Best Practices in Dealing With Regulatory And Project Execution Challenges In Bangladesh

WBSEDCL Issues Notice Inviting e-Tender for EPC and OM For 10 MW Solar Project at West Bengal

Reading Time: 4 minutes

Mr. M A Taher, Managing Director, Sherpa Power Engineering Ltd

Bangladesh is seeking to Promote sustainable development and renewable energy is the key part to develop this sector. As Government & Private sector are trying hard to take a key role in this sector but they are facing the following challenges:


1) Awareness of Government Policy: Most of the people do not have adequate knowledge of the Government rules & regulations of renewable energy policy but Government & Private Sector are trying hard to Overcome this situation. Also Government are taking time to finalize the renewable Policy because Government is trying to involve all the stakeholders in this sector and its very good initiatives.

2) Prefabrication Structure: In Bangladesh we are facing lack of Prefabricated structure manufacturing vendor which help very much to complete Projects in time & makes installation easy.

3) Evacuation: Evacuation is major challenges & costly to Implement PV Power in Bangladesh.It is very hard to get Medium Voltage & High Tension Voltage Line nearby PV Power Plant and in LV Line it faces load shedding, Low Voltage, poor Line, Deeps, sudden blackout resulting PV Power loss for Sponsor. If Government takes initiatives to develop evacuation cost at their end it will be more effective for PV Projects Implementation

Also Read  Coal vs Renewables Financial Analysis 2022 Identifies L&T Finance as the Largest Financier in Project Financing for RE in 2021

4) Land Scarcity: In Bangladesh mostly plain & cultivated land. Abandon land are very few and it may takes Several GWp but such a remote area which takes huge cost involvement for evacuations.

5) Smart Grid : There are a lot of Challenges to connect PV Power to the Conventional Grid Line and sometimes it causes big problems for the existing line because of SCADA & load distributions. So we need Smart Grid Immediately where Load sharing will be easy for PV Grid Connections. But Government yet to make decision for Smart Grid line for Renewable energy distribution.

6) Skilled Personnel: There is another Challenges where to get skilled people or Organization to Design, Drawings, System Instigation & Installation technicians.

In spite of the fact that our Government is trying to finish all regulatory policies very shortly & we hope all policies will be complete by Dec 2019 and then there will be time to take into other disciplines to mitigate the above challenges.

Also Read  Corporate Funding in Global Solar Sector Falls 13% to $24.1 Billion in 2022: Report
Mr. D.M Abu Bakar Siddique, Managing Director, Exelon Bangladesh

Bangladesh Government just passed net metering guideline in 2018 which has been an encouraging move by MOPAMR to promote Solar Rooftop System on any unused space inside the premises where either an industry, commercial or a residential establishment is placed. It has certainly helped in speeding up the installations, and ensured a better ROI for the sponsors and with the availability of low-cost finance from IDCOL it certainly is a sector to concentrate on. Currently utility companies don’t take significant amount of time to change uni-directional meter to bi-directional meter and it has been a matter of submitting an application to the utility company only, and rest is been taken care of. During execution of the project and after the finance is confirmed there are few hurdles for an EPC company to get over one of them is the taxation during import which cumulatively adds up to 15% of the material cost in total and on top of that EPC companies need to add VAT and AIT during issuance of sales invoice, which is not at all a friendly environment for rooftop developers ultimately resulting in higher LCOE. Government needs to take a reasonable smart step to minimize all sort of taxation and this surely would contribute in growth of this particular sector of this country.

Also Read  Hydrogen Generation Market to Surpass US$ 273.63 Billion by 2032: Report

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.