It depends on scale and the buyer. Grid-scale solar and wind capacity sold to the state utility is now generally procured through competitive tenders issued by BPDB or the relevant agency, following the shift away from negotiated awards. Rooftop schemes may use net metering under current utility guidelines, while captive and corporate models depend on whether power is used on the same premises or delivered to another user. We read the latest tender documents, guidelines and policy instruments for your project, because these have changed several times. Eligibility and tariff terms should be confirmed with the buyer before design commitments.

Licensing depends on capacity, the purpose of generation and whether electricity is sold. Larger generation for sale typically involves a licence or exemption under the energy regulatory framework, while small captive or rooftop systems may follow simpler utility procedures. Because thresholds and procedures can be revised by regulation, we confirm the current position from the regulator's published instruments at the outset. We then build the licence timetable into the programme for renewable energy projects, so that a missing licence never becomes a reason for the utility to delay commissioning or payment. Small schemes still need care.

Since 23 August 2026, Invest Bangladesh has carried out the investment registration, approval and facilitation functions previously split between BIDA, BEZA and the PPP Authority. A foreign sponsor will usually register the project company, apply for work permits for expatriates and, where needed, obtain approval for foreign loans through the new authority, alongside Bangladesh Bank reporting. Projects inside BEPZA zones or Hi-Tech Parks still deal with those separate bodies. We help sponsors prepare filings that match the new procedures and check which legacy approvals remain valid. Sponsors should keep copies of earlier approvals, as lenders may ask to see them.

Lenders look for a creditworthy buyer, a clear tariff and indexation mechanism, payment in a currency or with convertibility protection that matches the debt, and a payment security structure such as a letter of credit or government support. They also expect defined termination payments that cover debt, robust change in law and force majeure clauses, and step-in rights. Dispute resolution should lead to an enforceable outcome. We review drafts against these expectations and negotiate amendments before bid submission where the tender process allows it. Where no changes are allowed, we identify residual risks for sponsors and lenders.

Rooftop systems can often be connected under the net metering arrangements issued for distribution utilities, which credit exported energy against consumption rather than treating the owner as a power seller. Eligibility, capacity limits, metering standards and the application process depend on the utility and the current guidelines. Where a third party owns the system and sells power to the factory, the structure needs careful drafting so it fits a permitted model. We advise on which route suits the site and prepare the roof lease, supply and maintenance documents for the scheme. Utility practice can vary by area.

The most common delays come from fragmented ownership, defective title, mismatches between the khatian and actual possession, pending civil suits and claims that land is khas or vested property. Restrictions on converting agricultural land and local opposition can also slow acquisition. Lenders will not close until title and access are clear. We start due diligence early, identify defects that can be cured, structure the acquisition or lease to manage residual risk, and prepare the land documentation that financiers and the utility require before close. Searches should cover registered and unregistered interests before lenders are asked to approve the site.

Most power purchase, EPC and supply contracts provide for negotiation, expert determination for technical issues, then arbitration, either in Dhaka under the Arbitration Act 2001 or at an international seat such as Singapore or London. Disputes with state buyers may raise questions of sovereign immunity, public procurement rules and court supervision. We advise on clause design at the drafting stage and, when a dispute arises on renewable energy projects, on notices, interim relief, arbitration strategy and the enforcement of awards against assets in Bangladesh or elsewhere. Seat, governing law and rules should be chosen with enforcement in mind.

Sponsors should model corporate tax, any tax holiday or incentive available under the current renewable energy policy, customs duty on imported equipment, VAT, and withholding on payments to foreign contractors and lenders. The Finance Act 2026 reduced withholding on interest paid to non-residents from 20% to 10%, which affects shareholder and third-party loans to renewable energy projects. Dividend repatriation and loan repayment require compliance with foreign exchange rules. We coordinate with tax advisers to confirm that incentives apply to the specific project and remain available. Rates should be rechecked yearly.