Looming Consequences Of Scrapping 31 Green Energy Lols

Recent newspaper reports on the suspension, cancellation, and potential renegotiation of Letters of Intent (LoIs) in the renewable energy sector have captured my attention.

- Abu Hena Mostofa Kamal

Notable articles include: 'Should the government suspend renewable power projects or renegotiate their tariffs to accelerate green goals?' published in The Business Standard on 26 October 2024; 'Tenders will be invited for 40 projects in renewable energy production', reported by The Business Standard on 10 October 2024; 'Three dozen renewable energy projects await government approval', published in The Financial Express on 23 September 2024; 'Investors worried as government plans to scrap 31 green energy proposals' in The Business Standard on 9 September 2024; and 'Renewable energy projects fear losing FDIs worth billions' from The Daily Sun on 8 September 2024.

In a significant development, the interim government of Bangladesh has been planning or thinking about the cancellation of 31 or 37 Letters of Intent (LoIs) for renewable energy projects. These LoIs, which promised over $5 billion in foreign direct investment (FDI), were crucial to advancing Bangladesh’s green energy initiatives, specifically solar, wind, and waste-to-energy projects. The cancellation comes when approximately $200 million has already been invested in land acquisition and other preparatory works. With an expected output of 2,678MW from these projects, the cancellation could have major implications for the nation’s energy strategy and investor confidence.