Infrastructure Development Company Limited (IDCOL) has recently signed financing agreement with GRAM-er Alo Limited (GEA), a non-government organisation, to set up a 158.3 kW solar mini-grid project at Narayanpur, an island union in Kurigram.
Under the deal, IDCOL will provide 30% of the project cost, which is estimated at Tk6.27 crore, as soft loan and 50% as grant under the company’s Renewable Energy Program.
The project will provide electricity to adjacent 609 households and 145 commercial entities in the isolated island with Tk30 cost for per unit of electricity.
As the distance of the island from the nearest grid is about 15-20 km, possibility of extending national grid to the island is at far distant, which prompted the signing of solar power project deal, officials said.
“Narayanpur Union of Nageshwari Upazila, Kurigram is an isolated island. The nearest national grid is about 15-20 km away. That’s why we have opted for solar plant,” Executive Director and CEO of IDCOL Mahmood Malik told the Dhaka Tribune. “The project will cost a total of Tk6.27 crore. IDCOL will provide 30% of the project cost as soft loan and 50% as grant under its Renewable Energy Program,” he said.
Mahmood Malik said the willingness among the people of the island to consume electricity and their “satisfactory income level to pay for electricity were also considering factors while choosing the site.”
According to people concerned, there is a potential in the area of developing small and cottage industries along with some commercial activities once electricity is made available.
This possible economic development with the start of power supply also encouraged the officials to strike solar project deal for the island.
Interest rate of the loan amount to be granted to GRAM (Global Resource Augmentation and Management Ltd) for mini grid project will be 6% per annum and the loan tenure will be 10 years with 2 years of grace period. IDCOL has a vision to finance 1550 solar irrigation pumps, 50 solar mini grids, 450 bio-electricity plants and 30 bio-mass gasification-based power plants by 2016.