Grameenphone (GP) and Tetra Tech, implementing partner of the USAID Bangladesh Advancing Development through Energy (BADGE) Project, have signed a Memorandum of Understanding (MoU) to collaborate on developing a policy framework in Bangladesh for corporate power purchase agreements (CPPA).
The MoU highlights the vital importance of private investments and partnership in advancing sustainable development goals and accelerating the adoption of renewable energy solutions in the country.
CPPA models enable businesses to purchase some or all of their electricity directly from renewable sources, such as wind, solar, hydro, or biomass power plants, without relying on traditional power utilities.
This direct sourcing allows corporations to reduce their carbon footprint and support sustainable energy production.
The MoU was signed by Hans Martin Hoegh Henrichsen, Chief Corporate Affairs Officer, GP and Ed Elrahal, Chief of Party (Tetra Tech), USAID BADGE project on behalf of their organization at a ceremony at GPHouse, in the city.
Randy Ali, Deputy Mission Director, USAID Bangladesh, Jai Prakash, Chief Technology Officer, GP, Farhana Islam, Head of Social Impact, GP, Biplob Kumar Saha, Climate & Environment Expert, GP and other key members from both the organizations were present.
Hans Martin Hoegh Henrichsen, Chief Corporate Affairs Officer GP, said: "The framework aims to establish essential guidelines and procedures for effectively implementing the CPPA Policy, reaffirming Grameenphones strong dedication to sustainability."
He added that GPs urgent initiative to develop a framework for the CPPA Policy stems from its commitment to achieving climate targets of reducing CO2 emissions by 50pc by 2030, from the baseline year 2019.
Through collaboration with the USAID-BADGE Project and active engagement with the government, GP seeks to expedite Bangladeshs transition to clean energy and advocate for sustainable business practices, guided by global ESG practices.
Randy Ali, said "This partnership with GP reflects the shared commitment between the United States and Bangladesh to pave the way for greater renewable energy solutions, ensuring a brighter, greener future.
"Our collaboration exemplifies the power of private sector partnerships in driving meaningful progress towards a more resilient and eco-friendly Bangladesh, and we hope other companies leverage these types of clean energy solutions."
Ed Elrahal, said, "Corporate electricity procurement from renewables is a crucial step toward addressing climate change and promoting a cleaner, more sustainable energy future.
"This practice is a viable solution for businesses and corporations that are committed to achieving their environmental and sustainability goals while promoting sound business practices."
MoU paper said CPPA holds immense promise in revolutionizing the renewable energy landscape. This will not only attract Foreign Direct Investment (FDI) into the sector but also serve as pivotal catalysts for advancing the transition to sustainable energy sources within a nation.
Additionally, CPPAs stimulate job creation, community development, and environmental conservation, while expanding energy access in rural areas and driving economic development, it said.