First renewable energy policy set to be adopted
Tuesday, 2 December 2008
M Azizur Rahman
The government is set to adopt the country's first renewable energy policy aiming to explore the untapped resources for meeting five per cent of the total electricity demand by 2015 and ten per cent by 2020, officials said Monday.
Currently, the renewable energy contributes less than 1.0 per cent of the country's total electricity generation of around 3,500 MW against the estimated demand for over 5,000 MW.
Wooing private sector investments in the renewable energy sector and tapping the country's huge potentials of electricity generation from unconventional sources of energy are also the objectives of the policy, a senior power ministry official said.
He said the entrepreneurs of the renewable energy projects will be exempted from corporate income tax for a period of 15 years and be allowed to get the fiscal incentives.
The council of advisers is set to approve the new policy tomorrow (Wednesday), the power ministry official said.
The ministry earlier finalised the draft of the renewable energy policy and submitted it to the council of advisers for final nod.
Under the draft renewable energy policy the electricity to be generated from renewable will be purchased by power entities through mutual agreement.
The renewable energy producers will also be 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 owner of transmission or distribution facilities.
The sponsors will be required to pay a wheeling charge to the owner of transmission or distribution facilities.
The wheeling charges will be determined by the Bangladesh Energy Regulatory Commission (BERC) in consultations 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 SEDA Board will comprise of 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.
The government will facilitate investment in renewable energy and energy efficiency projects.
The SEDA, in co-operation with local government offices, will set up an outreach programme to develop renewable energy programmes. It will also consider providing subsidies to utilities for installation of solar, wind, biomass or any other renewable/clean energy projects.
"The adoption of the renewable energy policy will ensure sound growth of the sector," power secretary Dr M Fouzul Kabir Khan told the FE Monday.
The government is set to adopt the country's first renewable energy policy aiming to explore the untapped resources for meeting five per cent of the total electricity demand by 2015 and ten per cent by 2020, officials said Monday.
Currently, the renewable energy contributes less than 1.0 per cent of the country's total electricity generation of around 3,500 MW against the estimated demand for over 5,000 MW.
Wooing private sector investments in the renewable energy sector and tapping the country's huge potentials of electricity generation from unconventional sources of energy are also the objectives of the policy, a senior power ministry official said.
He said the entrepreneurs of the renewable energy projects will be exempted from corporate income tax for a period of 15 years and be allowed to get the fiscal incentives.
The council of advisers is set to approve the new policy tomorrow (Wednesday), the power ministry official said.
The ministry earlier finalised the draft of the renewable energy policy and submitted it to the council of advisers for final nod.
Under the draft renewable energy policy the electricity to be generated from renewable will be purchased by power entities through mutual agreement.
The renewable energy producers will also be 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 owner of transmission or distribution facilities.
The sponsors will be required to pay a wheeling charge to the owner of transmission or distribution facilities.
The wheeling charges will be determined by the Bangladesh Energy Regulatory Commission (BERC) in consultations 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 SEDA Board will comprise of 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.
The government will facilitate investment in renewable energy and energy efficiency projects.
The SEDA, in co-operation with local government offices, will set up an outreach programme to develop renewable energy programmes. It will also consider providing subsidies to utilities for installation of solar, wind, biomass or any other renewable/clean energy projects.
"The adoption of the renewable energy policy will ensure sound growth of the sector," power secretary Dr M Fouzul Kabir Khan told the FE Monday.