State-owned Power Development Board (PDB) signed a 20-year power purchase agreement (PPA) on Sunday with local private company Intraco Solar Power Limited (ISPL) to buy electricity from its 30MW grid-tied solar power plant to be set up at Gangachara in Rangpur.
The tariff of per kilowatt electricity of the project was fixed at 16 US cents which is equivalent to Tk 12.80. Intraco also signed an implementation agreement (IA) with the Power Division for the project.
As per the contract, Intraco will implement the project within the next 13 months and start commercial operation of the plant in September 2018.
Speaking at the contract signing ceremony at Biduyt Bhaban in the city, State Minister for Power and Energy Nasrul Hamid asked Intraco to expedite the project implementation.
"I would request you, if possible, complete the project one or two months ahead of the schedule," he said.
The state minister expressed his frustration over the delay in implementation of some other power projects.
He, however, hoped the Intraco project will be implemented as government-owned financing agency IDCOL has been involved in funding the project.
Intraco managing director Riyadh Ali said his company has purchased 143.3 acres of land in Gangachara upazila of Rangpur for the project.
The function was addressed, among others, by Power Secretary Dr Ahmad Kaikaus and PDB chairman Khaled Mahmood.
Officials said the government had singed similar agreements with five private companies who won solar power projects on unsolicited basis but none of those could come into operation for various reasons.
The government set a target to generate 5 percent of its power from renewable sources, especially from solar, by 2015 while 10 percent by 2020.
In that case, the country should reach its power generation to 500 MW by 2017 and 3,168 MW by 2021, said the officials adding that poor progress in project implementation confined the solar power generation within only 200 MW.
According to official sources, ISPL was awarded the contract through unsolicited offer under the speedy enhancement of power and energy supply (special) act.
The government will buy electricity from the plant on 'No electricity, No Payment' basis meaning that the company will only get payment once it sells electricity.
"There'll be no mandatory provision to buy or sell any minimum unit of electricity between the parties," said a PDB official.
PDB signs deal with Intraco to buy solar power