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Teknaf 20 MW (Joules) Solar Power Plant

Jan 14, 20244 min read

Current Status: Operation

(Source: JPL, 2019)


Teknaf 20 MW Solar Power Plant, also known as Solartech Teknaf Solar Park or simply Teknaf Solar Park, is a solar Photovoltaic (PV) power plant situated beside Naf River at Alikhali in Nhilla Union under Teknaf Upazila in Cox’s Bazar District of Bangladesh (Location: 20.9805, 92.2522). It is sponsored by Technaf Solartech Energy Limited (TSEL), a subsidiary of Joules Power Limited (JPL) under Expo Group, as a private Independent Power Producer (IPP) for 20 years. The sponsor declared its Commercial Operation Date (COD) on 15 September 2018, and, as per schedule, the power plant will retire on 14 September 2038.


Capacity

The installed capacity (gross) and derated (net) capacity of the power plant is 28 MW and 20 MW.


Content

The first solar park in Bangladesh was built by Technaf Solartech Energy Limited (TSEL)  (JPL, 2024), which plans to produce 28 MW of power. 20 MW of that power will be fed into TSEL's local substation (Liza, Z. A. et al., 2020) in Alikhali, South Nhilla, Cox's Bazar, as a 20-year facility to supply power to BPDB at a predetermined rate (JPL, 2024). It is constructed on a 116-acre plot in Teknaf, Cox’s Bazar district, and has commenced electricity generation, contributing to the national grid. The installation of the power plant was carried out by Joules Power Limited (JPL) (Liza, Z. A. et al., 2020).


The TSEL project, having transitioned from a 'Greenfield' status, is now in operation following approvals from Nhilla Union Parishad on September 20, 2016, site clearance from the Department of Environment (DOE) on September 17, 2017, enabling construction. The Power Purchase Agreement with the Bangladesh Power Development Board (BPDB) was signed on February 9, 2017, and registration from the Bangladesh Investment Development Authority (BIDA) was obtained on March 30, 2017. Furthermore, the project secured environmental clearance from the DOE on September 20, 2018 (JPL, 2024).


GuarantCo, operating as a risk guarantee fund under the Private Infrastructure Development Group (PIDG), has extended a credit guarantee to facilitate a unique and pioneering transaction in Bangladesh. This involves a 15-year, USD 13.5 million dual currency financing solution on behalf of TSEL. This transaction marks a significant milestone in the country's financial landscape (GL, 2019).


Situated on the eastern side of the Cox’s Bazar-Teknaf highway, the facility features 87,500 solar panels with a total installed capacity of 27.69 MW. Positioned along the Naf River on the border of Bangladesh and Myanmar, the area was previously utilised for rotational cultivation of salt and shrimp. Now it serves as a site for solar power generation, benefitting electricity consumers in Teknaf and Ukhiya Upazila of Cox’s Bazar. The power plant is anticipated to meet up to 80% of the total electricity demand in these two upazilas (Liza, Z. A. et al., 2020).


Land Acquisition

The project is situated on 116.87 acre land, which has been leased from 75 landowners for a duration of 24 years (JPL, 2019). 


Finance

The establishment of the IPFF-II power plant involves significant costs, totaling 3,016.59 Million  BDT (JPL, 2024). This venture received co-financing from One Bank Ltd and Standard Chartered Bank (FE, 2019). With a total budget of USD 35.6 million, the funding breakdown includes contributions from One Bank Limited (USD 5.32 million), Shahjalal Islami Bank Limited (USD 2.15 million), Saudi-Bangladesh Industrial & Agricultural Investment (SABINCO) (USD 2.15 million), and Standard Chartered (USD 15 million).


Sponsor

The power plant is sponsored by Technaf Solartech Energy Limited (TSEL), which is a subsidiary of Joules Power Limited (JPL) under Expo Group. TSEL operates as a private Independent Power Producer (IPP) (JPL, 2024).


Contractors

Technaf Solartech Energy Limited has been chosen to provide engineering, procurement, and construction (EPC) services for the solar PV power project. In addition, JA Solar Holdings has been selected as the supplier of PV modules for the power plant (PT, 2023).


Fuel Supply

Solar panels will be used by Technaf Solartech Energy Limited to produce electricity. A backup generator that is used in case of an after-sunset power outage is supplied by a small amount of diesel (JPL, 2024).


Power Generation

The solar power plant, situated on the Cox’s Bazar-Teknaf highway, achieved Commercial Operation Date (COD) on September 15, 2018. With 87,500 solar panels and a total capacity of 27.69 MW (Liza, Z. A. et al., 2020), it annually produces an estimated 43,794,720 KWh of electricity (JPL, 2024). The plant, featuring five sub-stations, stores generated power and transmits it to the Palli Bidyut substation in the Leda area of Hinla union (Liza, Z. A. et al., 2020).


Environment

An Environmental and Social Audit, conducted by the Bangladesh Centre for Advanced Studies (BCAS) in January 2020, covered the reporting period from September 2017 to October 2019 as part of the Environmental and Social Impact Assessment (ESIA) study. The project is classified as a 'Medium Risk' project according to the Environmental and Social Safeguard Policy (ESPP) for the IPFF-II project and falls under "Category B" as per World Bank Policy OP4.03 for the same project. According to the Environment Conservation Rules 1997, amended by SRO No. 349- act/2017, it is designated as an "Orange B" category project (JPL, 2024).


Carbon Footprint

TSEL anticipates a yearly reduction of 20,000 tons in CO2 emissions, aiming to prevent approximately 400,000 tons of CO2 emissions over the next two decades (Liza, Z. A. et al., 2020).


Criticism

During the mechanical erection phase, construction activities employed various machinery, leading to temporary air contaminants and noise pollution. The primary airborne pollutant was dust, while construction equipment contributed marginally to SO2, NOX, and particulate matter levels. These impacts were minimal and transient, ceasing after construction. Noise, mainly from vehicular traffic and construction equipment, was a notable source during this phase. The project site, initially fallow land with salt fields, had minimal impact on the surrounding habitats, ensuring no significant loss of important species or ecosystems (JPL, 2024).


References

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