Renewable energy entrepreneurs are disquieted about their investments proposed in neat gas electricity initiatives as the intervening time government has decided to scrap 31 letters of intent for a number of renewable energy initiatives and pick up in touch with for unusual tenders, commerce insiders hang talked about.
These letters of intent racy funding proposals of about $5 billion in green energy initiatives, with $200 million already invested in land acquisition and other mission-linked steps, talked about Mostafa Al Mahmud, senior vp of the Bangladesh Sustainable and Renewable Strength Association (BSREA).
“We are in a position to call for unusual tenders for these 31 initiatives. The conventional tenders might per chance per chance also now no longer work,” Muhammad Fouzul Kabir Khan, adviser on vitality, energy, and mineral resources to the intervening time government, suggested The Enterprise Fashioned on Sunday. Of us that will almost definitely be selected in unusual tenders will likely be allowed to proceed with the initiatives, he added.
The switch has solid uncertainty over the manner forward for huge international explain funding that became attach apart for renewable energy initiatives in the nation. Entrepreneurs’ association leaders hang talked about they’re now no longer obvious if international investors, who previously committed funding, will likely be onboard if unusual tenders are known as.
If these initiatives are cancelled, each and every international and home investments will face vital uncertainty, talked about Mahmud, who will almost definitely be a renewable energy entrepreneur.
Starting the letters of intent course of afresh might per chance per chance also take now no longer decrease than a year, main to investors’ frustration and discouragement, he warned.
Renewable energy entrepreneurs hang already met with the energy adviser to fraction their considerations and requested that the Strength Division overview the letter of intent prerequisites to abet them proceed the initiatives.
A seven-member delegation from BSREA sent a letter to the plot of commercial of Chief Adviser Muhammad Yunus on 2 September, hunting for an appointment to talk regarding the matter. BSREA members talked about they’re trying to satisfy with the manager adviser to cease the scrapping of these a truly powerful initiatives.
Zahidul Alam, vp of BSREA, appealed to the manager adviser for intervention, declaring that the initiatives observe clear procedures and are a truly powerful for the nation’s vogue.
“These initiatives require no capacity tag and are applied on a ‘No Electricity, No Payment’ foundation, which can per chance per chance attach the government a vital amount in the vitality sector,” he added.
Meanwhile, the intervening time government has formed a nationwide committee to overview energy agreements signed below the Rapid Enhancement of Electricity and Strength Provide (Particular Provision) Act 2010 (Amended 2021), which allowed for the signing of unsolicited energy initiatives.
The 31 letters of intent encompass 25 solar, three wind, and three fracture-to-energy vitality initiatives. Many investors hang already made partial investments essentially based fully on the issued letters of intent. If applied, these initiatives would hang contributed 2,678MW of electricity to the nationwide grid, taking part in a a truly powerful characteristic in addressing the nation’s vitality shortages.
For the time being, Bangladesh’s renewable energy technology capacity stands at 1,379MW, with 596MW coming from utility-scale on-grid initiatives.
Possible international investors encompass worldwide locations such as China, France, Malaysia, Singapore, South Korea, Germany, Japan, the USA, and the UAE.
Strength sector experts suggest that the government, in preference to cancelling outright, ought to aloof overview the renewable energy initiatives on a case-by-case foundation.
“Since most renewable energy initiatives are pushed by international funding, cancelling them might per chance per chance hang a detrimental impact on FDI in the nation. The government ought to aloof overview and assess each and every mission in my idea,” talked about M Zakir Hossain Khan, chief government of the energy-centered snort tank Alternate Initiative.
Essentially essentially based on a BSREA gape, if applied, the renewable vitality plant life might per chance per chance also attach the government nearly $820 million (Tk9,700 crore) annually in energy bills.
