The government of Bangladesh has signed agreements with 12 independent power producers (IPPs) to generate 918 megawatts of electricity, mainly from renewable sources, at a significantly lower average tariff than previous projects as part of efforts to expand clean energy production and reduce dependence on imported fuel.
According to officials of the Bangladesh Power Development Board (BPDB), the power will be generated at an average cost of 7.80 US cents, or around Tk9.12 per kilowatt-hour, which is approximately 2.5 cents lower than earlier generation costs.
BPDB Chairman Engineer Rezaul Karim said the new agreements reflected the government’s broader strategy to diversify the energy mix and strengthen renewable power generation.
He said previous electricity generation projects often cost around 10.5 cents per unit, but the newly signed contracts would help lower the overall generation cost substantially.
Officials said the projects were awarded through competitive international tenders, enabling the government to secure lower tariffs. The 12 power plants are expected to be commissioned within the next two years and connected to the national grid.
Among the projects, the largest solar plant with a capacity of 200MW will be built in Fatikchhari of Chattogram. Another 150MW facility will be established in Ishwardi of Pabna. Three additional 100MW plants are planned in Cox’s Bazar and Mongla.
Other projects ranging from 10MW to 70MW will be set up in Moulvibazar, Nilphamari, Noakhali, Hathazari and several other areas.
Confidence Power Chairman Imran Karim said three companies under his group secured contracts for producing a combined 400MW electricity. He added that preparations for land acquisition and construction were already underway.
Energy experts welcomed the initiative, saying greater investment in solar and renewable projects could reduce Bangladesh’s reliance on costly imported fossil fuel.
According to BPDB, Bangladesh currently generates around 1,451MW of solar electricity, accounting for just over 5 per cent of the country’s installed power generation capacity.
Officials also said the government had revived renewable energy expansion plans after several projects were cancelled during the previous interim administration. In total, 31 renewable projects, including 27 solar plants, had earlier been scrapped.
Experts suggested rooftop solar expansion and utilisation of unused land previously acquired for coal-fired plants could further accelerate renewable energy growth while reducing costs.
Bangladesh has set a target of producing 40 per cent of its electricity from clean energy sources by 2041.
According to the latest report by the International Renewable Energy Agency (IRENA), China is currently the world’s largest solar energy producer with 1,202,178.8MW generation capacity, followed by the United States with 211,610.1MW and India with 135,501.5MW.
In South and Southeast Asia, Vietnam currently supplies 8,700MW solar electricity to its national grid, while the Philippines generates 2,600MW, Sri Lanka 1,000MW and Pakistan 800MW from solar power.
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