Solar P ark: Utility Utilit y Scale Scale Solar Solar P ow er P roject Development
A S M Alamgi Ala mgirr Ka Kabi birr Chairman, BP DB
20 Septemb Septemb er , 201 1
1
Bangladesh’s Power Sector: At a Glance
(FY 2010)
Ele lec ctric tricity ity Gro row wth
: 10 % in FY-2010 (Av. 7 % since 1990)
Generation Capacity
: 6984 MW (16 August, 2011)
Tottal Con To onsum sumers ers
: 12.5 Million
Transmission Lines
: 8,600 km
Distribution Lines
: 2,75,000 km
Perr Capi Pe apitta Generat eneratiion
: 251 kW kWh h (i(inc ncl.l. Cap aptitive ve))
Access to Electricity
: 50 %
2
Demand Supply Situation
Generation on Jan 6, 2009: 3268 MW (Cap apacit acityy- 49 4931 31 MW)
Generation: 50 5000 00 – 53 5300 00 MW (Ca (Capa paci citty- 69 6984 84 MW)
Highest so far: 5244 MW ( August 29, 2011)
Gas shortage causes 400 - 60 600 0 MW MW less Power Generation
Peak Demand: 6000 MW (with DSM)
Load shedding up to 800 MWduring MW during hot summer days (with DSM)
Shortage and unreliable power supply has constrained economic growth 3
Pow oweer Genera Generatition on Pro roject jectss up u p to t o 201 2016 Calendar Year Wise Projects Completion (From 2010 to 2016)
YEAR
2010 (MW) Commissi oned
2011 (MW)
2012 (MW)
2013 (MW)
2014 (MW)
2015 (MW)
2016 (MW)
TOTAL (MW)
Public
255
1107
582
1040
1270
450
1500
6204
Private
270
105
1319
1134
1053
1900
1300
7081
Quick Rental
250
1238
Total
775
2450
1488
1901
2174
2323
2350
2 8 0 0 1 4 ,7 7 3
Public Sector : 6204 MW (comm: (comm: 360 MW, u/c: 1629 MW, Tender: 1425 1425 MW); (42%) Private Sector : 8569 MW (comm:1463 MW, MW, u/c: 1667 MW, Tender: 2639 MW); (58%)
January, 2011
4
Power Genera Generatition on Ad Addit dition ion From Jan 09 09 to Aug. Au g. 11 11
Gen Add Additi ition on Jan 09 – Dec 09 : 356 MW Gen Add Additi ition on Jan 10 – Dec 10 : 775 MW Gen Add Additi ition on Jan 11 – Aug 11 : 104 1048 8 MW Total Gen. Addition
(Jan (J an 09 – Au Aug g 11) 11):
2179 MW
5
Suc uccessfu cessfull Contract Cont ract Signed sinc s incee Jan Jan 200 2009
Sl . Descript No. ion
No . of Contract
N o. of Capacity Plant (MW)
Commis . (MW )
01 .
Private Sector
25
27
3020
1353
02 .
Public Sector
17
17
1734
105
To tal
42
44
4754
1458
• Out of 4754 MW, 1458 MW (18 Plants) already commissioned. commissioned.
• 26 Projects with capacity 3296 MW under construction. construction. 6
Proj rojeect ctss Under Under Tendering Tendering Proc roceess ss:: Contra Contr act wit within hin Next 6 Months Sl . Sl. No
Descriptio n
N o. of Projects
Capacity (MW)
01.
Public Sector
5
1425
02.
Private Sector (IPP’s)
23
2639
To tal
28
4064
7
Renewable Energy Development in Bangladesh
Renewable Energy Policy envisions 5% of total power, i.e. at least 800 MW from renewable sources by 2015.
Solar energy is the most proven source till date
Private sector is the engine of growth in power sector development of Bangladesh
Solar Park is the concept through which utility scale solar power project is to be developed through private sector 8
P olicy, I ncentives and Security S ecurity M echa echanism nism for I nve nvestment stment in P ri riv v at ate e P ow er P roj rojec ectt s
9
Private Sector Power Generation Policy
Tariff based bidding
Sovereign guarantee from the Government for obligations of Government entities through Implementation Agreement (IA)
Assistance in getting clearances from various agencies
Attractive incentive packages
10
Major Incentives for IPPs
Exemption
from corporate income tax for a period of 10
years. Plant
and equipment (full value) and spare parts (10% of original plant cost) without payment of customs duties, VAT and any other surcharges.
