FE Report

Bangladesh Renewable Energy Society (BRES) Tuesday demanded quick formation of a supervisory body for effective implementation of the declared national renewable energy policy to solve the nagging power crisis.

BRES leaders made the demand at a press conference at the National Press Club in the city.

"The government has exempted all taxes including VAT on import, manufacture and trade of solar home system in the proposed budget. But the statutory regulatory orders (SRO) declared by the National Board of Revenue (NBR) did not exempt VAT on solar system trading," said BRES chairman Mohammad Zamir.

He urged the government to change the SRO in line with the proposed budget and waive all taxes on solar panels as well as on their battery, charge controller and other spare parts.

He added that if the government takes initiative to waive tax on parts of solar panels, then the total cost of each solar panel can be reduced by Tk 1,400-2,000. Around 85 per cent of the total cost of a solar system goes for its panel and battery.

Mohammad Zamir also urged to reduce the interest of bank loans below 5.0 per cent to promote the local renewable energy industry.

He said to reduce the pressure on mainstream energy sources it is the time to promote use of alternative and renewable energy sources like bio-gas, wind-power and solar system, specially in the country's remote areas.

RAHIMAFROOZ group director Munawar Misbah Moin said, "We are going to set up two plants by next year to utilise solar energy at a cost of around Tk 15 million."

One solar panel assembling plant will be set up by June 2010, and the other one will be a 1-MW solar power plant, which will be directly connected with the national power grid by October 2010.

He also said, "We are inspired by the provision of the soft loan fund of Tk 2.0 billion for renewable energy sector in the proposed budget and exemption of import duty on equipments of solar panel assembling and solar power plants."

Grameen Shakti managing director Dipal C Barua said Infrastructure Development Company Ltd (IDCOL) has already installed 3,50,000 solar home systems with the help of 15 private agencies including Grameen Shakti.

He said presently a power system costs around Tk 9,000 to 60,000. Anyone can take a small solar power system with an initial payment of 10-15 per cent of the total price and then can pay the rest amount in 36 installments. The solar panels last for around 25 years, with a warranty period of 22 years. During their entire lifecycle the panels require only three batteries.

He said around 25,000 bio-gas plants have so far been installed with the help of 20 private agencies. And around 100 bio-gas generators across the country are generating 1-MW electricity.