Bangladesh could pay up to $0.07 per kWh of electricity from India – much higher than the rate for local producers although less than the rate for rental power plants.

The Bangladesh Power Development Board (BPDB) will pay about $0.06 plus transmission charges and losses for a unit of electricity. It expects to start importing from India by December 2012. It has placed a draft of the power purchase agreement (PPA) to the Cabinet Committee on Economic Affairs for approval.

Although the PPA did not specify the tariff rate, it did describe how the Indian power producers would calculate the rate. It said that transmission charges and transmission losses will vary over time.

Under the deal, Bangladesh will purchase 250 MW of electricity from an unallocated quota of the Indian government and another 250 MW from the Indian open market.

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