December 4, 2024

ADB Provides $24.3M Funds for 20MW Solar Plant in Bangladesh

Bangladesh’s renewable energy landscape is set for a significant boost with a new $24.3 million financing package from the Asian Development Bank (ADB). The funds are designated for Muktagacha Solartech Energy Limited (MSEL), a subsidiary of Joules Power Ltd. (JPL), to develop and operate a 20-megawatt (MW) grid-connected solar power plant in Mymensingh.

This project marks a milestone as one of the first private-sector utility-scale solar facilities in the nation to be supported by international financiers. The investment is structured as a dual-tranche loan, comprising a $15.5 million loan directly from the ADB and an additional $8.8 million loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which is administered by the ADB.

Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the strategic importance of the collaboration. “ADB’s financing aims to drive progress and advance sustainable energy solutions in Bangladesh,” she stated. “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.”

Once operational, the solar plant is projected to generate 37.9 gigawatt-hours (GWh) of clean electricity annually. This output will contribute to displacing fossil fuel-based power generation, preventing an estimated 18,344 tonnes of carbon dioxide emissions each year.

Nuher Latif Khan, JPL’s Managing Director, expressed his enthusiasm for the partnership. “We are thrilled to secure financing from ADB for our second solar project in the country,” said Khan. “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.”

The project arrives at a critical time for Bangladesh, where renewable sources currently account for only 4.5% of the total power capacity. The government has been actively encouraging growth in the sector, introducing measures like a 10-year tax exemption for renewable energy plants starting in July 2025 to counteract barriers such as high import duties and foster a more favorable investment climate for clean energy development.