BANGLADESH Trends and Developments Contributed by: Arunima Dutta Aurni and M Imtiaz Farooq, Farooq & Associates
Additionally, Section 9 provided that no ques- tion regarding the validity of any act carried out or purported to be carried out, any action taken, or any order issued or direction given under the Special Act could be raised in any court. These provisions gave rise to widespread criti- cism. The Special Act was seen as granting excessive powers to the GOB, which allegedly enabled project awards to be made arbitrarily and without competitive bidding. The absence of judicial oversight further heightened concerns regarding transparency and accountability. A writ petition was subsequently filed before the High Court Division of the Supreme Court of Bangladesh challenging the constitutionality of Sections 6 (2) and 9. Following a full hearing, the court declared both provisions unconstitutional. In the aftermath of this decision, the interim GOB repealed the Special Act in its entirety through an Ordinance issued in November 2024. The repeal ordinance clarified that any agreements entered into, or actions taken pursuant to such agreements under the Special Act prior to its repeal, would be deemed valid. However, it also reserves the GOB’s right to review such actions and permits it to take further measures in the public interest. Introduction of a New Policy: Renewable Energy Policy 2025 The Renewable Energy Policy 2025 was adopted by the Power Division of the Ministry of Power, Energy and Mineral Resources in June 2025, thereby repealing the earlier Renewable Energy Policy 2008. The Renewable Energy Policy 2008 of Bangla- desh laid the groundwork for promoting clean energy, setting modest targets of 5% renewable
electricity by 2015 and 10% by 2020, with lim- ited fiscal incentives and a largely undeveloped institutional framework. In contrast, the Renewa- ble Energy Policy 2025 significantly raises ambi- tions, targeting 20% of total generation by 2030 and 30% by 2040. It also modernises the policy landscape by incorporating technologies such as green hydrogen, floating solar, and battery storage, and by proposing market mechanisms such as feed-in tariffs, renewable energy certifi- cates, and reverse auctions. Crucially, the policy outlines a clearer – though more complex – regulatory architecture involving the Sustainable and Renewable Energy Devel- opment Authority (SREDA), the Bangladesh Energy Regulatory Commission (BERC), and the Power Division. For sponsors, this means additional regulatory interfaces and potential co- ordination risks. The fiscal incentives provided in the Renewable Energy Policy 2025 include an exemption from corporate income tax for ten years, followed by a partial exemption for the subsequent five years (50% for the next three years and 25% for the following two years), applicable to pro- jects commissioned between 1 July 2025 and 30 June 2030. These incentives are comparatively higher than those available under the Renewable Energy Policy 2008. Formation of a National Committee and Contract Review In tandem, the Power Division formed the National Committee to examine whether the interests of the GOB have been adequately pro- tected in the contracts already signed under the Special Act. The agreements entered into under the Special Act have no provisions allowing a tariff adjust-
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