The interim government has been urged by the Centre for Policy Dialogue (CPD) to launch tenders for 37 renewable energy projects that were cancelled after the August political upheaval. With a combined capacity of roughly 3,102 megawatts (MW), these projects were previously allocated without a bidding process by the former Awami League administration under the contentious “Speedy Enhancement of Power and Energy Supply (Special Provision) Act, 2010”.
The cancellation of these renewable projects has conveyed a confused message to both local and foreign investors regarding the government’s commitment to clean energy initiatives, according to Khondaker Golam Moazzem, research director for the CPD, who made this point during a dislogue in Dhaka.
He emphasised the significance of these projects for the country’s electricity supply, pointing out in particular how they can benefit Bangladesh’s ready-made garment (RMG) industry, which plays a big role in the country’s economy.
For the RMG business to be competitive in the global market and maintain production schedules, a steady and dependable power supply is essential. Moazzem noted that in order to promote the sustainability and growth of this industry, renewable energy sources could supply the extra clean power required to fulfil its rising demands.
To increase openness and competition in the bidding process, the CPD recommended employing the “reverse auction” method for tendering. In order to promote open public procurement under the Ministry of Power, Energy, and Mineral Resources, the interim administration recently decided to repeal the Speedy Supply Act, which is consistent with this approach.
Moazzem revealed that 30 of the projects that were terminated were supposed to be developed through build-own-operate (BOO) initiatives and joint ventures with investors from 15 other nations. Bangladesh’s continued demand for renewable energy investment may make it a desirable location for Chinese investors, especially as the Power Development Board (PDB) gets ready to release bids for the construction of ten 500 MW grid-connected solar power plants.
Chinese financial institutions are frequently eager to fund renewable energy projects, which might help local businesses looking to draw in foreign investment, Moazzem said, highlighting the US $ 39.74 billion in worldwide assets available for such ventures.
Notwithstanding these advantages, worries about the difficulties faced by foreign investors—such as exchange rate fluctuations, red tape, and the requirement for stable domestic regulations—remain. The political environment and the emphasis on domestic dispute resolution raised concerns among some conversation participants that could jeopardise the security of investments.
Shafiqul Alam, the chief energy analyst at the Institute for Energy Economics and Financial Analysis, and Gan Peng, the chairman of Chint Solar (Bangladesh) Co Ltd, were among the speakers at the event. Both emphasised that in order to attract international investment in Bangladesh’s renewable energy sector, a stable political climate and lower import taxes are essential.
The National Board of Revenue (NBR) chairman, Md. Abdur Rahman Khan, asked companies to use the Grievance Redressal System (GRS) to file complaints and reassured attendees of the government’s dedication to upholding policy consistency.
The conversation provided a forum for talking about the crucial nexus between the needs of the RMG industry and the development of renewable energy, highlighting how improving clean power generation is crucial to Bangladesh’s economy’s long-term viability.