World Bank Project Boosts Bangladesh's Renewable Energy Capacity

The World Bank-backed project was designed to increase clean electricity generation through grid-connected solar power plants and rooftop solar installations.

Bangladesh has made remarkable progress in expanding electricity access, reaching nearly every household across the country. The next challenge is building an energy system that is reliable, affordable and less dependent on traditional power sources, with renewable energy expected to play a much bigger role in the years ahead.

To support that transition, the World Bank partnered with Bangladesh through the Scaling Up Renewable Energy Project, helping add 338 megawatts of renewable energy to the national electricity grid while encouraging private investment and expanding clean energy infrastructure.

Solar projects strengthen the national grid

Although Bangladesh has achieved almost universal access to electricity, renewable energy currently accounts for only 1.5% of the country's grid supply. The World Bank-backed project was designed to increase clean electricity generation through grid-connected solar power plants and rooftop solar installations.

The project's biggest milestone was the construction of Bangladesh's first 75-megawatt grid-connected solar power plant in Sonagazi, Feni. Built on low-lying coastal land, the facility was designed to operate even in flood-prone conditions, creating a model that is now being replicated in other parts of the country.

The initiative also supported the installation of a 68-megawatt solar power plant along the banks of the Jamuna River in Sirajganj, while attracting $212 million in private investment through public-private partnerships.

Rooftop solar helps industries cut costs

The project also expanded rooftop solar systems for industrial users by supporting the Infrastructure Development Company Limited (IDCOL) in establishing a Renewable Energy Financing Facility for both rooftop and utility-scale solar projects.

At the same time, assistance provided to the Sustainable and Renewable Energy Development Authority (SREDA) helped identify locations for future large-scale renewable energy developments and supported the introduction of Bangladesh's net metering policy, making rooftop solar more attractive for businesses.

Many factories have adopted rooftop solar systems to lower electricity bills while meeting international sustainability requirements from global buyers. These renewable energy investments are estimated to reduce 377,000 tonnes of carbon dioxide emissions every year.

Muhammad Subail Bin Alam, Chief Executive Officer of Operations at Rancon Infrastructures & Engineering Ltd, said the company's 1.6-megawatt solar installation saves around 350,000 taka annually in electricity costs. He added that the system also generates approximately 1,350 tonnes of carbon benefits each year, earning about $6,000 in foreign remittances through carbon-related incentives.

Clean energy creates new opportunities

Beyond supplying cleaner electricity, the programme has created employment opportunities by training local communities to install, operate and maintain renewable energy systems. As Bangladesh continues expanding its clean energy sector, these new skills are expected to support long-term job creation while strengthening the country's energy security through a more diversified power mix.

The project demonstrates how renewable energy can reduce emissions, attract private investment and provide lasting economic benefits while helping Bangladesh build a more resilient and sustainable electricity system.