BSREA seeks policy reforms to safeguard renewable energy investments

The Bangladesh Sustainable and Renewable Energy Association (BSREA), an organization of solar power plant owners, has demanded a guaranteed tenure of at least 20 years for investors before shutting down or canceling contracts of Merchant Power Plants (MPP). The organization also sought compensation against 'deemed generation' if power supply fails due to faults in distribution companies (DISCOMs) and priority for renewable electricity in the grid.

BSREA presented these proposals in a written statement during a public hearing on Merchant Power Plant guidelines and tariffs organized by the Bangladesh Energy Regulatory Commission (BERC) at the International Mother Language Institute auditorium in the capital on August 23, 2026, Sunday. BSREA President Mostafa Al Mahmud presented the written address. BERC Chairman Jalal Ahmed, commission members, solar sector entrepreneurs, and representatives were present at the hearing.

According to BSREA's proposal, a fixed term of at least 20 years must be ensured before shutting down any merchant power plant or canceling contracts. The organization claimed that legal and policy protection is necessary for investors to secure long-term investments, proposing a tripartite Service Legal Agreement among the Ministry of Power, Energy and Mineral Resources, project developers, and investors.

If feeding and distribution sub-stations become non-functional due to DISCOM faults, power cannot be supplied to the grid despite MPP readiness. Compensation against 'deemed generation' was demanded under such circumstances. BSREA claimed that fixed costs and financial liabilities remain even if produced power is not supplied to consumers, meaning entrepreneurs should not bear the burden of distribution flaws.

Noting that merchant power plant development is in its initial stage, BSREA proposed setting the open access tariff at 0.50 for the first five years to boost private investment, along with quarterly post-payment collections.

During the hearing, BERC's technical evaluation committee recommended setting the solar merchant power plant tariff at BDT 6.48 per unit. The committee estimated the net fixed asset value at BDT 326.08 crore, adding working capital of BDT 44.72 crore for a total rate base of BDT 370.08 crore. With a proposed return rate of 8.96 percent, return on investment stands at BDT 33.22 crore, with total revenue requirement fixed at BDT 59.57 crore for a net generation of 9.18 crore units.

BSREA demanded priority for renewable energy in grid feed-ins, proposing that up to 100 percent of unused surplus electricity be made available to state utilities. Demands were also raised to share transmission losses between BPDB and the government, and to ensure parity in customs duties and taxes.

Furthermore, proposals were made for energy management and loss adjustments under open access systems, connecting 132 kV or higher voltage MPPs directly to the grid.
//DBTech/JNOP/MSI//