ToT 2

Policy Landscape of Renewable Power in Bangladesh
Mohammad Alauddin
Chairman
Sustainable and Renewable Energy Development Authority (SREDA)
02 November 2015 1
Policy: Guidance of Action
 Public policy is whatever governments choose to do or not to do.

-Thomas Dye.
 Public policy is a set of interrelated decisions taken by a political actor

or group of actors concerning the selection of goals & the means of
achieving them within a specified situation. – William Jenkins.
Policy Landscape of RE: Constitutional Mandate
The 15th amendment(2011), the Constitution of Bangladesh,
emphasised deployment of RE ,albeit implicitly. Article 18A reads :
“The State shall take endeavor to protect and improve the
environment and to preserve and safeguard the natural resources,
biodiversity, wetlands, forests and wild life for the present and future
citizens”.
[ARTICLE 18A, THE CONSTITUTION OF THE PEOPLE’S REPUBLIC OF BANGLADESH]
Policy Landscape of RE in Bangladesh
Renewable Energy Made provisions for, among others, exemption of

Policy of Bangladesh
license requirement from BERC for RE projects
2008
with capacity up to 5 MW & purchase of
electricity from the same by utilities or any
consumers are allowed at a tariff settled through
mutual agreement. Mandates 10% of electricity to
come from renewables by 2020.
Private Sector Power Incentivizes private power companies including
Generation Policy (PSPGP) 1996 renewable power producers
BCCSAP 2009 Mitigation & low carbon development- one of

the six thematic areas
Policy Landscape of RE in Bangladesh
Bangladesh Energy Any operator involved in generation, transmission,

distribution, marketing, supply or energy storage
Regulatory Commission Act
must operate under a licence from the BERC.
2003
Electricity tariffs are set by the BERC.
Bangladesh National RE & EE options are included in the revised BNBC

(Bangladesh Gazettee, Extra Ordinary, February 11, 2021
Building Code[BNBC]
S.R.O. No. 55 Law/2020)
8th FYP [June 2020-June 2025] Prioritised RE Generation.

Policy Landscape for RE in Bangladesh
Provides for negotiating tariff of RETs on a case-

Quick Enhancement of by-case basis thereby overcoming inconvenience
of a single tariff for a specific technology.
Electricity & Energy Supply
(Special Provisions) Act
2010
Roadmap of the power sector development upto

PSMP 2016 [Now under
2041 with one of the objectives to maximise green
revision] energy.
Net Metering Guidelines Allows a prosumer to connect solar system to the

grid with a bi-directional meter and the prosumer
2018
can supply surplus electricity to the grid.
Policy Landscape for RE in Bangladsh
International Cooperation
Member of International Renewable
Energy Agency (IRENA)
Founding Member of International Solar
Alliance (ISA)
Joint Crediting Mechanism (JCM) with
Japan in 2013
Policy Landscape for RE in Bangladsh
 BB's revolving fund of Taka 2(Two billion)
 Bangladesh Clinate Change Trust Fund (BCCTF).

Dedicated Financing Tk.3500 Core has been allocated during FY10-FY 19.
 Bangladesh Climate Change Resiliance Fund (BCCRF)
 Infrastructure Development Company Limited (IDCOL)
 Bangladesh Infrastructure Finance Fund Limited

(BIFFL)
Incentive Policy for RE in Bangladesh
Private power generation companies are exempted from payment of

income tax for 15 years from commencement of commercial operation.
Foreigners employed in those companies are exempted from payment of

income tax for 3 years since their arrival.
Tax exemption on interest on foreign loans.
Tax exemption on Royalties, Technical know-how & Technical Assistance Fees.
Tax exemption on capital gains from transfer of shares.

Source: SRO NO.211-Law/Income-tax/2013, the Bangladesh Gazette Extraordinary, (July 1, 2013). (Amended vide
SRO No. 254/Law/2013 dated November 18, 2013 & SRO No. 246/Law/2016 dated July 26, 2016)
Incentive Policy for RE in Bangladesh
 Private power companies are allowed to import plant & equipment imported on a
permanent basis & erection materials, machinery and equipment on a temporary basis
without payment of custom duties, VAT & supplementary duties1.
 Spare parts up to 10% of the original value of total plant and equipment within 12 years
of commercial operation without payment of customs duties, VAT, supplementary duties
& any other surcharges.2
 Exemption of import tax, VAT & supplementary duties (if any) on 16 items (mentioning
HS Code) of solar panel.3
Source: 1 SRO NO.73-Law/1997/1700/Duty, Dated 19/03/1997, the Bangladesh Gazette Extraordinary, (March 20, 1997).
2
SRO NO.100-Law/2000/1832/Duty, Dated 18/04/2000, the Bangladesh Gazette Extraordinary, (April 20, 2000).
3
SRO NO.155-Law/2004/2047/Duty, Dated 10/06/2004.
Thank you
I am now open
to
Questions
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Policy Landscape of Renewable Power in Bangladesh

 Public policy is whatever governments choose to do or not to do.

 Public policy is a set of interrelated decisions taken by a political actor

The 15th amendment(2011), the Constitution of Bangladesh,

emphasised deployment of RE ,albeit implicitly. Article 18A reads :

“The State shall take endeavor to protect and improve the

environment and to preserve and safeguard the natural resources,

Renewable Energy Made provisions for, among others, exemption of

BCCSAP 2009 Mitigation & low carbon development- one of

Bangladesh Energy Any operator involved in generation, transmission,

Bangladesh National RE & EE options are included in the revised BNBC

8th FYP [June 2020-June 2025] Prioritised RE Generation.

Provides for negotiating tariff of RETs on a case-

Roadmap of the power sector development upto

Net Metering Guidelines Allows a prosumer to connect solar system to the

 BB's revolving fund of Taka 2(Two billion)

 Bangladesh Clinate Change Trust Fund (BCCTF).

 Bangladesh Climate Change Resiliance Fund (BCCRF)

 Infrastructure Development Company Limited (IDCOL)

 Bangladesh Infrastructure Finance Fund Limited

Private power generation companies are exempted from payment of

Foreigners employed in those companies are exempted from payment of

Tax exemption on interest on foreign loans.

Tax exemption on Royalties, Technical know-how & Technical Assistance Fees.

Tax exemption on capital gains from transfer of shares.

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