GBB Power has stepped into the renewable energy business with a 25-year deal, under which it will develop a 5.005-megawatt ground-mounted solar plant at Cumilla Cantonment.
With the deal, the company has steered its business in a different direction after its operations had remained suspended for a long time.
The company said in a stock exchange filing on Monday that its subsidiary, Solaron Power, had signed the agreement with the Station Headquarters, Cumilla Cantonment, under the 33rd Infantry Division of the Bangladesh Army.
Under the agreement, the plant will be installed, owned and operated by Solaron Power before being transferred under the agreed arrangement.
GBB Power holds a 70 per cent stake in Solaron Power, while the remaining 30 per cent is owned by strategic partners with expertise in the solar energy sector.
The total investment in the project is expected to be around Tk 60 million, with commercial operation targeted for the first half of 2027, subject to the completion of the necessary development and installation work.
The project marks an important diversification move for GBB Power, which has remained non-operational for more than three years following the expiry of the power purchase agreement for its gas-fired plant.
The company has remained shut since June 2023, as its power purchase agreement with the Bangladesh Power Development Board (BPDB) expired. It is currently among the 36 non-operational listed companies on the stock market.
Industry insiders said the relatively modest investment requirement and the duration of the deal could give GBB Power an opportunity to build a recurring revenue stream from the project once commercial operation begins.
The move also comes at a time when Bangladesh is placing greater emphasis on renewable energy amid concerns over energy security, rising fuel costs and the need to diversify power sources.
Ground-mounted solar projects are increasingly being considered by industries, institutions and other large consumers as an alternative source of electricity, particularly to reduce dependence on the national grid and fossil-fuel-based generation.
In January this year, a consortium of Fiber@Home and GBB Power also signed a PPA with the BPDB to develop an 18MW solar power plant in Chattogram. The project is expected to start supplying electricity within the next two years.
