Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Draft Year: 
1998
Effective Start Year: 
2008
Scope: 
National
Document Type: 
Guideline
Economic Sector: 
Power
Energy Types: 
Power
Issued by: 
Power Division Ministry of Power, Energy and Mineral Resources Government of the People’s Republic of Bangladesh
Overall Summary: 
The Policy Guideline for Small Power Plant (SPP) in Private Sector addresses the modality through which private sector investors can establish SPPs. In particular, the Guideline explores: 1. Background; 2. Plant Location & Type; 3. Fuel Supply; 4. Power Offtake; 5. Price Regulation; 6. License Requirement; 7. GOB Support; 8. Fiscal Incentives and Benefits.
Pricing
Energy pricing: 
The price of gas to be charged shall be the same as applicable for supply of gas for captive power generation which may be changed from time to time by the Government or the Energy Regulatory Commission. --- In areas covered by BPDB/DESA/REB, the tariff announced by GOB from time to time shall apply. In other areas GOB will not regulate the price of electricity which shall be negotiated between the sponsor and the consumers.
Investment
Financial incentives for energy infrastructure: 
The sponsors under this policy including the Captive Independent Power Producer and the sponsors of Captive Power Generation who will set up power plants within a period of three years from the date of its statutory notification under this policy will enjoy the “Fiscal Incentives” and “Other Facilities and Incentives for Foreign Investors” provided under Section 5.0 and 6.0 respectively of the “Private Sector Power Generation Policy of Bangladesh” and any subsequent amendments made thereunder.
Independent power producers: 
The Government of Bangladesh (GOB) has decided to allow private sector investors to establish Small Power Plants (SPP) on a fast track basis, for generation of electricity for own use and sell the surplus to other users [...].
Investment climate development: 
The sponsors under this policy including the Captive Independent Power Producer and the sponsors of Captive Power Generation who will set up power plants within a period of three years from the date of its statutory notification under this policy will enjoy the “Fiscal Incentives” and “Other Facilities and Incentives for Foreign Investors” provided under Section 5.0 and 6.0 respectively of the “Private Sector Power Generation Policy of Bangladesh” and any subsequent amendments made thereunder.