Bangladesh can achieve faster, cheaper, and more secure economic growth by moving directly towards solar, batteries and electrification instead of relying on fossil fuels, according to a new report released on Thursday.
The analysis, titled “The Electric Fast-Track for Emerging Markets,” was produced by Ember in collaboration with the Climate Vulnerable Forum and the V20 Finance Ministers. It highlights a global energy shift, showing that nearly half of the world’s most climate-vulnerable countries have now surpassed the United States in solar adoption.
For Bangladesh, which spends around 59 per cent of its trade deficit on fossil fuel imports, the economic risks are high.
The report warns that ongoing geopolitical tensions, including instability in the Middle East, could add an estimated $5 billion annually to the country’s energy burden. Across vulnerable economies, fossil fuel imports reached $155 billion in 2024, with potential additional costs of $30 billion due to global market volatility.
The report promotes “electrotech” solutions - a combination of solar power, battery storage and electric technologies - as a faster, cheaper, and more resilient alternative to fossil fuels.
Prices of solar panels, batteries and electric appliances have fallen by 30 per cent to 95 per cent over the past decade, making decentralised clean energy increasingly viable, particularly for underserved and remote communities.
“Bangladesh can leapfrog from energy scarcity to energy abundance, reducing fiscal pressure from fuel imports while creating new markets and jobs in clean energy,” said Shafiqul Alam, lead analyst at the Institute for Energy Economics and Financial Analysis.
The report also notes that many industries in Bangladesh have already installed rooftop solar systems and plan to expand further, highlighting the country’s potential to transition rapidly to renewable energy.
According to M Zakir Hossain Khan, co-founder of Change Initiative, continued reliance on fossil fuels is creating debt risks for vulnerable households.
“Families are forced to choose between today’s fuel and tomorrow’s survival. Renewable energy sovereignty is no longer a luxury - it is essential,” he said.
By embracing solar and electrification, Bangladesh could improve industrial productivity, reduce dependence on imported fuels, and strengthen long-term economic stability while contributing to global climate goals.
