Bangladesh is moving ahead with renewable energy investments. Currently, five fresh renewable power projects with a combined generating capacity of 700 MW are undergoing evaluation.
As per reports, renewable power projects with a capacity of over 1,200MW have been approved and signed this year. Besides, proposals for 800MW from renewables (offshore wind and solar) have also been approved in principle including Denmark’s $1.3 billion offshore wind energy proposal, which secured government approval for feasibility study in October.
These so far approved or under scrutiny projects, along with existing ones, would have a capacity of 2,700MW from renewable sources, as per local reports.
It is reported that the government has already approved tariffs for the purchase of 1,241MW of renewable energy from nine other projects in the first five months of the current fiscal year. Investments in these projects came from various countries including Japan, China, and Saudi Arabia. Most of the solar power plant projects were approved with tariffs set at $0.10 per kilowatt equivalent to Tk11.03 at 1 Dec 2023 rate.
The Power Division is now evaluating proposals for one 100MW wind power plant and four solar power plants with 600MW capacity. These proposals have been submitted by local companies partnering with investment institutions from various countries, including Hong Kong, Vietnam, and the United Kingdom.
The Proposal Processing Committee (PPC) under the Power Division is currently in discussions with project investors regarding the tariffs at which the government will procure electricity from the plants.
Power division’s Senior Secretary Md Habibur Rahman said that the government’s policy is geared towards gradually reducing dependence on fossil fuels and transitioning towards renewable energy.
“This is why we are encouraging local and foreign private investments in renewable energy and ensuring a favourable environment for interested investors,” he said. He further added that investment in this sector is attractive for entrepreneurs due to the availability of low-interest bank loans for setting up solar power plants.
“We are offering fair tariff benefits and a guaranteed power purchase for a period of 20 years from the outset. With the amount of money required to establish a plant, entrepreneurs can expect a full return on their investment within 10 years of production, thanks to the government-set tariff,” the Power Secretary added.
“As there is an opportunity to receive policy support from the government and reap business benefits, several countries are investing in renewable energy through consortiums or joint ventures with Bangladeshi companies. Till now, the majority of investment proposals received or those whose tariffs have been approved by the Cabinet Committee on Government Procurement are from foreign investors, “he said.
According to the Bangladesh Power Development Board, the country currently generates 2% of its electricity generation capacity from renewable sources. Achieving the Sustainable Development Goals, or SDGs, requires at least 12% of electricity from these sources.
