Bangladesh Advances Green Economic Zone Initiative with 100-200MW Solar-plus-Storage PPP Project at NSEZ
Key Insights
BEZA and ADB signed an agreement for a 100-200MW ground-mounted solar PV and battery energy storage system at the National Special Economic Zone.
This project marks Bangladesh's first solar power initiative implemented under a Public-Private Partnership framework, aligning with the new Renewable Energy Policy-2025.
The initiative aims to transform the NSEZ into a sustainable 'Green Economic Zone' and contribute significantly to the nation's 'Zero Net Carbon Emissions' target.
The agreement facilitates necessary studies and investor engagement for the rapid deployment of this landmark renewable energy infrastructure.
DHAKA – The Bangladesh Economic Zones Authority (BEZA) and the Asian Development Bank (ADB) formally entered into a Transaction Advisory Services Agreement (TASA) on June 29, 2025, to establish a 100-200MW ground-mounted solar photovoltaic (PV) plant complemented by a battery energy storage system (BESS) within the National Special Economic Zone (NSEZ). This landmark agreement, also summarized with the Economic Relations Division (ERD), signals a pivotal step towards transforming the NSEZ into a sustainable 'Green Economic Zone' and advancing Bangladesh's renewable energy targets under a Public-Private Partnership (PPP) framework. This move is particularly crucial for Bangladesh, a nation facing rapidly increasing energy demand and a significant reliance on fossil fuels, making diversified, clean energy sources essential for sustainable growth.
Located in Sonagazi Upazila, Feni, within the NSEZ, this project is poised to become Bangladesh's inaugural solar power initiative to be fully operated under a PPP model. Its implementation aligns directly with the recently promulgated Renewable Energy Policy-2025, underscoring the government's commitment to bolstering the nation's clean energy generation capacity and reducing its carbon footprint.
Chowdhury Ashik Mahmud Bin Harun, BEZA Executive Chairman, presided over the signing ceremony, emphasizing the project's profound significance. "This project is going to be a milestone for BEZA and the Bangladesh government," Harun stated, highlighting its pioneering role as the country's first economic zone-based solar project under the PPP framework. He further noted the formation of a special inter-ministerial coordination committee to ensure successful implementation and urged ADB to expedite necessary studies to attract both domestic and foreign investors to this critical endeavor.
The initiative represents a significant stride towards achieving the government's ambitious 'Zero Net Carbon Emissions' target, a commitment vital for global climate action. BEZA aims to meticulously balance industrialization and investment expansion with robust environmental protection measures, positioning the NSEZ as a leading model for sustainable economic development in the region. ADB Country Director Hoe Yun Jeong, alongside key representatives from the ERD, Power Division, Bangladesh Power Development Board (BPDB), and PPP Authority, were present, collectively underscoring the broad institutional and governmental support for this transformative project.
This strategic partnership is expected to catalyze further private sector investment in Bangladesh's burgeoning renewable energy sector, setting a powerful precedent for other large-scale clean energy projects, particularly within designated economic zones. It reinforces Bangladesh's proactive stance on climate action and energy diversification, paving the way for a more resilient, environmentally sound, and sustainable energy future for the nation.