Govt approves renewable energy policy

---

M Azizur Rahman
The government approved Wednesday the renewable energy policy to woo private sector investments, tap the country's huge electricity generation potentials and ease the nagging electricity crisis across the country, said officials.
The council of advisers has stamped the seal of approval on the policy that targets at exploring the renewable energy resources for meeting five per cent of the total electricity demand by 2015 and ten per cent by 2020 next.
As per the new policy entrepreneurs of the renewable energy projects have been exempted from corporate income tax for a period of 15 years and will be allowed to get the fiscal incentives.
The electricity to be generated from renewable energy sources like solar, wind, bio-gass and hydro, will be purchased by power entities through mutual agreement, the country's first renewable energy policy envisages.
The renewable energy producers have been allowed to use existing electricity transmission and distribution systems, if there is adequate capacity, to supply electricity to its customers through mutual agreement between the project sponsors and the owners of transmission or distribution facilities.
The sponsors will be required to pay a wheeling charge to the owners of transmission or distribution facilities.
The wheeling charges will be determined by the Bangladesh Energy Regulatory Commission (BERC) in consultation with the government.
The BERC will approve the energy tariff as per the provision of the BERC Act 2003 if the capacity of renewable energy project is 1.0 megawatt (MW) or more.
Electricity distributors may offer "green energy" tariffs, which will provide consumers an opportunity to co-finance through their electricity bills for the development of new renewable energy sources.
An independent institution -- Sustainable Energy Development Agency (SEDA) -- will be established under the Companies Act 1994, as a focal point for sustainable energy development and promotion, the policy maintained.
The SEDA Board will comprise representatives of stakeholders, including business community, academics, NGOs, financial institutions and implementing agencies.
The government and SEDA, in consultation with BERC will create a regulatory framework to encourage generation of electricity from renewable energy sources.
Renewable energy projects will be required to get power generation licence from BERC if the capacity of the projects is 5MW or more.
A network of micro-credit support system will be established, especially in rural and remote areas, to provide financial support for purchase of renewable energy equipment.