In a significant regulatory shift, the Bangladesh government has approved a new policy allowing private companies to generate renewable-energy power and sell directly to customers or distribution companies, bypassing state-owned intermediaries. Under the “Enhancement of Private Participation in Renewable Energy-based Power Generation” policy, firms can now select their own clients, negotiate prices, and utilise the national grid without the state-owned Bangladesh Power Development Board (BPDB) acting as sole buyer.
The move comes as Bangladesh seeks to transition from heavy fossil fuel reliance and address energy-security challenges. Experts say private participation could accelerate deployment of solar and wind capacity, particularly rooftop and floating systems. A recent study estimated the country has up to 11 GW potential for floating solar installations. State Minister for Power and Energy noted the shift will also foster green jobs and regional electrification.
However, challenges remain: enforcing grid access, ensuring price transparency, and aligning policy with funding. India’s renewable industry leaders have expressed interest in cross-border collaboration.
