Bangladesh to cease providing new independent power producer with gov’t guarantee, says official

DHAKA, Nov. 30 (Xinhua) — The Bangladeshi government has decided to stop providing government guarantee to new independent power producer (IPP) plants.
Bangladeshi Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan made the announcement here Saturday, saying currently the government provides a guarantee to buy the total electricity of an IPP power plant set up under private power generation policy.
Addressing a seminar titled “Rapid Transition to Renewables: Role of Domestic Financial Institution,” the adviser said from now on the private sector would have to set up new power plants under merchant power plant policy (MPPP) and the government will purchase a maximum of 10-20 percent power from MPPP.
The adviser said that under the new policy, the private producer has to sell electricity to its own buyer using the government grid system by paying a wheeling charge. ■