Bangladesh restores payment guarantees for renewable energy IPPs to secure financing for new projects

Type: Policy Support · Technology: Solar · Country: Bangladesh · Announced: 2026-08-10

The Government of Bangladesh reinstated payment guarantees for renewable energy independent power producers (IPPs) to restore investor confidence and unlock financing for new projects amid a severe energy crisis. The Power Division issued a directive instructing the Bangladesh Power Development Board (BPDB) to include payment guarantees in future power purchase agreements, reversing a policy scrapped two years prior. Muhammad Abul Lyse, deputy secretary of the Power Division, signed the directive, stating the move aims to increase electricity generation from renewable sources by providing greater security for investors. Solar EPC Development Ltd managing director Ezaz Al Qudrat A Mazid welcomed the initiative, noting it will improve project bankability and attract both local and international investment to Bangladesh’s clean energy transition. BSREA president Mostafa Al Mahmud highlighted that the absence of payment guarantees had delayed multiple solar projects, contributing to factory shutdowns and power cuts during the ongoing crisis.

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