Will The Proposed Renewable Energy Policy Be Sustainable?

In response to the urgent need for the swift development of renewable energy in Bangladesh, the government prepared a draft of the renewable energy policy in February and sent it to various stakeholders for their input.

- Subail Bin Alam

The timeliness of this initiative is crucial. While it is commendable that the government has taken the first step in response to public demands, many amendments, improvements, and refinements are necessary to ensure the policy long-term sustainability and effectiveness.

This proposed law grants all powers related to renewable energy to the Sustainable and Renewable Energy Authority (SREDA). However, many sections of the law include vague, future-oriented clauses that lack timebound enforcement. As a result, it is unclear how they will be implemented due to the absence of clear accountability. Establishing clear accountability is crucial for reassuring the public and ensuring the effective implementation of the policy.

Firstly, the Renewable Energy Act should be more effectively integrated with the Integrated Energy and Power Master Plan (IEPMP) and Climate Policy. Otherwise, all efforts will remain disjointed, leading to wasted resources for the country.

There is an ongoing discussion about the Sustainable Energy Development Fund; however, it remains unclear how the private sector can access it transparently or which specific sectors will benefit. The primary issue with renewable energy is the high demand for loans. In Bangladesh, banks and IDCOL are working to address this concern, but acquiring loans from them takes a significant amount of time. Furthermore, foreign loans, even those with low interest rates, present considerable challenges. Lenders should address this issue, and their responsibilities must be clearly defined in the policy.