Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2013
Effective Start Year: 
2013
Scope: 
National
Document Type: 
Guideline
Economic Sector: 
Energy, Power
Energy Types: 
Power, Renewable, Solar
Issued by: 
Power Division Ministry of Power, Energy and Mineral Resources Government of the People’s Republic of Bangladesh
Overall Summary: 
These Guidelines for the Implementation of the Solar Power Development Program address in detail the implementation of the solar power development, also considered the 500 MW Solar Program. In particular it deals with: a) The Setting Up of a Solar Park; b) The Implementation of Solar Minigrid Projects; c) The Installation of a Roof-Top Solar System; d) The Setting up Solar Irrigation Pump; e) The Implementation for Social Type Solar Projects, f) Existing Law and Policies; g) Financial Benefits; h) Issuance of Statutory Regulatory Order.
Access
Bi-, multi-lateral mechanisms to expand access: 
Setting up Solar Irrigation Pump: Grant and soft loan will be provided from development partners and climate change mitigation fund for the implementation of the project. That fund will be channeled to the project implementers through IDCOL.
Energy access priorities: 
To create access to electricity in the remote and isolated areas through using of renewable energy including solar power.
Energy access action plan: 
--- Implementation of Solar Mini Grid Projects: In the remote areas of the country, like- offshore islands, haor, hilly areas, areas nearby to sea and rivers along with the isolated areas, which are far from the main land and electricity grid lines, and no possibility of reaching the grid connectivity in near future, government has taken initiative to provide electricity to the people of those areas through generating and distributing power by solar PV and setting up mini grids under private sector.
Energy access targets: 
Implementation of Solar Mini Grid Projects: [...] govt. is committed to ensure electricity for all by 2021 [...].
Consumer subsidies: 
Solar MiniGrid Projects: To keep the electricity tariff tolerable to the consumers, IDCOL as per their existing policy, will support 80% of the project cost by providing grant and soft loan arranged from World Bank or different donors for implementing renewable energy programs.
Efficiency
Energy Service Companies (ESCOs): 
Installation of Roof -Top Solar System: [...] Project Implementation Strategy: The owner of the roof may lease out the roof to a second party (like - ESCO who provides support to implement renewable energy based projects in an efficient and profitable way) for the implementation of the project.
Renewable Energy
RE priorities: 
[Promotion of] environment friendly power generation in the country considering the potentials of solar energy. --- [Reducing] the use of fossil fuels by using the potentials of solar energy. --- [Achieving] "green energy" by using vacant & fallow government & privately owned lands and roofs of multistoried buildings. --- [Reducing] the dependency on imported liquid fuel through solar powered irrigation pumps.
RE targets: 
Considering the potential of solar in Bangladesh, government has targeted to generate 500 MW of solar power by 2015. --- Implementation of Solar Mini Grid Projects: As it is very difficult to provide electricity to the remote areas in the conventional system, so program for generating 25 MW solar powers to these areas by 2015 has been undertaken.
RE action plans: 
--- Implementation of Solar Mini Grid Projects: In the remote areas of the country, like- offshore islands, haor, hilly areas, areas nearby to sea and rivers along with the isolated areas, which are far from the main land and electricity grid lines, and no possibility of reaching the grid connectivity in near future, government has taken initiative to provide electricity to the people of those areas through generating and distributing power by solar PV and setting up mini grids under private sector. --- Installation of Roof -Top Solar System: Vacant roof-tops of those buildings are potential areas to set up solar panels. Solar power can be generated in two ways by using roof-tops- (a) Setting Solar System in roof-tops by the building owners or users. (b) Installing solar system in roof-tops by private investors based on BOO Basis following IPP model. --- Implementation for Social Type Solar Projects: Social Projects will be the public sector's projects financed by GoB and/or Development Partners and the electricity generated from the system would be used up by the organization itself. The following organizations will be considered for solar projects: (1) Union Health Center; (2) Educational Institutions in remote area; (3) Union Information Service Center; (4) Unconnected Religious Institution; (5) Railway Stations in remote area; (6) Government Offices in off-grid area. --- Setting up of solar power system in the industrial establishments; Setting up of solar projects in the government and semi-government owned buildings through IPP model under private sector; Replacement of diesel powered irrigation pumps by the solar irrigation pumps. --- Solar electrifications in the Rural Health Centers; Solar electrifications in the educational institutions at remote areas; Solar electrifications in the Union Information Service Centers; Solar electrifications in the religious institutions, which do not have electricity connections; Solar electrifications in the railway stations at remote areas; Solar electrifications in the government offices in off grid areas.
