The Power Division of the Ministry of Power, Energy and Mineral Resources sets policy, and the Bangladesh Power Development Board is the main state buyer of electricity. BERC licenses certain activities and determines tariffs. Distribution companies and the transmission utility manage connection. Invest Bangladesh handles investment registration, work permits and PPP matters for most electricity projects, while BEPZA remains responsible inside export processing zones. The Department of Environment issues environmental clearance. Which body matters most depends on the technology, the size of the plant and whether power is sold to the grid or used on site.

Many captive and generation activities fall within BERC's licensing framework, and BERC publishes application forms, checklists and an online licensing route. Whether a licence, a renewal or an amendment is needed depends on the activity, capacity and fuel, and on whether electricity will be sold to others. Thresholds and procedures are updated from time to time, so we check the current BERC materials against your facts before you file. Operating without a required licence can affect insurance, lender consents and gas or grid connection, so the question is worth settling early in any project.

For projects selling to the state offtaker, the tariff is usually set in the power purchase agreement following a procurement process, with separate capacity and energy components and indexation to fuel prices, exchange rates or inflation. BERC determines bulk and retail tariffs within its jurisdiction. Since the 2024 review of contracts made without competitive tendering, new electricity projects should expect tariffs to be tested against market benchmarks. We help sponsors understand how the tariff mechanism works in practice, including invoicing, meter readings, verification and the treatment of disputed amounts. Each element should be modelled.

The Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 allowed the government to award power and energy contracts without the usual tendering process and limited court challenges to those decisions. It was repealed in 2024, and a review committee examined contracts concluded under it. For existing projects, this has meant renegotiation requests and scrutiny of tariffs and payments. For new electricity projects, procurement must follow ordinary public procurement rules or the PPP framework now administered by Invest Bangladesh, and sponsors should keep a careful record of the award. Legacy contracts need careful review.

Bangladesh generally permits full foreign ownership in the power sector, and many independent power producers are wholly or majority foreign owned. The company is incorporated with the Registrar of Joint Stock Companies and Firms and registered with Invest Bangladesh. Inward equity must come through banking channels so that dividends and sale proceeds can later be repatriated. Particular electricity projects may carry ownership conditions in the tender documents or the implementation agreement, and a later change of control usually requires offtaker and lender consent, so these terms should be read before the shareholding is planned.

Lenders typically take mortgages or charges over the plant and leasehold interest, hypothecation over equipment and receivables, assignment of the power purchase agreement and other project contracts, and charges over project accounts. Charges created by a company must be registered with the Registrar of Joint Stock Companies within the statutory period, and land-related security also needs registration at the sub-registry. Direct agreements with the offtaker give lenders step-in rights. Foreign loans also need prior approval from Invest Bangladesh or Bangladesh Bank, as applicable, and the documents should address the 10 per cent interest withholding under the Finance Act 2026.

Payment delays are a recurring issue. The power purchase agreement usually provides for late payment interest, payment security such as a letter of credit or government support, and escalating notice procedures. Sponsors should keep invoices, acknowledgements and correspondence in good order, because a claim later depends on that record. We advise on how to issue notices without damaging the relationship, how to engage the Power Division and the Finance Division, and when it is appropriate to invoke expert determination, arbitration or a claim under any government guarantee, while keeping lenders informed under the finance documents.

Solar, wind and waste-to-energy projects follow the same general legal framework, but they also engage renewable energy policy, the Sustainable and Renewable Energy Development Authority and specific procurement rounds for utility-scale solar. Land is often the hardest issue, because large solar parks need contiguous sites and agricultural land is protected. Net metering applies to rooftop systems, and green finance from development banks brings its own environmental and social conditions. We advise on these overlaps and work closely with colleagues who handle renewable energy, storage and climate finance mandates. Each overlap needs its own checklist.