Bangladesh launches PPP guidelines to use idle public land for renewable energy, as rising power shortages drive rapid growth in solar adoption and shift consumers toward decentralized energy solutions nationwide.
Bangladesh has unveiled new guidelines to unlock unused and underutilised government land for renewable energy projects under a public private partnership model, aiming to overcome land scarcity and fast track its clean energy transition.
The Guidelines for Development of Renewable Energy Projects Using Land Owned by Government Agencies under PPP Modality 2026, announced on April 12, come at a critical time as the country faces rising energy demand, increasing climate vulnerability and growing pressure to shift toward low carbon development while attracting international green investment.
The initiative is aligned with the Renewable Energy Policy 2025, which targets at least 20 percent of electricity generation from renewable sources by 2030. Bangladesh currently has 1,059MW of installed renewable capacity, just 3.7 percent of the total 28,504MW, with solar accounting for 757MW, hydro 230MW and wind only 62MW, highlighting both progress and the scale of the transition required.
Land strategy to break a key barrier
One of the most persistent obstacles to expanding renewable energy in Bangladesh has been the shortage of suitable land, particularly for large scale solar and wind projects. The new framework seeks to address this by bringing idle public land owned by ministries, departments and statutory bodies into productive use.
Government entities such as Bangladesh Railway, the Roads and Highways Division and the Bangladesh Water Development Board have been identified as potential contributors of unused land, creating new opportunities for utility scale clean energy development.
Institutional framework for delivery
The Bangladesh Power Development Board will serve as the principal contracting authority, responsible for selecting private partners and overseeing project implementation.
The PPP Authority will coordinate across agencies and ensure compliance with PPP regulations, while the Sustainable and Renewable Energy Development Authority will act as the nodal body for regulatory oversight and facilitation throughout the project lifecycle.
Grid connectivity and transmission infrastructure will be handled by Power Grid Bangladesh PLC, ensuring integration of new renewable capacity into the national system.
Investment model and private sector role
Private developers will be selected through international competitive bidding or other PPP compliant procurement methods, reinforcing transparency and investor confidence.
Each project will be implemented through a Special Purpose Vehicle, responsible for financing, construction, operation and maintenance. The guidelines set a minimum capacity threshold of 50MW for solar and wind projects, while allowing smaller scale initiatives for emerging technologies such as tidal, wave and geothermal energy subject to approval.
Government agencies providing land will receive compensation through lease payments, minority equity stakes or a combination of both, ensuring financial returns while retaining public ownership.
Governance safeguards and compliance
A joint working group comprising representatives from key agencies will monitor project progress and address implementation challenges. The framework also stipulates that land allocated for renewable projects cannot be repurposed for non energy uses without prior approval.
All projects must comply with the PPP Act 2015 and relevant energy regulations, creating a structured and accountable investment environment.
Incentives and broader energy reforms
The guidelines complement broader reforms under the Renewable Energy Policy 2025, including a 10 year corporate tax exemption for renewable energy producers followed by five years of partial tax relief.
The policy also promotes rooftop solar adoption through net metering, introduces renewable purchase obligations for utilities and large consumers and establishes a renewable energy certificate system to support green power trading.
Opportunities and implementation challenges
Energy experts say the initiative could unlock significant investment and accelerate renewable deployment if implemented effectively. However, challenges remain, including land related disputes, bureaucratic delays and concerns over institutional coordination and execution capacity.
A turning point for energy transition
The move signals a strategic shift in Bangladesh’s approach to energy security, combining public assets with private capital to drive sustainable growth. If effectively implemented, the policy could mark a turning point in the country’s energy transition, transforming idle public land into a cornerstone of a low carbon and climate resilient future.
As Bangladesh faces worsening energy shortages and frequent load shedding, demand for solar and battery powered electrical products is rising sharply across both urban and rural markets, reflecting a shift in consumer behaviour driven by energy insecurity.
