The government has decided to cancel 43 power projects that were approved under the ‘controversial’ Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.
The decision came at a meeting held on Tuesday at Biddut Bhaban, chaired by Muhammad Fouzul Kabir Khan, the newly appointed adviser for Power, Energy, Rail, Road Transport, and Bridges.
According to Power Division Senior Secretary Md Habibur Rahman, “We are going to scrap 31 renewable power projects and 12 rental and quick rental power projects, which collectively had the capacity to generate 3,630 megawatts (MW) of electricity.”
Of the 43 power projects being cancelled, 12 are rental and quick rental power plants with a total capacity of 952 MW. These plants have already produced electricity under ‘no electricity, no payment’ agreements. The remaining 31 renewable power projects, many of which were approved hastily and granted letters of intent (LoI) under the special power act, are also set to be scrapped.
A Power Division official, who preferred to remain anonymous, noted, “We have no issue with cancelling the 12 rental and quick rental power plants immediately, as most of these projects have already enjoyed extended schedules. However, we may face challenges with the renewable plants, as some of them have already submitted proposal securities for project implementation.”
Another official said many of the projects approved under the special power act were likely influenced by under-the-table dealings.
To date, the Power Division has processed 133 renewable power projects under the special power act, with a combined capacity to generate 13,494.22 MW. However, only a small fraction of these projects has been proposed or implemented using public funds.
The current generation capacity from renewable power plants stands at 1,378 MW, including 380 MW from off-grid sources. In the private sector, around 152 power plants have been installed 28166MW with maximum production of 12,197 MW of electricity, according to officials.
Commenting on the government’s decision to cancel these projects, Consumer Association of Bangladesh (CAB) energy adviser Dr Shamsul Alam stated, “This is a significant step towards protecting consumers from exploitation. The cancellation of these projects by the interim government could prevent unjustified hikes in power and energy tariffs.”
Dr Alam further recommended that the government should cancel all power and energy projects approved under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010. He advocated for the adoption of competitive bidding processes for renewable energy projects to help reduce power tariffs.
Newly appointed Power, Energy, Rail, Road Transport, and Bridges adviser Muhammad Fouzul Kabir Khan at a meeting with Bangladesh Solar and Renewable Energy Association (BSREA) on Thursday said the government will encourage private sector to install renewable power projects through competitive bidding process.
He called upon to set up ‘Solar Cell’ for sustainable renewable energy transition.
On 18 August, the interim government had suspended all negotiations, project selections, and purchasing processes for power and energy projects under the controversial act.
On the same day, the Centre for Policy Dialogue (CPD) recommended abolishing the controversial legislation as part of broader reforms in the power and energy sectors.
