FROM PAGE B1

geothermal -- subject to Power Division approval.

Before any project begins, the land-owning agency must confirm legal ownership and sign a memorandum of understanding (MoU) with the BPDB, which will be valid for three years.

Government agencies providing land will be compensated through lease payments, minority equity stakes, or a combination of both, depending on project feasibility, according to the guidelines.

Private developers will be selected through international competitive bidding or other PPP-compliant procurement methods. “Each project will be implemented through a special purpose vehicle (SPV), which will handle financing, construction, operation and maintenance, as well as related infrastructure such as transmission lines.”

The guidelines make it clear that no renewable energy project using government land can proceed outside the PPP framework. “All projects must comply with the PPP Act 2015, and related energy sector regulations.”

A joint working group, including representatives from the PPP Authority, Power Division, PDB, Power Grid and land-owning agencies, will monitor project progress and address implementation challenges.

After a project ends, the land cannot be repurposed for non-energy use without approval from both the land-owning agency and the Power Division.

The Renewable Energy Policy 2025, which was revised for the first time in 17 years during the interim government’s tenure, introduced several incentives for clean energy development. These include a 10-year corporate tax exemption for renewable energy producers, followed by five years of partial tax relief.

Government agencies such as Bangladesh Railway, Roads and Highways Division, Bangladesh Bridge Authority, Bangladesh Water Development Board and others have been identified in the policy as potential contributors of unused land for renewable energy development.

It also allows households, businesses, and industries to install rooftop systems and sell surplus electricity under net metering rules, introduces a renewable purchase obligation requiring utilities and large consumers to source a portion of electricity from renewables, and establishes a renewable energy certificate system for tracking and trading green power.

In the new guidelines, the Sustainable and Renewable Energy Development Authority (Sreda) has been mandated as the nodal agency for renewable energy-related regulatory and facilitative functions in all relevant activities throughout the project lifecycle.

Sreda is entitled to promote local manufacturing of renewable energy equipment and ensure quality standards through certified testing laboratories in the 2025 policy.