We welcome the recent call by the Centre for Policy Dialogue (CPD) to the interim government for immediate action in floating tenders for 37 renewable energy projects. We’ll need to say it both timely and necessary.
Our newspaper reported yesterday that the interim government’s cancellation of these projects, along with five others, after the political transition in August, has cast doubt on Bangladesh’s commitment to expanding its clean energy sector.
With a combined capacity of 3,102 megawatts (MW), these renewable projects represent a crucial step towards a sustainable energy future for the nation.
However, under the previous Awami regime, these projects were awarded through the “Speedy Enhancement of Power and Energy Supply (Special Provision) Act, 2010,” a controversial law that bypassed competitive bidding in favour of unsolicited contracts.
This not only raised project costs but also created a culture of opacity in the energy sector.
It is commendable that the interim government repealed this act and scrapped the contracts, allowing room for transparent and competitive procurement moving forward.
Bangladesh’s growing energy needs and its commitments to global climate goals make it imperative that these renewable projects are brought back to the table under fair and open bidding processes.
CPD’s recommendation to adopt a “reverse auction” system — where suppliers compete by offering the lowest bid — should be seriously considered.
This method promises to reduce costs while attracting diverse investments, including from competitive Chinese firms.
Nevertheless, the path forward is not without its challenges.
Issues such as currency volatility, land acquisition, grid capacity, and Bangladesh’s insistence on domestic dispute resolution may dampen foreign investor confidence.
Furthermore, the political climate, coupled with high tariffs and bureaucratic delays, raises additional concerns for potential investors.
As the Power Development Board prepares to tender new solar projects, the government must ensure that investor concerns are addressed with long-term policy consistency.
Providing clear guidelines, reducing bureaucratic red tape, and improving transparency in contract documents will not only attract investments but also restore confidence in the sector.
With nearly $40 billion in global renewable energy funds accessible, Bangladesh stands at a pivotal moment.
Now is the time to embrace a competitive, transparent, and sustainable energy strategy that serves the nation’s needs while protecting its future.