A major solar energy deal with China could be signed during Prime Minister Tarique Rahman’s ongoing visit, in a move that may accelerate Bangladesh’s transition towards renewable power and reduce its dependence on imported fuels.
Speaking at a policy dialogue in Dhaka on Tuesday, the chief whip of Parliament, Nurul Islam Moni, said the government was actively pursuing a solar energy agreement with China and that there was a strong possibility of it being concluded during the prime minister's current visit.
“The government is seriously pursuing a solar-related deal with China and there is a strong possibility it will be concluded during the Prime Minister’s current visit,” he said.
The proposed cooperation comes as Bangladesh seeks to diversify its energy mix, curb fuel subsidy costs and strengthen long-term energy security. Rising fossil fuel import bills and pressure on public finances have increased interest in expanding domestic renewable energy generation, particularly solar power.
Speaking at a Centre for Policy Dialogue (CPD) event titled “Solar Revolution in Pakistan in the Eyes of Country’s Leading CSO: Lesson for Bangladesh from National Budget Perspective”, Moni said the government was pursuing solar projects across multiple sectors, ranging from urban rooftop installations to agricultural applications in rural areas.
“There are plans to bring agricultural water pumps in villages under solar energy. This will significantly reduce the large fuel subsidies currently given to farmers for irrigation,” he said.
Bangladesh currently spends substantial amounts on supporting irrigation fuel use, making solar-powered water pumps a potentially important tool for reducing subsidy burdens while lowering dependence on imported petroleum products. Such a shift could also improve energy access in rural areas and reduce exposure to volatility in global oil markets.
Moni acknowledged that progress would take time but stressed the importance of beginning the transition immediately.
“We may not reach our desired goal in three months, perhaps not even in three years. But we want to start now,” he said.
The chief whip said the current national budget includes significant tax concessions for renewable energy projects, with the government extending what he described as maximum fiscal support to the sector. He also called on banks, financial institutions and private businesses to increase investment in clean energy.
“A renewable energy plant recovers its cost within three to four years and operates for around 15 years. Investment in this sector is unquestionably profitable,” he said.
The dialogue also featured a presentation by Muhammad Basit Ghauri, Manager of Special Initiatives and China Programme at Pakistan-based Renewables First, who highlighted lessons from Pakistan’s rapid solar expansion and their relevance for Bangladesh.
According to Ghauri’s analysis, Bangladesh is approaching conditions similar to those that preceded Pakistan’s solar boom. Pakistan’s solar panel imports increased eightfold within a year, reaching 17.9 gigawatts in fiscal year 2025, while distributed solar generation now accounts for 46% of the country’s net grid electricity sales.
The study found that Pakistan’s solar expansion helped avoid an estimated 35 million tonnes of carbon dioxide emissions, created around 500,000 direct and indirect jobs and attracted approximately $15bn in private investment over nine years.
Ghauri argued that Bangladesh faces many of the same structural challenges, including power-sector overcapacity and heavy reliance on imported fossil fuels. However, he said import duties ranging from 11 per cent to 58 per cent on solar panels, inverters and batteries were keeping solar system costs 40 per cent to 50 per cent higher than in Pakistan.
The analysis described these tariffs as a significant barrier to renewable energy deployment and suggested that removing them could substantially accelerate solar adoption across the country.
The session was moderated by CPD Research Director Khondaker Golam Moazzem. As Bangladesh looks to strengthen energy security, reduce subsidy pressures and lower fuel import dependence, policymakers increasingly view solar power as a key component of the country’s future electricity strategy.
