Govt urged to formulate policy-driven tariff for solar energy

An equal tariff structure is demanded for solar power projects based on clear and concrete policy.

Munawar Misbah Moin, senior vice president of Bangladesh Solar and Renewable Energy Association (BSREA) said, “We want a declared fixed tariff, particularly for a solar PV projects having the size over 1 megawatt.”

He said the tariff should be between 18 and 19 US cents as solar irradiation in Bangladesh is relatively lower compared to the one in India and the Middle East.

Suggesting that the electricity tariff of a large solar project be fixed based on the size and duration of project implementation period; he said the same tariff should equally be applicable for all the parties for the sake of transparency and fairness.

BSREA has been pursuing the government for facilitating private investors in solar and renewable energy sector with declaring incentives and policy to encourage investment.

It placed a 15-point recommendation to the government to make the project implementation process fairer and more transparent to expedite the move for solar power generation.

The recommendations include setting IPP project tenure at 25 years instead of 20 years, revoking any license that has not achieved mechanical completion within 18 months without exceptions, having an assessment and mapping of zonal planning by the government to accept maximum capacity of PV projects across the country.

The government has recently declared a plan to generate 3168 MW renewable energy by 2021 where solar power will be 1700 MW. Now less than 200 MW of solar-based electricity is produced in the country.

A 200-MW project was awarded to a private investor fixing tariff through negotiations. Some other large projects are under the negotiation process, a differed by BSREA leaders.

The BSREA members, involved in solar business, said most countries, including neighboring India and Thailand, and also other nations that have made progress in renewable energy, have already declared fixed tariff and concrete policies.

State Minister for Power and Energy Nasrul Hamid said the government is giving extra focus on solar energy and other renewable options as those are environment-friendly ones for power generation.

“The developed world has already started shifting their focus from coal to renewable. So, we shouldn’t be in the backseat,” he said.