Renewables Roadblock: BSREA Urges Reforms for Energy Policy Success
The Bangladesh Solar and Renewable Energy Association (BSREA) has expressed satisfaction over the formulation of the Renewable Energy Policy 2025. However, it has also called for the removal of key barriers—including tariff complexities, investor mistrust, and procedural delays—by offering 11 specific recommendations. Without addressing these issues, the association fears the national target of generating 30% of electricity from renewable sources by 2040 will be difficult to achieve.
The concerns were shared at a press conference held on Saturday, July 5, at the Sagar-Runi Auditorium of the Dhaka Reporters’ Unity.
Speaking at the event, BSREA President Mostafa Al Mahmud stated, “There is no alternative to renewable energy to address the country’s natural gas crisis and ensure energy security. We welcome the Renewable Energy Policy 2025 and the announcement to install solar panels on government buildings. However, there are still serious barriers to progress in this sector that must be addressed urgently.”
The association highlighted a growing sense of investor distrust and the cancellation of projects. It noted that although the government has recently invited tenders for 55 new solar power projects, the response from foreign investors has been lukewarm—mainly due to the cancellation of 37 solar power projects in the past.
According to BSREA, investors in the cancelled projects incurred losses of approximately USD 300 million, which has deeply discouraged new investments. The association has called upon the government to reconsider these cancelled projects to restore investor confidence.
BSRREA also voiced strong dissatisfaction with the current tariff structure. Mostafa Al Mahmud noted, “An irrational and discriminatory kilogram-based customs valuation method is being applied to solar panels and related components. While other goods are assessed based on proforma invoices, our products are taxed per kilogram, resulting in much higher duties than their actual value.”
He also pointed out that the additional 7.5% trade VAT levied on traders further increases the cost. The association has demanded the immediate withdrawal of the kilogram-based assessment method and the removal of trade VAT on solar products. While welcoming the recent reduction in duties on inverters, it also urged similar reductions for essential components such as solar mounting structures, DC cables, controllers, and batteries.
The press conference also highlighted several other key demands. These included the swift gazette publication of the long-delayed net metering guideline and the simplification and modernization of the connection process.
On rooftop solar, BSRREA criticized the absence of a clear roadmap, financial structure, or monitoring cell for implementation on residential and commercial buildings despite High Court directives. The association called on the Ministry of Power to establish a dedicated cell to manage rooftop solar initiatives.
Concerns were also raised about low-quality products flooding the market due to weak oversight by Customs and BSTI at the import level, posing a serious threat to the entire sector. The association urged stringent action to prevent this.
On the employment front, BSRREA noted that the renewable energy sector has the potential to create hundreds of thousands of "green jobs." It emphasized the need for policy support to protect local manufacturers and build a skilled workforce.
BSRREA believes that by removing these obstacles and creating a stable, investment-friendly environment, it is possible to achieve the national targets of 20% renewable energy by 2030 and 30% by 2040.
