Bangladesh Power Development Board (BPDB) has signed agreements for 12 renewable energy-based independent power producer (IPP) projects as part of efforts to reduce dependence on imported fossil fuels and lower electricity generation costs.

BPDB Chairman Engineer Rezaul Karim said the new projects are aimed at increasing the use of renewable energy and strengthening the country’s energy security.

He said the projects are expected to reduce the average electricity generation cost by 2 to 3 cents per unit. “The average production cost was previously around 10.5 cents per unit, which will significantly decline once the new projects come into operation,” he added.

According to BPDB officials, the government has reinstated six power projects that had been cancelled by the previous interim administration. In addition, six new renewable energy projects have been approved to add 918 megawatts of electricity generation capacity at lower tariffs.

The 12 planned power plants are expected to begin commercial operation within the next two years and will be connected to the national grid.

Among the projects, the largest will be a 200MW power plant in Fatikchhari, Chattogram. Another 150MW plant will be established in Ishwardi, Pabna.

Two 100MW solar power plants will be set up in Cox’s Bazar, while another 100MW solar facility will be built in Mongla, Bagerhat. A 70MW solar power plant is also planned in Ishwardi.

Other projects will be located in Sadar and Bibiyana in Moulvibazar, Jaldhaka in Nilphamari, Fatikchhari and Hathazari in Chattogram, and Sudharam in Noakhali, with capacities ranging from 10MW to 50MW.

A BPDB official said the agreements with the 12 IPPs were finalized through open competitive bidding to ensure the lowest possible tariffs.

Confidence Power Chairman and IPP entrepreneur Imran Karim said his three companies have signed agreements to generate a combined 400MW of electricity. Land acquisition for one plant has already been completed, while the process is underway for the remaining two projects. He said the three solar plants are expected to start commercial operations between 2028 and 2029.

Energy analysts said rooftop solar and other renewable energy initiatives could significantly reduce Bangladesh’s dependence on imported fuel.

According to BPDB data, Bangladesh currently produces around 1,451MW of solar power, accounting for approximately 5.01 percent of the country’s total electricity generation capacity.

Officials said the interim government had cancelled 31 renewable energy projects in 2024, including 27 solar projects with a planned generation capacity of 2,724MW. The remaining four projects were wind and hydropower-based initiatives.

BPDB Chairman Rezaul Karim said the government is working on an integrated plan to expand renewable energy generation, reduce carbon emissions, and strengthen long-term energy security.

Officials added that separate programs are also underway for rooftop solar and other renewable energy projects. According to the Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh currently has a renewable energy generation capacity of 1,743.76MW, including solar, hydropower, wind, biogas, and biomass sources.

Energy expert and Institute for Energy Economics and Financial Analysis (IEEFA) official Shafiqul Alam said Bangladesh needs a comprehensive energy master plan to restore investor confidence and ensure policy continuity in the renewable energy sector.

Hasan Mehedi, chief executive of Coastal Livelihood and Environmental Action Network (CLEAN), said encouraging rooftop solar installation at household level could reduce the need for large public investments. He also suggested using around 13,000 acres of unused land previously acquired for coal-based power plants for solar projects, which could reduce electricity costs by up to 25 percent per unit.

Bangladesh has set a target to generate 40 percent of its electricity from clean and renewable energy sources by 2041.