Confidence Group eyes Tk4,000cr fresh investment in solar by 2028

Investment at a glance: 

• More than Tk4,000cr planned investment by 2028
• To produce 400MW
• Tk2,150cr investment planned for two plants in Chattogram and Bagerhat
• Tk2,000cr planned for third plant in Fatikchhari

Power capacity expansion roadmap:

• Current: 393MW
• 2029: Around 1,000MW
• 2032: 1,960MW
• 2035: 2,160MW

Planned diversification into:

• Solar
• Gas-fired generation
• Battery storage
• Fuel infrastructure

Confidence Group plans to invest more than Tk4,000 crore in 400MW solar power plants by 2028 as the company seeks to diversify beyond heavy fuel oil and meet rising electricity demand.

Confidence Power and Energy plans to invest around Tk2,150 crore in two 200MW solar projects – 100MW each in Chattogram and Bagerhat. The Bagerhat project, near Mongla, will be implemented as a joint venture with Doreen Power, which will hold a 60% stake.

Confidence Enterprises and Confidence Power and Energy jointly plan to invest another Tk2,000 crore in a separate 200MW plant in Fatikchhari.

Infograph: TBS

The company disclosed the investment plans during a recent visit by media representatives and capital market investors to its power plants in Bogura.

Confidence Power and Energy is also planning an initial public offering (IPO) to raise Tk400 crore from the capital market to finance its solar expansion.

Imran Karim, chairman of Confidence Power and Energy, told The Business Standard that the fresh investments are intended to meet future electricity demand and diversify the company's existing portfolio.

"Essentially, the decision to invest Tk2,150 crore anew was made to meet the country's future power needs and diversify our existing portfolio basket," he said.

He said another 200MW solar plant would be developed with Confidence Enterprises, with Confidence Power and Energy holding a 49% stake in the project.

"This investment will strengthen our standing in the power sector. Once the solar power plant becomes operational, the company's revenue and profits will rise significantly, benefiting shareholders in the long run," he said.

Tk400cr IPO to finance solar expansion

Confidence Power and Energy plans to raise Tk400 crore through the book-building method to finance its solar projects.

According to its red-herring prospectus, the company has scheduled a roadshow for 18 October to present its proposed equity offering to eligible investors, either in person, digitally or through a combination of both.

The company plans to allocate 83% of the IPO proceeds to land purchases and civil construction for the two solar projects, 15% to loan repayment and the remaining 2% for IPO-related expenses.

Of the proceeds, Tk230 crore will be invested in the 100MW Chattogram solar project, while Tk102 crore will be invested as equity in the 100MW Mongla solar venture with Doreen Power.

The company will use another Tk60 crore to partially repay loans from City Bank and BRAC Bank, while Tk8 crore has been earmarked for estimated IPO expenses.

The company plans to finance the two 200MW projects with a combination of bank loans, capital market funding, preference shares and shareholders' contributions. It expects banks to finance 75% of the estimated Tk2,150 crore cost of the first 200MW project, or around Tk1,612 crore.

Electricity demand creates room for solar

Karim said electricity demand in Bangladesh had grown by an average of 6.2% a year in recent years and was projected to reach nearly 41,000MW by 2040.

Bangladesh has an installed power generation capacity of 28,484MW, but actual generation and electricity delivered to consumers remain lower, he said.

Peak generation stands at around 19,400MW, while approximately 18,500MW reaches end users after transmission and distribution losses, according to Karim.

"Given the rising demand, power generation must increase. However, without new gas discoveries, expanding gas-based power generation will not be feasible. This creates a massive opportunity for solar energy," he said.

Confidence Power and Energy has been supplying electricity to the national grid since 2019. The company expects its solar investments to improve its financial performance, expand its asset base and strengthen its overall valuation, Karim added.

Assets rise to Tk5,163cr

Confidence Power and Energy's total assets stood at Tk5,163 crore as of June 2026, up 22% from a year earlier, according to its financial statements.

The company had retained earnings of Tk2,665 crore, having retained its profits without recommending dividend payments to shareholders.

Its outstanding bank loans totalled Tk818 crore, including Tk300 crore borrowed by Confidence Power Bogra and Tk241 crore by Confidence Power Rangpur for project financing.

According to financial statements audited by A Qasem & Co, the company's revenue stood at Tk1,771 crore and net profit after tax at Tk477 crore in fiscal year 2025-26.

In the previous fiscal year, revenue was Tk2,399.73 crore and net profit was Tk486.42 crore.

The company projects that annual revenue will increase to Tk3,796 crore over the next five years, while net profit is expected to rise to Tk976 crore.

Capacity targeted to exceed 2,000MW by 2035

Confidence Power and Energy has unveiled a 10-year strategic roadmap to increase its operating capacity from 393MW to 2,160MW by 2035.

The plan aims to transform the company from a heavy fuel oil or HFO-based power generator into a diversified energy business incorporating solar power, gas-fired generation, battery storage and fuel infrastructure.

Under the phased expansion plan, operating capacity is projected to reach around 1,000MW by the end of the first phase in 2029, 1,960MW by the end of the second phase in 2032, and 2,160MW by the end of the third phase in 2035.

The company is pursuing the expansion as Bangladesh's domestic gas output has declined by 33% since fiscal year 2018-19, according to the information provided.

Confidence Power and Energy operates through four power-generation subsidiaries: Confidence Power Bogura, Confidence Power Rangpur, Zodiac Power Chattogram, and Confidence and Doreen Power.

Together, the plants supply 393MW of electricity to the national grid. The two plants in Bogura have a combined capacity of 226MW, the Rangpur plant has a capacity of 113MW, and the Chattogram plant has a capacity of 54MW.

The company's HFO-fired plants began commercial operations between March and November 2019 and were designed for a 15-year operating life.

Confidence Power and Energy's core business is to build, own, and operate power plants that generate and supply electricity to Bangladesh's national grid.