Bangladesh's Renewable Energy Journey: From Ambition To Reality

Bangladesh stands at a critical juncture in its energy journey today.

- Mostafa Al Mahmud

For decades, our economic growth has relied heavily on imported fossil fuels such as natural gas, oil, and coal. These fuels have powered industries, cities, and rural communities. Still, at the same time, they have made us vulnerable to global market volatility, rising import bills, and the growing threats of climate change.

As the world rapidly shifts towards renewable energy, Bangladesh faces both a challenge and a tremendous opportunity. Renewable energy is not just a technical solution—it is essential for economic growth, environmental protection, and social progress.

Policy Progress After 17 Years

After nearly 17 years, the government has introduced the Renewable Energy Policy 2025. This policy sets a clear roadmap for the country’s future energy mix. It mandates that by 2030, at least 20% of electricity must come from renewable sources, and by 2040, the share must rise to 30%.

Key incentives introduced under this new policy include:

• A 10-year full tax holiday for renewable energy producers, followed by a partial tax exemption.

• Renewable Purchase Obligation (RPO): Large electricity consumers will be required to purchase a specific portion of their power from renewable sources.

• Expanded Net Metering: Enabling households, businesses, and industries to sell excess rooftop solar electricity back to the national grid.

These measures send a strong signal to domestic and international investors that Bangladesh is moving beyond planning and stepping into implementation.

Current Status and Challenges