Govt expects to save Tk420cr annually with lowered tariffs in solar power plants: Fouzul Kabir

Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan today (9 December) said the government expects to save around Tk420 crore annually after approving a good number of solar power project tariff proposals at significantly lower tariffs through a fully open and competitive tendering process.

"Those earlier contracts were cancelled due to concerns that the prices were overpriced, prompting the government to retender them under a transparent procedure," he said.

Fouzul was speaking to reporters after a meeting of the Advisers Council Committee on Government Purchase at the Cabinet Division Conference Room at Bangladesh Secretariat today. Finance Adviser Dr Salehuddin Ahmed presided over the meeting.

The power adviser said the newly-approved projects with a gross capacity of 918 MW of solar power had originally been initiated under the now-repealed Speedy Supply of Power and Energy (Special Provision) Act, 2010.

He said the fresh competitive tenders vindicated the government's concerns.

"In each of the 12 projects, we secured power prices that were two to three cents per kilowatt-hour lower than before. This alone will save Tk420 crore a year," he noted.

Fouzul Kabir Khan said Bangladesh must gradually shift towards renewable energy as dependence on imported LNG is becoming financially burdensome.

However, he alleged that vested quarters tied to previous irregularities in the solar sector are attempting to obstruct the transition.

He referred to past corruption in solar schemes under social safety net programmes, claiming that solar panels previously supplied were often not found on the ground.

"Those who profited earlier from corrupt practices are now discouraging bidders from participating in open tenders," he said.

Fouzul added that in several cases, the government did not receive adequate bids due to such discouragement.

"Not everyone in the power sector is cooperating," he said, giving the example of the government's rooftop solar programme.

While most agencies received bids, the Rural Electrification Board (REB) reportedly did not receive any, allegedly due to additional requirements imposed at field level, such as mandatory installation of transformers, to deter participation, he added.

During a recent visit to Barishal, he found that the Western Zone Power Distribution Company received bids for its projects, but local Palli Bidyut Samitis did not.

He said the REB chairman had been instructed to take action against officers who hinder renewable initiatives.

"We are moving from a corruption-ridden process to a corruption-free one. Any obstruction to this transition must be addressed," he said.

Fouzul Kabir Khan emphasised that Bangladesh's energy future hinges on the rapid expansion of renewables, noting that the country lacks the financial capacity to sustain large-scale LNG imports.

"Our future depends on solar and other renewable energy. We must ensure that no one can obstruct this transition," he said.

The approved proposals included tariff proposals for over a dozen grid-tied solar power plants with capacities ranging from 10 MW to 200 MW, along with the revised tariff for a 210 MW combined-cycle plant.

According to official documents, the committee considered proposals for solar plants in Fatikchhari, Pabna, Noakhali, Hathazari, Moulvibazar, Chakaria, Nilphamari, Ramu, Bibiyana, Mongla, and Hemayetpur, submitted by BPDB as part of the government's renewable energy expansion plan.