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Mongla 100 MW (Energon) Solar Power Plant

  • Jun 25
  • 5 min read

Current Status: Operation


Mongla 100 MW Solar Power Plant, also known as Energon Mongla Solar Park or Moidhara Solar Park, is a solar Photovoltaic (PV) power plant situated at Moidhara and Bara Durgapur village of Durgapur Union under Mongla Upazila in Bagerhat District of Bangladesh (Location map: 22.5713, 89.5725). It is sponsored by Energon Renewables Bangladesh Limited (ERBL), a subsidiary of Orion Group, as a private Independent Power Producer (IPP) for 20 years. The sponsor declared its Commercial Operation Date (COD) on 29 December 2021, but it started supplying electricity to the national grid from 25 December 2021 (EP, 2022), and as per schedule, the power plant will retire on 28 December 2041.


Capacity

The installed (gross) and derated (net) capacity of Mongla Solar Park is 134.3 MW and 100 MW, respectively.


Background

The Mongla 100 MW Solar Power Plant, developed by Energon Renewables (BD) Ltd, a subsidiary of the Orion Group, is a pivotal initiative in Bangladesh's commitment to diversify its energy sources and increase reliance on renewable energy. Spanning a 350-acre site originally designated for a coal power project in 2014, the solar power plant represents a strategic shift from conventional fossil fuels to cleaner and more sustainable energy solutions (TBS, 2021). 


In February 2019, Energon Renewables forged a collaborative agreement with the Bangladesh Power Development Board (BPDB) to develop the solar park. This partnership underscores the success of public-private initiatives in advancing renewable energy projects within the country (EP, 2022). China Sunergy Company Limited, a key player in the project, holds a 50% stake along with Energon Technologies in the Mongla 100 MW Solar Power Plant. The involvement of China Sunergy highlights the global nature of renewable energy initiatives and the role of international partnerships in advancing sustainable energy projects (PT,2023).


The project cost is $196 million, and financial aspects have been structured through a funding agreement with Infrastructure Development Company Ltd (IDCOL). Despite the government's aspiration to increase the share of renewable energy to 10% of the total energy mix, the current utilisation of renewable energy in Bangladesh remains below 3%. The Mongla 100 MW Solar Power Plant represents a significant stride toward realising the country's renewable energy goals.


The Mongla Solar PV Park adds 100 MW to the nation's renewable energy portfolio, bringing the total renewable energy capacity to 907.24 MW. In alignment with the Mujib Climate Prosperity Plan, Bangladesh has set ambitious targets to obtain 30% of its energy from renewable sources by 2030. The Mongla 100 MW Solar Power Plant stands as a significant initiative in realising this governmental goal (TBS, 2021).


Land Acquisition

The Mongla 100 MW Solar Power Plant project involves the acquisition of 280 acres of land dedicated to the installation of solar modules. The total land area for the project is 350 acres, encompassing space for additional infrastructure and operational needs.


Finance

The Mongla 100 MW Solar Power Plant is financed with a total project cost of USD$ 196 million, with USD$ 143 million dedicated to project development. Infrastructure Development Company Ltd (IDCOL), a government-owned institution in Bangladesh, is actively involved in raising funds for the project. This financial collaboration underscores the commitment to advancing renewable energy infrastructure and aligns with Bangladesh's goal of achieving 30% of its energy from renewable sources by 2030 under the Mujib Climate Prosperity Plan.

  

Sponsor

The collaborative ownership of the power plant is shared equally between China Sunergy and Energon Technologies, with each sponsor holding a 50% stake. This equitable distribution underscores a balanced and cooperative approach to project development. The collaboration represents a robust partnership between international and local entities, combining the strengths and expertise of China Sunergy and Energon Technologies to drive the progress of renewable energy initiatives in Bangladesh.


Contractors

The implementation of the project involved the collaboration of various contractors and suppliers. The Switzerland-based ABB Group played a crucial role by providing engineering, procurement, and construction (EPC) services for the solar PV power project. Longi Solar Technology was selected as the supplier of the PV modules, installing 250,000 HI-MO 5 series modules known for their superior durability attributes. One part of the EPC services were handled by a consortium consisting of Rays Power Infra and Zetwerk Manufacturing Businesses. Sungrow Power Supply was responsible for providing the inverters crucial for the project. Mahindra Susten Pvt Ltd served as the Owner's Engineer, overseeing and ensuring the project's successful implementation (PT, 2023). 


Power Generation

The power generation from the Mongla 100 MW Solar Power Plant operates on a contractual basis of USD 0.138 per kilowatt-hour (kWh) under the "No Electricity No Payment" (NENP) terms. This arrangement ensures that the Power Development Board (PDB) will purchase electricity from the solar plant, and payment is contingent on the actual generation of electricity. The specified rate of USD 0.138 per kWh establishes the financial terms for the power purchase agreement.


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). The 100-megawatt solar power plant in Mongla, situated alongside the controversial Rampal coal power project, exemplifies Bangladesh's commitment to environmental mitigation. This green initiative is expected to reduce around 180,000 tonnes of CO2 emissions annually, providing a sustainable alternative to the contentious coal project. Prime Minister Sheikh Hasina's target, announced at COP26, to generate 40% of the country's energy from renewables by 2041 underscores the strategic importance of such eco-friendly projects in achieving national sustainability goals. As part of the Mujib Climate Prosperity Plan, Bangladesh aims to derive 30% of its energy from renewable sources by 2030. The implementation of this project represents a substantial initiative toward realising the government's objective of diversifying and enhancing the country's sustainable energy infrastructure (TBS, 2021). The project adheres to applicable international standards, including conventions ratified by Bangladesh and the International Finance Corporation (IFC) Performance Standards for Environmental and Social Sustainability (2012).


Criticism

The categorization of the solar project as 'Medium Risk' under various frameworks, such as the ESPP document and World Bank Policy OP4.03, indicates a careful assessment of environmental considerations. According to the environmental conservation rule 2023 the project falls in the “Orange '' indicating it as a moderate harmful project for the environment  (MOEFCC 2023). Detailed environmental management practices, including land use, biodiversity preservation, water usage, emissions control, waste management, and community engagement, are integral to the project's approach, ensuring a sustainable and responsible operation (BCAS, 2022). 


References

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