YOG INFRA Q3 2024 insights
SOUTH ASIAN countries - Bangladesh, Nepal, Bhutan and Sri Lanka (BNSB) are taking notable proejct developments in clean energy sector, such as recent approval of a large renewable energy projct pipeline in Bhutan, first agrivoltaics project in Sri Lanka, resumption of cross-border international investments & MOUs in clean eenrgy projects in Nepal and notification of 4GW RE plan in Bangladesh.
Read more about key developments in Infrastructure and PPPs in the four countries in our Q3 2024 insight.
BANGLADESH
PERTAMINA NRE AGREES TO DEVELOP RENEWABLE ENERGY IN BANGLADESH
Pertamina New & Renewable Energy (NRE) has officially signed a memorandum of understanding (MoU) with Coal Power Generation Company Bangladesh Limited (CPGCBL) for a 500-megawatt solar power plant project in Moheshkhali and other potential areas in Bangladesh.
The signing of the MoU is a follow-up to the government-to-government (G2G) MoU signed between Indonesia and Bangladesh in 2017, after having undergone a feasibility study by the two energy companies. This MoU also includes the development of supporting facilities and serves as the basis for further cooperation based on mutually agreed terms and conditions. This strategic collaboration marks a step towards utilizing renewable energy solutions and developing infrastructure in Bangladesh.
4,000 MW RENEWABLE ENERGY PROJECTS FULLY PLANNED BY 2030
An official document by Power Cell, a division under Ministry of Power, Energy and Mineral Resources, show that renewable energy projects totalling 3,963.5 MW are at different implementation stages in Bangladesh. Specifically, 943.5 MW of projects are under construction, 609 MW have received letters of intent (LOI) or notifications of award (NOA), 228 MW are in the tendering process, and 2,183 MW remain in the planning stage.
The government has set a target to generate 24,000 MW of electricity from renewable sources by 2041. Initiatives such as the Integrated Energy and Power Master Plan, Solar Irrigation Roadmap, and renewable energy policies aimed at boosting renewable energy development.
However, the Power Cell document paints a different picture. Only 15 renewable energy projects are currently under construction—four in the public sector (153 MW) and 11 in the private sector (408 MW).
The public sector projects include –
Sirajganj 2 MW wind power plant
Barishal 1 MW solar power
Sonagazi 50 MW solar power
Madarganj Jamalpur 100 MW solar park
Private sector projects include-
Cox's Bazar 60 MW wind power (US-DK Green Energy BD)
Patgram Lalmonirhat 5 MW solar power (PV Power Patgram)
Sylhet 5 MW solar power (Eki Suzi & Sun Solar Power)
Sunamganj 32 MW solar power (Haor Bangla Korea Green Energy)
Tetulia, Panchagarh 30 MW solar power (Korotoa Solar)
Bera 3.77 MW solar power (Saudi Agro Solar)
Pabna 100 MW solar power (Dynamic Sun Energy)
Sirajganj 68 MW solar power (BCRECL)
Mongla Bagerhat 55 MW wind power (Mongla Green Power)
Narayanganj 6 MW waste-to-electricity power (UD Green Energy)
North Dhaka 42.50 MW waste-to-electricity power (WTE Power Plant North Dhaka Private Ltd)
Beyond these projects, LOIs and NOAs have been issued for 13 projects totalling 609 MW, with six projects (228 MW) in the tendering process and 25 projects (2,193 MW) in the planning stage.
CHINESE VENTURE COMMISSIONS 68 MW SOLAR PLANT IN BANGLADESH
Bangladesh-China Renewable Energy Company (BCRECL), a joint venture between Bangladesh’s Northwest Power Generation Company Ltd. and China National Machinery Import and Export Corp., has switched on a 68 MW solar plant in Sirajganj district, central Bangladesh. Construction of the USD 87.71 Mn solar power plant, located on the banks of the Jamuna River, began in January 2023.
The Bangladesh Power Development Board (BPDB) has agreed to buy electricity from the facility at USD 0.102/kWh.
BCRECL is implementing another solar power plant in Pabna district and a wind power plant in Patuakhali district, aiming to generate 500 MW of electricity from renewables.
NEPAL
IREDA INKS MOU WITH SJVN, GMR FOR 900 MW HYDRO PROJECT IN NEPAL
Indian Renewable Energy Development Agency Ltd has signed an MoU with SJVN and GMR Energy to develop and implement 900 MW Upper Karnali hydro-electric project in Nepal.
