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Jan 136 min read

Mongla 100 MW (Energon) Solar Power Plant

Updated: May 11

Current Status: Operation


Mongla 100 MW Solar Power Plant, also known as Energon Mongla Solar Park or Moidhara Solar Park, is a solar Photovoltaic (PV) power plant situated at Moidhara and Bara Durgapur village of Durgapur Union under Mongla Upazila in Bagerhat District of Bangladesh (Location map: 22.5713, 89.5725). It has been sponsored by Energon Renewables Bangladesh Limited (ERBL), a subsidiary of Orion Group, as a private Independent Power Producer (IPP) for 20 years. The sponsor declared its Commercial Operation Date (COD) on 29 December 2021, and, as per schedule, the power plant will retire on 28 December 2041.


Capacity

The installed (gross) and derated (net) capacity of Mongla Solar Park is 134.3 MW and 100 MW, respectively.


Background

The Mongla 100 MW Solar Power Plant, developed by Energon Renewables (BD) Ltd, a subsidiary of the Orion Group, is a pivotal initiative in Bangladesh's commitment to diversify its energy sources and increase reliance on renewable energy. Spanning a 350 acres site originally designated for a coal power project in 2014, the solar power plant represents a strategic shift from conventional fossil fuels to cleaner and more sustainable energy solutions (TBS, 2021). 


In February 2019, Energon Renewables forged a collaborative agreement with the Bangladesh Power Development Board (BPDB) to develop the solar park. This partnership underscores the success of public-private initiatives in advancing renewable energy projects within the country (EP, 2022).


China Sunergy Company Limited, a key player in the project, holds a 50% stake along with Energon Technologies in the Mongla 100 MW Solar Power Plant. This collaboration not only emphasizes international cooperation but also brings significant expertise to the project. The involvement of China Sunergy highlights the global nature of renewable energy initiatives and the role of international partnerships in advancing sustainable energy projects (PT,2023).


The project's environmental impact is noteworthy, contributing to Bangladesh's commitment to reducing carbon emissions. Prime Minister Sheikh Hasina, during COP26, announced a national target of generating 40% of energy from renewable sources by 2041. The Mongla Solar PV Park is a critical component in achieving this ambitious goal. With a project valuation of $196 million, financial aspects have been structured through a funding agreement with Infrastructure Development Company Ltd (IDCOL). This underscores the importance of financial partnerships in the successful implementation of large-scale renewable energy projects. Despite the government's aspiration to increase the share of renewable energy to 10% of the total energy mix, the current utilization of renewable energy in Bangladesh remains below 3%. The Mongla 100 MW Solar Power Plant represents a significant stride toward realizing the country's renewable energy goals. This initiative is set to contribute to the reduction of approximately 180,000 tonnes of CO2 emissions annually.


This advanced technology contributes to the overall expansion of renewable energy capacity in Bangladesh. The Mongla Solar PV Park adds 100 MW to the nation's renewable energy portfolio, bringing the total renewable energy capacity to 907.24 MW. This achievement is a notable milestone in Bangladesh's ongoing efforts to diversify its energy sources and move towards a more sustainable and eco-friendly power generation mix. In alignment with the Mujib Climate Prosperity Plan, Bangladesh has set ambitious targets to obtain 30% of its energy from renewable sources by 2030. The Mongla 100 MW Solar Power Plant stands as a significant initiative in realizing this governmental goal. By actively participating in the diversification of the country's sustainable energy infrastructure, the project contributes to the broader vision of mitigating climate change and fostering prosperity through environmentally responsible energy practices (TBS, 2021).


Land Acquisition

The Mongla 100 MW Solar Power Plant project involves the acquisition of 280 acres of land dedicated to the installation of solar modules. The total land area for the project is 350 acres, encompassing space for additional infrastructure and operational needs.


Finance

The Mongla 100 MW Solar Power Plant is financed with a total project cost of USD 196 million, with USD 143 million dedicated to project development. Infrastructure Development Company Ltd (IDCOL), a government-owned institution in Bangladesh, is actively involved in raising funds for the project. This financial collaboration underscores the commitment to advancing renewable energy infrastructure and aligns with Bangladesh's goal of achieving 30% of its energy from renewable sources by 2030 under the Mujib Climate Prosperity Plan.

