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Kaptai 7.4 MW (BPDB) Solar Power Plant

  • Jun 25
  • 5 min read

Current Status: Operation


Kaptai 7.4 MW Solar Power Plant, also known as Kaptai Solar Park, is a solar Photovoltaic (PV) power plant situated beside the Powerhouse of Karnaphuli Hydropower Station at Kaptai under Kaptai Upazila in Rangamati District of Bangladesh (Location: 22.4925, 92.2266). It has been sponsored by the Bangladesh Power Development Board (BPDB) as a State-owned Power Plant (SOPP) for 25 years. The power plant started its commercial operation on 28 May 2019, and, as per schedule, it will retire on 27 May 2044.


Capacity

The installed and net capacity of Kaptai Solar Power Plant is 7.4 MW and 7 MW, respectively. 


Context

The establishment of the 7.4 MW solar power plant near the Karnaphuli Hydropower Station at Kaptai in 2019 is a pivotal component of Bangladesh's ambitious plan to diversify its energy sources. The government's motivation behind this initiative is rooted in its commitment to generating 10% of the nation's electricity from renewable sources, encompassing solar, hydropower, and wind, by the year 2020 (BPDB, 2019).


Bangladesh's pursuit of renewable energy aligns with broader sustainable development goals, with a recognized need for at least 12% of the country's electricity to be derived from renewable sources. The government's previous targets, aiming for 5% by 2015 and 10% by 2020, were not met, underscoring the challenges in transitioning to a more sustainable energy mix. Presently, the country's overall power generation capacity stands at 22,608 MW, with a modest 1.5% (359 MW on-grid) contributed by solar energy, according to data from the Bangladesh Power Development Board (PDB). The "National Solar Energy Roadmap 2021-41" anticipates a substantial leap, projecting that Bangladesh can achieve 20,000 MW of green electricity by 2041 through an expansion of solar power facilities. This capacity could potentially escalate to 30,000 MW with strategic utilization of riverside and abandoned lands.


Prime Minister Sheikh Hasina has been at the forefront, emphasizing the effective use of unused land, including areas around existing power plants and PDB properties, to catalyze the development of renewable energy. In response to this directive, the Kaptai 7.4 MW solar plant materialized on 19.5 acres of land at a cost of BDT 111 crore.  However, some sources report the plant was built on a 22-acre plot (UNB, 2019). Operational since its inception, this solar power plant generates an average of 26,000 units of electricity daily, with a production cost per unit amounting to BDT 14 Tk.


The strategic choice of the Chittagong area for the Kaptai 7.4 MW solar plant is justified by the region's relatively higher global horizontal irradiation. This geographical advantage enhances the attractiveness and efficiency of the solar power generation facility, contributing to the broader narrative of Bangladesh's journey towards a more sustainable and diversified energy landscape. As of January 2023, the Bangladesh Power Development Board has approved in principle a new 7.6 MW solar power plant at Kaptai, to be located on 23.06 acres in the Brickfield area. A Planning Commission team visited the proposed site in late December 2022 (TBS, 2023).


Land Acquisition

The Kaptai 7.4 MW solar plant stands on this 19.5-acre parcel, demonstrating the government's commitment to diversifying its energy sources and achieving renewable energy targets. This area, previously utilized for the construction of the dam in 1962 and featuring remnants of temporary structures, now plays a pivotal role in contributing to Bangladesh's broader renewable energy goals (BPDB, 2019). The Kaptai 7.4 MW solar plant is a testament to the strategic use of land near the Karnaphuli Hydropower Station at Kaptai in Bangladesh. This selected site, positioned on the apron immediately downstream of the dam with an elevation of around 20 meters above Mean Sea Level (MSL), has not only historical significance but also practical advantages, including proximity to existing infrastructure and soil suitability for PV panel foundations.

 

Finance

The estimated budget of Kaptai Solar Power Plant was BDT 104.23 crore (USD 13.36 million when USD 1=BDT 78). The Asian Development Bank (ADB) approved a loan of USD 300 million (Loan 2769-BAN) under the Power System Efficiency Improvement Project in August 2011 from its Ordinary Capital Resources (OCR), of which in August 2011, the ADB approved a non-concessional loan of BDT 89.07 crore (USD 11.42 million) for the power plant (ADB 2021). The Government of Bangladesh (GOB) and BPDB provided BDT 11.64 crore (USD 1.49 million) and BDT 3.5260 crore (USD 0.45 million), respectively, for the project.


Sponsor

The Bangladesh Power Development Board (BPDB), operating under the Ministry of Power, Energy and Mineral Resources, serves as the owner and project proponent of the Kaptai 7.4 MW solar plant, exemplifying the government's commitment to renewable energy (BPDB, 2019). With legal and operational responsibility, the BPDB oversees all facets of the project's lifecycle. Financial support, a critical element, is provided by both the Government of Bangladesh (GOB) and the BPDB, with the GOB contributing BDT 11.64 crore (USD 1.49 million) and the BPDB allocating BDT 3.5260 crore (USD 0.45 million). This collaborative effort underscores the shared commitment of government entities to drive sustainable energy development, emphasizing the importance of solar power integration into the national energy portfolio.


Contractors

The Power Development Board (PDB) of Bangladesh,formally signed an Engineering, Procurement, and Construction (EPC) agreement with Chinese ZTE Corporation to establish the power plant. The contract, valued at BDT 109.55 crore, was officially executed at the Bidyut Bhaban in the capital city. This milestone occurred five years after the project received approval from the Executive Committee of the National Economic Council (ECNEC). In this agreement, representatives from the PDB and ZTE Corporation, serving as the EPC contractor, finalized the deal, reflecting a collaborative effort to advance solar power infrastructure in Bangladesh (DT, 2017). ZTE Corporation also committed to providing technical assistance and plant operation support for two years after commissioning before handing the plant over to Bangladesh (Chowdhury, 2019)


Power Generation

The expected energy generation for the solar power plant is projected to be 161 gigawatt-hours (GWh) over its system life. This anticipated total electricity output is expected to be produced during its operational lifespan. 


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 (MOEFCC, 1997). But, till date, no IEE or EIA report has been found of the power plant. 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 project's expenditure was higher than any other solar power plant in Bangladesh. The installation cost was BDT 14.08 crore (USD 1.81 million) per Megawatt. 


References

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