Energy specialists are urging Bangladesh to accelerate its transition to solar and other renewable energy sources, warning that continuing instability in the Middle East has exposed the country’s vulnerability to imported fuel supplies.
They said the latest disruption to global petroleum markets emphasises the need for Bangladesh to reduce its dependence on imported fossil fuels and build a more resilient energy system through greater investment in clean energy.
Shafiqul Alam, Lead Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), said recent geopolitical developments demonstrate that renewable energy is no longer only an environmental priority but an economic and strategic necessity.
According to him, expanding clean energy can strengthen energy security, improve economic resilience and support long-term sustainable growth. He noted that countries including China, India and Pakistan have invested heavily in renewable energy, helping them limit the economic impact of recent regional tensions centred on Iran.
Professor Dr Ijaz Hossain, former Dean of the Faculty of Engineering at the Bangladesh University of Engineering and Technology (BUET), welcomed the government’s latest measures to encourage renewable energy, including a 10-year tax exemption on solar panel imports.
However, he argued that the tax incentives should be available to all importers rather than only developers of approved projects.
He pointed to Pakistan’s rapid expansion of solar power as evidence that broader policy support can significantly increase investment.
He also called for stronger cooperation between the government and the private sector, alongside easier access to low-interest financing, wider use of net metering, incentives for domestic manufacturing and faster project approvals. Such measures, he said, could transform Bangladesh’s solar sector within the next few years.
The government has set ambitious renewable energy targets as part of its long-term energy strategy. Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud has said Bangladesh aims to generate 20 per cent of its electricity from renewable sources by 2030 and raise the share to 30 per cent by 2040.
Speaking during the inauguration of a one-megawatt rooftop solar installation at the National Parliament complex in May, Prime Minister Tarique Rahman said the country is steadily progressing towards clean energy, a greener economy and a more self-reliant power system.
Bangladesh Power Development Board (BPDB) Chairman Engineer Rezaul Karim said renewable generation capacity has now reached 1,807.75 megawatts, while the longer-term objective is to increase that figure to 10,000 megawatts.
He said agreements have already been signed with Independent Power Producers (IPPs) to build 11 solar projects capable of producing 818 megawatts, with commercial operations expected by January 2028. Tenders have also been issued for another 12 projects with a combined capacity of 290 megawatts.
The BPDB is simultaneously expanding rooftop solar generation. Grid-connected rooftop systems with a combined capacity of five megawatts are being installed at 19 locations using financing from the Power Sector Development Fund and are expected to be connected to the national grid by September.
Officials also said all government institutions have been instructed to install rooftop solar panels as part of efforts to increase the contribution of renewable energy to the country’s electricity supply.
Hasan Mehedi, Chief Executive of the Coastal Livelihood and Environmental Action Network (CLEAN), believes greater household adoption of rooftop solar could significantly reduce the need for large public investments while helping Bangladesh achieve the United Nations Sustainable Development Goal 7 on affordable and clean energy.
Several large-scale renewable projects are also progressing. Rural Power Company Limited (RPCL) is constructing a 100-megawatt solar park in Madarganj, Jamalpur, which is expected to begin generating electricity by the middle of 2027.
Although the project initially faced approval delays after the political transition, BPDB officials said the current administration has revived six of the 27 solar projects that had previously been cancelled.
They also said negotiations have reduced the average tariff for solar electricity from 7.8 US cents per unit to around 2.5 cents.
The government has introduced a range of financial incentives to encourage investment, including zero import duty on solar equipment. Officials estimate the measure could reduce electricity generation costs by between 25 and 30 per cent.
Tax incentives for manufacturers of environmentally friendly batteries, including lithium-ion and sodium-ion technologies, have been extended until June 2030. In addition, consumers paying their solar electricity bills through banking channels will receive a five per cent tax rebate.
Despite these measures, many energy specialists believe Bangladesh needs to move faster if renewable energy is to meet a meaningful share of the country’s annual electricity demand growth, which averages around seven per cent.
Alongside renewable projects, the government is continuing work on alternative low-carbon energy sources. Construction of the 2,400-megawatt Rooppur Nuclear Power Plant is advancing, with around 300 megawatts expected to be connected to the national grid in August. A further 1,200 megawatts could enter commercial operation in January 2027.
To accelerate renewable development, the government introduced new Public-Private Partnership (PPP) guidelines in April 2026, allowing unused or underutilised government land to be used for renewable energy projects.
A further agreement signed between BPDB and the Bangladesh Economic Zones Authority (BEZA) will see a pilot renewable energy project developed on 412 acres in Sonagazi, Feni.
The Bangladesh Investment Development Authority (BIDA) is also prioritising domestic production of renewable technologies, battery storage, competitive electricity trading and targeted fiscal incentives for investors.
Officials said two waste-to-energy plants are planned for Aminbazar and Matuail in Dhaka, with expected generation capacities of 42.5 megawatts and 221 megawatts, respectively. The projects will be implemented by China’s CMEC Group and South Korea’s B&F Company.
According to BIDA, updated assessments show that the levelised cost of electricity from solar power in Bangladesh is now broadly competitive with gas-fired generation and cheaper than coal-fired electricity, with costs expected to fall further as technology advances.
Natural gas currently accounts for around 40 per cent of Bangladesh’s electricity generation. However, declining domestic gas production has increased reliance on imported liquefied natural gas (LNG), making the country more vulnerable to fluctuations in international energy markets.
Government figures show solar power contributes 1,514.66 megawatts, or nearly 84 per cent, of Bangladesh’s total renewable electricity capacity of 1,807.75 megawatts. Hydropower provides 230 megawatts, while wind energy contributes 62 megawatts.
The Sustainable and Renewable Energy Development Authority (SREDA) said more than six million Solar Home Systems have already been installed in off-grid areas, extending electricity access to rural communities. Officials added that grid-connected solar plants across the country are increasingly helping to reduce pressure on conventional power generation, reinforcing the role of renewable energy in Bangladesh’s evolving energy mix.
