Bangladesh has initiated its first merchant power generation model with a memorandum of understanding (MoU) signed between H&M, Pran-RFL Group, and IFC to establish a floating solar power plant in Moulvibazar. Unlike the Independent Power Producers (IPP) model, the Merchant Power Producers (MPP) model allows producers to sell electricity directly to consumers at negotiated prices, bypassing the Bangladesh Power Development Board (PDB) as the sole buyer. This development occurred during the Bangladesh Investment Summit 2025 in Dhaka. The government plans to establish 5,000MW of solar power capacity and aims to reduce dependency on depleting gas reserves. H&M noted their suppliers need around 2,500MW of solar power to meet current demands. Pran-RFL will use 300 acres of water for the plant, with funding support from IFC and the European Investment Bank. Grameenphone highlighted a need for centralized renewable energy sources to meet rising electricity demands while reducing carbon emissions by 50% by 2030.
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