The appeal of the renewable energy market has become an attractive investment for companies all over the world. With market sentiments shifting, several companies that have made their fortunes outside the energy market are now aiming to enter the sector through strategic investments in projects, such as a new solar project in Bangladesh, which is being led by a consortium of investors from the textile industry.
Paramount Group to invest heavily in solar energy production
The Paramount Textiles company, as well as Paramount Holdings, plans to invest upwards of $268 million in several solar energy projects around Bangladesh over the coming years. The textile-focused companies will establish four solar projects around the nation.
Paramount plans to establish a joint venture to advance its standing in the energy industry, with a specific focus on solar power. Thanks to the substantial investment, the company plans to add 295 megawatts to the national grid from four solar energy projects over the coming years.
The Bangladesh government has approved the plan from the Paramount joint venture
For any energy project, receiving the approval and backing of the local government can often be the deciding factor on whether a project is realized or not. The Bangladesh Power Development Board (BPDB) granted the Notification of Award (NOA) to the new joint venture last year under the Public Procurement Rules, 2008.
Bangladesh is not a rich nation by any measure, but it has the funds to develop innovative energy projects that will strengthen energy security and reduce emissions in a nation known for its climate issues. Md Robiul Islam, company secretary of Paramount Textile, told reporters that the Power Purchasing Agreements will be signed in the near future if everything goes according to plan.
Paramount plans to expand its footprint in the renewable energy market
Notably, the new joint venture will expand the company’s standing in the renewable energy market in the region. Paramount already has several energy projects on the go, and will leverage the experience obtained over the years to bring the new solar energy projects from planning to commissioning over the coming years.
The four new projects in Bangladesh will boost the nation’s energy output capacity tremendously. Two of the four projects will be located at Bhabanipur in Pabna district, while the other two will be set up at Athangiri in Moulvibazar district.
A world of possibilities awaits the Bangladesh energy market
According to reports and the project timeline, the Power Purchasing Agreements will be signed within 28 days of the Notification of Award being issued by the government, with the implementation period lasting approximately two years from the signing of the PPAs.
As with most large-scale energy projects around the world, the financing for the project will come from a mixture of debt and equity. With India developing an astonishing new solar project that will compete with the largest in the world, Bangladesh is aiming to develop its renewable energy market over the coming years through the four new solar projects.
The $268 million investment by the new joint venture exemplifies the ever-changing nature of the international energy market as some nations invest heavily in renewable energy while others languish and continue to rely on oil and gas production.
Solar energy generation has swept across the global energy market
While Bangladesh aims to increase its energy output capacity from the solar power sector, other nations are developing similar solar projects that will boost the standing of the renewable energy market. This is especially true in nations such as Bahrain, which recently announced plans for what will become the largest rooftop solar project in the world, marking a new era of clean energy production on the global energy stage.
