Private sector to add 918MW solar power by 2028

The private sector is set to add around 918 megawatts (MW) of grid-connected solar power to the national grid by 2028 as Bangladesh steps up efforts to expand renewable energy generation and reduce dependence on imported fossil fuels.

The Bangladesh Power Development Board (BPDB) has signed agreements with 12 independent power producers (IPPs) to generate 918MW of solar electricity at an average tariff of Tk9.12 per kilowatt-hour, officials said. The tariff is around 2.5 US cents lower than rates for similar projects contracted previously.

The 12 plants are expected to be commissioned within the next two years and will all be connected to the national grid.

The largest plant, with a capacity of 200MW, will be built in Fatikchhari, Chattogram, while a 150MW plant will be installed in Ishwardi, Pabna. Two 100MW plants will be set up in Cox’s Bazar and another 100MW plant in Mongla, Bagerhat.

Other projects will be located in Moulvibazar, Nilphamari, Chattogram, Hathazari and Noakhali, with capacities ranging from 10MW to 70MW.

The government has also introduced incentives to encourage rooftop solar systems with battery storage. The maximum generation cost, including batteries, has been set at Tk8 per unit, while a 20% profit margin and premium bring the purchase price for surplus electricity to Tk10.50 per unit.

According to the Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh currently has 1,852.06MW of solar generation capacity, including 1,473.5MW connected to the national grid and 378.56MW off-grid.

The BPDB has separately undertaken solar projects totalling 689MW of grid-connected capacity using its own financing, with the projects expected to come into operation by 2030.

BPDB Chairman Engineer Rezaul Karim said the agreements were part of a broader strategy to increase renewable energy generation and reduce dependence on conventional, particularly imported, fossil fuels.

The BPDB has also prepared a detailed project proposal for a 442MW solar power project at Rampal, while a feasibility study has been conducted for a 222MW grid-connected solar photovoltaic plant in Sonagazi, Feni, targeted for completion by 2028.

The government has directed deputy commissioners’ offices across the country to install solar panels within the next three months as part of its renewable energy drive.

Prime Minister Tarique Rahman told Parliament on 9 September that Bangladesh aims to generate at least 20% of its electricity from renewable sources by 2030 and 30% by 2040.

Under the National Renewable Energy Development Strategy for 2026-2030, the country also aims to generate 5,500MW from ground-mounted solar projects by 2030, alongside 450MW to 550MW from wind, waste-to-energy, hydropower, floating solar and agrivoltaics.