BANGLADESH Trends and Developments Contributed by: Arunima Dutta Aurni and M. Imtiaz Farooq, Farooq and Associates
it also recognises that private renewable projects will not be financeable unless the contractual structure gives sufficient comfort to lenders. There is also a clear policy push towards distribut- ed solar. The Net Metering Guideline 2025 provides a more detailed framework for consumers to install renewable energy systems at their premises, use the electricity for self-consumption, export surplus power to the grid and receive billing credits or settlement pay- ments. Importantly, it recognises both self-financed models and third-party OPEX models, which may help consumers avoid upfront capital expenditure. This is complemented by the National Rooftop Solar Programme Implementation Guideline, which seeks to scale rooftop solar across public-sector buildings. The proposed target of adding 2,000–3,000 MW of rooftop solar capacity is ambitious, but it shows that rooftop solar is now being treated as a material part of the renewable energy strategy rather than a small supplementary measure. Another notable development is the Guidelines for Development of Renewable Energy Projects using Land Owned by Government Agencies under PPP Modality, 2026. This is important not only because land remains one of the key constraints for utility-scale solar projects in Bangladesh, but also because it rep- resents a possible first move towards implementing power projects under the PPP Act 2015. Historical- ly, private power projects were largely implemented under the Quick Enhancement of Electricity and Ener- gy Supply (Special Provisions) Act, 2010. Following the repeal of that regime, the government has been seeking to procure power projects under the ordinary public procurement framework, namely the Public Procurement Act 2006 and the Public Procurement Rules 2008. A renewable power project structured under the PPP Act 2015 would therefore mark a sig- nificant departure from the traditional route for power project procurement. The 2026 Guidelines seek to create a route for using land owned by government agencies for renewable energy projects under the PPP modality. Under the proposed structure, BPDB would act as the contract- ing authority, even where the relevant land is owned by another government agency. The land-owning agency
may receive a lease fee, a minority equity stake in the project company or a combination of both, depending on the feasibility study. This may create a practical route for developing larger renewable projects without requiring private sponsors to acquire large parcels of land from the market. The PPP Modality Guidelines also appear to reintro- duce, in substance, the concept of an Implementation Agreement through the proposed Facilitation Agree- ment. Although the terminology has changed, the agreement seems intended to provide a formal mech- anism for government facilitation and inter-agency co- ordination in relation to land, approvals, permits and grid-related support for renewable energy projects. The Bangladesh Economic Zones Authority appears to be one of the first agencies taking this model for- ward. BEZA has reportedly been pursuing feasibility work and obtained in-principle approval for renewable projects on its own land. If successfully implemented, this may become the first power-sector PPP project under the PPP Act framework and could create a replicable model for other government agencies with unused or underutilised land. The policy developments are not limited to genera- tion. The Unified Head End System Guidelines 2026 indicate a growing focus on distribution modernisation and smart metering. At present, different distribution utilities use different smart meter systems, vendors, communication technologies and head-end platforms. This creates integration difficulties, fragmented data systems, cybersecurity concerns and potential ven- dor lock-in. A unified platform across utilities such as BPDB, DPDC, DESCO, BREB, NESCO and WZPDCL is therefore intended to support a more interoperable smart metering infrastructure across the distribution sector. Taken together, these developments point towards a more structured renewable energy ecosystem. The government appears to be creating multiple routes for renewable power development, including utility-scale projects, merchant power projects, rooftop solar, pub- lic-sector solar, government-land PPP projects and smart-grid integration. The real test will be imple- mentation. If these frameworks are applied consist-
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