December 24, 2025 Bangladesh solar plant cancellations: Unexpected 34 Project Halt24 Dec 2025 15:36
In a significant policy shift, Bangladesh’s interim government has cancelled the approvals for 34 solar power plants, a move that follows the repeal of the Speedy Supply of Power and Energy (Special Provisions) Act through an ordinance. This decision signals a decisive turn towards a more transparent and competitive framework for the nation’s energy projects.
The Rationale Behind Bangladesh solar plant cancellations
The repeal of the special-provisions act marks the end of an era that began in 2010. The act was originally designed to fast-track energy projects without competitive bidding to combat severe power shortages. While it served its initial purpose, critics have long argued that the process lacked transparency and accountability.
The recent cancellations were executed by the Bangladesh Power Development Board (BPDB) following “clear instructions” from the Power Division. In letters sent to the affected developers, the BPDB terminated the Letters of Intent (LoI) with immediate effect, stating that the government had decided not to proceed with projects initiated under the now-repealed act. The government has justified this drastic measure by citing “massive anomalies” in the original project approvals and power tariff fixation. This move to a more competitive bidding process is intended to reduce costs, improve efficiency, and foster a more accountable energy sector.
Impact on the Solar Power Sector after Bangladesh solar plant cancellations
The cancellation of these 34 solar plants, which had a combined capacity of 1,235 MW, has sent shockwaves through Bangladesh’s burgeoning solar sector. Many of these projects were in advanced stages of development, and the sudden termination has generated significant frustration among entrepreneurs.
Sign In
Follow the stocks
