IFC, Sreda team up for 35-50MW solar plant in Kushtia

International Finance Corporation (IFC) has teamed up with the state-run Sustainable and Renewable Energy Development Authority (Sreda) to support a solar project in Kushtia to generate 35 to 50 megawatts of electricity. 

The pilot project, which will be developed through competitive bidding under public-private partnership, is aimed at demonstrating a viable model for a solar power plant in Bangladesh, the World Bank’s private sector arm said in a statement yesterday.

At present, around 90 percent of Bangladeshis have access to electricity.

Bangladesh aims to boost share of renewable sources in its energy generation mix from less than 3 percent to 10 percent by 2021 and double it by 2030.

Currently, over 90 percent of the power generation is dependent on fossil fuel while renewable energy projects face challenges for a limitation of land.

This is a unique concept as it will support the government in creating a viable and sustainable renewable energy model in Bangladesh, using marginal low-lying land to produce solar energy, said Wendy Werner, country manager of the IFC for Bangladesh, Bhutan and Nepal.

“By engaging the private sector, we aim to promote more investment in renewable energy projects in Bangladesh and reduce reliance on thermal energy.”

The IFC is helping with structuring and tendering of the project to attract a credible private sector developer through a transparent and competitive process.

Three entities are supporting the funding for consultants.

They are the European Commission’s Directorate General for International Cooperation and Development, Germany’s Federal Ministry of Economic Cooperation and Development, and Sustainable Development Investment Partnership, backed by the World Economic Forum and the Organisation for Economic Co-operation and Development.

“This plan to bring in a solar independent power producer through a competitive bidding process will play a pivotal role in developing the country’s renewable energy programme,” said Mohammad Helal Uddin, chairman of Sreda.

It will provide increased electricity access and clean energy, which will have positive impact on businesses and households, he said.

The IFC supports over 20 percent of Bangladesh’s power generation. It has a committed global portfolio of over $8.2 billion in power and energy, half of which is in renewables.