Buy the power, not the plant
A Corporate Power Purchase Agreement lets a large consumer contract directly with a merchant generator. You agree a tariff and pay for units consumed. The plant sits on someone else’s balance sheet.
What it is
A bilateral contract between a large consumer and a merchant plant
Until recently a private generator in Bangladesh had essentially one customer: the state. The Policy for Enhancement of Private Participation in Renewable Energy-based Power Generation, 2025, known as the Merchant Power Policy, changed that. Merchant Power Plants can now sell directly to eligible large consumers, and open access to the grid is a recognised right rather than a favour.
The generator builds and operates
An MPP develops the plant, carries the capital cost and takes the operating risk. Ownership can sit with a private investor, with you, or with a special purpose vehicle between the two, depending on how the economics are arranged.
You pay for units, at a negotiated rate
Tariffs are agreed bilaterally rather than set by regulation, then reported to BERC and the relevant utility. That is the central difference from buying grid power: the price is a contract term, not a government decision.
Delivery by dedicated line or wheeling
A direct connection avoids the grid entirely. Otherwise power is wheeled across the national network via arrangements with Power Grid Bangladesh, at BERC-approved charges that apply to every unit delivered.
Surplus has somewhere to go
Generation beyond what you take, up to a capped share of capacity, can be sold on to public sector utilities at approved rates. That cap matters when sizing, because it sets the ceiling on useful overbuild.
Suitability
Who this actually works for
Heavy continuous load
Textiles, steel, processing
A long-dated tariff only prices well if the load underwriting it is large, steady and predictable. Seasonal or interruptible demand is a poor fit and will be priced accordingly.
Export manufacturers
Buyer-driven ESG obligations
Power from a green MPP arrives with documentation, including Renewable Energy Certificates where the buyer requires them. That turns a compliance cost into a procurement contract.
Zones and large estates
Aggregated demand
Economic zones, multi-tenant estates and large commercial complexes can negotiate as a single bulk consumer where no individual occupier could.
Eligibility follows the consumer thresholds in the policy, which are tied to sanctioned load and connection voltage. We verify your position against the current gazette before any structuring work starts.
Process
How a CPPA comes together
Feasibility and negotiation
Load profile, capacity, tariff and contract term settled between you and the generator. Grid access assessed in parallel, because the wheeling cost belongs in the tariff conversation rather than after it.
Regulatory reporting and grid arrangements
The agreed tariff is reported to BERC. Where the grid is used, wheeling arrangements are finalised with Power Grid Bangladesh at approved charges. A dedicated line changes the cost structure and the timeline entirely.
Construction
The plant is built to the standard the financing party will inspect. Whoever owns it, the engineering has to survive a technical adviser's review, and that is easier to design for than to retrofit.
Operation and settlement
Power delivered, metered and billed on consumption. Surplus routed to public utilities within the permitted cap. Generation data available for your own reporting and for your buyers.
Is your load big enough for a CPPA?
Send us your sanctioned load and connection voltage and we will tell you plainly whether this structure fits, or whether a rooftop system serves you better.