SJVN Limited and GMR will hold 34% shareholding each and IREDA will have 5% shareholding in the proposed JV. The balance Equity will be held by NEA (Nepal Electricity Authority).The project shall be developed on BOOT basis with 25 years concessional period after commissioning.
The approximate project cost is USD 1.1 Bn. The project is proposed to be funded through 70:30 Debt Equity ratio. Investment in this important hydropower project underscores IREDA's ongoing commitment to advancing renewable energy initiatives. This collaboration accelerates the development of Nepal's hydropower sector and also strengthens regional energy cooperation, supporting shared goal of sustainable growth.
PROZEAL GREEN ENERGY, GOLYAN POWER SIGN JV PACT FOR SOLAR PROJECTS IN NEPAL
Ahmedabad-based Prozeal Green Energy and Nepalese firm Golyan Power have inked a joint venture agreement for setting up solar power projects in the Himalayan nation. The joint venture Prozeal Green Energy Nepal aims to establish over 500 MW of solar energy projects across multiple locations in Nepal over the next 18 months. Prozeal Green Energy will hold a 60% stake in the JV and Golyan Group will own the remaining 40%.
The joint venture will develop both solar rooftop and ground-mounted photovoltaic (PV) solar plants. The energy produced from these projects will be sold to the Nepal Electricity Authority (NEA) and various commercial and industrial consumers. Prozeal Green Energy will lead as the EPC (Engineering, Procurement, and Construction) development company, leveraging its extensive expertise in the renewable energy sector, while Golyan Group will focus on business development, land acquisition and financing.
BHUTAN
TATA POWER, DGPC PARTNER TO SET UP 600 MW HYDRO PROJECT IN BHUTAN
Tata Power and Bhutan-based Druk Green Power Corporation Ltd (DGPC) have partnered to develop a hydropower project at an estimated cost of USD 82 Mn with a construction timeline of 5 years. The 600 megawatts (MW) Khorlochhu Hydropower Project will be built on the Kholongchhu river in east Bhutan. The clean power from the project will help meet Bhutan's increasing electricity requirements and complement and contribute to India's energy transition to renewables. The partnership involves a 40% equity investment by Tata Power in Khorlochhu Hydro Power Ltd, a Public Private Partnership company.
This project marks a significant step towards building a sustainable energy landscape underscoring Tata Power's commitment to a greener future. This partnership is a significant step towards Bhutan's energy security and economic development as the country seeks to become a High-Income Gross National Happiness (GNH) Economy by 2034.
BHUTAN’S HYDROPOWER REQUIRES USD 26 BN INVESTMENT
Bhutan requires USD 26 Bn to achieve 20,000 MW (20 GW) of hydropower generation capacity by 2040, and the government has some immediate plans to increase hydropower generation capacity by 3,119 MW, taking the total installed capacity to 5,000 MW in the 13th Plan. The government is exploring investment in hydropower through a 70 percent debt and 30 percent equity financing model. The government is also in talks with some major corporate giants from India such as Adani Group, Reliance Group, and GMR Group for investments in hydropower projects in the country.
In addition, the government is exploring debt-financing options for USD 2.6 Bn, which is 50 percent of the total USD 6.2 Bn required for the next five years. The government is also considering reviewing policies to allow private sector investment in the hydropower sector and financing through public-private partnerships. For the 600 MW Kholongchu hydropower project, the Tata Group is investing through debt and equity financing modality.
The construction of the 1,125 MW Dorjilung hydropower project requires USD 1.5 Bn. The World Bank has committed to invest USD 300 Mn in the project so far. Funding for the Punatsangchhu-I and Punatsangchhu-II projects is already committed and provided by the Government of India. In the 13th Plan, the government will initiate 10 large hydropower projects, which include 404 MW Nyera Amari, 600 MW Kholongchhu, 1,125 MW Dorjilung, 180 MW Bunakha, 900 MW Wangchhu, 363 MW Khomachhu, 170 MW Dangchhu, 770 MW Chamkharchhu-I, 2,585 MW/4,060 MW Sankosh, and 2,800 MW Kuri-Gongri.
In addition, the government has also initiated the development of several hydropower projects concurrently, with a total additional generation capacity of over 15 GW.
