Govt reviews 31 cancelled renewable energy projects to boost power supply

The government has decided to review whether 31 cancelled renewable energy projects can be revived to help increase electricity generation in the country.

The projects were cancelled during the tenure of the interim government despite being at different stages of implementation.

To examine the issue, the Ministry of Power, Energy and Mineral Resources formed a committee on 6 May and asked it to submit a report within seven working days after reviewing the projects from legal and practical perspectives.

The committee is headed by Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB), while Power Division Joint Secretary Md Mahafuzar Rahman is serving as a member.

Speaking to the reporters on Monday, Rezaul Karim said the committee had already started work and would submit its report to the ministry in due time.

“The cancelled projects will be reviewed considering both legal and practical realities,” he said.

According to ministry sources and stakeholders, 31 companies began implementing renewable energy projects after receiving letters of intent (LOIs) in 2022 and 2023 under the “Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010”.

The projects made significant progress before the interim government cancelled the LOIs in September 2024, allegedly based on what stakeholders described as a misinterpretation of a High Court verdict.

Research Director of the Centre for Policy Dialogue (CPD) Khandaker Golam Moazzem said the government should have renegotiated with the companies instead of cancelling all projects at once.

“If there were irregularities, action could have been taken against those responsible. But cancelling all projects together was not the right decision,” he said.

He added that the final part of the High Court verdict had allowed the BPDB to renegotiate the agreements if necessary.

“Not using that opportunity and instead unilaterally cancelling all projects was not a prudent decision,” he added.

According to ministry and investor sources, nearly 90% of the financing for the projects was expected to come from foreign companies.

The projects, involving nearly $6 billion in potential foreign investment, are expected to generate 3,287 megawatts of electricity, which could play a major role in reducing the country’s power shortage.

Stakeholders said substantial progress had already been made after the LOIs were issued, including land acquisition in different parts of the country.

However, the cancellation of the LOIs created uncertainty among local and foreign investors, with many foreign investors reportedly considering withdrawing their investments.

Sector insiders said the current government’s decision to reassess the projects has renewed hope among investors.

Source: TBS