Bangladesh Gazette Policy for Renewable Energy
🔆 A New Era for Private Power in Bangladesh
The Government of Bangladesh has officially gazetted the “Policy for Enhancement of Private Participation in Renewable Energy-based Power Generation, 2025”, a landmark framework that enables merchant renewable power plants to sell electricity directly to large industrial consumers through bilateral or wheeling arrangements.
This policy marks a paradigm shift from the solicited IPP model to a competitive, market-based renewable ecosystem, following the repeal of the Quick Enhancement of Electricity and Energy Supply Act (2010). For the first time, renewable generation, open access, and Merchant Power Purchase Agreements (MPPAs) are formally recognized in Bangladesh’s regulatory landscape.
Key breakthroughs include:
📈 Introduction of Merchant Power Plants (MPPs) using solar, wind, biomass, and waste-to-energy technologies.
⚡ Open access for wheeling renewable power through Power Grid Bangladesh PLC and distribution licensees.
💰 Eligibility for fiscal incentives, REC trading, and access to local and international climate finance.
🤝 Scope for Public-Private Partnerships (PPP) and Special Purpose Vehicles (SPVs) to mobilize investment.
🏭 Alignment with export-oriented industries’ need for green and traceable energy, supporting Bangladesh’s competitiveness under global sustainability standards.
Our take at Foresight Advisory:
This policy provides a credible platform to transition Bangladesh’s power market from a single-buyer model to a multi-buyer, multi-seller environment, an essential precursor for corporate PPAs and carbon-market alignment. The challenge ahead lies in operationalizing open access, ensuring grid readiness, and enabling bankable contractual templates that attract private capital while maintaining system stability.
As the sector evolves, collaboration among Power Division, BERC, SREDA, utilities, and private investors will determine whether this framework delivers its transformative promise or becomes another well-intentioned yet under-implemented directive.
At Foresight Advisory, we view this policy as a catalyst for Bangladesh’s transition toward a competitive renewable energy market, where industrial decarbonization, green finance, and private innovation converge. Our team stands ready to support public and private stakeholders through transaction advisory, regulatory and market design, and readiness support for merchant renewable projects, corporate PPAs, and REC frameworks.
For organizations seeking tailored assistance in structuring bankable merchant projects, facilitating green energy sourcing, or navigating new compliance requirements, we welcome you to connect with us at 📧 info@foresightadv.com.
Together, let’s transform policy ambition into investable, climate-aligned impact.
