PDB likely to cancel deal with sponsor of 18-MW solar thermal power plant
Dhaka, Aug 12 (UNB) – State-owned Power Development Board (PDB) is likely to cancel its deal with a private sponsor for setting up of an 18-MW solar thermal power plant.
A local firm, Solarium Power Ltd signed the deal with the PDB on December 20 last year to set up the plant at a location in Mymensingh. As per the deal, the PDB will buy electricity at Tk 5.50 per kilowatt hour for the next 15 years. This was the first of its kind of large solar power plant in Bangladesh.
The unavailability of land, lack of fund mobilization and uncertainty in getting equipment and materials in the project are believed to be the main reason that prompted the PDB move to cancel the deal.
The PDB officials recently became frustrated with the sponsor when they found the project as a non-viable one in Bangladesh perspective.
Sources said that solar thermal project needs huge open landscape to set up its equipment, particularly big mirrors and lenses to concentrate on the daytime sunlight. But the sponsor failed to arrange the required land in any location in Mymensingh.
Secondly, the project needs special kind of oil to preserve sunlight and generate heat for operation of its thermal plant. But the special kind of oil, which is used to preserve the heat, is very costly.
Thirdly, the plant needs special kind of salt which is only produced in Israel. But Bangladesh does not have diplomatic or commercial relation with Israel. So, this emerged as another bottleneck for the project.
Officials said the idea of setting up such solar thermal power plant is totally new in Bangladesh. Even, such project was never installed in any part of South Asia. “Only few countries in Europe have some pilot projects as this is based on very complicated solar technology,” said a senior official at the PDB.
He said the sponsor of Solarium has verbally informed them about his inability to implement the project. “Now, we’re proceeding towards canceling the Solarium deal.”
When contacted, Director of IPP Cell of PDB Didarul Alam admitted the failure of the Solarium in arranging required land as per schedule and also about other failures in other areas.
He said the PDB will seek directive from the Power Ministry to decide the fate of the Solarium.
Officials said if the PDB cancels the deal, the Solarium will lose performance guarantee (PG) money of about Tk 5.44 crore for its failure to implement the project.
Meanwhile, repeated attempts were made to contact Solarium’s owner through mobile phone to get his comment about the project. But he was not receiving the mobile phone call.
When the PDB had signed the deal with Solarium, the Power Ministry’s top functionaries were very enthusiastic about the project.
Particularly, PM’s Advisor Dr Tawfiq-e-Elahi had termed the deal with a private sector firm for solar thermal plant a milestone in Bangladesh history.
He had said neighbouring India has not yet been able to sign contract for setting up any solar thermal power plant in the private sector. “But we’ve been able to sign such a deal.”
A local firm, Solarium Power Ltd signed the deal with the PDB on December 20 last year to set up the plant at a location in Mymensingh. As per the deal, the PDB will buy electricity at Tk 5.50 per kilowatt hour for the next 15 years. This was the first of its kind of large solar power plant in Bangladesh.
The unavailability of land, lack of fund mobilization and uncertainty in getting equipment and materials in the project are believed to be the main reason that prompted the PDB move to cancel the deal.
The PDB officials recently became frustrated with the sponsor when they found the project as a non-viable one in Bangladesh perspective.
Sources said that solar thermal project needs huge open landscape to set up its equipment, particularly big mirrors and lenses to concentrate on the daytime sunlight. But the sponsor failed to arrange the required land in any location in Mymensingh.
Secondly, the project needs special kind of oil to preserve sunlight and generate heat for operation of its thermal plant. But the special kind of oil, which is used to preserve the heat, is very costly.
Thirdly, the plant needs special kind of salt which is only produced in Israel. But Bangladesh does not have diplomatic or commercial relation with Israel. So, this emerged as another bottleneck for the project.
Officials said the idea of setting up such solar thermal power plant is totally new in Bangladesh. Even, such project was never installed in any part of South Asia. “Only few countries in Europe have some pilot projects as this is based on very complicated solar technology,” said a senior official at the PDB.
He said the sponsor of Solarium has verbally informed them about his inability to implement the project. “Now, we’re proceeding towards canceling the Solarium deal.”
When contacted, Director of IPP Cell of PDB Didarul Alam admitted the failure of the Solarium in arranging required land as per schedule and also about other failures in other areas.
He said the PDB will seek directive from the Power Ministry to decide the fate of the Solarium.
Officials said if the PDB cancels the deal, the Solarium will lose performance guarantee (PG) money of about Tk 5.44 crore for its failure to implement the project.
Meanwhile, repeated attempts were made to contact Solarium’s owner through mobile phone to get his comment about the project. But he was not receiving the mobile phone call.
When the PDB had signed the deal with Solarium, the Power Ministry’s top functionaries were very enthusiastic about the project.
Particularly, PM’s Advisor Dr Tawfiq-e-Elahi had termed the deal with a private sector firm for solar thermal plant a milestone in Bangladesh history.
He had said neighbouring India has not yet been able to sign contract for setting up any solar thermal power plant in the private sector. “But we’ve been able to sign such a deal.”
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