Energy experts have sought full duty waivers on solar equipment, battery storage, and electric vehicles, alongside a Tk5,000 crore revolving fund, warning that policy gaps could derail the 10,000MW solar target by 2030.
The proposals came at a press conference at the National Press Club in Dhaka on Monday, organised by ActionAid Bangladesh, Just Energy Transition Network Bangladesh, and Bangladesh Sustainable and Renewable Energy Association, according to organisers.
Scaling up renewable energy could save $1.5 billion to $2 billion a year in fuel imports, easing pressure on foreign exchange reserves, reducing subsidies, and strengthening energy security, speakers said.
They said geopolitical tensions, particularly in the Middle East, are pushing up prices of oil, diesel, and coal, exposing Bangladesh’s reliance on imports.
Presenting a keynote, Institute for Energy Economics and Financial Analysis Lead Energy Analyst Shafiqul Alam said import dependence reached 65 per cent in power and 62.5 per cent in overall energy use in fiscal year 2024-25.
He said the temporary closure of the Strait of Hormuz disrupted Eastern Refinery operations, while load-shedding exceeded 2,700MW.
Subsidies exceeded Tk65 per cubic metre for liquefied natural gas and up to Tk70 per litre for diesel, straining public finances, he said.
“There is no alternative to accelerating the transition to renewable energy,” he added.
Speakers identified high import duties, financing constraints, and policy uncertainty as the main barriers.
Bangladesh Sustainable and Renewable Energy Association President Mostafa Al Mahmud said duties on solar components range from 28 per cent to 61 per cent, discouraging investment.
He said the earlier 3,000MW target saw limited progress and the cancellation of 32 solar projects weakened investor confidence.
Renewable energy accounts for 2.3 per cent of the energy mix, leaving Bangladesh exposed to global price volatility, Shafiqul Alam said.
“We are facing an energy crunch because we are still heavily dependent on oil and gas,” he said.
Change Initiative CEO Zakir Hossain Khan said reallocating 30 per cent of fossil fuel subsidies could unlock about $360 million, while carbon pricing could create up to $10 billion in fiscal space.
He proposed a $4.5 billion “Probashi Bond” to mobilise diaspora investment.
Speakers said the absence of a green financing window at Bangladesh Bank and high lending rates remain key bottlenecks.
They recommended concessional refinancing at 3 to 4 per cent interest and corporate social responsibility-linked financing.
The proposed Tk5,000 crore fund would recycle repayments to sustain low-cost financing.
Experts said rooftop solar and solar irrigation can be deployed within three to six months to ease grid pressure.
Bright Green Energy Foundation Chairman Dipal Chandra Barua said a decentralised model is needed.
“It is time to implement a model where people generate their own electricity,” he said.
Speakers said the public-private partnership model delays projects and proposed assigning some directly to Bangladesh Power Development Board.
They said Sustainable and Renewable Energy Development Authority needs to be strengthened for faster approvals.
Former Bangladesh University of Engineering and Technology professor Ijaz Hossain said the target is achievable with consistent policy support.
He said load-shedding occurs during daytime when solar could be used, while oil-based generation costs around Tk20 per unit at peak.
Experts said without urgent reforms, financial incentives, and execution capacity, the solar target may remain out of reach.
