The government is now planning to fund the solar power storage system aiming to supply electricity round the clock, officials said.
State financer Infrastructure Development Company Limited (IDCOL) is ready to provide loans for interested entrepreneurs who want to set up solar power plants under the energy storage system, they added.
At present, some mini-grids in Bangladesh have small storage systems to provide electricity to people at night time, but those cannot work round the clock.
Prime minister's energy advisor Dr Tawfiq-e-Elahi Chowdhury at a recent event underscored the need for arranging the energy storage system to turn solar into a mainstream power source so that consumers can get electricity uninterruptedly.
A project proposal is now awaiting the government's approval for setting up of a 4.6 megawatt solar power plant under the energy storage system at Manpura island in Bhola district. The 373-square kilometres island, where over 100,000 people reside, has no grid electricity connection.
The IDCOL will fund the project, to be executed by the West Zone Power Distribution Company, as part of the government's plan to ensure 100 per cent electricity for all.
According to officials, the Bangladesh Power Development Board and the Sustainable and Renewable Energy Development Authority (SREDA) are planning to take up pilot projects on the solar energy storage system.
An IDCOL study found that setting up of a 100 MW solar power plant with 50 per cent energy storage system will cost US$180 million now but it will come down to $127 million in 2025 and to $104 million by 2030 as lithium ion battery price goes down.
It also said at present, the tariff on solar power plants with a 50 per cent energy storage capacity is slightly higher than production cost from liquefied natural gas (LNG) and similar to Heavy Fuel Oil (HFO)-based power projects.
"By 2025, the tariff will be cheaper than LNG or liquid fuel-based power plants because of reduction in cost of the storage system," it added.
IDCOL's chief executive officer Mahmood Malik told the FE that a number of entrepreneurs have expressed interest in setting up of solar power plants under the storage system.
He said the IDCOL has the capacity to fund such projects but they are yet to decide on the funding method, especially the rate of interest of loans.
"The price of lithium ion battery is going down as technology is improving. If we get concrete proposals, we will fund energy storage projects," said Mr Malik.
Head of Renewable Energy of IDCOL Enamul Karim Pavel told the FE that many countries including United States, Germany, Australia, and India have set up solar power plants under the energy storage system to provide electricity round the clock.
"The initial cost of electricity from such power plants will be a little bit high but that will come down gradually," he said.
In case of loans for rooftop solar power, Mr Pavel said, the IDCOL charges London Inter-Bank Offered Rate (LIBOR) plus 4.25 per cent as interest. The interest rate on loans for the energy storage system is yet to be decided, he added.
SREDA chairman Mohammad Alauddin told the FE on Sunday that his organisation is planning to take up a pilot project on the solar energy storage system.
"We are discussing setting up of the megawatt-scale energy storage system," he said.
© 2024 - All Rights with The Financial Express
