Scatec Solar signed a Memorandum of Understanding with the local A. K. Khan & Company to co-develop several large scale solar projects in different parts of Bangladesh.
The agreement was signed in the presence of visiting Norwegian Foreign Minister Mr Børge Brende and Bangladesh’s State Minister for Power, Energy & Mineral Resources, Mr Nasrul Hamid and State Minister for Foreign Affair Mr. Shahriar Alam. The Ministers highlighted the benefits of – and the need for - solar power plants in Bangladesh and welcomed the two companies’ plans to jointly develop and invest in solar power plants.
Senior Vice President Terje Osmundsen, who signed the MoU on behalf of Scatec Solar, said:
“This agreement with the well-established local partner A.K.Khan & Company is important to succeed in our ongoing development of utility-scale solar in Bangladesh.”
Mr Salahuddin Kasem Khan, Managing Director of A.K.Khan, a premier Bangladeshi company with over 70-year experience in collaborating with Multi National Companies across several sectors of the economy, said:
"A.K.Khan & Company is very happy to sign cooperation with a capable Norwegian company to assist Bangladesh achieve its goal of at least 10% of energy mix from renewables. This is a huge opportunity for our two companies to build a pipeline of solar energy."
The first 100 MW project is targeted in northern Bangladesh. Several procedures have to be completed before a Power Purchase Agreement (PPA) can be signed.
A quarter of Bangladesh’s 160 million people live without electricity. A report by the Asian Development Bank identifies lack of sufficient energy as one of the key constraints to economic growth. Bangladesh also faces a serious threat due to rising sea levels caused by climate change.
Of Bangladesh’s total installed capacity of 12 GW, 98% is thermal (gas, fuel oil, diesel and coal). The Government aims to increase the share of Renewable Energy to 10% by 2020 and install 11.6 GW new capacity to fulfill its commitment to provide electricity to all its citizens by 2021.