Cancellation of 31 renewable power projects worth $6b hurts investor confidence: TIB
According to the anti-corruption watchdog, Bangladesh’s renewable energy ambitions remain stalled as policymakers have yet to place clean energy at the centre of national planning.
Highlights
- 31 renewable power projects cancelled, affecting $6bn in planned investment
- Decision sends negative signal to foreign investors, warns TIB
- Policy instability and weak governance blamed for stalled clean energy growth
- Land acquisition and grid gaps delaying renewable projects
- Lack of smart grid and infrastructure discouraging rooftop solar adoption
Transparency International Bangladesh (TIB) has expressed deep concern over the interim government's decision to cancel 31 unsolicited renewable energy projects involving an estimated investment of around $6 billion, warning that the move could undermine investor confidence at a critical time for Bangladesh's clean energy transition.
At a press conference on 'Power Generation from Renewable Energy: Challenges in Good Governance and the Way Forward' held at the TIB office in Dhaka on Tuesday (24 December), speakers said the cancellation has sent a "shocking and negative signal" to foreign investors when the country urgently needs stable and predictable investment to expand renewable power generation.
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TIB Energy Governance Coordinator Md Newazul Moula and Assistant Coordinator Ashna Islam presented the organisation's findings, while TIB Executive Director Dr Iftekharuzzaman also addressed the event.
In November 2024, the interim government cancelled renewable energy deals with 31 companies signed during the Awami League government under now defunct 'Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010'.
The Bangladesh Power Development Board (BPDB), in its letter to the companies, said as the 'Quick Enhancement of Electricity and Energy (Special Provisions) (Repeal) Ordinance 2024' was issued on 28 November 2024, the 2010 Act has been repealed. "As your project was initiated under the provisions of the repealed Act, the government has decided not to proceed with projects initiated under the said Act," reads the letter.
According to the anti-corruption watchdog, Bangladesh's renewable energy ambitions remain stalled as policymakers have yet to place clean energy at the centre of national planning. As a result, the country's vast renewable potential remains largely untapped despite repeated commitments, TIB observed.
"Without modern grid integration and adequate technical readiness, households do not find renewable energy convenient or financially viable," Iftekharuzzaman said, stressing the need for policy stability and consistency to give investors a clear and predictable pathway.
TIB identified land acquisition as a major challenge for Independent Power Producers (IPPs), noting that difficulties in securing land significantly delay project implementation and increase costs.
The organisation also pointed to the absence of a smart grid system, inadequate substations and weak distribution infrastructure as key factors discouraging residential consumers from installing rooftop solar systems.
In addition, TIB alleged mismanagement in approving technical equipment required for renewable projects, saying bureaucratic inefficiencies and delays are slowing progress and creating uncertainty. It further cited reported cases of document forgery in obtaining environmental clearance certificates, alleging that authorities have failed to take effective action despite such irregularities being identified.
TIB stressed the need for stronger oversight, transparency and accountability throughout the approval and implementation of renewable energy projects, warning that without credible governance reforms Bangladesh will struggle to meet its renewable energy targets.
The organisation urged the government to ensure policy consistency, modernise energy infrastructure, enforce fair regulatory practices and restore investor confidence in the renewable energy sector.
