The 200MW solar power project planned in Gaibandha, located in the northern part of the country, has drawn attention due to its viable land, strong solar irradiance, and government incentives.
One of the key drivers behind this initiative is Teesta Solar Limited (TSL), a joint venture between Beximco Power Company Ltd (80%) and TBEA Xinjiang Sunoasis Co. Ltd (20%).
TSL has signed a Power Purchase Agreement (PPA) with the Power Development Board (PDB) for the sale of electricity over 20 years.
Total Investment
Content Overview
The estimated Capital Expenditure (CAPEX) for the 200MW utility-scale solar PV project is approximately USD 180–200 million. This investment covers:
- Land acquisition & site development
- Engineering, procurement & construction (EPC)
- Solar modules, inverters, and mounting systems
- Transmission infrastructure & grid connection
- Project development & contingency costs
This translates to a unit cost of USD 0.90–1.00 per watt, in line with international benchmarks for large-scale solar installations.
Return on Investment (ROI)
Based on the current PPA structure, investors may anticipate:
- Tariff Rate: USD 0.10–0.15 per kWh (negotiable)
- Annual Energy Output: ~340,000 MWh
- Annual Revenue: ~USD 34–51 million
- Payback Period: Approx. 6–7 years
- IRR (Internal Rate of Return): ~13–16%
- Project Lifetime: 25+ years
The guaranteed 20-year PPA ensures stable and predictable income streams, making the project financially viable.
Financing Options & Models
Foreign investors can leverage a variety of structured financing mechanisms including:
- Typical Debt-to-Equity Ratio: 70:30
- Green Financing from institutions like ADB, IDCOL, and IFC
- Sovereign Guarantee by the Bangladesh government for PPA enforcement
Site Feasibility – Why Gaibandha?
Gaibandha offers several logistical and geographic advantages that make it ideal for utility-scale solar:
- Large tracts of flat, underutilized land
- High solar irradiance: 4.5–5.0 kWh/m²/day
- Close proximity to existing grid substations (10–15 km)
- Lower flood risk than southern coastal areas
These factors not only reduce project risk but also lower construction and O&M costs.
Government Incentives
The Bangladesh government offers robust incentives for solar energy development, including:
- Tax holidays of up to 10 years
- Duty-free import of solar PV components
- Attractive feed-in tariffs and PPA guarantees
- Streamlined IPP registration and licensing processes
Long-Term Viability & Socio-Economic Impact
The project is expected to bring significant socio-economic development to Sundarganj Upazila in Gaibandha. According to TSL Managing Director M Rafiqul Islam:
- Infrastructure uplift, including road connectivity to the project site
- Creation of hundreds of new jobs
- Support for local industries and service providers
- Long-term OPEX efficiency and scalability for hybrid solutions
Moreover, the project aligns with Bangladesh’s target of generating 40% of electricity from renewable sources by 2041.
Conclusion
The Gaibandha 200MW solar power project stands as a commercially attractive and socially impactful investment. With favorable site conditions, strong government support, and a solid ROI profile, this project is a flagship model for solar ventures in South Asia.
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