Bangladesh’s energy sector is undergoing a rapid transformation, driven by a renewed emphasis on renewable energy sources to combat the challenges posed by climate change and environmental pollution. Within this context, the Barapukuria Solar Power Plant represents a significant commitment to sustainable energy production.
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In a pioneering initiative, a consortium comprising Japan’s Sumitomo Corporation and Parker Bangladesh is poised to establish a 200MW solar power plant in the Barapukuria coal mine area, located in the north-western Dinajpur district of Bangladesh. This ambitious undertaking is structured around two distinct units: a 50MW floating unit and a 150MW ground-mounted unit. Together, these solar units are poised to usher in a transformative era in Bangladesh’s energy landscape while contributing to global sustainability goals.
The innovative project encompasses a 50MW floating solar unit, strategically positioned across two expansive reservoirs spanning 109 and 95 acres, respectively. Concurrently, a substantial 150MW ground-mounted unit will occupy 448.17 acres of land. This innovative approach leverages two distinct solar installation methods to harness solar energy efficiently and sustainably, marking a significant step forward in the country’s energy evolution.
The proposed tariff rates
The Bangladesh government, under the leadership of Prime Minister Sheikh Hasina, has already given its stamp of approval to this visionary project, signaling the nation’s commitment to renewable energy.
Sumitomo Corporation is currently in the process of developing a Japanese economic zone in Narayanganj, and they have also made investments in the first phase of the Matarbari coal-based power plant.
The sponsoring company, Sumitomo Corporation, has proposed a tariff for the Barapukuria Solar Power Plant, setting rates at $0.12 per kilowatt-hour (kWh) for the ground-mounted unit and $0.16 per kWh for the floating unit. In Bangladeshi currency, these rates translate to Tk13.14 and Tk17.52, respectively. The government has agreed to purchase electricity from the plant at these rates for a duration of 20 years.
It’s worth noting that these proposed tariff rates are higher than those approved by the cabinet committee last month for the country’s largest solar power plant.
Comparing Tariffs with Other Projects
The proposed tariff rates for the Barapukuria Solar Power Plant are higher than those approved for the country’s largest solar power plant at Rampal in Bagerhat. The Power Division had recently sanctioned a tariff of Tk11.067 (equivalent to $0.20) per kWh for the Rampal plant, with an estimated total expenditure of Tk10,762 crore over two decades. This disparity in tariff rates has raised questions, but according to a Power Division official, the technical committee has deemed the Barapukuria tariffs reasonable, taking into account various commercial, technical, and financial factors.
Global Comparisons and Cost Factors
Comparatively, the production cost per unit of electricity from diesel-powered plants in Bangladesh stands at Tk22, while LNG-powered plants cost Tk10 per unit. Locally sourced coal in Barapukuria costs Tk4 per unit, imported coal costs Tk6 per unit, and furnace oil comes in at Tk12 per unit. However, these conventional energy sources carry significant environmental drawbacks.
In contrast, the production cost per unit of solar power in Bangladesh ranges from Tk8 to Tk10. Rezaul Hasanat, chairman and CEO of Viyellatex Group, one of the investors driving the 300MW solar power project in Rampal, highlighted the reasons behind the relatively higher cost of solar power units in Bangladesh. These factors include land acquisition and development expenses, lower solar intensity compared to sunnier regions, higher borrowing costs within the country, and a tax regime that provides only partial exemptions for solar power investments.
Hasanat pointed out that if these influencing factors aligned more closely with those of other nations, the current cost of ¢10.20 per unit could significantly drop to as low as ¢2.50, underlining the potential for further cost reduction and increased competitiveness in the renewable energy sector.
Government’s Shifting Focus to Renewables
Bangladesh’s shift towards renewable energy sources, particularly solar power, can be attributed to the growing concerns over climate change and environmental pollution. The government has been actively promoting renewable energy projects as part of its commitment to achieving Sustainable Development Goals (SDGs). The target is to generate 10% of electricity from renewable sources by 2025, a significant increase from the current 2%.
Bangladesh’s clean energy journey and ongoing projects
Since 1996, Bangladesh has installed over six million Solar Home System (SHS) units, in addition to thousands of rooftop units, solar-powered street lighting and telecom BTS, and solar irrigation units. In addition, many private companies have installed small solar power plants that are not connected to the grid, contributing to the promotion of renewable energy.
The government’s prompt actions have paved the way for a gradual shift towards renewable energy. Solar share is expected to grow rapidly in the next few years. This project is anticipated to facilitate regional economic development and reduce reliance on power imports as solar power production acquires strength in global environmental conservation. Its importance extends beyond the borders of North Bengal, sustaining regional commerce and employment.
To join China, India, and the UAE in the gigawatt club, Bangladesh is implementing and contemplating over a dozen massive solar power plants, including three with a capacity of 1,000MW each. One of the three is being constructed in Noakhali at Swarna Dwip (formerly Jahazzair Char). Pacific Energy Group, LLC (Pacific Energy) of the United States, through its Hong Kong subsidiary Eleris Energy Limited, signed a Joint Venture Agreement (JVA) with the Bangladesh Army Welfare Trust to construct the plant in February of last year.
In 2017, Bangladesh initiated the construction of a massive solar facility featuring around five million solar panels. Stretching from Teesta Ghat in Sundarganj to Rangpur, a 132-kilovolt, 35-kilometer-long power transmission line was erected to connect the generated electricity to the national grid, along with the installation of substations, equipment, and inverters.
This impressive 200 MW solar plant outshines the 134.3 MW plant in Mongla, owned by Energon Renewables Ltd, a subsidiary of the Orion Group.
COP28 and the Future of Green Energy in Bangladesh
Setting a worldwide objective for 2030 sends a distinct message to governments, industries, investors, and civil society, emphasizing the pressing requirement to significantly accelerate the adoption of renewable energy sources in the coming seven years. This acceleration is crucial to restrict global warming to a 1.5°C pathway, a recognition underscored during COP27 last year, emphasizing the imperative of rapidly transforming energy systems in this critical decade of action.
Under the leadership of the COP28 Presidency, policymakers, and heads of international energy agencies, discussions are already underway to unite behind a shared objective: tripling the global renewable energy capacity to a minimum of 11,000 GW by 2030. This ambitious goal entails expediting the expansion of wind, solar, hydropower, and geothermal energy, laying the groundwork for technologies. This collective effort not only ensures cleaner energy systems but also enhances their security, forming the cornerstone of a global net-zero energy system by 2050.
With a strong focus on solar power, wind energy potential, and harnessing its river resources, Bangladesh is poised to showcase its commitment to a greener future at COP28.
In conclusion, the Barapukuria Solar Power Plant represents a significant step in Bangladesh’s transition to renewable energy sources. The government’s commitment to achieving higher percentages of electricity from renewables and the involvement of international players like Sumitomo Corporation are positive signs for a more sustainable and environmentally friendly energy future for the country.
