Bangladesh-based two local garment exporters –Viyellatex Group & Comfit Composite Knit Ltd, a private Saudi Energy firm ACWA Power and State-run Bangladesh Power Development Board (BPDB) have ambitious plans to set up a jointly solar power plant with a generation capacity of 300 megawatts (MW), as per the local reports.
Recently, the country inaugurated its biggest solar power plant that generates 200MW of electricity, built by Beximco Power Ltd in Sundarganj Upazila of Gaibandha with an investment of $300 million.
It is reported that Viyellatex Group and Comfit Composite Knit Ltd will each own a 15 percent share and ACWA Power of Saudi Arabia 45 percent. The BPDB will own 25 percent and will be providing the land.
The upcoming plant is reported to be constructed on 900 acres of land in Rampal of Bagerhat, some 220 kilometers southwest of the capital Dhaka, for $430 million.
Electricity generation is expected to begin by the end of 2025, KM Rezaul Hasanat, said Chairman and Chief Executive Officer (CEO) of Viyellatex Group, told the local daily.
The government will buy the electricity at 10.20 cents per kilowatt hour (kWh) for 20 years, he said.
The electricity generated can power 5 lakh homes or 60-70 large composite mills, contributing $6 billion to $7 billion to the economy a year, he said.
He further pointed out that it can also offset carbon or CO2 emissions by 450,000 tonnes per year, although the country’s per capita CO2 emission is very low (0.52MT/capita).
“Land lease or acquisition and development cost accounts for almost 30 percent of the cost of the project having an economic life of 20 years, sun intensity is 40 percent less, lending cost is higher while the tax on solar panel imports is 75 percent to 80 percent higher,” he said, talking to local media.