A group of companies led by Metito Utilities and JinkoPower has won a bid to build a 45-55 MW grid-tied PV array in Rangunia, in Bangladesh’s Chittagong district.
The consortium’s winning bid of $0.0749/kWh, submitted to the Bangladesh Power Development Board (BPDB) on Aug. 4, is the lowest ever recorded in Bangladesh’s nascent solar industry. Previously, the average price for solar electricity was hovering around the $0.10/kWh range.
The BPDB launched the tender to build, own and operate the PV project. The government will buy electricity from the plant for 20 years. Antonio Cuccarese, head of renewable energy at Metito Utilities, told pv magazine that the company wants to commission the project by the second half of next year. He added that this will hinge on the speed of negotiations.
The second lowest bidder — a consortium led by Joules Power, WAC Logistics and Jiangsu Zhongtian Technology — offered $0.0875/kWh, followed by $0.1013/kWh by a joint venture under Toma Construction and Kinus Co. Meanwhile, Scatec Solar offered $0.1060/kWh and Canadian Solar offered $0.1313/kWh.
Cuccarese said Metito Utilities looked at different technology options for the project in Bangladesh. But now that JinkoSolar is a part of the consortium, it will use the Chinese group’s equipment and draw on its experience.
However, one participant in the tender told pv magazine on condition of anonymity that the low winning bid would not be viable. “They have not taken into consideration the corporate tax, withholding tax for dividend repatriation, and the embankment construction cost, which is an integral part of the tender requirements,” the person said.
Bangladesh’s total installed renewables capacity reached roughly 601.88 MW by the middle of 2019, including 367.95 MW of solar PV, according to statistics from Bangladesh's Sustainable and Renewable Energy Development Authority (SREDA).
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1..who will arrange land for 45-55 MW solar plant in Bangladeshi project.
2.Who will bear the cost of grid line and synchronization with nearest grid sub.station
3. Who will pay Tax and vat with related cost
4.who will bear the cost of embankment to protect project area from flood,
5.Who will manage security measures of the project for 20 years of contract period
6.Who will bear the cost of maintenance of plant,equipment and other issues.
7. If the above costs borne by the supplier, then it will be hard for BOO contractor with .07 USD. per Kwh bid
Thanks for comment.
1. The govt. will arrange land for the project. The contractor will pay a lump sum amount as rent of land to the govt.
2. The BOO contractor will bear the cost relating to grid line and embankment.
3. Until now solar projects related imports are free of VAT and tax.
4. The BOO contractor will bear the other costs you mentioned.
The cost of solar power generation is lowering everyday, worldwide, with invention of highly efficient tech.
Several global giants in solar energy sector have proposed almost same price for the project in tender.
Thanks,