Bangladesh’s electricity sector is undergoing a gradual but strategic transformation, with solar emerging as a key growth engine within the renewable energy mix. According to GlobalData, solar photovoltaic (PV) capacity is forecast to rise sharply from about 1.3GW in 2025 to nearly 8.5GW by 2035, reflecting strong momentum as the country expands grid-connected and distributed energy systems.
Early solar adoption in Bangladesh was driven by the Solar Home System program, which enabled large-scale rural electrification through off-grid deployment. This foundation is now evolving toward utility-scale and rooftop solar installations, particularly across commercial and industrial segments leveraging net metering frameworks to reduce energy costs and improve supply reliability.
Total renewable capacity is projected to reach around 9GW by 2035, with solar accounting for the majority of incremental additions. Policy incentives such as tax holidays, import duty exemptions, and VAT relief continue to support investment. However, high population density and land constraints are shaping innovative deployment models including floating solar and solar irrigation systems.
Despite solar’s rapid growth, thermal power will remain dominant. Gas-fired capacity is expected to increase from 15.3GW in 2025 to 20.1GW by 2035, while coal capacity will reach approximately 7.7GW and oil-based generation will remain stable near 9GW. Nuclear energy will also enter the mix through the Rooppur Nuclear Power Plant, contributing about 2.2GW by 2035.
Wind energy will play a limited role, with onshore capacity rising modestly from 71MW to 281MW over the same period. Overall, Bangladesh’s power sector is set to balance renewable expansion with thermal reliability, ensuring a stable and resilient energy system through 2035.
Summit Group – Multi-Billion Clean Energy Expansion
Summit Group is one of Bangladesh’s largest private power producers and is actively diversifying into renewables. The company has announced a $3 billion investment plan focused on solar, wind, and hydropower projects across South Asia, including cross-border developments.
Summit has also signed preliminary deals with partners such as Tata Power Renewable Energy to develop around 1,000 MW of renewable capacity, alongside plans to import clean electricity from India and build regional hydro assets.
Beximco Group – Industrial Solar and Renewable Integration
BEXIMCO has expanded into renewable energy as part of its diversified industrial portfolio, particularly focusing on solar power for industrial and commercial operations. The company is involved in power generation and infrastructure, integrating renewable solutions into manufacturing and real estate projects.
Beximco’s renewable strategy centers on captive solar generation, rooftop installations, and participation in independent power projects. While large public deal disclosures are limited, its investments align with Bangladesh’s push for industrial solar adoption and net metering programs. The company benefits from policy incentives encouraging private sector participation, positioning it as a key industrial player in scaling distributed renewable energy capacity.
PowerPac Holdings – Infrastructure-Linked Renewable Investments
PowerPac Holdings is investing in renewable energy as part of large infrastructure developments. The company has secured multi-billion-dollar foreign investment commitments, including funding linked to projects integrating solar power and waste-to-energy systems.
Its renewable initiatives are embedded within urban and industrial infrastructure, such as smart city developments that include on-site clean energy generation. PowerPac’s strategy focuses on combining infrastructure, energy, and sustainability, rather than standalone renewable projects. This positions the company as an enabler of integrated energy solutions in Bangladesh, particularly in urbanization-driven demand centers where distributed renewable generation is increasingly critical.
Local Solar Developers and EPC Firms – Rooftop and Distributed Growth
Bangladesh’s renewable market is also driven by a wide network of local EPC and solar developers such as NetZero Energy & Technology and Scube Technologies. These firms are key contributors to the country’s net-metered rooftop solar expansion, with combined installed capacity across dozens of projects.
Their investments focus on commercial and industrial rooftop systems, helping factories reduce energy costs and enabling surplus power sales to the grid. This segment is critical to Bangladesh’s renewable growth, particularly given land constraints for large solar parks. The model is supported by policy incentives and rising electricity demand, making distributed solar one of the fastest-growing renewable segments in the country.
International Developers and Solar Park Investors – Utility-Scale Pipeline
Bangladesh is attracting international developers through utility-scale solar projects, including firms like Symbior Solar and other foreign investors involved in large solar parks. These projects contribute to a pipeline exceeding 4.9 GW of planned solar capacity across dozens of projects.
Foreign participation is increasing due to favorable solar irradiance and government incentives. Many projects are structured through joint ventures with local partners and long-term power purchase agreements. This segment represents the backbone of Bangladesh’s future renewable expansion, as the country targets rapid scale-up of solar capacity to meet rising electricity demand and reduce dependence on fossil fuels.
Market Context and Investment Trends
Bangladesh’s renewable energy sector remains dominated by solar, which accounts for over 80 percent of installed renewable capacity, with total capacity around 1.5–1.7 GW as of 2025. The government aims to increase renewable energy share to 20 percent by 2030 and up to 40 percent by 2041, requiring significant private and foreign investment. Recent deals highlight a shift toward solar parks, cross-border power imports, rooftop solar, and integrated infrastructure projects, positioning Bangladesh as an emerging renewable investment destination despite policy and grid challenges.
BABURAJAN KIZHAKEDATH
