Spanish co to build solar-powered village in Gazipur
Saturday, 25 July 2009
FE Report
A top Spanish renewable energy group has started building the country's first solar-powered village in Gazipur district near the capital as it moves to make deeper tracks in Bangladesh's fastest growing clean energy market.
The Barcelona-based Sunco Energias Renovables is installing solar home systems to make a model solar village as part of its future plan to electrify Bangladesh's rural areas, cut off from the national power grid, officials said Friday.
The company has a project portfolio exceeding 100 megawatt (MW) of thermal solar energy and 60 MW of photovoltaic solar energy, according to its website. In addition to Spain, Sunco has renewable energy projects in Italy, China, Mongolia and Bulgaria.
"The Spanish group is now on the look-out for a local partner. But it will keep its majority stakes in the proposed venture," Chief Executive Officer of Infrastructure Development Company Ltd (IDCOL) Islam Sharif said.
Officials at IDCOL, the country's biggest renewable energy financier, said they are looking to provide soft loans for the proposed venture.
Bangladesh is widely regarded as a leader in the renewable energy sector, with the market growing at an exponential 56 per cent a year.
The $150 million market is almost overwhelmingly dominated by solar system and experts forecast it would top $500 million by 2012.
Bangladesh relies heavily on natural gas to generate electricity, but this fuel source is expected to dry up by 2015, threatening to pare back power generation.
Aided by soft-loan refinancing schemes by IDCOL, Grameen Shakti and other charities have lighted up homes and shops for around 2.0 million people.
The new venture comes at a time when the World Bank (WB) has pledged to scale up its aid for the country's renewable energy sector, seeing its potential.
The Washington-based lender has agreed to dispense $ 130 million in loans to Bangladesh and officials at the Economic Relations Division (ERD) say over $ 100 million of the proposed loan package is for the solar electrification programme.
Frequent power outages cost the nation an estimated 2.0 percentage of gross domestic product (GDP) a year, according to a WB study.
Officials at IDCOL say the state-controlled infrastructure lender would provide soft loans to its scores of partners to help electrify additional 300,000 households by the 2012 financial year.
So far, IDCOL has financed installation of 3,20,000 solar systems across the country, almost double in 18 months, backed by global development financiers like the World Bank and the German GTZ.
The officials said the Spanish group is also exploring the option of introducing solar irrigation in Bhaluka in Mymensingh district.
Meanwhile, a Bangladeshi clean energy upstart Solar IC Ltd will also invest more than US$ 20 million to set up a solar plant, which will have a capacity to produce up to 10 megawatts (MW) of electricity.
The company, majority controlled by Bangladeshi diaspora, said it is now exploring the joint-venture option, preferably with a United States company and expects to launch operations in early 2011.
Experts say the country must diversify its energy sources not only to minimise reliance on gas, but also to offset the devastating impact of climate change.
A top Spanish renewable energy group has started building the country's first solar-powered village in Gazipur district near the capital as it moves to make deeper tracks in Bangladesh's fastest growing clean energy market.
The Barcelona-based Sunco Energias Renovables is installing solar home systems to make a model solar village as part of its future plan to electrify Bangladesh's rural areas, cut off from the national power grid, officials said Friday.
The company has a project portfolio exceeding 100 megawatt (MW) of thermal solar energy and 60 MW of photovoltaic solar energy, according to its website. In addition to Spain, Sunco has renewable energy projects in Italy, China, Mongolia and Bulgaria.
"The Spanish group is now on the look-out for a local partner. But it will keep its majority stakes in the proposed venture," Chief Executive Officer of Infrastructure Development Company Ltd (IDCOL) Islam Sharif said.
Officials at IDCOL, the country's biggest renewable energy financier, said they are looking to provide soft loans for the proposed venture.
Bangladesh is widely regarded as a leader in the renewable energy sector, with the market growing at an exponential 56 per cent a year.
The $150 million market is almost overwhelmingly dominated by solar system and experts forecast it would top $500 million by 2012.
Bangladesh relies heavily on natural gas to generate electricity, but this fuel source is expected to dry up by 2015, threatening to pare back power generation.
Aided by soft-loan refinancing schemes by IDCOL, Grameen Shakti and other charities have lighted up homes and shops for around 2.0 million people.
The new venture comes at a time when the World Bank (WB) has pledged to scale up its aid for the country's renewable energy sector, seeing its potential.
The Washington-based lender has agreed to dispense $ 130 million in loans to Bangladesh and officials at the Economic Relations Division (ERD) say over $ 100 million of the proposed loan package is for the solar electrification programme.
Frequent power outages cost the nation an estimated 2.0 percentage of gross domestic product (GDP) a year, according to a WB study.
Officials at IDCOL say the state-controlled infrastructure lender would provide soft loans to its scores of partners to help electrify additional 300,000 households by the 2012 financial year.
So far, IDCOL has financed installation of 3,20,000 solar systems across the country, almost double in 18 months, backed by global development financiers like the World Bank and the German GTZ.
The officials said the Spanish group is also exploring the option of introducing solar irrigation in Bhaluka in Mymensingh district.
Meanwhile, a Bangladeshi clean energy upstart Solar IC Ltd will also invest more than US$ 20 million to set up a solar plant, which will have a capacity to produce up to 10 megawatts (MW) of electricity.
The company, majority controlled by Bangladeshi diaspora, said it is now exploring the joint-venture option, preferably with a United States company and expects to launch operations in early 2011.
Experts say the country must diversify its energy sources not only to minimise reliance on gas, but also to offset the devastating impact of climate change.