ROAD MAP FOR 500 MW SOLAR POWER DEVELOPMENT PROGRAMME

Tapos Kumar Roy

Additional Secretary

Power Division
Ministry of Power, Energy and Mineral Resources Government of Bangladesh

20 September 2011, Dhaka

RENEWABLE ENERGY POLICY

Policy effective in 2009 Policy envisions:
- 5% of total power from renewable sources by 2015 - 10% of total power from renewable sources by 2020

Policy demands (as of June 2011 Program):

- 800 MW power from renewable by 2015 - 2000 MW power from renewable by 2020

A dedicated agency proposed: Sustainable Energy Development Authority (SEDA)

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Existing Incentives from Government

Electricity generated from Renewable Energy Projects (less than 5 MW) may be purchased by Power Utility or any Consumer through mutual agreement

- Renewable Energy Project Investors will be exempted from corporate income tax for a period of 10 years. - Renewable Energy Equipment and raw materials will be exempted from charging 15% VAT An incentive tariff may be considered for electricity generated from renewable energy sources which may be 10% higher than the highest price of electricity purchased by the utility from private generators.
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Existing Incentives from Governmentcontd.

-

Full/ Partial Duty exemption: Solar Panel Solar Panel manufacturing equipment LED Light Solar Operated Light Wind Power Plant Promotional Funds for Renewable Energy Projects through: Bangladesh Bank IDCOL Commercial Banks

500 MW SOLAR POWER DEVELOPMENT PROGRAMME

500 MW SOLAR POWER DEVELOPMENT PROGRAMAT A GLANCE

An initiative of Power Division Largest ever Solar Power Development Initiative in Bangladesh Adopted in accordance with vision in RE Policy Collaboration with a number of government ministries and their agencies Strong involvement of private sector in implementation Completion by 2015 Planning to incorporate CDM components The Initial Idea had been presented at ADBs 3rd Asian Solar Energy Forum in Bangkok, 1-3 June 2011
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ACHIEVEMENT ON RENEWABLE ENERGY DEVELOPMENT

..(JUNE 11)
Category Solar Home System (SHS) Other Solar PV Applications (e.g. Markets, Office Buildings etc.) Roof-top Solar PV Systems of New Electricity Consumers Wind Energy Biomass based electricity Biogas based electricity Achievement 47 MW (1 Million Units) 1 MW 3 MW 2 MW 1 MW 1 MW

Total

55 MW

92% contribution is from solar PV Technology

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LIST OF SOLAR POWER PROJECTS UNDER PIPELINE

Type of Project Solar Thermal Power Plant Capacity 20 MW Impl. Private Sector BPDB BPDB BPDB BPDB BPDB REB PDB& c.corp. REB REB Location Bhaluka, Mymensingh Sullah, Sunamganj Rajshahi City Rajabarihat, Rajshahi Sarishabari, Jamalpur Kaptai, Rangamati REB H/Q 6 City Corporations 8 PBSs 7 PBSs Major Source of Funding Private Sector (IPP basis) Climate Change Trust Fund Private Sector (IPP basis) Private Sector (IPP basis) Private Sector (IPP basis) Asian Development Bank GoB Asian Development Bank Climate Change Trust Fund KOICA

Grid Connected Solar PV 400 kW Power Plant 1 MW 3 MW 3 MW 5 MW Solar PV System Solar LED Street Light System. Solar Powered Irrigation Pump (each 14 kWp ) Solar Powered Irrigation Pump (each 8 kWp ) & SHS Solar-Wind Hybrid Power Plant 28 kW 225kW 280 kW 222 kW

1 MW

BPDB

Hatia Island

Asian Development Bank

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TOTAL (Est.) 35 MW

TARGET FOR 500 MW SOLAR POWER DEVELOPMENT PROGRAMME

Category Commercial Projects Solar Power Status 340 MW

Social Solar Power Projects Total

160 MW 500 MW

TWO BROAD CATEGORIES PROGRAMME

- COMMERCIAL TYPE - SOCIAL SERVICE TYPE

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A. COMMERCIAL PROJECTS
Program 1 2 3 Solar Irrigation Pumps Solar Power Mini Grid System a) Solar Park at govt. land b) Solar Park at Railway Area 4 5 Solar Power in Private Commercial and Residential Buildings Solar Power in Industries Total Capacity (MW) 150 25 115 20 10 20 340
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1. REPLACEMENT OF DIESEL IRRIGATION PUMPS WITH SOLAR POWER

- 1.34 Million Diesel operated Irrigation Pumps in the country - 18,700 of them will be replaced with Solar - The Replacement Pumps include Shallow Tube Wells (STWs) & Low Lift Pumps (LLPs) - Average capacity of each solar pump is 8 kWp with Head of 12-15 Meter - Area coverage on average 8 Hectares of Paddy Fields per Pump - Total Solar Power Capacity Addition: 150 MW - A Monitoring Committee will supervise the programme
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IMPLEMENTATION MODEL ADB & other DPs

Low Interest Credit Loan Repay. Grant

IDCOL
Grant & Credit Support Tech. Assist. Loan Repay. Water Tariff

Partner Org. (PO)

[Equity Participation]

Impl.
Water

Solar Irr. Pump

O&M

Farmers Group

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2. MINI GRID SOLAR POWER SYSTEM AT REMOTE VILLAGES UNDER RAPSS MODEL
- Guideline for Remote Area Power Supply System (RAPSS) was undertaken in 2007 - 30 remote Upazillas have been identified under RAPSS where grid expansion is not planned for next 10-15 years - New area identification under process Private RAPSS Operator as Area Franchise will be hired through Competitive Bidding
-

- Necessary Grant and credit support will be extended through IDCOL. - REB will supervise the project as well as, will provide tariff subsidy to the RAPSS Operator. - Total Solar Power Capacity Addition: 25 MW
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Implementation Model Implementation Model ADB & other DPs

Low Interest Credit Technical Assist. Loan Repay. Loan Repay.
Tariff collection

Grant Grant

Power Cell
Selects operator Through bidding

RAPSS Fund
(under Power Division/Power cells control)

Low Interest Credit

REB
Monitoring Tariff Subsidy

IDCOL (As financing inst.)

