Bangladesh’s Tender For 353 MW Of Solar Projects To Test Pricing Claims

In what is likely to test claims of having bought power at expensive rates from developers including from India, the Bangladesh Power Development Board (BPD) has come out with its first large scale solar tender. The tender invites bids for 12 proposed solar projects across the country, ranging in size from 10 MW to 45 MW. The last date for submission of bids, including by mail,  is February 3, 2025.

Winners will get a deal to sell electricity at a fixed rate for a 20 year period.

The international tender will involve a one-stage, two-envelope bidding process. Bidders will need to submit BDT25,000 (INR 17700) for each tender as a bid document fee.

There is also a bid security fee of BDT250,000 (INR 177,000) for each tender. An interesting change this time is the provision for quoting at least 30 percent of the total tariff in local currency (Taka), while the remaining 70 percent can be quoted in US cents. Previously, the entire tariff was allowed to be quoted in US cents. The country is going through a serious foreign exchange crunch right now, making it imperative to try and reduce outflows.

The scope of work covers the installation of solar power projects in Sudharam, Noakhali (10 MW), Hathazari, Chattogram (18 MW), Sabujpara, Nilphamari (20 MW), Dhaka (35 MW), Kurigram (45 MW), Fatikchari, Chattogram (45 MW), and Bhaluka Mymensingh (45 MW), Moulavibazar (25 MW), Bajitpur, Kishoreganj (25 MW), Kaptai, Rangamti (25 MW), Teknaf, Cox’s Bazar (30 MW), Lohagara, Chattogram (30 MW) and Nobabganj.

The tender comes at a time when the BPDB has struggled to clear dues owed to India’s Adani Power for a 1400 MW thermal power plant dedicated to supplying power to the country from Jharkhand. Presently, Adani has reduced supplies by 50%, and continues to follow up for payments amid accusations that the power prices are too high.

In solar, Bangladesh based projects have usually involved higher costs according to EPC contractors we spoke to in India. This is mainly due to the nature of the terrain and soil in the country, with riverine areas demanding much more extensive efforts to ensure stability of the solar plants.

Bangladesh has over 800 MW of solar capacity in place currently, and hopes to hit 1500 MW by next year.

In November, the ‘caretaker’ government introduced a 10-year tax exemption package for renewable energy plants, effective from July 2025.