Low tender submission marks first round of PDB's solar power quest
Chinese companies who are installing renewable energy across the globe stayed out of the bidding process
Bangladesh's push for renewable energy from solar power failed to bring the leading national and international power companies on board owing to the policy volatility like abrupt cancellation of deal and lack of sustainable financial model.
Disinterestedness to participate in the tender process of Bangladesh Power Development Board's (PDB) grid-tied solar power plants is well reflected in the latest bid opening of 12 proposed solar power plants as no foreign company participated in the bidding process.
After six deferrals of the bid submission and opening date, PDB on 2 June opened the bids of the first package of installing 12 plants with a combined 353 MW capacity which received only 20 bids from local companies.
Chinese companies who are installing renewable energy across the globe stayed out of the bidding process. However, there are at least four Chinese companies who got the Letter of Intent in the cancelled deal.
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The earlier 31 deals – which were given in an unsolicited manner by the previous regime and later cancelled by the interim government – drew a number of foreign joint venture companies from China, Norway, South Korean and India.
In contrast, PDB's latest move to attract possible financiers with a competitive bidding process was met with cold responses from foreign companies, who avoided PDB's tender in a wholesale fashion.
Speaking to The Business Standard, Shafiqul Alam, lead analyst at the Institute for Energy Economics and Financial Analysis (IEEFA) said, lack of solid financial model, bankability and land scarcity forced the prospective bidders not to get on board in PDB's renewable energy quest.
"In the cancelled deal, there was a sovereign guarantee which played a crucial role in attracting foreign investors which was waived in the latest bidding process. Abrupt wholesale deal cancellation sent a chilling message to the foreign investors, as reflected in PDB's latest bid," he said.
How things unfolded for first package of installing 12 power plants
Earlier, PDB floated four international tender packages between 5 December 2024 and 19 March 2025 to install 5,238 megawatts of grid-tied solar power at 55 sites across Bangladesh.
In the first package, PDB invited international tender on 5 December 2024 to install 12 grid-tied solar power plants with a combined 353 MW capacity.
PDB data shows that only 20 bidders submitted bid documents out of 95 sold bid documents.
Of the proposed 12 power plants, six plants – totalling 188 megawatts – received only a single bidder each, which sector insiders attributed to a lack of trust in policymakers.
Of the six bidders, local infrastructure construction company Max Infrastructure was the single bidder for two power plants with 30 MW and 45 MW respectively.
PDB data shows, in the latest bidding round, ready-made garments and ceramic companies also participated in the bidding.
Highest four bids were dropped against the construction of 10 MW power plants and three tenders were dropped against proposed 25 MW power plants.
There were four bidders against two power plants and each received two tender submissions.
The 25 MW capacity proposed Moulvibazar power plant received three tender submissions.
Asked what caused the low turnout of bidders, PDB chairman Md Rezaul Karim said, "We are now analysing the real cause of the low tender submission and hoping to find a solution in bringing more bidders in our next bidding round."
Why foreign companies rejecting Bangladesh's quest for renewable energy
Bangladesh's venture to promote renewable energy is hindered by land scarcity, abrupt policy shifts and lack of financial incentives such as sovereign guarantee and arrangement of bank rolling against the project.
In November 2024, the government revoked 31 solar power plant deals signed under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, sending shockwaves to the prospective investors as some of the companies had already invested in land purchase and office setup.
"The unilateral decision of revoking the settled deal gave a very wrong message about our investment policy. This happened due to lack of trust in the policymakers." said Sakir Ahmed, former adviser of Green Solar Energy and former CEO of Xindex Energy Ltd.
Those power plants would be developed under deals covering design, installation, supply, testing, and commissioning. Land acquisition and financing would be arranged by the developers.
