Dhaka: The government has signed a contract with 12 independent power producers (IPPs) to generate 918-MW electricity at an average cost of 7.80 cents (Tk 9.12) per kilowatt-hour. This new cost is approximately 2.5 cents lower than previous costs.
According to Bangladesh Sangbad Sangstha, BPDB Chairman Engineer Rezaul Karim stated that these agreements are part of an extensive energy mix campaign aimed at maximizing renewable energy generation and reducing dependence on traditional and imported fossil fuel sources. Karim highlighted that the tariff reduction of 2 to 3 cents would significantly decrease the average generation cost from the earlier average prices of about 10.50 cents per kilowatt-hour.
BPDB officials revealed that the new government has annulled a previous interim regime's decision to scrap six power projects. Instead, they have adopted six new projects to achieve the 918 MW electricity at lower tariffs. The 12 plants under these projects are expected to be commissioned within the next two years and will be connected to the national power grid.
Among the 12 plants, the largest will be constructed in Fatikchhari, Chattogram, with a capacity of 200 MW, followed by a 150 MW plant in Ishwardi, Pabna. Two units in Cox's Bazar will each generate 100 MW, while a third 100-MW capacity solar plant will be built in Mongla, Bagerhat. Additionally, a 70 MW solar plant will be installed in Ishwardi, Pabna.
The remaining plants will be set up in Bibiana, Moulvibazar; Joldhaka, Nilphamari; Fatikchhari, Chattogram; Moulvibazar Sadar, Moulvibazar; Hathazari, Chattogram; and Sudharam, Noakhali, with generation capacities ranging from 50 to 10 megawatts. A BPDB official noted that contracts with the 12 IPPs were secured through competitive open tenders, ensuring lower rates.
Imran Karim, an IPP operator and chairman of Confidence Power, stated that his entities were awarded contracts to produce a total of 400 MW. Land has already been procured for one plant, and the process is underway for the other two. The three solar plants will commence commercial production between 2028 and 2029.
Energy analysts believe that rooftop solar and other renewable projects could significantly reduce Bangladesh's reliance on imported fuel. BPDB estimates indicate that the current solar power generation of 1,451 MW accounts for about 5.01 percent of the country's total installed capacity.
Upon taking office in 2024, the interim regime canceled 31 renewable power projects, including 27 solar ones, which were set to produce 2,724 MW. The remaining projects, aimed at producing wind and hydro-power, were also abandoned at various construction stages.
BPDB is focused on implementing the government's integrated plan to boost renewable energy, reduce carbon emissions, and enhance energy security. In addition to the 12 projects, a campaign is underway to establish rooftop solar and other renewable projects.
Bangladesh currently produces 1,450.67 MW of solar electricity, with 1,073.5 MW connected to the national grid and 377.17 MW off-grid. Studies by the Sustainable and Renewable Energy Development Authority (SREDA) suggest that Bangladesh's installed renewable power generation capacity is approximately 1,743.76 MW.
Energy analyst Shafiqul Alam emphasized the need for a comprehensive energy master plan to ensure policy consistency and rebuild investor confidence. Coastal Livelihood and Environmental Action Network (CLEAN) chief executive Hasan Mehedi suggested utilizing 13,000 acres of land acquired for coal-fired power plants for solar projects, which could reduce costs by 23-25 percent.
Bangladesh aims to generate 40 percent of its power from clean energy by 2041. The International Renewable Energy Agency's (IRENA) latest report shows that China leads in solar energy production, followed by the USA and India. In terms of national grid connection, Vietnam, the Philippines, Sri Lanka, and Pakistan provide significant solar power to their grids.