Repatriation of equity along with dividends. Cont… 11
Major Incentives for IPPs……..cont IPPs……..contd. d.
Tax
exemption and repatriation facilities on royalties, technical know – how and technical assistance fees
Avoidance
of double taxation on the basis of bilateral
agreements The
Bangladeshi currency, Taka is freely convertible for
FDI
Duty Exemption for Solar Panel 12
Payment Guarantee
Implementation Agreement (IA) and PPA will ensure fair and reasonable risk allocation, and payment by the Purchaser is guaranteed by GOB
Payments under the PPA will continue in the event of dispatch failure
Payment under the PPA will be ensured by Letter of Credit
Paym yme ent to to ‘ Esc scrow row Acc cco oun untt’ ens nsu ures lende lenders rs re re - pa paym yme ent 13
Why invest in Bangladesh Solar P ark ?
Projects will implemented on BOO basis
IPPs are operati operating ng abo about ut 50 % of total ge gene nerat ratiion and and making making profit;
IPPs and BPDB have met their ob oblliga gattions unde underr the PP PPA wi witho hout ut problems or controversy and no conflict or major problems/issues have arisen
Independent Regulation to protect Industry and Consumers’ interests
Local engineers, technician and skill workers are available 14
Solar Park
Solar Park Demonstration Projects will be in nonagric gricult ultural ural lands lands
Two types t ypes of La L and will w ill be used: used: - Gove overnme rnment nt owned owned land land - Railwa ilwayy owned owned Land. Land.
Power generated will be directly fed into the Grid on commercial basis
Pririmarily marily 8 pot poteenti ntiaal sit s itees ha h ave bee been identif i dentified ied
Est stim imaated Develop Development ment Targ Targeet: 135 MW
15
Solar Park at Govt. Land Sl . No .
Pr o j ec t L o c at i o n
L an d av ai l ab l e
Es t . Gen . Capacity
1.
Raj ab ar i h at , Raj s h ah i
52 A c r es
15-20 MW
2.
PGCB Gr i d Su b -s t at i o n Compound, Ishwardi, Pabna
18 A c r es
5-6 MW
3.
Raj s h ah i (Ch ar ar ea at t h e river riv er Padma) Padma)
500 A c r es
150-160 MW
4.
A d j ac en t ar ea n ear Banga Ba ngaba bandhu ndhu Bridg Bridgee
150 A c r es
30-40 MW
TOTA L
200-226 MW 16
Solar Park at Railway Land
Sl . No .
L o c at i o n
L an d av ai l ab l e
Es t . Gen . Cap ac i t y
1.
A zam p u r Rai l w ay St at i o n , Dhaka
52 A c r es
12-15 MW
2.
Hal i s h ah ar RT RTA , Ch i t t ag o n g
42 A c r es
8-10 MW
3.
Pah ar t o l i Rai l w ay St St at i o n , Chittagong
25 A c r es
5-7 MW
4.
K u m i r a Rai l w ay St at i o n , Chittagong
30 A c r es
6-8 MW
TOTA L
31-40 MW 17
Implementation
To be implemented on BOO basis Contract period shall be 15-20 years IPP Operator will be selected through Competitive Bidding Power Purchase Agreement (PPA) between BPDB and IPP Operator Land Lease Agreement with IPP Operator
18
Implementation Impleme ntation Mode Model:l: Government Land ADB & other ot her DPs l . a t c s i n i h s c s e A T
G R P
BPDB
G C P
e e t n e a e r a F u G
s t c e l e S
Solar Park IPP [Equity Participation] f f i r a T
s r A Y P 5 P 1
BPDB
19
Implementatio Impleme ntationn Model: Railway Land ADB & other ot her DPs l . a t c s i n i h s c s e A T
t n e m y a p e R n a o L
t i d e r C t s e r e t n I w o L
BPDB s t c e l e S
Solar Park IP IPP P [Equity Participation] s r Y A L 5 L 1
e s a e e L e d F n a L
RAILWAY
s r A Y P 5 P 1
BPDB
f f i r a T
20
Summary of Project Financing
Sl. Sl . No.
