BANGLADESH: Enhancing Renewable Energy Investments and Access to Land

Bangladesh’s Renewable Energy Policy of 2008 established a goal for renewable energy to make up 10 percent of the country’s electricity generation mix, equivalent to approximately 2,000 megawatts. However, the current renewable energy capacity is only 750 megawatts, with solar power systems contributing 500 megawatts. A major obstacle to achieving this target is the limited availability of land for renewable energy projects, a challenge that also affects other land-based investments across the region. A 2021 report by the World Bank’s South Asia Region Working Group identified land access as a critical constraint to investments in the region.

To help address these challenges, PPIAF provided technical assistance to the Government of Bangladesh to repurpose land from five canceled coal-fired power plant sites for renewable energy development. This assistance included recommendations for grid and transmission upgrades, preparation of land, and assessments of the potential for solar energy generation. A high-level technical and economic feasibility study was also conducted to outline practical steps for developing cost-competitive renewable energy projects with private sector involvement.

These efforts are expected to help the government adopt a competitive procurement process for solar power projects developed by independent producers. The initiative is a significant step toward addressing the issue of land availability and enabling greater private sector investment in renewable energy. By implementing these recommendations, Bangladesh can move closer to achieving its renewable energy goals while creating a more sustainable and competitive market.