  

Sponsor

The collaborative ownership of the power plant is shared equally between China Sunergy and Energon Technologies, with each sponsor holding a 50% stake. This equitable distribution underscores a balanced and cooperative approach to project development. The collaboration represents a robust partnership between international and local entities, combining the strengths and expertise of China Sunergy and Energon Technologies to drive the progress of renewable energy initiatives in Bangladesh.


Contractors

The implementation of the project involved the collaboration of various contractors and suppliers. The Switzerland-based ABB Group played a crucial role by providing engineering, procurement, and construction (EPC) services for the solar PV power project. Longi Solar Technology was selected as the supplier of the PV modules, installing 250,000 HI-MO 5 series modules known for their superior durability attributes. Engineering, procurement, construction, commissioning, operation, and maintenance services were handled by a consortium consisting of Rays Power Infra and Zetwerk Manufacturing Businesses. Sungrow Power Supply was responsible for providing the inverters crucial for the project. Mahindra Susten Pvt Ltd served as the Owner's Engineer, overseeing and ensuring the project's successful implementation (PT, 2023). 


Water 

During the operation phase of the power plant, the water supply is primarily sourced from borewells, with depths ranging from 1200 to 1500 feet. The extracted saline groundwater undergoes treatment in a Water Treatment Plant equipped with a Reverse Osmosis (RO) system, featuring a capacity of 1000 liters per hour. This RO process utilizes pressure to filter contaminants, ensuring the production of clean water. Before reaching the RO system, the raw water undergoes pre-treatment through multimedia and carbon filters to remove Total Suspended Solids (TSS), oil, grease, color, and odor. The treated water is then stored in six reserve tanks, each with a 10,000-litre capacity, strategically located within the plant. This reservoir system, coupled with an interconnecting pipe, facilitates the efficient transfer of RO-treated water to meet various operational needs, including solar module cleaning and domestic purposes, emphasizing the power plant's commitment to sustainable water management practices  (BCAS, 2022).


Power Generation

The power generation from the Mongla 100 MW Solar Power Plant operates on a contractual basis of USD 0.138 per kilowatt-hour (kWh) under the "No Electricity No Payment" (NENP) terms. This arrangement ensures that the Power Development Board (PDB) will purchase electricity from the solar plant, and payment is contingent on the actual generation of electricity. The specified rate of USD 0.138 per kWh establishes the financial terms for the power purchase agreement, providing a clear framework for compensation and aligning the project's revenue generation with its actual electricity production. This structure incentivizes efficient and consistent power generation from the solar facility.


Environment

The 100-megawatt solar power plant in Mongla, situated alongside the controversial Rampal coal power project, exemplifies Bangladesh's commitment to environmental mitigation. This green initiative is expected to reduce around 180,000 tonnes of CO2 emissions annually, providing a sustainable alternative to the contentious coal project. Prime Minister Sheikh Hasina's target, announced at COP26, to generate 40% of the country's energy from renewables by 2041 underscores the strategic importance of such eco-friendly projects in achieving national sustainability goals. As part of the Mujib Climate Prosperity Plan, Bangladesh aims to derive 30% of its energy from renewable sources by 2030. The implementation of this project represents a substantial initiative toward realizing the government's objective of diversifying and enhancing the country's sustainable energy infrastructure (TBS, 2021).


The environmental aspects of the power plant are managed in accordance with the Environmental and Social Impact Assessment (ESIA) guidelines, aligning with national regulations such as the Environment Conservation Act of 1995 and The Environment Conservation Rules of 1997, including subsequent amendments by the Ministry of Environment, Forest, and Climate Change in Bangladesh. The project adheres to applicable international standards, including conventions ratified by Bangladesh and the International Finance Corporation (IFC) Performance Standards for Environmental and Social Sustainability (2012). The categorization of the solar project as 'Medium Risk' and 'Category B' under various frameworks, such as the ESPP document and World Bank Policy OP4.03, indicates a careful assessment of environmental considerations. Moreover, its classification as an "Orange B" category project according to the Environment Conservation Rules of 1997 demonstrates compliance with local regulatory provisions. Detailed environmental management practices, including land use, biodiversity preservation, water usage, emissions control, waste management, and community engagement, are integral to the project's approach, ensuring a sustainable and responsible operation (BCAS, 2022). 


References

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