Ty p es
Es t . Capacity (MW)
Est. Invest. Req. Mil. Mil . US$ US$
1 2
Solar Park Park at Govt. Gov t. Land
115
546
382 (70%)
164 (30%)
Solar Park Park at Railw Railway ay Land
20
95
66.5 (70%)
28.5 (30%)
135 MW
641
448.5 (70%)
192.5 (30%)
Sub-total
Est. Loan Est. Equit Equityy Mil. Mil . US$ US$ Mil. Mil . US$ US$
21
.
Site Details Deta ils
22
Rajabarihat, Rajshahi
Land available -
: 52 Acres
.
Land Status: - Land is under M inistry of Fisheries and Livestock - L an a n d u n cu c u lt l t iv i v at a t ed e d si s i nc n c e 1 98 98 8 - L an a n d av a v ai ai la l a bl b l e in i n a si s i ng n g le l e plo pl o t - H ig i g h L an a n d a nd n d re r e ad a d y t o u se se - L an a n d t ra r a ns n s fe f e r u n de d e r p ro r o ce c e ss ss
23
PGCB Grid Substation Compound, Ishwardi, Pabna Land available : Spot po t 1- Near Nea r G rid ri d Con Contt ro roll Room: Roo m: 3 acr a cre es Spot po t 2- Nort Nor t h sid s ide e of Rest Re st Ho Hous use e : 3 acr a cre es Spot po t 3- P l ay grou gr ound nd & adj ad j ac ace e nt are ar e a: 7 acres Sp o t 4 - A bo bou t 5 acres Total area available: 18 Acres ( Ap prox.) prox.) 24
PGCB Grid Substation Compound, Ishw Is hwar ardi di,, Pabna Pabna Co Cont ntd. d.
25
PGCB Grid Substation Compound, Ishw Is hwar ardi di,, Pa Pabn bna a Co Cont ntd d.
Spo t: 2
Spo t: 1
Spo t: 3
Spo t: 4 26
Rajshahi Char area in the river P adma P rospective rospecti ve Locations: Char M azerdiar: 200 acres ( 50-60MW ) Char Ash ariadah: 300 acres (8 0-100MW ) - Sub-stati ub-station on and Transmission Transmissi on Syste S ystem m is to be developed - River Riv er crossi c rossing ng Pow er evacu evacuati ation on syste sy stem m is necessary ‘ Ch Ch a r ’ i s a S Stt r i p o f Sa S a n d y L an a n d r i si si n g o u t o f a r i v e r b e d .
27
Chak Chak Ashari Asharia a
28
Char Mazerdiar
Chak Asharia
29
Adjacent area near Bangab Ban gaband andhu hu Bri Bridg dge, e, Sirajgo Sirajgonj nj Land available for Solar PV System System : •
•
•
•
•
East Side of Banghabondhu Banghabondhu Bridge (Tow ards North) : about 30 acres - P rospect rospective ive locatio location n for 10 1 0 MW East side of Banghabondhu Banghabondhu Bridge (Tow ards South) South) : about 10 acres - Prospectiv Prospective e locati loc ation on for 3MW W est Side Side of Banghab Ba nghabondhu ondhu Bridge (Tow (T ow ards North) North) besides besid es Ecopark Ecopark : about 50 acres acr es - P rospect rospective ive locatio location n for 15 MW Sirajgonj embankment adjacent adja cent area (paikpara) (paikpara ) : about 20 acres - Prospectiv Prospective e locati loc ation on for 7MW Area adjacent to NW ZP GCL GCL Grid sub-station: sub-station: 25-30 acres P rospective rospective location location for 10 MW Total area availabl e: 150 A cres (A pprox.) 30
Adjacent area near Bangaba Bang abandhu ndhu Bri Bridge, dge, Sira irajg jgonj onj
31
W est Side Side
East Side
Paikpara
Near NW P G CL 32
Expect ed I nterventi Expected ntervention on from A DB and other Development Dev elopment P artners Techni Te chnical calSupport Support Techni Te chnical cal
-
Technical Techn ical Assist Ass istaance : Comprehensi Comprehe nsive ve Fe Feasibil asibility ity Study Project Desig Designn Prepara Pre paratio tionn of o f Standard Standard Procur Procureement Documents Capacity Building Financial Fina ncialSupport Support t Support Financial Fina ncial Suppor
Low Interest Credit Credit Suppo upport rt Part Pa rtial ial Risk Gua Guarantee rantee Part Pa rtial ial Credit Gua Guarantee rantee 33
.
Thank you
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