The Bangladesh Power Development Board (BPDB) is set to invite tenders to develop ten grid-connected solar power plants, each with a capacity of 50 MW, for a total of 500 MW.

This move comes as the interim government led by Dr. Muhammad Yunus, following the recent fall of the Awami League government, has suspended contracts under the controversial Speedy Enhancement of Power and Energy Supply Act (Special) Act, 2010.

Under this Act, the government could award contracts for power projects to private firms without a competitive tender process. During the Awami League’s tenure, BPDB issued Letters of Intent (LoI) to private firms for 34 proposed solar power projects, all under the provisions of this Special Act. However, these projects are now uncertain, as the new government has pledged to stop awarding contracts under the Act.

The decision to halt the use of the Special Act comes amid widespread criticism from energy experts, who blamed the law for corruption and inefficiencies in the sector. Allegations of favoritism, inflated project costs, and the awarding of contracts to underqualified firms under the previous government contributed to financial losses in the power sector, reportedly totaling Tk 700 billion annually.

In response to these concerns, Dr. Muhammad Fouzul Kabir Khan, the interim government’s Energy Advisor, announced that future projects would be executed through an open and competitive tender process. This decision is part of a broader effort to promote transparency and competitiveness in developing energy infrastructure.

Private sponsors who had received LoIs for the 34 solar projects have expressed concern, as many had already invested significant resources in procuring land and preparing for project development. These sponsors now seek to participate in the upcoming tender process to secure their projects.

Habibur Rahman, Senior Secretary of the Power Division, confirmed that the BPDB will soon issue tenders for multiple 50 MW solar power projects. The selection of locations for these projects will focus on areas where power evacuation infrastructure is already in place, such as grid substations.

“The government is committed to promoting renewable energy, and these solar projects will be implemented by private sponsors at their own cost, with the BPDB purchasing the generated electricity for a defined period,” Rahman said.

However, the specific locations for these projects have not yet been disclosed. The initiative marks a significant step towards expanding solar energy in Bangladesh, aligning with the country’s broader goals of increasing the share of renewables in its energy mix.