Bangladesh Renewable Energy Policy Shift: Private Sales Authorized

Bangladesh now permits private companies to directly sell renewable energy to consumers. The policy, titled "Enhancement of Private Participation in the Renewable Energy-based Power Generation," took effect October 14, 2025. It allows private investors to establish, operate, and sell power from renewable energy plants, choosing their customers and setting prices independently. Previously, the state-owned Power Development Board (PDB) held exclusive rights as the sole electricity purchaser. The government aims for renewables to constitute 20% of electricity generation by 2030. Currently, solar and wind power contribute approximately 3% of the nation's total energy capacity. The new policy enables companies to form special purpose vehicles (SPVs) for Merchant Power Plant (MPP) development, facilitating open market electricity sales. These changes intend to reduce reliance on fossil fuels and improve energy sector efficiency. Officials also expect the policy to attract increased private and foreign investment in renewable energy projects. The government hopes that increased competition and transparency will build investor confidence in the sector.