ADB Partners with MSEL to Spark Renewable Energy Growth in Bangladesh
In a significant leap forward for renewable energy in Bangladesh, the Asian Development Bank (ADB) has partnered with Muktagacha Solartech Energy Limited (MSEL) to establish a state-of-the-art 20-megawatt (MW) grid-connected solar photovoltaic power plant in Mymensingh.
This ambitious project, backed by a $24.3 million financing package, marks a milestone for private-sector renewable energy initiatives in the region.
ADB, acting as the sole mandated lead arranger, not only structured and syndicated the deal but also provided a $15.5 million loan from its resources. Additionally, $8.8 million came from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), a Japan International Cooperation Agency-managed fund administered by ADB. This innovative financing approach underscores ADB’s commitment to fostering sustainable energy solutions across Asia and the Pacific.
Driving Sustainability Through Collaboration
This solar power plant, one of the first private-sector utility-scale solar facilities in Bangladesh to gain international financial backing, is expected to generate 37.9 gigawatt-hours of electricity annually. More importantly, it will offset 18,344 tons of carbon dioxide emissions each year, significantly contributing to Bangladesh’s climate goals.
ADB’s Director General for Private Sector Operations, Suzanne Gaboury, emphasised the importance of this initiative, stating: “ADB’s financing aims to drive progress and advance sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector involvement in developing renewable energy in the country, while addressing the critical capital needs of renewable projects.”
Gaboury added: “ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh’s renewable energy sector, to advance sustainable solutions.”
A Growing Renewable Energy Landscape
Renewable energy currently represents a mere 4.5% of Bangladesh’s total power capacity, making this project a pivotal step in diversifying the nation’s energy mix. With the support of ADB, Muktagacha Solartech Energy Limited aims to bridge the gap and establish a more sustainable energy framework for the future.
Nuher Latif Khan, Managing Director of Joules Power Limited (JPL) — MSEL’s parent company — echoed these sentiments. “We are thrilled to secure financing from ADB for our second solar project in the country,” he said. “Collaborating with a globally respected financial institution like ADB underscores JPL’s commitment to sustainability and represents a major milestone in our pursuit of sustainable growth in renewable energy initiatives.”
JPL, a subsidiary of the Bangladesh-based conglomerate Expo Group, has been at the forefront of renewable energy innovation since its establishment in 2010. Beyond energy, the group’s diverse portfolio includes logistics, freight forwarding, and infrastructure development, showcasing its broad commitment to sustainable business practices.
The Role of LEAP 2 in Financing Sustainability
The $8.8 million contribution from LEAP 2 highlights the fund’s critical role in enabling private-sector sustainable infrastructure projects.
With a $1.5 billion commitment from Japan’s International Cooperation Agency, LEAP 2 targets projects that reduce carbon emissions, enhance energy efficiency, and improve access to essential services such as healthcare, education, and communications.
This partnership is a testament to the power of international collaboration in driving meaningful change.
A Catalyst for Transformation
Since its inception in 1966, the Asian Development Bank has been committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. With 69 member countries, including 49 from the region, ADB continues to spearhead initiatives aimed at eradicating extreme poverty and fostering sustainable growth.
By supporting projects like the Muktagacha solar plant, ADB reinforces its role as a catalyst for transformation in developing economies. The partnership with JPL and MSEL not only addresses critical capital needs but also sets the stage for Bangladesh to emerge as a regional leader in renewable energy.
The Road Ahead
This ground-breaking collaboration between ADB and MSEL signals a promising future for renewable energy in Bangladesh. As the country seeks to diversify its energy sources and reduce its reliance on fossil fuels, projects like these are critical to achieving long-term sustainability goals.
The Muktagacha solar plant is more than just a project; it’s a beacon of what’s possible when innovation meets investment. With continued support from international financiers and a commitment to sustainable practices, Bangladesh is poised to shine brighter on the global renewable energy stage.
