Bangladesh-China JV to build 100MW solar power plant in Jamalpur

• Bangladesh will hold a 30% stake in the plant while the Chinese firm 70%
• The Chinese company will not only invest but will also provide loans
• An agreement will be signed today to set up the plant

As part of Bangladesh’s renewable energy push, a joint venture between China’s CREC International Renewable Energy Company and Bangladesh’s B-R Powergen Limited (BRPL) will establish a 100MW solar power plant on 350 acres of land in Madarganj upazila of Jamalpur.

The Joint Venture Agreement (JVA) is expected to be signed at The Bangladesh Power Development Board office in the capital today, according to power ministry sources.

Habibur Rahman, senior secretary of the Power Division, will attend the signing ceremony as the chief guest.

According to sources, BRPL, a company jointly owned by the Power Development Board and the Bangladesh Rural Electrification Board (REB), will possess a 30% stake in the plant, while the Chinese company will hold the remaining 70%.

The solar power plant is slated to produce 100MW of electricity under a 20-year agreement.

Officials from the Power Division told TBS that the Chinese firm is keen to set up this plant. It will not only invest but also offer loans for the construction of the plant. 

Despite holding a 70% stake in the project, the Chinese company will assume full responsibility for all loans, whether domestic or foreign. This arrangement ensures that Bangladesh will not be required to provide any sovereign guarantees while also maintaining proportional investments, they said.

In line with the Renewable Energy Policy of 2009, the government aims to facilitate both public and private sector investments in renewable energy projects to replace indigenous non-renewable energy supplies and increase contributions from existing renewable energy-based electricity productions. 

The policy envisages achieving 5% of total energy production from renewable sources by 2015 and 10% by 2020; however, these targets have not yet been met.

Currently, Bangladesh’s electricity generation capacity stands at around 30,000 megawatts, with approximately 1,300 megawatts generated from renewable sources, including about 716 megawatts from solar, wind, and hydropower.

M Zakir Hossain Khan, a climate finance expert and chief executive of the Change Initiative, told TBS, “Bangladesh aims to generate 40% of its electricity from renewable and clean energy sources by 2041 under the Mujib Climate Prosperity Plan (MCPP). This plant in Jamalpur is another step towards achieving this goal.”

In a notable shift towards sustainable energy, Bangladesh approved an impressive 2.19GW of large-scale photovoltaic (PV) projects in 2023. 

With an implementation timeline from initial planning in 2023 to full operation by 2027, these projects are set to significantly enhance the country’s renewable energy capacity, foster economic growth, and contribute to environmental sustainability.