The Bangladesh Power Development Board (BPDB) has scrapped approvals for 34 solar power plants for which letters of intent (LoIs) were issued under the Special Provisions Act.
The LoIs are being canceled because no implementation agreements, power purchase agreements (PPA), or land lease agreements have been signed, said the BPDB. The canceled projects, supported by local and foreign investors, were expected to have a combined capacity of 5,681 MW.
The LoIs were issued under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act without competitive bidding during the previous government.
After taking office, the current government in August 2024 suspended all negotiations, project selection, and procurement processes under the Special Provisions Act, citing widespread irregularities in awarding plant approvals, including tariff fixation.
This July, the government published an ordinance repealing the Special Provisions Act and decided not to authorize any more power plants under it. Future procedures for the canceled plants must follow an open tender process.
The renewable energy sector said the government’s cancellation of so many solar approvals sends “wrong signals” to foreign investors in particular.
“Foreign investors will now rethink while making any investment plan in Bangladesh due to uncertainty of policy sustainability in the country,” said Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA).