Traders and consumers say prolonged power outages, particularly during the summer heat, are pushing households to seek alternative energy solutions. The trend is becoming increasingly visible in key commercial hubs in the capital as well as in district towns.
Maruf Morshed, a private sector employee in Dhaka, recently installed a solar power system at his family home in Gaibandha after repeated disruptions to electricity supply.
“Load shedding is increasing day by day. During this heat, my family suffers whenever power goes out,” he said while visiting a solar equipment shop in Gulistan. “There are also concerns the energy crisis could worsen due to global tensions, so I decided to install a solar panel system.”
He added that elderly family members and children in rural areas are particularly vulnerable during extended outages.
Rising demand across markets
A visit to Gulistan and Stadium Market areas showed a noticeable increase in customer traffic at shops selling solar panels, batteries, inverters and related appliances.
Retailers such as Solar Power Machineries, Hriday Electronics, AS Electronics and Solar, Sunfred Solar and Hriday Electric and Electronics reported a significant uptick in sales.
Hriday Hossain, owner of Hriday Electric and Electronics, said the change has been rapid.
“Earlier, we spent long hours without customers. Now demand for solar lights and batteries has increased noticeably,” he said.
Battery powered fans, LED lights, mobile charging systems and hybrid inverters are among the most sought after items, with many customers opting for complete solar packages instead of individual components.
Affordable solar packages gain popularity
Retailers say ready made solar packages are attracting a wide range of consumers looking for reliable backup power solutions.
Available options include 65 watt systems priced between Tk12,000 and Tk14,000, 100 watt packages costing Tk14,000 to Tk16,000 and larger 150 watt to 200 watt systems ranging up to Tk39,000. These typically include solar panels, batteries, charge controllers, lights and fans.
Higher capacity hybrid inverter systems are also gaining traction, with 1000VA systems priced around Tk75,000 and 1200VA systems around Tk80,000. These can support multiple household appliances including fans, televisions, routers and mobile charging.
Altaff Hossain, a customer in Dhaka, said he recently replaced a damaged solar battery due to renewed power disruptions.
“With load shedding increasing again, I had no choice but to replace it,” he said.
Trend expands beyond the capital
The surge in demand is not limited to Dhaka. Retailers in district towns report similar trends as power shortages become more frequent.
Naymur Rahman, proprietor of Smart Electronics in Lakshmipur, said consumer demand has shifted significantly.
“Since the power shortage began, load shedding has become routine. People are asking more about battery powered fans and lights,” he said.
He added that he is now sourcing battery operated televisions, solar lighting systems and electric cooking devices from Dhaka suppliers, anticipating a growing market.
In coastal Satkhira, trader Saem Alam said frequent outages have made alternative energy solutions essential.
“In the evenings, it becomes difficult to move around without power. People are now using battery powered lighting and televisions,” he said.
Rahaat Islam, a resident of Pirojpur, said unreliable electricity supply is affecting daily life and increasing anxiety about future energy availability. He called for government subsidies to make solar systems more affordable for ordinary consumers.
Experts see structural shift in energy use
Officials and energy experts say the rising demand reflects growing public awareness and a shift toward decentralised energy solutions.
A senior official at the Sustainable and Renewable Energy Development Authority said the government’s renewable energy policy introduced in 2025 is being implemented through multiple initiatives to support expansion.
Energy expert Badrul Imam said Bangladesh has strong solar potential and could make significant progress with proper planning and investment.
Zakir Hossain Khan of Change Initiative said the ongoing crisis highlights the urgency of diversifying energy sources and scaling up renewable adoption through subsidies, soft loans and quality assurance mechanisms.
Crisis driving transition
Industry observers say the current power crisis is reshaping consumer behaviour, turning solar solutions from a luxury into a necessity, particularly in rural and underserved areas.
With global energy market volatility adding further uncertainty, experts believe Bangladesh’s growing reliance on solar and battery powered systems could play a critical role in easing pressure on the national grid and accelerating the country’s transition toward a more resilient and sustainable energy future.
