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Dhamrai 50 MW (SS Agro) Solar Power Plant

  • Jun 20
  • 4 min read

Current Status: Announced

Reresentational Picture, Source: (Bangladesh Post)


Dhamrai 50 MW Solar Power Plant, also known as SS Agro Solar Park, is a solar photovoltaic (SPV) power plant proposed to be situated in Dhamrai Upazila in Dhaka District of Bangladesh (Location: 23.9547, 90.1236) approx. It is proposed by BPDB. Bangladesh Power Development Board (BPDB) issued a Letter of Intent (LOI) on 10 July 2019 as a preliminary commitment to install the power plant. According to the LOI, the expected Commercial Operation Date (COD) of the power plant is scheduled as 31 December 2022 but the respective Power Purchase Agreement (PPA) is yet to be signed (BPDB 2022).  


Capacity

The installed (gross) and derated (net) capacity of the power plant is expected to be 50 MW.


Context

In 2019, The government is expected to give the go-ahead to a proposal from the power division, which aims to build a 50 MW solar power plant in Dhamrai, Dhaka for a 20 years period. As per the outlined proposal, the power division intends to buy electricity from the plant at a rate of BDT 8.60 per unit (per kilowatt hour) (BP, 2020). According to the power sector, Dhaka as the city alone consumes 46% of electricity generated in Bangladesh (FE 2021).


Since 2016, the government has granted permission for the establishment of six solar-powered plants, with tariffs ranging from BDT 12.80 to BDT 8.80 per unit. Among these proposals, the 50MW Dhamrai power plant has proposed the lowest tariff at BDT 8.60 per unit, as indicated by official sources (DS, 2019). The Power Development Board, aims to procure electricity based on the principle of "no electricity, no payment" from these power plants.  (DO, 2019).


Land Acquisition

The power plant will be established on land owned by the consortium in Dhamrai although the exact area of land could not be found.


Finance

The expenditure has been estimated at BDT, 1 thousand 394 crore 40 lakh for this power plant will be arranged by Bangladesh Power Development Board (JN, 2019). The rate was set for this power plant at 10.75 US cents (equal to BDT 8.60) per kilowatt hour and will remain unchanged for a duration of 20 years (UNB,2019).

The Power Division plans to purchase electricity worth BDT 1,394.40 crore over the 20-year PPA period, calculated on an 18.50% plant factor basis. (BP, 2019) The capital cost of the plant is separately reported as approximately $52.075 million. (PT, 2022) These figures represent distinct financial metrics, cumulative procurement cost over the contract term versus upfront capital investment  and are not in conflict.


Sponsor

Bangladesh Power Development Board will sponsor this power plant as the government has set a target of producing 10 percent of the total electricity, from renewable energy sources by 2025.


Contractor

A collaboration between one Bangladeshi and two German companies is set to construct this 50 MW solar power plant at Dhamrai in Dhaka, aimed at being cost-effective. The Consortium comprising SS Agro Complex Ltd from Bangladesh, along with ib vogt GmbH and Milner Vermogensverwaltungs GmbH from Germany, will collectively oversee the construction of the plant, which will have the capacity to produce 50 MW of electricity (BP ,2020).


Fuel Supply

Solar energy will be used to generate electricity in this power plant. 


Power Generation

The expected power generation capacity is 50 MW.


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 1997 (superseded by ECR 2023) (MOEFCC 1997). Renewable energy is always the best option for the environment. Carbon emission can be reduced by this power plant.  Solar PV power plants diversify the energy mix, reducing reliance on imported fossil fuels and increasing energy security. In addition to contributing to environmental conservation by generating clean, renewable energy and reducing greenhouse gas emissions, ground-mounted solar panels help conserve land resources by utilizing non-arable or unused spaces. Despite these benefits, it's crucial to recognize that installing these panels may lead to habitat disruption, land-use conflicts, and potential visual impacts. To address these challenges and maximize positive environmental impacts, careful planning and consideration of ecological factors are essential for ground-mounted solar projects. According to the environmental conservation rule 2023 the project falls in the “Yellow” indicating it as a slightly harmful project for the environment (MOEFCC 2023).


Criticism

The expected Commercial Operation Date (COD) of the power plant is scheduled as 31 December 2022 . But it hasn't started construction yet.


Reference

 
 
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