Bangladesh is one of the fastest-growing economies in South Asia with a progressive economy that has grown at an annual rate of around 6%. Solar Home Systems are highly decentralized and particularly suitable for remote, inaccessible areas. There is no supply of electricity in many remote areas of the country. Therefore, the business of solar power systems was introduced by both governmental and nongovernmental organizations. Solar power systems are contributing a huge amount of energy and changing the current energy requirements, especially in rural areas of Bangladesh. Bangladesh is currently generating around 560 MW of electricity from renewables, which is just 2.95% of total power generation. The future plan is to generate 2000 MW of power, 10% of the total within two years. The GOVT of Bangladesh has shown a strong commitment to attracting private sector investments and providing an investment-friendly environment by providing various taxes and other incentives.
Currently, a total of 559.80 MW of power is generated from renewable energy, of which a whopping 325.82 MW, or 52.8%, comes from solar power. This is evidence of how significant the solar sector has become and thus more and more investors are showing interest in this industry. The World Bank has approved $185 million to add up to 310 Megawatt (MW) in renewable energy generation capacity in Bangladesh and mobilize private sector participation to meet the growing demand for electricity in the country. The project will help mobilize up to $212 million from the private sector, commercial banks and other sources of financing and establish a dedicated Renewable Energy Financing Facility to provide credit to developers of both rooftop solar photo-voltaic (PV) and large-scale renewable sources. It project will add up to 310 Megawatt (MW) in renewable energy generation capacity in Bangladesh and will help mobilize up to $212 million private sector participation to meet the growing demand for electricity in the country.