Abstract Bangladesh is a small country, located in south-east Asia having a fast-progressing economy and exemplary development in industry, architecture and engineering sectors. With such developments, demand of power is also on the rise exponentially. Although the generation capacity of the country has seen a major boost, lack of proper distribution, negligence towards renewable energy resources and dependance on perishable fossil fuels (natural gas, coal, mineral oil etc.) pose a major risk of a significant power crisis in future. The only tourist favorite island of the country, known as Saint Martin's Island lacks national grid connection and stable source of power to mitigate the inhabitants' electricity need. This study intends to analyze the technical and economic feasibility of solar powered central receiver system to provide steady and cheap means of power generation at the island in an environment friendly manner. A detailed and optimized model has been designed for simulating a 1 MW solar powered central receiver plant using SolarPILOT and System Advisor Model (SAM) software. Modelled power plant can generate 3304 MWh electricity yearly with a gross efficiency and capacity factor 12.29% and 41.9% respectively at 38.61 Cents/kWh levelized cost of electricity (LCOE) which is much cheaper than the current rate at Saint Martin's Island. The promising performance of the powerplant designed in this study would encourage future research and innovations in case of off-grid electricity generation employing solar thermal energy in Bangladesh to ensure sustainable development.