ADB finances 20 MW solar plant in Bangladesh

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The ADB has offered a $24.3 million financing package for a 20 MW grid-connected solar power plant in the north-central division of Mymensingh, Bangladesh.

The package consists of a $15.5 million loan from the ADB and a $8.8 million loan from Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which is administered by the ADB. It has gone to Muktagacha Solartech Energy Ltd., a subsidiary of Bangladesh-based energy company Joules Power Ltd., which will build and operate the plant.

The ADB said in a statement that the project is one of the first private sector utility-scale solar facilities in the country to secure support from international financiers.

“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,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

According to the ADB, renewable energy currently accounts for 4.5% of Bangladesh’s total power capacity. The country had deployed 767 MW of solar at the end of 2023, up from 524 MW at the end of 2022, according to the International Renewable Energy Agency (IRENA).

Analysts have previously cited high import duties as a barrier to solar deployment in Bangladesh. In November, the government introduced a 10-year tax exemption package for renewable energy plants, effective from July 2025.

The Bangladeshi authorities approved 300 MW of new solar in March, and more than 1.5 GW of solar projects in 2023. In July, Indonesia’s Pertamina Power revealed plans to build a 500 MW solar project in the southeastern part of the country.

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