Nearly three dozen renewable energy projects in Bangladesh, with a total generation capacity of around 3,287 megawatts, are currently stalled at the final stage of securing power purchase agreements (PPAs) due to delays from an interim government. These projects, initially poised to help reduce the country’s reliance on expensive fossil fuel imports, were set to operate under a “no electricity, no payment” mechanism, alleviating capacity payment burdens. The ongoing situation has raised concerns about escalating energy import costs and the potential loss of approximately $4.5 billion in foreign direct investments. Although these projects were initiated under a previous government and had received letters of intent (LOIs), the uncertainty surrounding their approval process has deterred further investments and could jeopardize initial investments of around $200 million. With essential land acquisitions and feasibility studies completed, stakeholders stress the importance of finalizing the agreements to restore investor confidence and secure the future of renewable energy in Bangladesh. Scrutinizing the approval process is suggested to ensure transparency, while concerns about the potential cancellation of LOIs could negatively impact foreign investor sentiment.
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