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‘Lower solar tariffs to save Tk420cr annually’

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Staff Reporter :

Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan has said the government expects to save approximately Tk420 crore annually following approval of several solar power project tariff proposals at significantly reduced rates through fully competitive and transparent tenders.

Speaking to reporters after a meeting of the Advisers Council Committee on Government Purchase at the Cabinet Division Conference Room in the Bangladesh Secretariat on Tuesday, Fouzul noted that earlier contracts had been cancelled over concerns of overpriced tariffs.
“Those contracts were retendered under a transparent procedure, and the results have vindicated our decision,” he said. Finance Adviser Dr Salehuddin Ahmed presided over the meeting.

The adviser said the newly-approved projects, totaling 918 MW of solar power, were originally initiated under the now-repealed Speedy Supply of Power and Energy (Special Provision) Act, 2010. Under the fresh competitive tenders, the government secured prices two to three cents per kilowatt-hour lower than previously contracted, which translates to annual savings of Tk420 crore.

Fouzul emphasized that Bangladesh must transition gradually toward renewable energy, noting that dependence on imported LNG is becoming increasingly expensive. He alleged that certain vested interests tied to past irregularities in the solar sector are attempting to obstruct this shift.
“In previous schemes under social safety net programmes, solar panels supplied were often missing on the ground. Those who profited from such corruption are now discouraging participation in open tenders,” he said.

He cited challenges in the rooftop solar programme, where some agencies received bids while the Rural Electrification Board (REB) did not. Additional field-level requirements, such as mandatory transformer installations, reportedly deterred participation.

During a recent visit to Barishal, he observed that while the Western Zone Power Distribution Company received bids, local Palli Bidyut Samitis did not. The REB chairman has been instructed to act against officials obstructing renewable initiatives.

“Bangladesh is moving from a corruption-ridden process to a corruption-free one. Any obstruction must be addressed,” Fouzul said. He stressed that the country’s energy future depends on rapid renewable energy expansion, warning that Bangladesh cannot sustain large-scale LNG imports.
The approved proposals cover over a dozen grid-tied solar plants with capacities ranging from 10 MW to 200 MW, as well as a revised tariff for a 210 MW combined-cycle plant.

Projects under consideration include plants in Fatikchhari, Pabna, Noakhali, Hathazari, Moulvibazar, Chakaria, Nilphamari, Ramu, Bibiyana, Mongla, and Hemayetpur, submitted by BPDB as part of the government’s renewable energy expansion plan.

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