Reconsider cancellation of 37 solar power plants: BSREA to govt

Bangladesh Sustainable and Renewable Energy Association (BSREA) has urged the government to reconsider the cancellation of 37 solar based power plants.

"Investors became skeptical about the sustainability of the government's policy due to abrupt cancellation of LoI (Letter of Intent) of 37 solar-based power plants where $300 million were already funneled," BSREA President Mostafa Al Mahmud said at a press conference held at Dhaka Reporters Unity today.

He said the government has invited bids for 50 new solar power projects which is a positive step but there are no foreign investors in these projects.

Mostafa also called for introducing the Operating and Expenditure Model (OPeX) in the solar power sector so that power producers can expand renewable energy at affordable prices and effectively in the long term.

Praising the government for reducing the duty rate on inverters from 10% to 1%, Mostafa Al Mahmud added, "Important solar equipment such as DC cables, controllers, batteries and solar pumps are still subject to high rates of duty."

He further added that various procedural complications and delays in the implementation of net metering give a bad signal to those who want to install such systems.

"We strongly demand that solar panels and other products be exempted from 7.5% VAT and the unreasonable customs valuation system which discourages the potential investors in this sector," said Mostafa Al Mahmud.

He also said, "It is necessary to develop a timely monitoring and support framework to maintain the professionalism and responsibility of customs officials in the import process, so that no party is subjected to unwanted harassment."

Raising concern about substandard solar panels, Mostafa Al Mahmud said the import of low-quality solar products is creating chaos in the market. Effective verification and control systems in customs and BSTI is important to flourish this sector, he noted.

The renewable energy sector is not only a solution for power generation for Bangladesh, but it also has the potential to create millions of new green jobs, he said.

The programme was also attended by senior vice president of BSREA Zahidul Alam, secretary general Mohammad Ataur Rahman Sarker, Treasurer Nitai Pada Saha and several other office bearers of BSREA.