- Bangladesh Power Development Board has launched a tender for 14 solar power plants, adding 2.65 GW of capacity, with project sizes ranging from 105 MW to 250 MW.
- Investors previously showed no interest in 41 solar projects due to a lack of state guarantees and unfavourable contract terms, prompting BPDB to relax some requirements.
- The proposal submission deadline is May 28. The tender’s success will depend on whether BPDB’s adjusted terms attract international investors.
The Bangladesh Power Development Board (BPDB) has launched a tender for 14 large-scale solar power plants, seeking to boost the country’s renewable energy capacity by 2.65 GW. This move follows previous attempts to attract investors that fell short due to unfavourable terms.
Each project will range from 105 MW to 250 MW and sit near substations in districts like Mymensingh, Chattogram, Gopalganj, Noakhali, and more. The BPDB has set the deadline for proposal submissions for May 28 and plans to offer developers 20-year power purchase agreements (PPAs).
Between December and January, BPDB faced significant setbacks when 41 solar projects, totalling 2.63 GW, failed to attract any bids. The board extended deadlines multiple times for these smaller projects, ranging from 10 MW to 100 MW, but no investors stepped forward.
Investors cited several reasons for their lack of interest, including the absence of state guarantees and challenges in securing financing. Additionally, many developers and lenders criticised the requirement that contract arbitration occur solely in Bangladesh, which deterred international players.
The BPDB responded by relaxing some of its requirements to address these concerns. Golam Mortuza, Director of independent power producer Cell-1, confirmed that the changes stemmed from investor feedback but suggested further adjustments might still be necessary to meet international financing expectations fully.
Bangladesh generates 1,550 MW from renewable energy sources, with solar power contributing 1,256 MW. Although the BPDB’s latest tender aims to drive significant growth, the success of these projects will depend on whether the terms prove attractive to international investors.
Bangladesh’s renewable energy sector has grown, but challenges persist. The country has struggled to meet its renewable energy targets, and many solar projects have stalled due to a lack of investment. These setbacks have slowed the realisation of the nation’s energy ambitions.
With this new tender, the BPDB aims to change course. By offering larger projects and revising terms, the board hopes to draw more attention from global investors. However, industry experts remain cautious about the outcome given the history of delays and failed projects.
The BPDB must offer competitive terms that meet the global market’s demands to ensure these projects’ success. The ability to attract developers and lenders hinges on how well BPDB adjusts to market expectations and resolves past issues.
As the May 28 deadline approaches, stakeholders will closely watch whether BPDB has made the right changes to secure the long-term commitment of international financiers and developers. This tender could mark a turning point for Bangladesh’s solar power ambitions, provided the terms align with investor expectations.