Grant & Credit Support

RAPSS Operator
[Equity Participation]

Gen. Dist. & O&M

Solar Mini Grid

Loan Repay.

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3. SOLAR PARK AT GOVT. LAND

Solar Park as Demonstration Projects in non-agricultural lands The power generated will be fed into the Grid on commercial basis
Total Solar Power Capacity Addition: 115 MW

Primarily 4 potential sites have been identified , may have other location to be identified:
Sl. No. 1. 2. 3. 4. Location Rajabarihat, Rajshahi PGCB Grid Sub-station Compound, Ishwardi, Pabna Rajshahi (Char area at the river Padma) Adjacent area near Bangabandhu Bridge Land available 52 Acres 18 Acres 500 Acres 150 Acres Total Est. Gen. Capacity 15-20 MW 5-6 MW 150-160 MW 30-40 MW 200-226 MW
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IMPLEMENTATION MODEL

ADB & other DPs

Technical Assist.

BPDB
Selects PRG PCG

Solar Park IPP

[Equity Participation]

15 Yrs PPA

BPDB
17

Tariff

Guarantee Fee

4. SOLAR PARK AT RAILWAY AREAs

Bangladesh Railway has many unutilized lands

- Solar PV Park may installed at those areas - Project may be implemented on IPP basis - Generated Power may be fed into the grid on commercial basis
-

BPDB will buy the power from the IPP

- IPP Developer would have land lease agreement with Railway - Total Solar Power Capacity Addition: 20MW

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List of Potential Railway Sites for Solar Park

Primarily 4 potential sites have been identified:
Sl. No. 1. Location Azampur Railway Station, Dhaka Halishahar RTA, Chittagong Pahartoli Railway Station, Chittagong Kumira Railway Station, Chittagong Land available 52 Acres Est. Gen. Capacity 12-15 MW

2. 3. 4.

42 Acres 25 Acres 30 Acres Total

8-10 MW 5-7 MW 6-8 MW 31 40 MW

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15 Yrs LLA

BPDB

RAILWAY
Selects Land Lease Fee

Technical Assist.

Solar Park IPP

[Equity Participation]

ADB & other DPs

Low Interest Credit

Implementation Model

15 Yrs PPA

BPDB
20

Tariff

Loan Repayment

5. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS ON COMMERCIAL AND RESIDENTIAL BUILDINGS

- Government has a directive to install solar panel to meet certain percentage of load demand as a pre-condition to get new electricity connection - Solar Power System will reduce load demand on Grid Electricity - Nearly 3 MWp Solar Panel already installed through out the country under the Directive - Project aims to extend Credit facility to the Consumers as an incentive - Commercialization of the Program is under study - Est. Solar Power Capacity Addition: 10 MW
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6. INSTALLATION OF ROOF TOP SOLAR SOLUTIONS IN INDUSTRIES

- Government is encouraging Industries to install solar panel to meet certain percentage of their load demand - Solar Panel will be installed at the unutilized roof-top of industries - Solar Power System will reduce load demand on Grid Electricity - Total no. of Industries targeted: 400 - Average capacity of each system is 50 kWp - Est. Solar Power Capacity Addition: 20 MW
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Implementation Model ADB & other DPs

Low Interest Credit Loan Repay. O&M Loan Repay.
[Equity Participation]

Technical Assistance

IDCOL/ Bangladesh Bank

Credit Support Impl.

Tech. Support

Power Division /SEDA

Project Participant

Solar Roof-top Solutions

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B. Social Projects

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ADB & DPS SUPPORT EXPECTED

Technical Support

Technical Assistance (Project dependent): Project Design Preparation of Standard Procurement and Contract Documents Detail Feasibility Study Capacity Building
Financial Support

Grant Support Low Interest Credit Support (For Capital Cost Buy down)

GOVERNMENT SUPPORT OFFERED

1. 2. 3.

4. 5.

Implementation Support Fiscal Incentives for Project Investors and Operators Import Duty Exemption (Full/ Partial) for certain technology and equipment Land Acquisition (Project Dependent) Institutional Support

SUMMARY OF PROJECT FINANCING

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SUMMARY OF PROJECT FINANCING .CONTD.

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SUMMARY OF PROJECT FINANCING .CONTD.

Capacity Addition under Consideration: 500 MW Total Investment requirement: 2.76 b USD Commercial Projects: 1.77 b Social Projects: 0.99 b ADB & Other DP Finance: 2.23 b USD (81%) Grant: 1.38 b (62%) Credit: 0.85 b (38%) GOB and Private Sector Participation : 0.53 b (19%) Grant Support would also be required to undertake integrated Capacity Development Project
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CAPACITY DEVELOPMENT SUPPORT

Requires Institutional capacity building support both in public and private sector. Strong R&D support also needs to be facilitated Capacity development support for CDM project preparation An Integrated Capacity Development Project may include all those essentials Setting up institution for the Standardization of equipment

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WAY FORWARD
This initiative would be considered as a landmark success story for the govt. Its success will be rest upon the govt. development partners and the private entrepreneurs initiatives by working together very closely. Development partners support will be very much needed to go for this programme. It would be a model for other developing countries who envisage making a mass breakthrough in solar power development.
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Let Sun Power Our Future

Thank You.