c a l

A s s i s t .

S e l e c t

s

Implementation Model: Government Land

ADB & other DPs

Solar Park IPP[Equity Participation]

P R G

P C G

BPDB

G u a r a n t e e

F e e

T a r i f f

1 5 Y r s

P P A



2020

BPDB

T e c h n i c a l

A s s i s t .

S e l e c t

s

Implementation Model: Railway Land

ADB & other DPs

Solar Park IPP[Equity Participation]

L o w I n

t e r e s t C r e d i t

BPDB

L o a n R e p a y m

e n t

T a r i f f

1 5 Y r s

P P A

RAILWAY

L a n d L e a s e

F e e

1 5 Y r s

L L A



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Summary of Project Financing

Sl.

No.

Types Est.

Capacity(MW)

Est. Invest.

Req.Mil. US$

Est. Loan

Mil. US$

Est. Equity

Mil. US$

1 Solar Park at Govt. Land 115 546 382

(70%)

164

(30%)

2 Solar Park at Railway Land 20 95 66.5

(70%)

28.5

(30%)

Sub-total 135 MW 641 448.5

(70%)

192.5

(30%)



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.

Site Details



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Rajabarihat, Rajshahi

Land available : 52 Acres- .

Land Status:- Land is under Ministry of

Fisheries and Livestock- Land uncultivated since 1988- Land available in a single plot- High Land and ready to use- Land transfer under process



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PGCB Grid Substation Compound,

Ishwardi, Pabna

Land available :

Spot 1- Near Grid Control Room: 3 acres

Spot 2- North side of Rest House: 3 acres

Spot 3- P lay ground & adjacent area:7 acres

Spot 4- About 5 acres

Total area available: 18 Acres (Approx.)



2525


Ishwardi, Pabna Contd.



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Ishwardi, Pabna Contd.

Spot: 1 Spot: 2

Spot: 3 Spot: 4



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Rajshahi

Char area in the river Padma

Prospective Locations:

• Char Mazerdiar: 200 acres (50-60MW)• Char Ashariadah: 300 acres (80-100MW)

- Sub-station and Transmission System is to be

developed- River crossing Pow er evacuation system isnecessary

‘Cha r ’ i s a St r i p o f Sandy Land r i si ng ou t o f a r i ve r bed .



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Chak Asharia



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Char Mazerdiar

Chak Asharia



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Adjacent area near

Bangabandhu Bridge, Sirajgonj

Land available for Solar PV System :

• East Side of Banghabondhu Bridge (Towards North) : about30 acres

- Prospective location for 10 MW• East side of Banghabondhu Bridge (Towards South) : about

10 acres- Prospective location for 3MW

• West Side of Banghabondhu Bridge (Towards North) besidesEcopark : about 50 acres

- Prospective location for 15 MW• Sirajgonj embankment adjacent area (paikpara) : about 20

acres- Prospective location for 7MW

• Area adjacent to NWZPGCL Grid sub-station: 25-30 acres -Prospective location for 10 MW

Total area available: 150 Acres (Approx.)



3131

Adjacent area near

Bangabandhu Bridge, Sirajgonj



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East Side

West Side

Paikpara Near NWPGCL



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Expected Intervention from ADB and

other Development Partners

Technical Assistance :- Comprehensive Feasibil ity Study- Project Design- Preparation of Standard Procurement Documents

- Capacity Building

Low Interest Credit Support Partial Risk Guarantee Partial Credit Guarantee

Technical SupportTechnical Support

Financial SupportFinancial Support



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