The project will be implemented by Rhaimafrooz, a local renewable energy firm, and CMS Traffic System of India, with the 265 million taka ($3.2 million) cost funded by the World Bank.

Population growth, increased industrialization, additional connections and rise in the use of modern, electrical appliances have all boosted demand for electricity in Bangladesh.

Still, Bangladesh aims to meet 10 percent of its total power demand from renewable energy sources by 2020. One pioneer in this effort is the central bank, which in 2010 switched to solar-powered lighting.

Experts gave the new streetlight plan guarded praise.

"From a social point of view this is a good initiative," said Alnun Nishat, a professor and vice-chancellor at Dhaka's BRAC University.

"When there is a load-shedding (power cut) we see the streets go completely dark, and muggers take advantage of it to prey on people. With solar-powered streetlights this can be avoided."

(Reporting by Azad Majumder, editing by Elaine Lies)