Bangladesh has approved a 442 MW grid-connected solar power plant with battery storage as the country seeks to address persistent electricity shortages and increase renewable energy generation.

The Executive Committee of the National Economic Council (ECNEC), chaired by Prime Minister Tarique Rahman, approved the project on Wednesday.

The Bangladesh Power Development Board (BPDB) will develop the project at a total cost of BDT 25 billion ($200 million), making it the country’s largest solar power plant.

The facility will be built next to the 1.32 GW coal-fired Rampal Power Station in Bagerhat district, southwestern Bangladesh. Around 371.7 hectares of land previously earmarked for a second unit of the coal-fired facility will instead be used for the solar project.

pv magazine reported in April that BPDB was planning the 442 MW solar facility at Rampal, with the project expected to become Bangladesh’s largest PV installation.

The project is scheduled for implementation between September 2026 and March 2029.

Junior Planning Minister Zonayed Abdur Rahim Saki said the facility will include eight hours of battery storage, twice the duration envisaged under the initial plan, allowing a larger volume of solar electricity to be stored for use outside daylight hours.

“We want to set up the solar power plant as soon as possible to help meet the power demand,” Saki said.

Planning Commission officials said the project is intended to increase the share of renewables in Bangladesh’s electricity mix while reducing dependence on fossil fuel-based generation and cutting greenhouse gas emissions.

Bangladesh has stepped up its support for solar deployment in recent months as power shortages have intensified. The government’s Renewable Energy Development Policy 2026–2030 targets renewables accounting for 20% of the country’s electricity generation mix by 2030, with rooftop solar expected to play a significant role in the expansion. The government recently established a $123 million fund for rooftop solar and other renewable energy projects.

It has also introduced a series of fiscal and regulatory measures to accelerate solar deployment. In September, Bangladesh cut the tax burden on solar equipment imports from 17% to 1% for 180 days. Earlier that month, the government introduced a BDT 10.50 ($0.086)/kWh tariff for surplus electricity supplied by eligible rooftop solar systems under the country’s net-metering regime.

The measures follow other changes aimed at expanding the market. Bangladesh revised its net-metering rules in 2025 to broaden access to rooftop solar, while the government has also reinstated payment guarantees for renewable energy projects in an effort to improve project bankability and attract investment.

Bangladesh currently has 1,871 MW of installed renewable energy capacity, including 1,492 MW of solar.