More than 3,000MW of the country’s power deficit could have been eased if 37 solar power plants cancelled during the interim government’s tenure had been reapproved and brought into operation, according to sector insiders.
The projects, which received letters of consent from the then Awami League government for agreements without competitive tenders, were cancelled on 29 August 2024. Of these, 31 were private-sector projects with a combined generation capacity of over 3,287MW — almost equivalent to the current power shortfall.
Most of the plants were scheduled to start production by 2026.
The interim government had pledged to reapprove the projects through a competitive process and at lower tariffs. However, before leaving office, it approved tariff proposals for only 12 projects, losing nearly one and a half years in the process.
In December 2025, the advisory council approved tariffs for 12 solar power plants with a combined capacity of 918MW.
The projects included 200MW and 45MW plants in Fatikchhari and an 18MW plant in Hathazari of Chattogram, two 100MW plants in Kutubkhali of Chakaria and Joarianala of Ramu in Cox’s Bazar, as well as plants in Pabna, Noakhali, Moulvibazar, Nilphamari, Habiganj and Bagerhat.
At the time, Power and Energy Adviser Fouzul Kabir Khan said the revised tariffs would reduce electricity purchase costs and save the government Tk420 crore annually.
The average tariff for electricity from the cancelled projects was set at over Tk13 per kilowatt-hour. The interim government revised it to Tk11.78.
However, it failed to complete the agreements required to set up the plants.
“We had approved the tenders. I do not know what happened afterwards. We are no longer in government,” Khan told TIMES of Bangladesh.
A Power Development Board official said agreements had been signed for 11 of the 12 plants. The projects are expected to generate around 900MW of electricity but will take another one and a half years to start production.
After the BNP government came to power, uncertainty over fuel supply further worsened the power situation. The closure of the Strait of Hormuz amid the US-Israel war on Iran and suspension of LNG imports from Qatar following attacks there forced several gas-fired power plants to shut down.
The supply crunch widened the gap between demand and generation, pushing load-shedding to a record 3,757MW. On most days, however, the shortfall remains around 3,200MW.
Energy adviser to the Consumers Association of Bangladesh (CAB) M Shamsul Alam said cancelling the projects was justified, but the government failed to complete the process.
“There is no doubt that cancelling them was logical. But cancellation alone was not the job. The power problem was supposed to be solved. They needed to prove how much cheaper and how quickly they could buy electricity compared to before. They could not or did not do that,” he said.
He said failure to take further steps amounted to negligence and raised questions over whether the cancellations were truly made in the public interest.
During the interim government’s tenure, the Centre for Policy Dialogue (CPD) warned about the impact of cancelling the projects.
After receiving government consent, 15 companies purchased land for 31 private-sector projects and paid various taxes. Foreign investment worth around $300 million had already been made.
However, investors have little chance of recovering the money as selling land is more difficult than purchasing it.
The projects were expected to receive investment from 14 countries, including China, Singapore, India and the United States. The planned investment was more than $6 billion.
CPD said policy changes had created a crisis of confidence among foreign investors, who sought stability even after changes in government. It recommended reviewing the cancelled letters of consent to restore investor confidence.
CPD Additional Director (Research) Towfiqul Islam Khan said the companies whose proposals were cancelled were denied the opportunity to explain their positions or seek reconsideration.
“The government should have given them the opportunity to explain why the projects were cancelled and what steps were needed for reconsideration,” he told TIMES.
After coming to power, the BNP government formed a committee led by the Power Development Board chairman to review the 31 cancelled projects.
The committee concluded that there was no scope to revive the projects approved during the Awami League period and that existing laws did not support such a move.
KM Ali Reza, additional secretary of the renewable energy wing of the Power Division, said the government would proceed with fresh tenders.
“We will hold region-based tenders. We will select whoever offers the lowest tariff,” he told TIMES.
He said tenders had been invited for 12 solar power plants with a combined capacity of 425MW.
The BNP government aims to generate 10,000MW from renewable energy by 2030, with half expected to come from rooftop solar systems.
Although rooftop solar promotion began in 2009, adoption remained limited. However, improved technology and inverter-based systems have recently increased its popularity, particularly in rural and semi-urban areas.
