The Asian Development Bank (ADB) has signed a $17.7 million financing package with Spectra Solar Park Limited (SSPL) to invest in a 35 MW utility-scale solar photovoltaic plant in Bangladesh. This plant will be one of the first privately owned solar plants in Bangladesh to be financed by multilateral institutions and will support the country’s efforts to attain long-term energy security and meet climate goals by stepping up its use of clean energy.

The financing comprises a loan from ADB and a loan from the ADB-administered Canadian Climate Fund for the Private Sector in Asia II (CFPS II). The Canadian Climate Fund for the Private Sector in Asia (CFPS) also provided a technical assistance grant to support project preparation and to catalyze the loans. The two funds were established by the Canadian government to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific.

Once operational, the plant is expected to provide over 50 GWh of clean electricity annually to the national grid and avoid 33,200 metric tons of carbon dioxide emissions. The project is also in line with the Bangladesh government’s aim to reduce the country’s dependence on fossil fuels through renewable energy.