The recent turmoil in Bangladesh’s renewable energy sector, following the abrupt cancellation of agreements with 31 companies by the Bangladesh Power Development Board (BPDB), raises serious concerns about the future of green energy in the country.
As per a report of this newspaper published on Thursday, this decision, made under the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, has not only sparked legal challenges but also jeopardised billions in foreign investment and the nation’s renewable energy ambitions.
The High Court’s recent ruling, which struck down key provisions of the Act, was a step towards restoring accountability and transparency in the energy procurement process.
However, the BPDB’s subsequent cancellation of contracts, despite many companies having made significant preparations, appears to undermine this progress.
The government’s insistence on inviting new tenders for projects already in motion raises questions about its commitment to fair play and due process.
While it is undeniable that some companies exploited the system, using Letters of Intent (LoIs) as mere bargaining chips rather than genuine commitments, the government’s sweeping response lacks nuance. Legal representatives argue that a thorough review should have been conducted before such drastic measures were taken.
The indiscriminate cancellation of projects damages investor confidence and threatens to derail Bangladesh’s renewable energy goals, pushing the country back towards reliance on costly fossil fuels.
The stakes are high. The cancelled projects, which aimed to generate 3,287MW of renewable energy, were expected to attract $6 billion in foreign investment. With companies from across the globe reconsidering their commitments, the potential for a significant setback in Bangladesh’s energy transition looms large.
Experts advocate for a more balanced approach, suggesting that the government should focus on renegotiating contracts where necessary rather than resorting to blanket cancellations. Furthermore, reforms are urgently needed to align energy procurement with the Public Procurement Act, ensuring transparency and fairness in future tenders.
As Bangladesh stands at this critical juncture, the actions taken by the government and judiciary will be pivotal. The path forward must prioritise investor trust and the sustainable development of the renewable energy sector.
Only through a commitment to transparency, accountability, and genuine engagement with stakeholders can the country hope to realise its ambitious energy goals and secure a greener future for its citizens.
