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    • Sep 27, 2023
    • 4 min read

Anwara 16 MW (KEPZ) Solar Power Plant

Current Status: Operation


(Image: Anwara 16 MW (KEPZ) Solar Power Plant. Source: Solaric, 2021)


Anwara 16 MW Solar Power Plant, also known as KEPZ Solar Power Plant, is a rooftop photovoltaic power plant situated in the Korean Export Processing Zone (KEPZ) in Anwara Upazila under Chattogram District of Bangladesh (Location: 22.2339, 91.8449 ). It is sponsored by the Korean Export Processing Zone (KEPZ) Authority, which is administered by South Korean conglomerate Youngone Corporation, as a commercial power plant for 20 years (FE 2021). The sponsor declared its Commercial Operation Date (COD) on 20 June 2021 and, according to schedule, it is expected to retire in mid-2041.


Capacity

The current installed (gross) capacity of the power plant is 16 MW.


Context

The power plant is installed under the Net Metering Policy (NMP) of the Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh. On the day of its inception, it was the largest rooftop solar power plant in Bangladesh (FE 2021). According to the Youngone Corporation, there are plans underway to extend the capacity to 28MW by the end of 2023, and thereafter up to 40 MW.


Power Generation

The Korean Export Processing Zone (KEPZ) power plant, installed on rooftops of enterprises, was initially built to generate 16 MW. However, the total capacity will be expanded to 40 MW by the development of separate solar plants (that will provide the remaining 24 MW). To date, solar power is installed on the rooftops of 34 factories in KEPZ, including Sungnum Apparels, Karnaphuli Shoes Industries Ltd, Karnaphuli Polyester Products Ltd (KPP-1), and Karnaphuli Polyester Products Ltd 2 &3. This 40 MW rooftop solar project provides an example that could be replicated in other parts of the country (Solaric, 2021).


Land Acquisition

As the power plant's platform was built on the industry's rooftop, land acquisition was not required for the project. The EPZ's total land area is about 2,092 acres. It is situated in Anwara on the south bank of the river Karnaphuli and has so far carried out 95% of the development plan (Blogspot.com, 2018). The area was once a hilly area. However, the land has now turned into a green industrial zone, as 52% of the total area is covered with some 2.4 million trees of 400 species (RMGBD, 2021).


Finance

The Korean Economic Zone (KEPZ) began operations in October 2011 with the first factory, Karnaphuli Shoes Industries Ltd. The EPZ has completed 40 factories, with a total floor space of over 65 lakh square feet. Youngone Corporation has invested $300 million in infrastructure development, to attract $1 billion in foreign direct investment (RMGBD, 2021).


Sponsor

Youngone Corporation has invested $300 million in infrastructure development in the KEPZ. The EPZ has completed 40 factories with a cumulative floor space of over 65 lakh square feet (Daily Star, 2014).


Contractors and Suppliers

The solar panels used in these projects are Q-cells made by the South Korean Company Hanwa. The model was preferred by the Youngone company. All the projects are CapEX. The CapEX model in solar stands for Capital Expenditure. In the CapEX model, the consumer will required to pay the total cost of the solar system upfront. This allows the consumer to own the solar system and receive accelerated depreciation benefits (My Sun, n.d.). All the inverters used for these projects are ‘SOFARSOLAR, 60KW,” meaning that both the “panels” and “inverters” are imported from abroad (Solaric, 2021), which is typical in solar plants across the country.


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, no IEE or EIA report has been conducted for the power plant.


Criticism

The government plans to take back 2,492 acres of land in Chittagong's Anwara upazila from Korean Youngone Corporation, due to land-related conflicts and legal disputes. Foreign investors, including Japanese, have sought plots but have been unable to establish industries. Since 1999, KEPZ has failed to receive permits for expansion, including environmental clearances, electricity, and water supply. KEPZ faces legal action for unethical and illegal force, facing pressure from local political leaders and businessmen who have turned land into a productive industrial area. (M.A.K. Azad, 2014).



References




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