The solar park will sell power to the Bangladesh Electricity Development Board at $0.1195/kWh under a 20-year power purchase agreement.
Bangladeshi fabric maker Paramount Textile Ltd (PTL) has decided to invest in a solar power plant by acquiring a 49% stake in Dynamic Sun Energy Private Ltd, located in the Babuna district of northwestern Bangladesh.
Indian company Shapoorji Pallonji Infrastructure Capital Company Pvt Ltd (SPInfra) - as the largest shareholder of Dynamic Sun Energy Pvt Ltd - and PTL will form a joint venture to build a 100 MW solar power plant in the region. The project cost estimate for the solar power plant is around $150 million, according to stock exchange disclosures.
PTL said it took into account the business prospects as part of its portfolio diversification when it decided to acquire a 49% stake in Dynamic Sun Energy. Dynamic Sun Energy has signed a 20-year power purchase agreement with the Bangladesh Power Development Board (BPDB) to supply electricity to the national grid.
BPDB will buy electricity from the plant at a price of $0.1195/kWh.
PTL company secretary Robiul Islam revealed that Dynamic Sun Energy has started some site land development work and is about to enter full-scale construction. "We are on track to complete the project within this year," he told pv magazine.
Mainly in the textile business, PTL has also ventured into the power sector, generating electricity at a 200 MW boiler oil-fired power plant in the Sirajganj area under another joint venture program.
The company also owns a 29% stake in Intraco Solar Power, which is building a 30 MW solar power plant in the Ramppur region of northern Bangladesh. The plant is expected to be connected to the grid within a month or two.
Bangladesh currently has 787 MW of renewable energy generation capacity, of which 553 MW comes from solar. The country hopes to reach 40 percent of total electricity generation from renewables by 2041.