Private Investment Key to Unlocking Bangladesh's RE Ambitions

The country needs to create an enabling environment for investment in utility-scale and small-scale projects through streamlined policy and regulations.

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Key takeaways

• Bangladesh will require up to US$980 million annually until 2030 to meet the goal set out in the Renewable Energy Policy 2025. Post-2030, the country will need up to US$1.46 billion annually until 2040.

• Policy uncertainty, offtaker and currency risk, land acquisition challenges, and a downgraded sovereign rating limit capital flows into the renewable energy sector.

• A credit risk guarantee scheme, a dedicated green finance facility with scope for pre-finance, and an import duty waiver on solar components can help accelerate the flow of finance for small-scale renewable energy projects.

• The country needs to create an enabling environment for investment in utility-scale projects through streamlined policy and regulations.

The Bangladesh government has set targets for generating 20% and 30% of electricity from renewable energy sources by 2030 and 2040, respectively, under the country’s new Renewable Energy Policy.

Bangladesh will require between US$933 million and US$980 million annually until 2030 to meet the new target. Post-2030, the country will need between US$1.37 billion and US$1.46 billion annually until 2040, a new report by the Institute of Energy Economics and Financial Analysis (IEEFA) finds.