Paramount Textile bets on solar for long-term energy security

Another listed company - Paramount Textile - is set to install a 9.81-megawatt rooftop solar power plant at its factory premises to ensure sustainable business operations.
The decision was taken at a meeting of the board of directors on Sunday as part of efforts to support manufacturing with renewable energy amid global fuel supply disruptions triggered by the escalating Iran-Israel war.
The company will sign a Power Purchase Agreement (PPA) with Paramount Solar for the development of the solar facility at the company's factory premises at Sreepur in Gazipur, according to a stock exchange filing on Monday.
Paramount Textile holds a 99.99 per cent stake in Paramount Solar.
The board of Paramount Textile unanimously approved the proposal to sign the deal for the development, operation and management of the rooftop solar power project, the disclosure reads.
The project will be implemented under the OPEX (operational expenditure) model, under which the solar developer will design, finance, construct, operate and maintain the plant, while Paramount Textile will purchase electricity generated from the facility.
The plant will supply power to Paramount Textile at a fixed tariff of Tk 8.20 per kilowatt-hour, excluding VAT and advance income tax (AIT).
The agreement will remain valid for 20 years from the date the photovoltaic (PV) system is commissioned and becomes operational, ensuring long-term access to renewable power for the textile manufacturer.
Industry insiders said rooftop solar installations are gaining popularity among manufacturing companies in Bangladesh as they help reduce reliance on grid electricity and mitigate rising energy costs.
Earlier on Sunday, Olympic Industries announced plans to set up rooftop solar power plants at three of its factories.
The initiatives reflect a growing trend among industrial firms in Bangladesh to adopt renewable energy solutions in response to energy shortages and rising costs, market analysts said.
Akramul Alam, head of research at Royal Capital, said on Sunday that renewable energy remains the fastest and most cost-competitive path to long-term energy security, helping businesses hedge against price volatility and supply disruptions.
The shift toward renewable energy comes amid heightened tensions in the Middle East following Iran's closure of the Strait of Hormuz, a key global oil shipping route.
The disruption has pushed global oil and gas prices sharply higher, raising concerns about uninterrupted electricity generation.
Crude oil prices have jumped more than 54 per cent to around $103 per barrel since the Middle East conflict began on February 28, although oil price dropped slightly by 0.24 percent on Monday, according to international market data.
Higher prices for liquefied natural gas (LNG) and fuel oil could significantly raise electricity generation costs, potentially affecting industrial output and export competitiveness, particularly in energy-intensive sectors.
Bangladesh remains heavily dependent on energy imports from Middle Eastern suppliers, including Saudi Arabia, the United Arab Emirates and Qatar, making the country particularly vulnerable to disruptions in the Gulf region.
Industry experts believe rooftop solar offers a practical starting point for diversifying energy sources as large rooftop spaces across factories, residential buildings and commercial complexes remain mostly unused.

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