Power Division set to float tender for solar projects

The Power Division is set to float tenders to install 34 renewable energy projects, especially solar power plants in the private sector, with around 3,287-megawatt generation capacity.

"We are set to float tender as we wants to ensure competitive bidding process in the power sector, we want to ensure transparency and low cost power," Adviser to the Power and Energy sector Dr. Fouzul Kabir Khan has said.

Government is trying to implement solar power projects as part of renewable energy promotion. However, these projects will help the country ease ever-escalating capacity-payment burdens as all these renewable-power projects will be implemented under 'no electricity, no payment' mechanism with no capacity -payment provisions.

Earlier, the BPDB had issued Letters of Intent (LoI) to the 34 proposed private-sector grid-connected solar power plant projects during the previous Awami League government under the Enhancement of Power and Energy Supply Act (Special) Act, 2010. This announcement has made it clear that these projects would bring under bidding process soon.    

According to official sources, the bidding issue has upheld the interim government's decision not to sign any further contract under the Enhancement of Power and Energy Supply Act (Special). Under this law, the government can award the contract of a project to any private firm without tender process.

BPDB had selected these firms through the process of "unsolicited offer" under the law, a senior official of the Power Division has said preferring anonymity.

It has been alleged that the unsolicited deals has significantly increasing costs and contributing to an annual sector loss of Tk 70,000 crore for the life term of these projects.

"The BPDB will soon float the tender for a number of grid-tied solar projects, each 50-MW capacity. Mostly those locations will be selected where power evacuation facilities are available with grid substations," said the power secretary.

The private sponsors will set up the plants with their own cost and the BPDB will purchase electricity from the private plants for a specific period of time.

"The BPDB will soon float the tender for a number of grid-tied solar projects, each 50-MW capacity. Mostly those locations will be selected where power evacuation facilities are available with grid substations," said a senior official of the Power Division.

"We've decided to initially float a tender for setting up a good number of location-wise 50 MW solar projects. It will help those who have already procured land to get the project through a competitive bidding process," the official added.