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Jul 165 min read

Chuadanga 50 MW Solar Power Plant

Updated: Sep 22

Current Status: Shelved

Satellite image of the Chuadanga 50 MW Solar Power Plant

Source: Google Map (15 July 2024)


Chuadanga 50 MW Solar Power Plant, also known as Chuadanga Solar PV Park, is a photovoltaics solar power plant situated in Krishnapur village under Jibannagar Upazila in Chuadanga District of Bangladesh. It is sponsored by Cyclect Energy Private Limited (CEPL), a Special Purpose Vehicle (SPV) of Singapore-based Cyclect Group of Companies, as an Independent Power Plant (IPP) for 20 years. The power plant was to declare its Commercial Operation Date (COD) by December 2023, and as per schedule, it is to retire on December 31, 2043. However, the COD is delayed to 30 June 2025.


Capacity

The proposed net capacity of the power plant is 50 MW, while the gross capacity is still undisclosed.


Background

In July 2018, the Bangladesh Power Development Board (BPDB) floated a tender to install three solar photovoltaic (PV) power plants in Chattogram, Chuadanga, Mymensingh and Netrokona (FE, 2018). Cyclect Energy proposed USD 0.12 per kWh, which was higher than BPDB’s expected rate (Islam, 2021). After a negotiation under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, Cyclect Energy agreed to a lower rate. In December 2021, the Cabinet Committee on Government Purchase (CCGP) approved the project on Build Own and Operate (BOO) basis (Hasnat, 2021).


BPDB issued a Letter of Intent (LOI) on 5 January 2022 to purchase electricity generated by the power plant at USD 0.102 per kWh for 20 years (BPDB, 2024; Cyclect, 2021). The power plant will evacuate the generated electricity to the Chuadanga 132/33 kV Grid Substation (Islam, 2021). The power plant is to be constructed within 21 months after the PPA signing date. However, the PPA is yet to be signed.

Image: The villagers of Krishnapur submitted a memorandum to the Deputy Commissioner of Chuadanga against the forceful acquisition of their farmlands. Photo: Prothom Alo


Land Acquisition

Cyclect Energy started selecting suitable land in July 2020. It selected 179 acres of land owned by small and marginal farmers in Krishnapur Mouza of Raipur Union under Jibannagar Upazila in Chuadanga District (Mathabhanga, 2020). The Department of Agricultural Extension (DAE) gave clearance to install solar power plants on the land. Cyclect confirmed 104 acres of land by 2021, but a number of farmers refused to sell their lands (Bangla TV, 2020). However, some of the farmers claimed that it was triple-cropped land. They also claimed that there are rice farms and guava plantations on around 15 acres of land that had been taken in the project.


Power Generation

According to the Power Division, Solar Power Plants are to run on an 18.5% Plant Load Factor (PLF), although the existing power plants achieved 20.4% PLF in 2023-24. As per the PLF, the power plant may generate 170 GWh (162 to 178 GWh) of electricity annually and 3,408 GWh (3,241 to 3,574 GWh) in its lifetime of 20 years.


Finance

According to the media report, the power plant will cost BDT 1,332.40 crore (USD 154.24 million) (Hasnat, 2021). According to the thumb rule, equity investment contributes 30% of the construction cost, while 70% comes from financing institutions. Accordingly, Cyclect Energy is to invest USD 46.5 million, while 108 million is a debt. The sponsor has yet to disclose the credit agency’s name.

Image: The villagers of Krishnapur organized a Human Chain against the forceful acquisition of their farmlands. Photo: Bangla TV


Criticism

According to the local people, the village has 600 acres of land, of which 60% is farmland, 20% is an orchard of different plants, and 20% is the settlement of the villagers (Prothom Alo, 2022). If the power plant is installed there, around 3,000 people will lose their jobs, while only 130 people will be employed in the power plant (Mathabhanga, 2020). The local people, represented by 11 farmers including Sazzad Hossain, Habibar Rahman, Nabis Uddin and Zahirul Islam, submitted a Memorandum to the Deputy Commissioner of Chuadanga on 12 June 2022 against the forceful acquisition of their lands (Prothom Alo, 2022).


They also organized several peaceful protests, such as mass signatures, sitting-in programs and human chains. In response to the demonstrations, senior officials of the Ministry of Land (MOL) promised the farmers that their lands would be given back (Bangla TV, 2020). On the contrary, the Chairman of the local Union Parishad (UP) took the sponsor’s side.


The affected farmers also submitted their appeal to the prime minister. They blamed the local Member of Parliament, Mr. Ali Asgar Tagar, the Upazila Chairman of Damurhuda, Mr. Ali Mansur Babu and Raipur UP Chairman, Mr. Mirza Tahajjat Hossain, for threatening local people to sell the lands (Share Biz, 2022). According to the media report, the sponsor company established a signboard for the project by leasing a small piece of land.


Image: The villagers organized a Protest against the solar power plant. Photo: Daily Nabochitro


On 4 July 2024, the affected farmers organized a protest with bottles of poison, wearing shrouds on their bodies, when a four-member committee led by a Joint Secretary of MOL, Ms. Momtaz Begum, visited to inspect the land in person (Nabochitro, 2024). A clash between the villagers and the power plant's agents occurred after the committee's visit (Bartabd, 2024). Two protesters were injured in the clash, and the local UP Chairman claimed that the protesters vandalized his office (Barta24, 2024).


References



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