Bangladesh is set to approve 12 solar-based renewable power projects with a combined capacity of 918MW for 20-year periods, following competitive bidding for 5,238MW of proposed projects across the country.
The Advisory Committee on Public Purchase is expected to clear the tariff proposals today.
The average tariff of the 12 shortlisted projects stands at Tk 9.544 per kilowatt-hour, which is Tk 3.46 lower than the rate offered for the 34 solar projects cancelled earlier by the interim government.
The previous Awami League government had approved Tk 13.0052 (10.66 US cents) per kWh for those 34 cancelled projects.
Why 34 Earlier Projects Were Scrapped
Explaining the rationale behind the cancellations, Bangladesh Power Development Board (BPDB) Chairman Engr. Rezaul Karim told this correspondent: “The interim government wanted to reduce the power sector’s subsidy burden. That is why we cancelled the 34 solar projects approved under the Special Power Act 2010.”
He said the interim government then invited competitive bids for 5,238MW from 52 solar power projects to curb tariff pressure.
“We selected 12 projects because their per-kilowatt tariff is lower than the national average generation cost,” he added.
Tariff Comparison and Cost Savings
According to the Power Division proposal, the average electricity generation cost in Bangladesh is Tk 11.78 per kWh.
For comparison: HFO-based power now costs Tk 27.67 per kWh and Coal-based power averages Tk 13.16 per kWh
The Power Division estimates BPDB will spend Tk 36,885 crore over 20 years to purchase power from the shortlisted projects under a “no electricity, no payment” arrangement.
List of the 12 Proposed Solar Projects (918MW Total)
- 200MW Fatickchari (Chattogram)
- 150MW Pabna
- 10MW Sudharam (Noakhali)
- 45MW Fatickchari (Chattogram)
- 25MW Moulvibazar
- 18MW Hathazari
- 50MW Jaldhaka (Nilphamari)
- 50MW near Bibiyana
- 70MW Ishurdi
- 100MW Cox’s Bazar
- 100MW Mongla
Confidence Power and its joint ventures own the 200MW Fatickchari, 100MW Cox’s Bazar, and 100MW Mongla plants. Paramount Textile and Holdings own the 150MW Pabna and 70MW Ishurdi projects. The Bibiyana and Moulvibazar projects are sponsored by the PHL-PTL JV.
Proposed Tariffs by Project
- Fatickchari 200MW: Tk 9.455 (7.7 US cents)
- Pabna 150MW: Tk 9.6258 (7.89 US cents)
- Fatickchari 45MW: Tk 9.324 (7.77 US cents)
- Sudharam 10MW: Tk 8.988 (7.49 US cents)
- Moulvibazar 25MW: Tk 9.192
- Hathazari 18MW: Tk 9.98
- Jaldhaka 50MW: Tk 10.077
- Bibiyana 50MW: Tk 9.9186
- Ishurdi 70MW: Tk 9.638
- Cox’s Bazar (North): Tk 9.8698
- Cox’s Bazar (South): Tk 7.9666
- Mongla 100MW: Tk 9.8698
Why the Government Is Pushing for Cheaper Renewables
The International Monetary Fund (IMF) has advised Bangladesh to reduce subsidies by lowering power generation costs.
In FY 2024–25, the government allocated Tk 620 billion in subsidies for the power sector and has already paid out Tk 596 billion. Officials say introducing lower-cost solar power is essential to cutting fiscal pressure.
Expert View
Shafiqul Alam, IEEFA’s Lead Analyst, Energy, for Bangladesh welcomed the move: “The government’s approach to lowering renewable tariffs through competitive bidding is encouraging.”
He noted that the key challenge will be timely project implementation, adding that faster renewable deployment will help Bangladesh meet its clean-energy targets.