Country’s largest solar power plant planned in Rampal

Highlights:

• Bangladesh plans largest 442MW solar plant in Rampal
• Project costs Tk2,502 crore, mainly from Power Development Fund
• Completion targeted by 2030; tariff set at Tk6.18
• Rampal cheaper than Sonagazi due to lower infrastructure costs
• Rising electricity demand drives need for expanded generation capacity
• Renewable targets push investment to reduce fossil fuel reliance

To enhance energy security through diversification of primary fuel sources, the Bangladesh Power Development Board has taken an initiative to establish a 442-megawatt solar power plant, the country’s largest, in Rampal, Bagerhat.

The estimated cost of the proposed power plant is Tk2,502.39 crore. Of this, Tk2,127 crore will be financed from the Power Development Fund, while Tk375.94 crore will come from PDB’s own resources, according to the project proposal seen by The Business Standard.

The project is targeted for completion by December 2030. The proposed tariff for electricity from the plant is Tk6.18 per unit.

The project proposal has already been sent to the Planning Commission for approval.

The PDB acquired 1,834 acres of land in Rampal in 2012, divided into Block-A and Block-B. Block-A currently hosts the coal-fired power plant operated by Bangladesh-India Friendship Power Company Limited, while Block-B remains under the PDB, where land development and preparatory work have already been completed.

Although the project was initially planned as a joint venture, the process was halted after the repeal of the Special Power Act 2010 (amended in 2021).

Later, a feasibility study conducted by Infrastructure Investment Facilitation Company in May 2025 recommended establishing a 442MW grid-connected solar power plant on the 685-acre site.

The study noted that minimal additional land development would be required, helping reduce construction costs and lower the unit cost of electricity. It also suggested that implementing the project through international competitive bidding would ensure better pricing.

Meanwhile, a 220MW solar power plant in Sonagazi, Feni, was approved in December by the Executive Committee of the National Economic Council, with an estimated cost of Tk1,888 crore to be implemented by the Electricity Generation Company of Bangladesh Limited.

PDB analysis shows that although the Sonagazi project has a higher capacity utilisation factor (21% compared to Rampal’s 17%), its construction and transmission costs are significantly higher, resulting in a higher tariff.

The construction cost per megawatt is Tk5.66 crore for Rampal, compared to Tk6.27 crore for Sonagazi. Infrastructure costs in Sonagazi are more than double those of Rampal, along with higher expenses in design, engineering, and transmission lines.

As a result, electricity from Rampal is proposed at Tk6.18 per unit, while Sonagazi’s tariff stands at Tk8.87 – about 43% higher. Annual revenue from Rampal is projected at Tk352.41 crore, compared to Tk381.54 crore from Sonagazi.

Electricity demand in Bangladesh is rising steadily due to economic expansion, industrialisation, export-oriented digital industries, ICT sector growth, and improved living standards.

According to the Integrated Energy and Power Master Plan 2023, peak electricity demand is projected to reach 29,257 MW by 2030; 58,597 MW by 2041; and 96,767 MW by 2050. In contrast, the highest generation recorded so far is 16,794 MW (as of 23 July 2025).

Although electricity access has reached nearly 100% of the population, ensuring adequate generation capacity and energy security remains a major challenge.

To meet commitments under the Paris Climate Agreement and reduce reliance on fossil fuels, the government has adopted the Renewable Energy Policy 2025, aiming for 20% renewable energy by 2030 and 30% by 2040. However, current renewable generation remains limited, highlighting the need for rapid investment.

Nur Ahmed, additional secretary, Planning Wing, Power Division, said, “The proposed Rampal solar project is a timely and highly positive initiative that will significantly strengthen the renewable energy sector.” 

He added that the proposal has already been submitted to the Planning Commission as a DPP and is being processed on a priority basis.

“Compared to the 220MW Sonagazi plant, the 442MW Rampal project is nearly double in size and represents a major step forward for Bangladesh’s solar energy sector, with a comparatively lower unit cost making it more economically viable,” Nur Ahmed said.