Bangladesh Economic Zone to Develop 100-200 MW Solar Project with ADB

Bangladesh is taking a significant stride towards a sustainable energy future with a landmark agreement between the Bangladesh Economic Zones Authority (Beza) and the Asian Development Bank (ADB). The two organizations have signed a deal to develop a substantial 100 to 200-megawatt (MW) ground-mounted solar photovoltaic (PV) power project, marking a pivotal moment for renewable energy in the nation’s industrial sector.

A Landmark Public-Private Partnership for the Bangladesh solar project

This ambitious project will be implemented under a Public-Private Partnership (PPP) model within the National Special Economic Zone (NSEZ). The NSEZ is the largest economic zone in Bangladesh, spanning an impressive 33,805 acres across Sitakunda and Mirsarai in Chattogram and Sonagazi in Feni. By situating the solar plant in this strategic industrial hub, the initiative aims to provide clean and reliable power directly to the heart of Bangladesh’s economic growth.

The project has already received crucial policy approval from the Advisory Committee on Economic Affairs (ACEA) and has successfully completed the screening process under the 2018 PPP Procurement Guidelines, paving the way for its development.

The Role of the Asian Development Bank in the Bangladesh solar project

Under the agreement, the Asian Development Bank will provide vital technical assistance to ensure the project’s success. The ADB’s support will encompass a wide range of critical activities, including:

• Conducting comprehensive feasibility studies.
• Developing detailed financial models.
• Performing environmental and social impact assessments.
• Carrying out legal evaluations.
• Managing the tender process to select a private partner through international competitive bidding, ensuring a transparent and fair power tariff.

A groundbreaking component of this initiative is the planned introduction of Bangladesh’s first battery energy storage system (BESS). This addition is set to establish a new benchmark for renewable energy projects in the country, addressing the intermittency of solar power and enhancing grid stability.

Powering a Greener Industrial Future with the Bangladesh solar project

Beza Executive Chairman Ashik Mahmud hailed the project as a “milestone,” highlighting its status as the first solar PPP project to be developed within an economic zone. The initiative represents a coordinated effort among numerous government bodies, including the Economic Relations Division, the Power Division, the Bangladesh Power Development Board, the Power Grid Company, the PPP Authority, and the Ministry of Environment, Forest, and Climate Change.

Upon completion, the solar power plant is expected to deliver a multitude of benefits. It will significantly reduce carbon emissions from the national grid, provide a consistent and reliable power supply for the industries operating within the economic zone, and stimulate further private investment in Bangladesh’s burgeoning renewable energy sector. This project not only powers industries but also powers the nation’s commitment to a cleaner, more sustainable future.