Bangladesh is increasing efforts to transition away from fossil fuels and towards renewable energy as part of a long-term plan to meet climate targets, according to the country’s renewable energy authority.
Muzaffar Ahmed, chairman of the Sustainable and Renewable Energy Development Authority (SREDA), stated on Thursday that Bangladesh is actively pursuing an energy transition based on solar and other clean energy sources.
According to Muzaffar Ahmed, renewable energy, particularly solar electricity, will play a critical role in reaching Bangladesh’s climate goals, including a net-zero emissions target by 2050.
He stated that the government is rapidly developing its renewable energy capacity through solar, wind, hydro, biomass, and biogas projects, as well as initiatives to encourage rooftop solar systems for residences, business buildings, and irrigation.
Muzaffar Ahmed also stated that the government was offering incentives and facilities to people and companies to encourage the development of solar panels and renewable energy plants.
Earlier, the energy adviser to the interim administration, Muhammad Fouzul Kabir Khan, stated that Bangladesh’s future energy security was dependent on solar and renewable sources and that the transition must be smooth.
He stated that the government expects to save approximately Tk420 crore per year by approving new solar power pricing through a fully open and competitive contracting process.
According to the adviser, the recently approved solar projects, comprising 918 megawatts (MW) of capacity, were originally launched under the now-defunct Speedy Supply of Power and Energy (Special Provision) Act of 2010.
He added that new competitive bidding had cut electricity prices by two to three US cents per kilowatt-hour across 12 projects, resulting in significant savings.
According to SREDA data, Bangladesh’s total installed renewable energy capacity in 2025 was roughly 1,690 megawatts, with solar power accounting for the majority of that. By 2041, the government hopes to generate 40% of its electricity from renewable sources.
According to officials, 1,312 megawatts of current renewable capacity come from on-grid sources, with off-grid systems accounting for approximately 378 megawatts.
SREDA stated that the recently enacted Renewable Energy Policy 2025 is intended to accelerate progress, with a focus on rooftop solar installations for industries (especially the ready-made garment sector) and rural electrification. However, grid integration and capacity expansion continue to be difficult tasks.
Power Secretary Farzana Momtaz recently announced that enterprises can now generate electricity from renewable sources for their own usage and sell excess power to the national grid.
She stated that new Net Metering Guidelines implemented in 2025 allow consumers to use 100% of generated solar electricity, up from the previous 70% restriction.
According to officials, Bangladesh has a high potential for solar energy, with approximately 300 bright days per year. More than six million solar household systems have already been deployed in off-grid rural areas, and massive solar parks are gradually feeding electricity into the national grid.
Renewable energy specialists point out that countries like Sweden, Norway, and Denmark have spearheaded global energy transition efforts, while major economies like China, the United States, India, and the United Kingdom have also made substantial strides.
According to the World Economic Forum’s Fostering Effective Energy Transition 2025 study, global momentum on the energy transition has intensified due to decreasing energy prices, subsidy changes, and growing usage of clean energy. However, it cautioned that progress on energy security was unequal.
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