Private sector to add 918MW of solar power to national grid by 2028

Bangladesh Plans Major Private-Sector Solar Expansion by 2028

Bdbusinessdaily.com – Bangladesh is preparing for a substantial increase in solar electricity as private developers move ahead with projects expected to supply 918 megawatts (MW) to the national grid by 2028. The initiative forms part of a wider effort to broaden the country’s energy mix, curb exposure to imported fossil fuels and meet rising power demand through renewable sources.

The Bangladesh Power Development Board (BPDB) has completed agreements with 12 independent power producers for the new solar capacity. The contracts set the purchase price for the electricity at Tk 9.12 per kilowatt-hour. Officials have said this tariff is roughly 2.5 cents below the price agreed for comparable solar schemes in earlier contracts, pointing to lower costs for newer developments.

Projects spread across several regions

The largest project in the contracted portfolio will have a capacity of 200MW and is planned for Fatikchhari in Chattogram. A 150MW facility is scheduled for Ishwardi in Pabna, while Cox’s Bazar will host two plants of 100MW each. A further 100MW solar project is planned at Mongla in Bagerhat.

Ishwardi is also set to receive a 70MW facility. Other sites are planned in Bibiana of Moulvibazar, Joldhaka in Nilphamari, Fatikchhari in Chattogram, Moulvibazar Sadar, Hathazari in Chattogram and Sudharam in Noakhali. Their individual capacities will range between 10MW and 50MW.

Confidence Power Rangpur is among the companies developing projects in this pipeline. Its Vice Chairman, Imran Karim, said the company is working on three solar plants with combined capacity of 400MW.

“All three solar power projects would come into operation by 2028,” he said.

The new private projects will add to Bangladesh’s existing solar base. The Sustainable and Renewable Energy Development Authority (SREDA) places the country’s total solar generation capacity at 1,852.06MW. Of that total, 1,473.5MW is linked to the national grid, while 378.56MW remains off-grid.

BPDB-backed capacity planned through 2030

Alongside private investment, the BPDB is pursuing 689MW of grid-connected solar capacity through projects financed from its own resources. These plants are expected to enter operation by 2030. The board has also prepared a detailed proposal for a 442MW solar project at Rampal.

In Feni, the Infrastructure Investment Facilitation Company (IIFC) has completed a feasibility study for a 222MW grid-connected solar photovoltaic plant in Sonagazi. That project has a completion target of 2028.

BPDB Chairman Engineer Rezaul Karim described the independent producer agreements as part of a broader strategy to reduce the role of conventional fuel in electricity generation, especially fuel that must be imported. Expanding domestic renewable capacity can help diversify electricity supply while limiting the country’s dependence on volatile international fuel markets.

Solar development is also extending to rooftops. Between November 2025 and 12 September 2026, the BPDB installed 688 kilowatt-peak (kWp) of rooftop solar capacity using its own financing. A further 4,195kWp is expected to begin operating by December this year.

Two years ago, the BPDB invited tenders for 17 solar installations on its buildings and land, also funded internally. These smaller projects illustrate how unused roof space and public land can support generation closer to where electricity is consumed.

Incentives target rooftop systems with batteries

The government has introduced a special incentive package for rooftop solar systems that include battery storage. Under the scheme, the maximum generation cost has been fixed at Tk 8 per unit. A 20% profit margin and an 11.25% premium bring the resulting electricity price to Tk 10.50 per unit.

Battery-backed rooftop systems could make solar power more useful beyond daylight hours by storing electricity for later use. They may also provide households, businesses and public offices with a way to participate directly in renewable-energy expansion, rather than relying only on large utility-scale plants.

The government has directed deputy commissioners’ offices nationwide to install solar panels within the next three months. The instruction places public institutions within the country’s broader renewable-energy drive and may help demonstrate rooftop solar deployment across different districts.

Coastal Livelihood and Environmental Action Network (CLEAN) Chief Executive and energy expert Hasan Mehedi has argued that rooftop installations and other renewable projects could materially reduce Bangladesh’s reliance on imported fuel. He said wider household adoption could lessen the need for direct government investment in solar capacity.

Targets for 2030 and 2040

Prime Minister Tarique Rahman told parliament on 9 September that Bangladesh intends to obtain at least 20% of its total electricity from renewable sources by 2030. The target rises to 30% by 2040. The stated objectives include reducing imported-fuel dependence and serving growing demand with cleaner domestic energy sources.

Under the National Renewable Energy Development Strategy for 2026-2030, Bangladesh aims to produce 5,500MW from ground-mounted solar projects by 2030. The plan also seeks another 450MW to 550MW from wind power, waste-to-energy, hydropower, floating solar, agrivoltaics and related technologies.

The 918MW private-sector pipeline represents an important part of that transition. Its success will depend on projects being completed on schedule, connected effectively to the grid and supported by continued investment in both large solar plants and distributed rooftop systems. Together, these efforts are intended to make renewable power a more significant component of Bangladesh’s electricity future.