The Asian Development Bank (ADB) has provided $24.3 million in financing to Muktagacha Solartech Energy Limited (MSEL) for a 20-megawatt (MW) grid-connected solar plant in Mymensingh, Bangladesh.
ADB and LEAP 2 Fund Bangladesh Solar Plant Project
Muktagacha Solartech Energy Ltd. has received a $24.3 million funding package, which includes a $15.5 million loan from the Asian Development Bank (ADB) and an $8.8 million loan from the ADB-managed Leading Asia’s Private Infrastructure Fund 2 (LEAP 2). The Joules Power Ltd. subsidiary will use these funds to develop and operate the solar plant.
“We are thrilled to secure financing from ADB for our second solar project in the country. Collaborating with a globally respected financial institution like ADB underscores JPL’s commitment to sustainability and represents a major milestone in our pursuit of sustainable growth in renewable energy initiatives.” said Nuher Latif Khan, JPL Managing Director.
“ADB’s financing aims to drive progress and advance sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector involvement in developing renewable energy in the country while addressing the critical capital needs of renewable projects. ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh’s renewable energy sector, to advance sustainable solutions.” said Suzanne Gaboury, ADB Director General for Private Sector Operations.
Solar Plant to Generate 37.9 GWh Annually
The project covers the development and operation of a 20-megawatt (MW) grid-connected solar plant—one of the first private-sector utility-scale solar facilities in the country to be backed by international financiers. The plant will generate 37.9 gigawatt-hours of electricity each year, helping to reduce annual carbon dioxide emissions by 18,344 tonnes.
Supporting Solar Energy Growth in Bangladesh
According to the ADB, renewable energy makes up 4.5% of Bangladesh’s total power capacity. By the end of 2023, the country had installed 767 MW of solar capacity, an increase from 524 MW at the end of 2022, as reported by the International Renewable Energy Agency (IRENA).
Analysts have identified high import duties as a key barrier to solar expansion in Bangladesh. In response, the government introduced a 10-year tax exemption package for renewable energy plants, effective from July 2025, to foster growth in the sector.
In March, authorities approved another 300 MW of new solar capacity, adding to the more than 1.5 GW of solar projects approved during 2023. Additionally, in July, Indonesia’s Pertamina Power announced plans to develop a 500 MW solar project in the country’s southeastern region.
