Bangladesh Building 70 MW Solar Plant at Coal Station

Bangladesh is proving that coal sites can have a second life as clean energy hubs.

The country plans to build a 70 MW solar power plant on unused land at the Matarbari coal-fired power station in its southeastern region. Construction aims to finish by December 2028, with the state-owned Coal Power Generation Company Bangladesh leading the project alongside the European Investment Bank and the Bangladeshi government.

The solar panels will sit in an ash pond area at the existing 1,200 MW coal plant. This smart location choice means security and transmission infrastructure are already in place, cutting construction costs and speeding up the timeline.

Prime Minister Tarique Rahman recently called for faster progress on the project as the country faces fuel supply shortages affecting its electricity grid. The urgency reflects both the energy crisis and Bangladesh's commitment to a cleaner future.

The country aims to generate 20% of its electricity from renewable sources by 2030 and 30% by 2040. Right now, Bangladesh has 1,935 MW of installed renewable energy capacity, so this project moves the needle in the right direction.

The Ripple Effect

Bangladesh isn't stopping with one project. The government recently approved a 442 MW solar plant at Rampal, also using unused land at a coal-fired power station.

To support this solar boom, officials temporarily slashed import taxes on solar equipment from 17% to just 1% for 180 days. This policy shift makes solar projects more affordable and faster to launch.

The government also introduced a tariff of about $0.085 per kilowatt-hour for surplus electricity from rooftop solar systems under its net-metering program. Homeowners and businesses can now contribute to the grid and get paid for it.

These moves show how national policy can accelerate the renewable energy transition. When governments remove financial barriers and create incentives, solar deployment speeds up dramatically.

Bangladesh's approach offers a blueprint for other developing nations balancing energy needs with climate goals.