The Centre for Policy Dialogue (CPD) on Monday urged the interim government to reconsider its recent decision to cancel 37 solar power plant projects, warning that the move could severely undermine investors’ confidence, particularly among Chinese stakeholders.
The recommendation came during a seminar titled ‘Recent Challenges for Chinese Overseas Investment in Bangladesh’s Renewable Energy Sector: Way Forward’, held at a Dhaka hotel on Monday.
The cancelled projects, worth over US $6 billion and totalling more than 3,287 megawatts in capacity, were approved under the previous Awami League government.
The interim administration has cited political considerations and allegations of irregularities as reasons for the cancellation.
Chinese investors, who had committed significant funding to several of the projects, expressed alarm during the event.
Representatives from Jinko Solar, Chint Solar, and the Chinese Renewable Energy Industries Association (CREIA) joined Bangladeshi officials and sector leaders in voicing concern.
Presenting the keynote paper, CPD Research Director Dr Khondaker Golam Moazzem and Programme Associate Abrar Ahammed Bhuiyan noted that 15 of the affected companies had already acquired land, meaning the cancellations could lead to financial and legal complications.
CPD raises alarm over Bangladesh’s energy budget
CPD warned that the government’s decision sends a negative message to the international investment community, particularly at a time when Bangladesh is seeking to expand its renewable energy capacity.
The think tank emphasised that such policy reversals could deter future investment, not just from China but from other key partners as well.
Among the special guests at the seminar were Jalal Ahmed, Chairman of the Bangladesh Energy Regulatory Commission; Mohammad Alauddin, Rector of the Bangladesh Power Management Institute; and Nahian Rahman Rochi, Head of Business Development at the Bangladesh Investment Development Authority (BIDA).
Officials from both the public and private sectors stressed that policy inconsistency, land acquisition difficulties, and bureaucratic hurdles are key barriers to realising Bangladesh’s renewable energy goals.
Bangladesh aims to generate 20 percent of its electricity from renewable sources by 2030, rising to 30 percent by 2040. This will require annual investments of nearly US $1 billion through the end of the decade, and even more in subsequent years.
China, which invested approximately US $676 billion in clean energy globally in 2023, accounts for 15.1 percent of Bangladesh’s total FDI stock. More than half of Chinese FDI in Bangladesh is directed toward the renewable energy sector.
Speakers at the event, including Masudur Rahim, CEO of Omera Renewable Energy Ltd; Mostafa Al Mahmud, President of the Bangladesh Sustainable and Renewable Energy Association (BSREA); and Han Kun, President of the Chinese Enterprises Association in Bangladesh, called for greater transparency and stability in energy sector policymaking.
Proposed budget fails to holistically address economic challenges: CPD
They urged the government to engage in constructive dialogue with affected investors and ensure that decisions do not jeopardise the country’s long-term energy security and investment climate.