Rahimafrooz wants tariff review for 20MW solar plant

Staff Correspondent

4 September, 2018 12:00 AM printer

Rahimafrooz, of the country’s major solar panel manufacturers, has urged the government to review the power tariff structure for implementing a solar power plant at Panchagarh.

The company will implement the 20MW (AC) solar based power plant jointly with Shunfeng Consortium under Build, Own and Operation (BOO) basis.

“We have applied for IRENA-ADFD soft loan for financing the project and has been shortlisted,” said Munwar Misbah Moin, Managing Director of Rahimafrooz Renewable Energy Ltd in a letter recently sent to the power division.  “If we are awarded with this financing for 50 percent of the project cost, we need to confirm a tariff of 9.99 US cents for 20 years period,” said the letter. It also proposed to review the tariff at 11.99 US cents if IRENA ADFD financing is not awarded.

“Now, we need to have a government grantee letter in favour of the project to proceed to the next steps, said the Rahimafrooz managing director requesting the government for review of the tariff structure.

But the ministry of power and energy, according to sources, is not happy with the progress of most of the renewable power projects specially solar based power plants because of their slow progress in implementing the projects.

The power division has so far signed power purchase agreement (PAPA) with nine power sponsors having capacity to generate 550MW of electricity. Besides, it also issued letter of Intent (LoI) to another seven power plants having capacity to generate 465MW of electricity. But the progress of these projects is not remarkable, officials said.