ADB and LEAP 2 Fund Bangladesh Solar Plant Project
Muktagacha Solartech Energy Ltd. has been provided with a funding package totalling $24.3 million, comprising 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). Bangladesh's Joules Power Ltd. subsidiary will use the 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.
Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted: "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.”
Solar Plant to Generate 37.9 GWh Annually
The project will develop and operate a 20-megawatt (MW) grid-connected solar plant — one of the first private-sector utility-scale solar facilities in the country to receive backing from international financiers. The plant will produce 37.9 gigawatt-hours of electricity each year, helping to reduce carbon dioxide emissions by 18,344 tonnes annually.
Bangladesh Approves Solar Projects and Tax Exemption
As reported by 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, according to the International Renewable Energy Agency (IRENA).
Analysts have previously identified high import duties as a 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, thereby fostering growth in the sector.
In March, authorities approved 300 MW of new solar capacity, contributing to over 1.5 GW of solar projects approved in 2023. Additionally, in July, Indonesia’s Pertamina Power announced plans to develop a 500 MW solar project in the southeastern region of the country.
