US Firm to Build Bangladesh’s First Gigawatt Solar Hub

A major milestone in Bangladesh’s renewable energy journey is set to unfold as US-based Pacific Energy Group (“Pacific”) moves forward with plans to construct the country’s first gigawatt-scale, grid-integrated solar power hub. The project will be located on Swarno Dweep Island in Noakhali district, Chattogram division, about 180 km southwest of Dhaka.

The initial phase will deliver 1,000 MWac of solar power, with the capacity to expand to 2,000 MWac or more in the near future. Estimated at a total initial investment of USD 1.4 billion, the venture is designed to accelerate Bangladesh’s transition towards its recently approved Renewable Energy Policy 2025 targets, while reducing reliance on expensive imported fuels.

Pacific’s wholly owned subsidiary, Eleris Energy Ltd (EEL), will oversee the project’s development. Once operational, the solar hub is expected to generate renewable electricity for the national grid within 18 months, offering a rapid, strategic boost to domestic energy security. The project is projected to save the country over USD 500 million annually in power subsidies—amounting to more than USD 14 billion in inflation-adjusted savings over 20 years.

Public-Private Partnership Model

The development will be implemented under a Build-Own-Transfer (BOT) public-private partnership signed in 2022 between EEL and the Government of Bangladesh, represented by the Bangladesh Army Welfare Trust. This framework grants rights to develop up to 10,000 acres of marginal, uninhabited, non-agricultural land, while the private sector bears all financial and operational risks. Upon completion of the project’s operational life, ownership will transfer to Bangladesh at no cost.

Cutting-Edge Infrastructure

The solar hub will deploy next-generation modules from global leader LONGi of China, supported by a battery energy storage system (BESS) to ensure grid stability. The project will also include high-voltage transmission lines, upgraded substations, port facilities, and a fiber-reinforced polymer barrier to safeguard the site from sea erosion.

To support the initiative, Pacific will finance a 500 MWdc solar panel manufacturing facility near Dhaka. This plant will assemble more than two million solar panels for the project using Bangladeshi labor, laying the foundation for a new domestic renewable energy manufacturing industry that can serve both large-scale and decentralized solar markets.

Economic and Social Impact

According to EEL CEO David Taylor, the integrated solar venture represents an initial foreign direct investment of USD 1.4 billion, creating over 2,500 long-term local jobs and generating approximately USD 2.3 billion in direct economic benefits over its lifespan. The project is also registered as a Gold Standard Project, aligning with key UN Sustainable Development Goals.

Approved by the Bangladesh Power Development Board and endorsed by the Energy Ministry, the solar hub is now awaiting final governmental notice of award, expected this August. Construction is slated to begin in 2026.

Pacific Energy Group CEO Rob Potts emphasized that the company is ready to commence as soon as the final approval is granted. Backed by international banks and insurance partners such as World Bank/MIGA, the project also aligns with recent US commitments to strengthen economic cooperation with Bangladesh.

When completed, the Swarno Dweep solar hub will stand as Bangladesh’s largest renewable energy project, significantly advancing the nation’s energy independence and sustainability ambitions.