Bangladesh has cleared one of its largest-ever rounds of renewable energy procurement, giving the green light to 12 privately developed solar parks with a combined capacity of 918 MW, in a move signalling a decisive shift towards competitive bidding and lower-cost electricity.
The approvals, issued by the Advisory Committee on Government Purchase, mark a major departure from earlier non-competitive contracts that often locked the government into tariffs exceeding Taka 13 per kilowatt-hour (kWh). Under the new tendering model, tariffs have now fallen below Taka 10/kWh, with officials estimating annual savings of Taka 1,169 crore over the 20-year power purchase period—amounting to around Taka 40,000 crore in total expenditure.
The Power Division said the transition to open bidding not only reduces costs but also enhances transparency and reliability in project selection. The Bangladesh Power Development Board (BPDB) will oversee implementation as part of the country’s broader effort to diversify its energy mix, expand renewable capacity and reduce dependence on imported fossil fuels.
In a related move, the committee also approved a downward revision of the previously agreed tariff for a 210 MW combined-cycle power plant in Mymensingh, cutting it from Taka 6.35 to Taka 5.34/kWh. This adjustment aligns with the government’s ongoing drive to reduce generation costs and rationalise long-term power sector liabilities.
The procurement round positions Bangladesh to accelerate its solar expansion at a significantly reduced fiscal burden while reinforcing its commitment to cleaner, more sustainable energy generation.
