AT least four grid-tied solar power projects with 302MW combined capacity have so far failed to make any progress in the last year and a half, despite signing of their contracts with four local and foreign private companies. First of all, the state-run Power Development Board had not only signed 20-year unsolicited deals to buy electricity at a higher cost for $0.17 cents per unit, but it has also visibly failed to provide land and required facilities for the solar parks. Just a little over a month ago, the parliamentary standing committee on power, energy and mineral resources ministry recommended scrapping the deals with the private companies that couldn’t make any progress in implementing their projects. Its recommendation seems to have fallen on deaf ears.
The point, however, the government’s price per unit came against the prices ranging between 2.4 and 10 cents in other countries. The country’s average cost of power generation now stands at$ 6.88 cents or Tk 5.5 per kilowatt-hour or unit. Is it economically viable in the first place? Moreover, the government drew flak for signing the power purchase deals with the companies at such higher rate per unit while many other countries including India signed similar deals at prices ranging between $0.024 and $0.10 in 2016.
If other countries can sign up deals, particularly the government’s ‘biggest ally’ India, why can’t we?
Needs be mentioned the large scale solar power projects were awarded under the Speedy Supply of Power and Energy (Special Provisions) Act 2010 that indemnified officials concerned against any prosecution for awarding contracts without competitive bidding – the dire consequences are now being felt to the full. That said – besides government failure on providing infrastructure and facilities for the solar parks – the credibility of these local and foreign companies has also become a matter of concern.
Given the nature of signing of the deals and their development so far, it appears, the entire power sector has become a big gambling house controlled by questionable officials, dubious brokers and money-makers. Not even a single megawatt of electricity has been added to the national grid, it were only the signing ceremonies which promised to generate 10 per cent of electricity from renewable sources in three years time. in plain words , it has become extremely difficult.
We believe, fake promises, meaningless signing ceremonies and the haphazard rush to generate quick power have caused the government enough trouble. Its image at home and abroad has been hugely tarnished for poor and unintelligent planning.
The need of the minute is to revamp the power sector with the help of skilled officials, experts, engineers and appropriate think-tanks. Free the sector from the hands of dubious brokers and sycophants. Scrapping the worthless deals could well be the first step in revamping.
