The government will not allow any more independent power producer (IPP) plants to be set up in the private sector.

The private sector would have to set up power plants under merchant power plant policy (MPPP) from which the government will purchase a maximum of 10-20 percent power from the plant.

Energy Adviser Dr Fouzul Kabir Khan said this while addressing a seminar titled "Rapid Transition to Renewables: Role of Domestic Financial Institution", organised by Economic Reporters Forum (ERF) at its auditorium today.

Currently, the government provides a guarantee to buy the total electricity of an IPP power plant, set up under private power generation policy.

Under the new policy, the adviser said, the private producer has to sell electricity through its own buyer through the government grid system by paying a wheeling charge.

During the previous Awami League regime, banks have financed many projects looking at the faces of the people, not based on the assets of the investors, he added.

The adviser went on to say, "Now, when these loans are defaulting, the banks are checking their balance sheets like those of S Alam and Beximco and finding the balance sheets are empty and there is no asset."

Fouzul Kabir said the interim government's focus on promoting renewable energy (RE) and stressed that there is no alternative to RE to get electricity as it has been a compulsion for the country's export-oriented garment sector.

Held with ERF President Mohammad Refayet Ullah Mirdha in the chair, the seminar was also addressed by Centre for Policy Dialogue's research director Dr Khondaker Golam Moazzem, the City Bank's business country manager Ashanur Rahman and chief executive officer of CLEAN Hasan Mehedi.

Chairperson of Centre for Environment and Participatory Research (CEPR) Gouranga Nandy made a presentation on the topic of the seminar and ERF General Secretary Abul Kashem conducted the event.