The Islamic Development Bank (IsDB) has agreed to provide $167 million in concessional loans for the development of a 220MW solar power plant in Sonagazi, Feni—set to become the country’s largest solar facility to date.

The funding, equivalent to approximately Tk 20.10 billion, will support a project estimated to cost Tk 21.35 billion. The remaining Tk 1.25 billion will be jointly financed by the Bangladesh government and the Electricity Generation Company of Bangladesh Limited (EGCB), according to Planning Commission sources.

The Planning Commission has given in-principle approval for the Development Project Proposal (DPP), while IsDB confirmed its financing earlier, a senior official of the Economic Relations Division (ERD) said.

Designed to boost renewable energy capacity, the project aligns with Bangladesh’s national target of sourcing 10 percent of electricity from renewables. It also aims to cut fossil fuel dependency, reduce carbon emissions, and support economic development by improving energy access.

Power Division officials highlight that the plant is the most cost-effective among similar initiatives. The estimated per-megawatt installation cost stands at Tk 96.99 million, significantly lower than previous projects—Tk 116.77 million for the 75MW Sonagazi plant, Tk 160.31 million for the 6.55MW Sirajganj plant, and Tk 137.29 million for the 100MW Madarganj plant.

Officials attribute the lower costs to improved planning, economies of scale, and more efficient resource utilisation.

The proposed site encompasses 699.65 acres of land, part of a 999.65-acre area already acquired by EGCB. The remaining land already hosts a 75MW solar power plant established with World Bank support.

International and local consultancies conducted feasibility studies in 2018 and 2025, and an environmental assessment by CEGIS in 2021 confirmed the project’s viability.