Govt to reassess 31 renewable power projects scrapped in Yunus era

The government has moved to reopen letters of intent for 31 renewable energy projects cancelled during the interim administration led by Muhammad Yunus, with a fresh review to determine their viability.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku today (27 April) said the projects – representing roughly 3,300MW – would be reassessed on merit before any final decision.

"I am reopening all these letters of intent. After conducting merit-based evaluations, we will retain those that are viable," he said. "I have asked my ministry to present why and on what grounds these projects were scrapped. Hopefully, within the next eight to 10 days, we will be able to determine our course of action."

He made the remarks while speaking as chief guest at the Fourth Bangladesh-China Renewable Energy Forum, organised by Centre for Policy Dialogue in Dhaka, in response to concerns raised by Sakir Ahmed, additional managing director of Citymead Group.

At the event, Sakir Ahmed said policy decisions taken during the interim period had deepened vulnerabilities in the power sector. 

"The power sector was already in a fragile state, but the policy actions taken by the interim government effectively pushed it into the ICU," he said.

He added that the cancellation of 31 LOIs – despite court directions to continue or renegotiate the projects – had significantly eroded investor confidence in the country's renewable energy sector.

Solar push and PPP model

The energy minister further said the government had set a target of generating 10,000MW of solar power within the next five years.

"If we could start today, we would. But there are bureaucratic processes that need to be streamlined first. Still, we are moving with urgency because the current energy situation leaves us with no alternative," he added.

Speaking at the same event, Bida Chairman Chowdhury Ashik Mahmud Bin Harun said the government plans to expand public-private partnerships (PPPs) as the main model for industrial solar projects.

"Under the framework, the state will provide land and take an equity stake, while private firms bring capital and technology, with a target implementation period of one to two years," he said.

The shift is being driven by land constraints and limited execution capacity, prompting a focus on large-scale (50MW+) solar projects under PPPs, while smaller projects may be pursued under separate arrangements, he added.

He also said a new battery energy storage systems (BESS) policy would be introduced in the upcoming budget, aimed at integrating storage with large-scale solar projects. Incentives are expected for industrial-scale systems of 5-10MW.

Moderating the session, CPD Research Director Khondaker Golam Moazzem said the current energy crisis might ease but would not end.

"Such crises will continue over the coming decades. Now is the time to think from a medium- to long-term perspective on energy transition," he said.

"The focus should shift from fallen fossil fuels towards 'Rising Resilient Renewable', or the 3R approach," he added.

The cancellations

The LOIs for the projects were cancelled in September 2024, about a month after the interim administration took office.

At the time, the government said the projects – signed during the Awami League era under the Quick Energy Supply (Special Provision) Act 2010 – had been awarded without competitive bidding.

Energy experts had raised concerns over the move, warning of long-term impacts on investor confidence and renewable energy expansion.

The cancelled projects accounted for around 3,300MW of capacity, mostly from solar power, along with nearly 300MW of wind energy and a smaller 25MW waste-to-energy project.

According to analysts, Bangladesh could have been in a stronger position in its clean energy transition had the projects not been scrapped.