80MW solar plant planned in Padma Bridge area aligned with renewable vision

Highlights: TBS

North-West Power Generation Company – an enterprise of the Bangladesh Power Development Board enterprise – is now set to build an 80MW solar power plant in the Padma Bridge project area in line with the government's renewable energy vision.

The state-owned enterprise signed a 30-year lease agreement with the Bangladesh Bridges Authority (BBA) for 180 acres in October last year, with the land handed over the same month, according to the company.

Based on a preliminary assessment of the project site, the estimated project cost is Tk871.56 crore (equivalent to $71.44 million), with completion targeted for 2027.

North-West Power officials stated that, in line with the government's vision to enhance renewable power generation, the company has been striving to increase its own capacity.

It is already working on two solar power plants: the Sirajganj 6.55MW Grid-Connected Solar PV Power Plant, wholly owned by the North-West Power, and the Sirajganj 68MW Solar Park under its joint venture company – Bangladesh-China Renewable Energy Company.

North-West Power has leased 214 acres of unused Bangladesh Bridge Authority land near Jamuna Bridge (West) Railway Station for 30 years to construct the plant.

To further expand its renewable power generation capacity, the company has been actively seeking suitable locations across Bangladesh for new solar power plants.

As part of this initiative, it proposed a solar project to BBA, requesting a 30-year lease of 250 acres of unused land adjacent to the Padma Multipurpose Bridge.

A joint survey was conducted on all lands acquired by BBA for the Padma Multipurpose Bridge Project to identify unused land suitable for constructing a solar power plant. The survey identified 180 acres as viable for the project.

The preliminary project proposal for the solar plant was recently submitted by the Power Division to the Planning Commission for in-principle approval. Following this approval, the PDPP was sent to development partners through the Economic Relations Division for funding arrangements.

According to the PDPP, the estimated construction cost includes a foreign loan of Tk704.31 crore, with Tk33.57 crore proposed from government funds and Tk133.67 crore from the company's own funds.

Based on the capacity, cost and reasonable financial assumptions outlined in previous sections, the resultant 20-year levelised tariff for the Padma 80MW Solar Power Plant Project is calculated at $0.0752 USD/kWh, which is significantly lower than other recent solar PV projects in Bangladesh.

North-West Power officials stated that a detailed feasibility study is required to finalise the actual design, orientation, layout, and project cost of the Padma 80MW Solar Power Plant Project.

The process of appointing a consulting firm to conduct the feasibility study is currently underway. The feasibility study report will be completed before the preparation of the DPP and submitted accordingly.

They further noted that the actual tariff of the project will be finalised on the basis of the confirmed project cost.