Saudi Arabia's ACWA Power has announced the acquisition of a 300 MW solar project in Bangladesh. The consortium behind the transaction includes local entities Comfit Composite Knit, Viyellatex Spinning, and Midland East Power.
The Bangladesh Power Development Board (BPDB) has allocated 900 acres of land for the solar facility in Bagerhat district, near a 1,320 MW coal power plant, which is expected to be operational by 2026. The consortium plans to invest approximately $430 million to set up the power plant.
The BPDB, having obtained approval from the Cabinet Committee on Government Purchase, will sign a power purchase agreement with the consortium. The agreement will establish a 20-year commitment to procure electricity at a rate of $0.1020/kWh, governed by the principle of “no electricity, no payment.” The confirmation of the cabinet's support for the solar power plant proposal was conveyed by Sayeed Mahbub Khan, the additional secretary of the cabinet division, during a recent press briefing.
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ACWA Power had previously inked a memorandum of understanding with the BPDB in November of the prior year, outlining their intention to develop 1,000MW of solar power capacity across Bangladesh. The company, headquartered in Jeddah, is presently evaluating potential locations, including Payra in Patuakhali and Mirsarai in Chattogram, for the establishment of an additional 700MW solar power plant.
ACWA Power is mainly owned by the Saudi government, with a 75% stake, while private entities hold the remaining 25%. Just last month, Bangladeshi Prime Minister Sheikh Hasina officially inaugurated the country's largest 200 MW Teesta Solar Power Plant in Gaibandha. The national grid also recently started receiving power from another utility-scale solar plant – a 100 MW array in Rampal that is owned by Orion Group.
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