Tk 605 crore project for 70MW solar power plant at Matarbari

The government has taken an initiative to set up a 70-megawatt grid-connected solar power plant on unused land at Matarbari in Maheshkhali upazila of Cox's Bazar. Its Development Project Proposal (DPP) has already been sent to the Planning Commission for consideration. The project is targeted for completion by 2028.

Coal Power Generation Company Bangladesh Limited (CPGCBL) Managing Director Md Nazmul Haque gave the information. He said the project will be implemented on 171 acres of unused land within the boundary of the Matarbari 2x600 megawatt ultra supercritical coal-based power plant.

According to the draft DPP prepared for the Planning Commission's Project Evaluation Committee (PEC) meeting, the project period has been set until December 31, 2028.

The proposed project cost has been set at Tk 604 crore 97 lakh 62 thousand. Of this, government financing is Tk 42 crore 87 lakh 6 thousand, project loans Tk 532 crore 39 lakh 12 thousand, and the implementing agency's own financing Tk 29 crore 71 lakh 44 thousand.

A Planning Commission official described the proposed project as consistent with the government's election pledge to expand renewable energy. He said the European Investment Bank (EIB) will finance the project under Bangladesh's renewable energy facility framework loan; the framework includes 350 million euros in loans and 45 million euros in grant assistance.

The Planning Commission official said the project will increase electricity supply to the national grid, reduce dependence on fossil fuels and cut carbon emissions. As a result, it will help build long-term energy security and a sustainable power system.

According to the project description, the coal-based power plant authority initially allocated about 630 acres of land for ash storage. An ash pond has been built on only 105 acres of it, leaving the remaining 525 acres unused. The proposed solar power plant will be set up on a part of that unused land allocated for ash storage. No fresh land acquisition will be needed.

The project description says that as there is an existing 14-metre-high embankment around the ash pond, no new protection embankment will need to be built either.

Under the project, solar photovoltaic (PV) modules, inverters and other related equipment will be installed. In addition, a one-kilometre-long 132 kV overhead transmission line will be built to connect the solar plant with the nearby Matarbari 132/33 kV grid substation.

A 17.5-kilometre second-circuit overhead conductor will also be installed between the Matarbari and Chakaria 132/33 kV grid substations. A total of four 132 kV air insulated switchgear (AIS) bays will be built, three at Matarbari and one at Chakaria.

The project authority hopes the location near the Matarbari deep seaport will help with quick unloading and transport of imported equipment.

A feasibility study completed in February 2026 recommended raising the capacity of the initially considered 50-megawatt solar project to 70 megawatts.

Mohammad Ashraful Islam, joint chief of the Planning Commission's power division, said a pre-Project Evaluation Committee (PEC) meeting on the draft proposal will be held soon. He also said the project is consistent with the government's election manifesto and will play a role in implementing the election pledge. The project is consistent with Goal 7 of the UN-declared Sustainable Development Goals (SDGs), which aims to ensure access to affordable, reliable, sustainable and modern energy for all. Under the Renewable Energy Policy 2025, targets have been set to meet 20 percent of the country's total electricity demand from renewable sources by 2030 and 30 percent by 2040.

The Planning Commission's assessment says the country's total installed power generation capacity, including captive and renewable energy, is currently 32,688 megawatts. Of this, generation capacity from renewable sources is 1,934.54 megawatts, which is 5.91 percent of the total capacity.

However, before finalising the project, the Planning Commission has raised objections and observations on several issues for discussion. These include analysing the proposed prices of main equipment in comparison with similar ongoing or completed projects, taking prior approval from the Finance Division on the proposed financing structure, and increasing the implementing agency's own financing. The Commission's observation says that although the project appears financially realistic, CPGCBL has proposed own financing of only 4.91 percent of the total cost, or about Tk 29 crore 71 lakh. The quality and prevailing market prices of solar PV modules and inverters will also be reviewed at the PEC meeting.

The justification for an allocation of Tk 36 lakh 50 thousand for vehicles, office equipment and furniture, and the specification of the exact number of motorcycles instead of mentioning them as a 'lot', will also be examined. The Planning Commission has asked the implementing agency for detailed information on the country's public and private power generation capacity, renewable energy targets and existing solar generation capacity; agency- and location-based information has also been requested. To ensure foreign financing, the proposed project has been included in the list of new and unapproved projects in the Annual Development Programme (ADP) for the 2026-27 fiscal year.