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Bangladesh is stepping up its shift towards renewable energy, with 918 megawatts (MW) of private-sector solar power expected to be added to the national grid by 2028 as the government seeks to reduce dependence on costly imported fossil fuels.
The Bangladesh Power Development Board (BPDB) has signed agreements with 12 independent power producers (IPPs) to generate the electricity at an average tariff of Tk 9.12 per kilowatt-hour, around 2.5 US cents lower than rates for similar projects contracted earlier.
The largest project, a 200MW plant, will be built in Fatikchhari, Chattogram. Other major projects include a 150MW plant in Ishwardi, Pabna, two 100MW plants in Cox’s Bazar and a 100MW plant in Mongla, Bagerhat. Confidence Power is also developing three solar projects with a combined capacity of 400MW, targeted for completion by 2028.
The BPDB is separately pursuing 689MW of grid-connected solar projects with its own financing, targeted for completion by 2030. These include a 442MW project in Rampal and a 222MW solar PV project in Sonagazi, Feni.
According to the Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh currently has 1,852.06MW of solar capacity, including 1,473.5MW connected to the national grid.
The government has also introduced incentives for rooftop solar with battery storage. The maximum generation cost has been set at Tk 8 per unit, with a 20% margin and 11.25% premium taking the tariff to Tk 10.50 per unit.
Prime Minister Tarique Rahman told Parliament that Bangladesh aims to generate at least 20% of its electricity from renewable sources by 2030 and 30% by 2040. Under the 2026-2030 renewable energy strategy, the country plans 5,500MW from rooftop solar, 4,500MW from ground-mounted solar and another 450-550MW from wind, hydropower, waste-to-energy, floating solar and agrivoltaics.
