The Bangladesh Power Development Board (BPDB) has tendered 95 MW of grid-connected solar power projects to be developed at two sites by private-sector investors.
Of this capacity, a 70 MW solar plant is planned for Cox’s Bazar district, while the remaining 25 MW will be developed in the Rangamati hill district.
AKM Mohiuddin Azamy, director of IPP Cell-2 at BPDB, said the government will not provide land or financing for the projects. “The private-sector investor, whether local or foreign, will be responsible for arranging finance and securing land for the projects,” he said.
Azamy added that BPDB will purchase electricity from the plants under 20-year power purchase agreements. The deadline for submitting projects proposals is August 25.
Local project developers, however, have expressed concern over the policy framework for solar development. Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said the tender is unlikely to attract strong investor interest.
“The government is neither providing payment guarantees nor signing implementation agreements with developers for these projects, so investors are not showing interest,” he said.
Mahmud added that BPDB only signs power purchase agreements with developers. “Without a payment guarantee from the government, no bank or foreign company will be willing to finance these power plants,” he said.
He noted that most recent BPDB solar tenders have received weak responses, leading to repeated deadline extensions.
Bangladesh’s total installed clean energy capacity currently stands at 1,805 MW, of which 1,513 MW is from solar.
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