Battery storage, EV charging and interconnectors — Practical issues for projects in Bangladesh
Our London office (Holborn Gate, 330 High Holborn, London WC1V 7QH) advises sponsors, lenders and contractors on cross-border energy infrastructure projects. Projects for battery energy storage systems (BESS), EV charging networks and transmission interconnectors in emerging markets such as Bangladesh raise a mix of international, commercial and local regulatory issues. The notes below outline common legal themes and practical steps — not country-specific advice.
Key transactional and regulatory themes
Typical matters that arise early include land and site control, grid connection and system operator access, licencing and permitting, customs and import duties for equipment, foreign direct investment approvals, foreign exchange and repatriation of funds, and environmental and social requirements. For battery projects, safety, hazardous materials handling and end-of-life recycling obligations are often material to technical specifications and insurance. For EV charging, commercial models will need to align retail electricity supply, metering and data/privacy obligations. For interconnectors, cross-border coordination with counterpart system operators and host-state agreements are central.
Commercial and contracting considerations
Contract architecture typically comprises EPC/turnkey construction contracts, long‑term operation and maintenance (O&M) agreements, grid connection or interconnection agreements, and offtake arrangements (PPAs or retail-supply contracts). Key commercial points include:
- Performance guarantees, availability regimes and liquidated damages tailored to storage and charging use profiles.
- Warranties and lifecycle clauses for battery degradation, replacement and residual value.
- Allocation of currency and regulatory change risk; step‑in and cure rights for lenders.
- Data access, interoperability and intellectual property arrangements for charging networks.
Risk management and dispute resolution
Risk mitigation typically combines contractual protections (caps, indemnities, security packages), political risk insurance and governance controls. For high-value cross-border projects, international arbitration clauses and choice of neutral seat are common; local court enforcement and administrative remedies should be reviewed. Consider early alignment on performance testing, commissioning protocols and acceptance criteria to reduce sponsor/lender exposure.
Practical checklist
- Confirm project site control, title and any permit timelines.
- Map required licences, consents and grid‑connection milestones.
- Design contracting strategy (EPC + O&M, separate supply agreements, interoperability standards).
- Assess foreign investment and currency controls affecting financing and repatriation.
- Build battery‑specific technical and lifecycle warranties into procurement documents.
- Agree dispute resolution, enforcement and security package early with lenders.
- Engage local counsel and technical advisers for regulatory and construction oversight.
Jurisdiction and sources
For transactional work and primary legal texts consult the relevant national authorities and multilateral resources. Useful official sources include:
- Ministry of Power, Energy and Mineral Resources, Government of Bangladesh
- Bangladesh Investment Development Authority (BIDA)
- Bangladesh Power Development Board (BPDB)
- Bangladesh Energy Regulatory Commission (BERC)
- World Bank and IFC country and sector guidance
Projects in Bangladesh will also engage domestic law, customary practice and local regulators — engage locally qualified advisers for authorisations, licences and detailed compliance work.
General information only; not legal advice and not a substitute for advice on a particular matter.
