Experts in energy, business leaders, and policymakers are urging urgent changes to be made to Bangladesh’s system for buying green energy. They say that the current system is discouraging investment and slowing down progress towards the country’s clean energy goals.
The suggestions came up at a policy dialogue on Monday put on by the Centre for Policy Dialogue (CPD). At the dialogue, speakers talked about structural problems with the current tendering process, such as project packages that are too big, strict financial requirements, and the lack of specific guidelines for buying renewable energy.
Need for Open and Competitive Tendering
Advisor to the Ministry of Power, Energy, and Mineral Resources Dr Muhammad Fouzul Kabir Khan said that buying green energy had come a long way but that it still needed a lot of work.
“We must align our procurement processes with global best practices to attract both domestic and foreign investment,” he said, emphasising how important it is to have a system that works well and is clear.
Power Grid Bangladesh PLC Chairman Professor Dr M Rezwan Khan agreed, saying that the current system has worked up to a point but that Bangladesh needs a more open market to meet its long-term energy needs.
Partners from other countries want to keep working together.
Clinton Pobke, the Australian deputy head of mission, praised the government’s attempts to reform but stressed how important it is for everyone to work together.
“Australia is still determined to help Bangladesh through this transition.” “If these changes are made, they will strengthen the base for a long-term market for renewable energy,” he said.
CPD Points Out Problems for Local Businesses
CPD Research Director Dr Khondaker Golam Moazzem led the talk and said that reforms need to be flexible and adaptable to how the market is changing.
“Putting PPA (2006) and PPR (2008) back in place is a good start, but the system needs to change to fit new circumstances,” he said.
One of the main issues that was brought up was how hard it was for local businesses to meet strict financial requirements. Atikuzzaman Shazeed, an associate in the CPD programme, said that many domestic companies can’t participate in big bids because they don’t have as much money as foreign companies.
He also said that live reverse sales would be a good way to keep prices down and increase competition.
Foreign investors want more freedom.
The head of the Chinese Enterprises Association in Bangladesh, Han Kun, said that foreign involvement is limited by the rigidity of current procurement rules.
“To attract global players, there needs to be more openness and acceptance.” “That will lead to more fair competition and teamwork,” he said.
Leaders in the industry want implementation to happen faster.
A number of speakers worried that delays in reform are slowing down growth in some areas.
David Hasanat, President of the Bangladesh Independent Power Producers’ Association (BIPPA), said that the slow pace of implementation was not acceptable.
“We’re making progress, but it’s way too slow.” “Inefficiencies in the system must be fixed right away if we want to stay competitive,” he said.
“Policies only matter when they are effectively implemented,” said Imran Karim, who used to be president of BIPPA and emphasised the need for action over theory. Local businesses need real answers, not just plans.
Makes the case for clear procurement rules
The president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), Mostafa Al Mahmud, said that bidders are confused because there isn’t clear direction.
“Dedicated guidelines for buying renewable energy are needed right away to make things clear and easy to understand,” he said.
Others said that entry requirements should be made easier to understand and project packages should be resized so that smaller firms can better participate.
Engineer Naznin Akter, Managing Director of GSOLARIC Bangladesh Ltd, said that many potential local players are being ruled out just because they can’t afford to play.
Most Sultana Razia, Deputy Director of the Bangladesh Rural Electrification Board, also said that more open project sizing would make it easier for people in the area to get involved.
Participation of Many Stakeholders
A lot of people from all over the country were interested in changing Bangladesh’s green energy landscape, including policymakers, government officials, academics, private-sector leaders, development practitioners, and journalists.
As Bangladesh looks to its energy shift goals, it is clear that the procurement system needs to change quickly to bring in investment, boost competition, and ensure a long-term future with clean energy.
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