Bangladesh inches toward green power goal

Solar use is widespread in Bangladesh, considered one of the countries most vulnerable to climate change impacts. (AFP)
Updated 17 October 2018

Bangladesh inches toward green power goal

  • The new 28 megawatt solar power plant in Cox’s Bazar District is the largest yet opened in the country
  • The solar plants come on top of the widespread use of solar home systems in the low-lying country

DHAKA: Bangladesh’s electricity generation from renewable sources has passed the 5 percent mark with the opening of a major new solar plant — boosting hopes the country might meet its goal of getting 10 percent of power from renewables by 2020, experts said.
The new 28 megawatt solar power plant in Cox’s Bazar District is the largest yet opened in the country, following the earlier construction of a 3 MW plant.
The solar plants come on top of the widespread use of solar home systems in the low-lying country, considered one of those most vulnerable to climate change impacts.
Currently about 5.2 million small-scale solar home systems provide electricity to almost 12 percent of Bangladesh’s 160 million people, Dipal C. Barua, president of the Bangladesh Solar and Renewable Energy Association, told the Thomson Reuters Foundation.
He said that accelerating construction of solar power facilities “will build confidence among future investors.”
The new 116-acre solar park will supply enough electricity to meet about 80 percent of power demand in the Teknaf sub-district where it is located, said Mahmudul Hasan, chief financial officer for Joules Power.
That area has about 300,000 power users, though little in the way of industrial or large commercial users, he said.
Nuher Latif Khan, managing director of Technaf Solartech Energy, part of Joules Power that owns the plant, said it had begun operations ahead of schedule.
In Bangladesh, “the future of solar power is very fantastic,” he said.
Khan said the solar park can produce up to 28 MW of solar electricity at peak capacity and has contracted to provide 20 MW to the government grid.
Barua said several other large solar plants are in the pipeline in Bangladesh, after receiving government approval, with a few at advanced stages of construction.
While solar plants need a large amount of initial investment to set up, he said, they have small operational costs afterward, unlike plants that need ongoing sources of coal or other fossil fuels.
The government has supported construction of rooftop solar plants on factories and other commercial buildings, he said, with some facilities on large plants expected to generate a megawatt or more each. With such solar plants, thousands of factories in Bangladesh should be able to meet their own electricity needs, and contribute surplus power to the national grid.
“I think one day we will see every building has a rooftop solar power system,” Barua said.
However, finding available land to set up ground-level solar plants is a major challenge in densely populated Bangladesh, he said.
Sheikh Reaz Ahmed, director of the Sustainable and Renewable Energy Development Authority (SREDA), said the country’s 2008 renewable energy policy calls for generating 10 percent of electricity from renewables by 2020. With the country expected to generate 20,000 MW of electricity in total by the date, renewables would have to reach 2,000 MW to hit that target, he said.
So far Bangladesh generates just over 530 MW from renewables, nearly half of that from hydropower plants, he said. But the country is set to put online another 600 MW of renewable power in 2019 alone, he said, with another 1,100 MW rolled out in 2020 and 2021.
Not all construction is progressing smoothly, however, with some plants tied up in problems with land acquisition and other issues.
Meanwhile, energy generation from fossil fuels also is rising.
Last year, Bangladesh approved a proposal to construct 10 new oil-fired power plants, capable of generating 1,800 MW of electricity.
In January, construction also began on a 1,200 MW coal-fired power plant in Cox’s Bazar, funded by the Japan International Cooperation Agency.
That means boosting Bangladesh’s percentage of renewable energy above 10 percent won’t be easy, as “each year total power generation from traditional sources will go up” too, Ahmed said.


Saudi Aramco sets IPO share price between 30-32 riyals

Updated 12 min 28 sec ago

Saudi Aramco sets IPO share price between 30-32 riyals

  • Final pricing for the Aramco shares would be announced on December 5

DUBAI: Saudi Aramco’s multibillion-dollar initial public offering (IPO), probably the biggest in history, shifted to full gear as its share price was announced and subscription to the world’s biggest oil company commenced on Sunday.

Saudi Aramco set an indicative share price between 30 and 32 riyals for the 1.5 percent of its oustanding shares – or about 3 billion shares of its 20 billion regular shares – that it would offer for the domestic part of its public offering. The blockbuster IPO could be worth least $24 billion, and values the state-owned oil giant at up to $1.71 trillion.

The offering – or book-building – period for institutional subscribers, which started today, closes on December 4 while the retail offering for individual investors will begin on November 21 and will end on November 28. Individual investors will subscribe based on a price of 32 riyals, the top end of the price range, the company noted in a document.

The final pricing for the Aramco shares would be announced on December 5, and Saudi Tadawul  – the Kingdom’s stock exchange – would make an announcement when initial trading day would be, the company added.

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For more of our coverage of the Aramco IPO, click here.

To view key Aramco IPO documents, click here.

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Samba Capital & Investment Management Company has been designated as issue manager while National Commercial Bank, Saudi British Bank, Samba Financial Group, Saudi Investment Bank, Alawwal Bank, Arab National Bank, Albilad Bank, Aljazira Bank, Riyad Bank, Al Rajhi Bank, Alinma Bank, Banque Saudi Fransi and Gulf International Bank were named as receiving banks.

If there are applications for more than the 0.5 percent on offer — amounting to 1 billion shares — allocations to private investors will be scaled back proportionate to demand; if there are fewer applications than the 0.5 percent when all maximum applications are satisfied, private investors can have the over-payment refunded either in cash via the receiving banks or in the form of extra shares in Aramco.

There is an incentive mechanism in the IPO whereby Saudi investors will receive a bonus one-for-ten allocation of shares, up to a maximum of 100 shares, if they do not sell shares in the market for a period of six months after dealings begin in December, at a date still to be determined.

Saudi Aramco also intends to buy $1 billion worth of shares for employees under a plan to incentivize executives and staff members alongside the IPO next month.

The plan — which was disclosed in the IPO prospectus — will involve Aramco buying the shares from the government and making them available for employees under special terms.