Energy Bangla

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Dhaka Saturday,  Mar 23, 2019

Solar Power Plant Deals to be annulled: No progress in most Projects

Rafiqul Bashar

The contracts and deals with the entrepreneurs that are meant to establish solar power plants are going to be declared annul as they failed to materialize the plants within due time. Warning notices have already been issued to some of the companies, rest of them are on the way to get warnings too and the deals will be declared annul subsequently.

Sources from the power division inform that, most of the private entrepreneurs that have signed the Power Purchase Agreement with the government have failed to complete installing solar power plants within due time. Now, the government has decided to be strict about this matter.

The power division has recently made a report on the concurrent scenario of the installation progress of solar power plants. According to the report, the overall progress in installation of all the solar power plants is not that satisfactory at all. The installation of most of the estimated solar power plants didn’t even begin yet.

The director general of Powercell, Mohammad Hossain said that, the government insisted on timely completion of all the solar power plants while signing deals with the private entrepreneurs. However, now the companies are seeking more time showing various excuses, which is unacceptable. “Yet, we accepted a few requests on extending timeline based on their working progress”, he added. But, the deals may be declared annul with the other overdue implementers of the solar power plants, as it would be better to sign deals with some new companies to achieve speed in implementing more solar power plants. However, before annulling the contracts they might be given some time for the last time, he added.

According to the related sources, there is no progress in installing 50 MW solar power plant of Porabari, Tangail,  and 200 MW plant of Teknaf, 32 MW plant of Dharmashala of Sunamganj, 200 MW and 20 MW plant of Cox’sbazaar, 50 MW plant of Mymensingh, 30 MW plant of Rangpur, 200 MW plant of Gaibandha has no real progress.

Among these solar power plant projects, the 20 MW plant of Cox’sbazaar is currently under construction and it might be operational within the next 2 months. Two of implementer companies has recently requested for a time extension and the power division has recently sent show cause notice to 2 implementer companies for their overdue in project materialization.

Adission PowerPoint and Haor Bangla-Korea Green Energy Ltd is the implementer of the 32 MW plant of Sunamganj. The plant was projected to be operational in last September yet, the implementers requested for a deadline extension. Joulas Power Ltd (JPL) is installing the 20 MW solar power plant of Cox’sbazaar and the power plant was projected to start operation on 12th February 2018 but the plant is yet under construction. HDFC SinPower is the implementer of the 50 MW solar power plant of Mymensingh. The plant is projected to start generation from 8th April, this year but they haven’t started the construction yet and that’s why the power division has sent a show cause notice to the implementer.

Sun Adission Energy Holding will install the 200 MW power plant of Cox’sbazaar and the plant is expected to start operation from 8th July of this year. However, the power division also issued a show cause notice to the implementer as it failed to begin the installation in due time. Adission requested for a time extension in this regard but it was rejected by the power division. Intraco CNG and Juli New Energy Company will materialize the 30 MW plant of Rangpur which is expected to begin operation from 26th November of this year but the installation process has not begun yet. The 200 MW plant of Gaibandha is expected to be operational from 25th April of the next year, but the installation of this power plant has not begun yet.

According to the Sustainable Development Goal (SDG), Bangladesh needs to generate at least 10 percent of the power which is 2,442 MW of power from renewable sources. Unfortunately, the failure of the solar power plant implementers is hindering the goal to be achieved.

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