The Bangladesh Sustainable and Renewable Energy Association (BSREA) has formally urged the interim government to reconsider its recent cancellation of 31 Letters of Intent (LOIs) for solar power projects, which were previously signed with potential investors without a competitive tender process. This appeal comes amidst growing concerns over investor confidence and the potential for significant financial repercussions, with an estimated $300 million already invested in the affected projects.

Letters of Intent serve as preliminary agreements, outlining the foundational understanding between parties before a formal, legally binding contract is finalized. The Centre for Policy Dialogue (CPD) had previously echoed similar sentiments, advocating for a review of these cancelled LOIs. The BSREA's stance highlights a broader issue within the nation's renewable energy procurement strategy.

Mostafa Al Mahmud, president of the BSREA, stated at a press conference at the Dhaka Reporters' Unity that while the government's initiative to float tenders for 55 new solar power projects was a positive step, these tenders have largely failed to attract the anticipated foreign investment. "In some cases, only one bidder has shown interest, while in others, no one has participated at all," Mahmud noted. He emphasized that the interim government's decision, particularly the cancellation of a provision for investment refunds under 'implementation agreements,' risks creating a deep sense of distrust among both domestic and international investors, potentially hindering future renewable energy expansion.

BSREA commended the government for updating the renewable energy policy but stressed the urgent need for a specific roadmap to achieve the country's renewable energy targets. Despite a High Court directive for rooftop solar installations on all buildings, a clear framework detailing engineering, procurement, construction (EPC), and financing aspects remains absent. The association underscored that increasing renewable energy generation is a national imperative, driven by Bangladesh's escalating dependence on energy imports due to declining domestic gas production, which places substantial pressure on foreign currency reserves.

Further demands from the BSREA include extending tax benefits across the renewable sector. While acknowledging the reduction of customs duty on solar inverters from 10 percent to 1 percent, the association called for similar reductions on other essential solar components such as mounting structures, DC cables, controllers, batteries, and solar pumps, where duties remain high. Additionally, the BSREA advocated for the full implementation of net metering guidelines, mandatory rooftop solar panel installations on urban residential buildings, the establishment of a modern monitoring and support framework, and the withdrawal of the 7.5 percent trade VAT.