Energy experts and civil society leaders have welcomed the government’s plan to generate 10,000 megawatts (MW) of solar power by 2030, describing it as a timely and strategic move. However, they cautioned that without major reforms in financing, taxation, and implementation, the ambitious target may face significant challenges.
The observations came at a press conference held at the National Press Club on Monday, where speakers highlighted both the urgency and complexity of Bangladesh’s energy transition. They pointed to growing global geopolitical tensions, particularly in the Middle East—which have disrupted energy markets and driven up prices of oil, diesel, and coal. In this context, the shift toward solar energy is seen as essential to reducing the country’s heavy reliance on imported fossil fuels.
Presenting the keynote paper, Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), said Bangladesh is grappling with a deepening energy crisis marked by rising import dependence, supply disruptions, and mounting subsidy burdens. In the 2024–25 fiscal year, import dependence stood at 65 percent in the power sector and 62.5 percent in energy, he noted. The temporary closure of the Strait of Hormuz has halted operations at Eastern Refinery, while load shedding has exceeded 2,700MW. At the same time, the government is incurring heavy subsidy costs—over Tk 65 per cubic metre for LNG and up to Tk 70 per litre for diesel—adding pressure on public finances. “There is no alternative to accelerating the transition to renewable energy,” Alam said.
Zakir Hussain Khan, managing director of Change Initiative, stressed the need to overhaul the financing structure for renewable energy. He said reallocating at least 30 percent of fossil fuel subsidies to renewables in the next national budget could unlock around $360 million in investment.
He also highlighted the potential of introducing a modest carbon pricing mechanism, which could create up to $10 billion in fiscal space, significantly boosting clean energy financing.
Speakers further underscored the importance of mobilising diaspora investment, proposing a “Probashi Bond” worth about $4.5 billion to support solar expansion. They also flagged institutional and financial bottlenecks, including the absence of a dedicated green financing window at Bangladesh Bank and high lending rates from commercial banks.
To address these challenges, they recommended concessional refinancing at 3–4 percent interest and the introduction of CSR-linked financing mechanisms to reduce costs for investors. Policy proposals also included full duty exemptions on solar equipment, battery storage, and electric vehicles, alongside the creation of a Tk 5,000 crore revolving fund to support renewable energy projects.
Experts said the economic benefits of such a transition could be substantial. A 10,000MW renewable energy capacity could save between $1.5 billion and $2 billion annually in fuel imports. Rooftop solar, solar irrigation, and electrification of transport could further generate hundreds of millions of dollars in savings each year.
Despite the optimism, concerns over implementation persist. Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said that while the target is technically achievable, there is a clear gap in execution. He noted that a previously announced 3,000MW target saw limited progress, raising doubts about whether the new goal will be realised.
He also criticised the existing tax structure, pointing out that duties on solar components can reach up to 28 percent, discouraging investment. He called for immediate tax reductions and the introduction of financial instruments such as solar bonds.
Speakers also questioned the effectiveness of the current public-private partnership (PPP) model, arguing that its complexity could delay project implementation. As an alternative, they suggested assigning projects directly to the Bangladesh Power Development Board (BPDB) for faster execution.
Institutional capacity was another area of concern. The Sustainable and Renewable Energy Development Authority (SREDA), they said, needs to be strengthened and repositioned as an implementation-focused agency with faster approval processes.
Dipal Chandra Barua, chairman of Bright Green Energy Foundation, advocated for a decentralised approach. “It is time to implement a model where people generate their own electricity,” he said, adding that the government’s role should be to create a supportive environment by reducing costs and taxes on solar technologies.
Energy expert Prof Ijaz Hossain warned that failure to resolve the energy crisis could pose a major challenge for the government. He emphasised that solar power offers the most viable solution and called for swift policy reforms.
The press conference was organised by ActionAid Bangladesh, the Just Energy Transition Network Bangladesh (JETNET-BD), and the Bangladesh Sustainable and Renewable Energy Association.
Civil society representatives said the 10,000MW solar target is not just about boosting electricity generation but also about securing Bangladesh’s energy independence and climate resilience. They urged the government to present a clear implementation roadmap and engage stakeholders to ensure a just, inclusive, and sustainable energy transition.
 of solar power by 2030, describing it as a timely and strategic move. However, they cautioned that without major reforms in financing, taxation, and implementation, the ambitious target may face significant challenges.){kind=link}