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Md Nadim Ahmed's avatar

> The new post-revolution Bangladeshi government just launched plans to build ten new 50 MW grid-scale solar farms across the country, for a total of 500 MW. Superb!

The Bangladesh solar market has been on a rollercoaster ride over the past few months, with significant policy shifts creating both setbacks and opportunities for the industry.

As readers of this newsletter might recall from our previous coverage, Bangladesh had made headlines in late 2023 with an ambitious tender for 2-3GW of solar projects. However, in a surprising turn of events, these projects were cancelled by the new post-revolution government, marking one of their first major policy decisions in the energy sector.

Now, the same government has announced plans for a fresh tender, albeit at a notably reduced scale. While any progress toward solar adoption is positive, this scaled-back approach falls short of the solar energy victory many industry observers had been hoping for. The sentiment among solar installers has been particularly negative, with many expressing frustration over the cancellation of the original projects. This widespread disappointment may well result in tepid participation in the upcoming tender.

However, there's a silver lining in recent policy developments. A significant deregulation initiative might prove more transformative than the tender process itself. Historically, Bangladesh's electricity generation projects were controlled by a single central government body, creating a bottleneck for development. The new legislative framework aims to decentralize this authority, enabling city-level distribution companies and large businesses to enter into their own private power purchase agreements.

While this regulatory shift shows promise, we're still awaiting final rules for this merchant-centric approach. The devil will be in the details of these implementing regulations, which will determine how effectively the private sector can participate in Bangladesh's solar energy market.

For now, we'll keep watching these developments closely. The success of Bangladesh's solar energy transition may depend less on government-led mega-projects and more on creating the right regulatory environment for distributed, private-sector-driven development.

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Stephen Beck Marcotte's avatar

A melange of wonderful things to read more about this morning. Thank you!

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