The Bangladesh Power Development Board (BPDB) has received dramatically lower tariff offers for its ambitious nationwide solar power projects, a development that not only signals a new era for the country’s renewable energy sector but also promises substantial savings on electricity generation costs.
the average tariff quoted by bidders across tenders stands at 8.27 US cents per kilowatt-hour (kWh) – a massive 37.77% reduction from the current average solar generation cost of 13.29 cents, BPDB officials confirmed. This competitive pricing is largely attributed to the BPDB’s recent shift to an open, competitive bidding process and a steep decline in global solar panel prices.
the new average tariff of 8.27 cents is also significantly lower than the costs of unsolicited solar projects approved under the previous government, with tariffs falling by as much as 21% compared to those earlier deals.
the tariff reduction is a direct result of a policy shift following the change in government last year.
the BPDB cancelled the Letters of Intent (LoIs) for 34 unsolicited solar plants (totalling 2,344MW) that were approved by the former Awami League government. Subsequently, between December 2024 and March 2025, the BPDB floated international tenders in four separate packages for 55 gridconnected solar power plants with a combined capacity of 5,238MW