Bangladesh is pivoting towards solar energy to safeguard its national energy security against the backdrop of a volatile global petroleum supply chain disrupted by Middle East instability.
Experts and officials have identified clean power as the most viable solution to current geopolitical uncertainties, urging the government to intensify initiatives for green energy expansion to ensure long-term economic resilience.
Shafiqul Alam, lead energy analyst at Institute for Energy Economics and Financial Analysis (IEEFA), told BSS that the current global situation demonstrates how vital clean energy has become for maintaining economic stability.
He noted that green energy is no longer merely an environmental goal but a strategic necessity for sustainable economic growth.
Alam pointed out that nations such as China, India, and Pakistan, which have invested heavily in renewables, remained more insulated from the economic shocks triggered by recent geopolitical tensions involving Iran.
Professor Dr Ijaz Hossain, a former dean of Bangladesh University of Engineering and Technology (BUET), described the government’s 10-year tax-free facility for solar imports and recent budget allocations as highly positive steps.
However, he recommended that these fiscal benefits be simplified and extended to all entrepreneurs and individual buyers, rather than being restricted to approved project developers.
Ijaz argued that removing such barriers and fostering private sector coordination through soft loans, expanded net metering, and expedited project approvals could transform the sector within a few years.
The government has set ambitious targets to meet 20 per cent of total electricity demand from renewable sources by 2030 and 30 per cent by 2040.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood noted that these goals are essential for ensuring a reliable and sustainable power supply as part of a long-term plan.
While inaugurating a 1MW rooftop solar system at Parliament on 27 May, Prime Minister Tarique Rahman remarked that the country is steadily transitioning toward a green economy and a self-reliant energy system.
Currently, Bangladesh generates 1,807.75MW from renewable sources, and the Bangladesh Power Development Board (BPDB) aims to increase this capacity to 10,000MW.
BPDB Chairman Md Rezaul Karim confirmed that contracts have been signed with Independent Power Producers for 11 solar projects totalling 818MW, which are expected to be operational by January 2028. Additionally, tenders for 12 more solar projects with a combined capacity of 290MW have been invited.
The BPDB is also installing 5MW of rooftop solar across 19 locations using its Power Sector Development Fund, with integration into the national grid scheduled for September 2026.
To facilitate rapid development, the government issued new guidelines on 12 April for implementing renewable energy projects on unused or under-utilised government land through public-private partnerships.
Significant fiscal incentives have been introduced, including zero duty on solar equipment, which is expected to reduce power generation costs by an estimated 25 to 30 per cent.
Tax benefits for producing eco-friendly batteries, such as lithium-ion and sodium-ion, have been extended to June 2030, and a 5 per cent tax rebate is available for those paying solar bills through banking channels.
While 40 per cent of current power generation relies on natural gas, falling domestic production has increased reliance on imported LNG.
As a cleaner alternative, construction of the 2,400MW Rooppur Nuclear Power Plant is progressing, with 300MW expected to join the grid next month and another 1,200MW in January 2027.
Other notable developments include a 100MW solar park in Jamalpur’s Madarganj by Rural Power Company Limited, scheduled for mid-2027, and waste-to-energy projects in Aminbazar and Matuail involving Chinese and South Korean firms.
Official data confirms that Levelised Cost of Electricity for solar in Bangladesh is now competitive with gas-based power and cheaper than coal.
Out of the current renewable capacity, solar contributes 1,514.66MW, followed by hydropower at 230MW and wind at 62MW.
Hasan Mehedi, chief executive of Coastal Livelihood and Environmental Action Network (CLEAN), emphasised that promoting household rooftop solar would reduce the need for massive state investment and help achieve UN Sustainable Development Goal 7.
Meanwhile, over 6 million solar home systems continue to provide electricity to off-grid rural communities across the country.