BHUTAN TAKES FIRST STEP TOWARDS GREEN HYDROGEN ECONOMY
The Department of Energy under the Ministry of Energy and Natural Resources launched the National Green Hydrogen Roadmap with the target to produce 710 tonnes of green hydrogen fuel annually for domestic consumption by 2030 and 70,000 tonnes by 2050. A five-megawatt green hydrogen plant will soon be constructed near the Gidakom Mini Power Plant to meet the demands of fuel cell vehicles. Bhutan aims to establish its first hydrogen export routes by 2030, focusing primarily on Asian markets such as China and India.
Initially presented at the 28th Conference of Parties on December 5 and as part of Bhutan’s longstanding commitment to carbon neutrality under the United Nations Framework Convention on Climate Change since 1992, the National Green Hydrogen Roadmap reinforces Bhutan’s dedication to sustainable development, food security, human settlements, and surface transportation.
Druk Holding and Investments, Druk Green Power Corporation, Bhutan Power Corporation, Electricity Regulatory Authority, Bhutan Construction and Transport Authority, and Bhutan Power System Operator are key agencies for the implementation of the roadmap.
SRI LANKA
SRI LANKA GETS FIRST ADB-BACKED AGRIVOLTAICS PROJECT
Sri Lanka’s first Agrivoltaics demonstration project has been formally inaugurated. The 85 kWp project, backed by the Asian Development Bank (ADB), working with the Sri Lanka Sustainable Energy Authority (SEA) under the Ministry of Power and Energy (MOPE), the Tea Smallholders Development Authority (TSHDA) under the Ministry of Plantation Industries (MOPI), the University of Peradeniya. Local EPC firm Hayleys solar executed the project.
Agrivoltaics have also been found to be a viable option for other vegetable crops like tomato’s, lettuce, bell peppers and many herbs, as long as they are raised 3 meters or more above ground level. The key innovation in the project located at Hanthana – Kandy, is the transparent solar panels that allow sunlight to reach crops.
The hybrid semi-transparent solar panel project was technically operationalized in first quarter of 2024 with installation done two metres above the tea plantation . It is projected to generate electricity to power 19 households, contributing to the national grid with a 24 kilowatt-hour (kWh) battery energy storage system.
The project complements the tea plants with a strategically placed LED lighting system above, creating a controlled environment for optimal growth. These LED lights leverage solar power efficiently by utilising targeted spectrums beneficial to tea plants, consuming less energy for sustainable operation, and emitting minimal heat to maintain ideal growing temperatures – all contributing to increased yields without burdening the local grid. Based on an 800-square-metre tea estate, the project is expected to generate well above 100 MWh of electricity annually.
ADB APPROVES USD 100 MN LOAN TO ENHANCE FINANCIAL SUSTAINABILITY AND REFORMS IN SRI LANKA’S POWER SECTOR
The Asian Development Bank (ADB) has approved a USD 100 Mn policy-based loan to support and facilitate reforms aimed at enhancing the financial sustainability and operational efficiency of Sri Lanka’s power sector. This initiative, known as the Power Sector Reforms and Financial Sustainability Program, is set to complement the International Monetary Fund’s (IMF) Extended Fund Facility arrangement and create a conducive environment for private investments, boost renewable energy development, and modernize power grids.
Developing cost-competitive renewable energy and providing reliable and affordable electricity supply—with a transparent and independent power sector regulatory framework—will help Sri Lanka drive economic growth and address the current financial and economic crisis. This program will support reforms in the power sector introduced under the Electricity Act, including institutional and regulatory reforms to improve the operational sustainability of the electricity sector. It will also support the development of renewable energy to accelerate the country’s transition to clean energy as envisaged under Sri Lanka’s nationally determined contributions.
To accelerate investments in renewable energy, the program will support multiple initiatives outlined in the renewable energy expansion plans for 2023–2030. Key initiatives include the periodic revision of feed-in tariffs for small power plants and rooftop solar users, facilitating the integration of renewable energy projects into the national grid, and the effective application of a competitive procurement framework for renewable energy projects.
In addition to the USD 100 Mn loan, ADB will provide a USD 1 Mn technical assistance grant from its Technical Assistance Special Fund. This grant will support program implementation, capacity building of electricity companies, and the development of their business and power system development plans.
This comprehensive program represents a significant step towards revitalizing Sri Lanka’s power sector, enhancing its financial sustainability, and promoting the development of renewable energy, thereby driving economic growth and addressing the ongoing financial and economic challenges in the country.
List of key transactions - Bangladesh ,Nepal, Bhutan and Sri Lanka Q3 2024
Source: YOG INFRA analysis
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