RE capital subsidy, grant, or rebate: 
Solar MiniGrid Projects: To keep the electricity tariff tolerable to the consumers, IDCOL as per their existing policy, will support 80% of the project cost by providing grant and soft loan arranged from World Bank or different donors for implementing renewable energy programs.
RE reductions in taxes: 
Solar Power Company will be exempted from income tax for 15 years after commencement. --- The foreign investors will be exempted from income tax for solar power projects. --- Local company registration by the foreign investor will be exempted from stamp duty. --- The Solar Power Company will be allowed to import spare parts, without paying duty, VAT, surcharge, and import fees, up to an amount of 10% of the total cost of plant and equipments within 12 years of commercial operation. But the exemptions will not be applicable for locally produced international standard equipments.
Public competitive bidding/tendering: 
Solar Park: Bidders may submit price offer either in USD or BOT per KWh for the electricity to be generated from the solar park. A minimum of 20 years power purchase agreement will be signed with the technically responsive lowest bidder.
RE public awareness/promotional programmes: 
To create public awareness in setting up of roof-top solar system in commercial, industrial and residential buildings.
Public investment loans or grants: 
Social Projects will be based on grants and will be developed as the government's commitment to its people. --- Solar MiniGrid Projects: To keep the electricity tariff tolerable to the consumers, IDCOL as per their existing policy, will support 80% of the project cost by providing grant and soft loan arranged from World Bank or different donors for implementing renewable energy programs. Setting up Solar Irrigation Pump: Grant and soft loan will be provided from development partners and climate change mitigation fund for the implementation of the project.
Environment
Carbon markets: 
To create the opportunity of accessing Clean Development Mechanism (CDM) by helping to combat the adverse impact of climate change and to ensure future energy security.
Pricing
Renewable energy subsidies: 
Solar Power Company will be exempted from income tax for 15 years after commencement. --- Solar MiniGrid Projects: To keep the electricity tariff tolerable to the consumers, IDCOL as per their existing policy, will support 80% of the project cost by providing grant and soft loan arranged from World Bank or different donors for implementing renewable energy programs. --- Setting up Solar Irrigation Pump: Grant and soft loan will be provided from development partners and climate change mitigation fund for the implementation of the project.
Energy pricing: 
Solar Park: Bidders may submit price offer either in USD or BOT per KWh for the electricity to be generated from the solar park. A minimum of 20 years power purchase agreement will be signed with the technically responsive lowest bidder. --- Solar MiniGrid Projects: To keep the electricity tariff tolerable to the consumers, IDCOL as per their existing policy, will support 80% of the project cost by providing grant and soft loan arranged from World Bank or different donors for implementing renewable energy programs. [...] To make the tariff affordable at consumer's level, IDCOL will fix area-based tariff for the operators considering the equity and financial support provided by IDCOL. [...] IDCOL will inform the Advisory Committee about the tariff time to time. --- Roof-Top Solar System: Bidder will quote the tariff in local currency in per kWh. PPA will be signed with the lowest bidder for 20 years agreement.
Energy Supply and Infrastructure
Infrastructure development priorities: 
[Reducing] the use of fossil fuels by using the potentials of solar energy.--- [Reducing] the dependency on imported liquid fuel through solar powered irrigation pumps.---Implementation of Solar Mini Grid Projects: In the remote areas of the country, like- offshore islands, haor, hilly areas, areas nearby to sea and rivers along with the isolated areas, which are far from the main land and electricity grid lines, and no possibility of reaching the grid connectivity in near future, government has taken initiative to provide electricity to the people of those areas through generating and distributing power by solar PV and setting up mini grids under private sector.-- Solar electrifications in the Rural Health Centers; Solar electrifications in the educational institutions at remote areas; Solar electrifications in the Union Information Service Centers; Solar electrifications in the religious institutions, which do not have electricity connections; Solar electrifications in the railway stations at remote areas; Solar electrifications in the government offices in off grid areas.
Investment
Financial incentives for energy infrastructure: 
Solar Park: Government may approve the investor to arrange investment fund from Capital Market through issuing shares subject to the necessary approval of the Bangladesh Security and Exchange Commission (BSEC). --- Roof-Top Solar System: Bangladesh Bank and other banks may consider to provide soft loans for the national interest.
