BERC sets prices, grid charges for private renewables

The Bangladesh Energy Regulatory Commission (BERC) set electricity purchase prices as well as transmission and distribution charges for commercially operated renewable energy power plants, paving the way for greater private-sector participation in renewable power generation.
Distribution companies will purchase electricity from privately owned renewable power plants at Tk6.98 to Tk7.11 per unit from October, according to an order issued by the commission on Wednesday.
Under the order, the Bangladesh Power Development Board (BPDB) will pay Tk6.98 per unit for electricity supplied at the 33-kilovolt (kV) level and Tk7.11 per unit at the 132kV level for supply to distribution companies.
BERC has also fixed transmission charges for commercial power plants using the national grid. Charges payable to Power Grid Bangladesh will be 37.89 poisha per unit at the 230kV level, 38.25 poisha at 132kV and 38.97 poisha at 33kV.
Two types of distribution charges have also been set. Where a distribution company provides services at the point of injection into the grid, the charge will be 30 poisha per unit at the 132kV, 33kV, 11kV and 0.40kV levels.
At the point of electricity withdrawal, the distribution charge will be Tk1.17 per unit across voltage levels from 230kV to 0.40kV.
The commission has also set a coordination and settlement charge of five poisha per unit for BPDB, which will act as the single buyer for centrally coordinated renewable power generation and billing.
The order also outlines procedures for operation, billing, electricity accounting and settlement.
BERC said BPDB submitted a comprehensive proposal on 1 April, while Power Grid Bangladesh and six distribution companies filed separate proposals between 7 and 30 July.
After reviewing the proposals, supporting documents and submissions from the parties, the commission held a public hearing on 23 August before issuing the order.
The move is part of the government’s efforts to expand renewable energy through the commercial, or merchant, power plant model.
Under the new system, large industrial and export-oriented companies will be able to negotiate directly with private power producers to purchase electricity outside the conventional government procurement system.For such direct purchases, the electricity price will be negotiated between the buyer and seller, while BERC will determine the price for electricity purchased by government distribution companies.
Commercial renewable energy plants will be allowed to sell up to 20% of their electricity to distribution companies.
Another key feature of the system allows a renewable power plant to be established in one location and supply electricity to consumers elsewhere in the country through the national grid, subject to payment of the transmission and distribution charges set by BERC.
The government gazetted the Policy for Increasing Private Participation in Renewable Energy-based Power Generation, 2025 in October last year.
The policy gave legal recognition to commercial power plants, direct power purchase agreements between generators and consumers, and the use of the national grid for such electricity supply.
Solar, wind, biomass, waste-to-energy and other clean-energy sources are classified as “green” commercial power plants under the policy.
Operators will require a generation licence from BERC. The policy also provides protection for investors if changes in laws or government policies result in financial losses.