Tax and duty exemptions for energy equipment: 
The Solar Power Company will be allowed to import spare parts, without paying duty, VAT, surcharge, and import fees, up to an amount of 10% of the total cost of plant and equipments within 12 years of commercial operation. But the exemptions will not be applicable for locally produced international standard equipments. --- The foreign investors will be exempted from income tax for solar power projects. --- Local company registration by the foreign investor will be exempted from stamp duty. --- Financial and other Benefits for Foreign Investors: Taxes upon royalty, technical knowhow, and technical assistance fees will be exempted and would be allowed to transfer to their home country. [...] Taxes on the interests of foreign loan will be exempted.
Independent power producers: 
In line with the concept of Remote Area Power Supply System (RAPSS) policy, private operators will be appointed for selected locations. Selected operators will carry out the responsibilities of power generation, establishing mini grid, distribution of power in that area. --- Setting up Solar Parks in the vacant & fallow government & privately owned lands in "Build, Own and Operate" (BOO) basis through private sector. --- Setting up solar mini-grid in the off grid areas, through Private Sector.---Implementation of Solar Mini Grid Projects: In the remote areas of the country [...], along with the isolated areas, government has taken initiative to provide electricity to the people of those areas through generating and distributing power by solar PV and setting up mini grids under private sector. --- Installation of Roof -Top Solar System: Solar power can be generated [...] Installing solar system in roof-tops by private investors based on BOO Basis following IPP model. --- Solar Power Company will also enjoy the existing benefits of IPP. --- Setting up of solar projects in the government and semi-government owned buildings through IPP model under private sector. --- In order to establish solar park in a site approved by Power Division, entrepreneur will be selected through open competitive bidding in the IPP model. [...] Solar park will be established in the IPP model based on BOO under private sector. --- Solar Mini Grid Projects: Private operators will be selected based on the applications submitted to Infrastructure Development Company Limited (IDCOL) by private sector. --- Roof-Top Solar System: If the entrepreneur would like to sell the excess electricity remained after his use, a purchase agreement should be signed through the power distribution utility of the concerned area. --- Roof-Top Solar System: [...] Large number of roofs of Govt., Semi-Govt. buildings is remained unused. Electricity can be generated by installing rooftop solar systems based on BOO basis in IPP models through private sector.
Local content requirement: 
Solar Power Companies are encouraged to use locally produced quality products and engineering services for solar power generation.
Investment climate development: 
Foreign Companies will be allowed to repatriates equity and profit to their home country.---For the implementation of solar power projects, if required, the foreign investor will be allowed to form joint venture.
Public Private Partnerships: 
Implementation of Solar Mini Grid Projects: In the remote areas of the country [...], along with the isolated areas, government has taken initiative to provide electricity to the people of those areas through generating and distributing power by solar PV and setting up mini grids under private sector. --- Implementation of Solar Mini Grid Projects: Private operators will be selected based on the applications submitted to Infrastructure Development Company Limited (IDCOL) by private sector. --- Setting up Solar Irrigation Pump: Implementation Strategy IDCOL will implement the project through interested entrepreneurs following the existing rules, regulations and procedure. --- Strategy for Implementing Solar Park Projects under Private sector: With a view to set up solar parks in private sector, Power Division /SREDA or its nominated institution will carry out necessary steps to select the entrepreneurs.
Bidding and Tendering: 
Solar Park: Bidders may submit price offer either in USD or BOT per KWh for the electricity to be generated from the solar park. A minimum of 20 years power purchase agreement will be signed with the technically responsive lowest bidder.
Governance
Energy management principles: 
To create enabling environment of generating electricity from renewable energy. --- To coordinate with relevant ministries/organizations for implementing solar power projects.
National policy structure: 
Any project implemented under this program would be governed by the existing laws, policies and guideline like environment law, private sector power generation policy, renewable energy policy etc.
Energy institutional structures: 
Setting up of Solar Park: With a view to set up solar parks in private sector, Power Division /SREDA or its nominated institution will carry out necessary steps to select the entrepreneurs.
M&E of policy implementation: 
Setting up Solar Irrigation Pump: Implementation Strategy: As an initiating Ministry of this solar program, Power Division will monitor and provide necessary support for project coordination and implementation [...]; IDCOL will monitor the installation of equipments considering the specification made by Technical committee. Technical committee will also visit project sites to ensure the proper monitoring; IDCOL will implement the project as per their institutional framework. Advisory Committee will monitor the implementation of the project; Entrepreneur will be responsible for implementation of the solar irrigation project.
Technology
R&D renewable energy: 
To enhance and improve solar technology.