Energy crises rarely arrive with warning. A geopolitical conflict, disruption in oil shipping routes, or sudden price spikes can quickly affect countries that rely heavily on imported fuel. For Bangladesh, such shocks reveal a clear vulnerability: much of the country’s energy system still depends on external fuel supplies.
Recent developments in global energy markets show how quickly risks can grow. Analysts have warned that escalating tensions in the Middle East could push global oil prices toward $200 per barrel if regional supply routes are disrupted. The concern is real. Key shipping lanes such as the Strait of Hormuz carry roughly one-fifth of the world’s oil shipments. Any disruption there can quickly affect global energy prices.
For Bangladesh, this volatility has immediate economic consequences. The country imports most of its petroleum, coal and liquefied natural gas. When global fuel prices rise, the effects are felt across the economy through higher electricity generation costs and rising fuel prices. The financial impact can be substantial.
Economic estimates suggest that every $10 increase in global oil prices could raise Bangladesh’s monthly fuel import bill by about $80 million. Bangladesh already spends billions of dollars each year on imported fossil fuels. Rising global prices therefore put pressure on foreign exchange reserves and increase the cost of electricity generation and transportation. These realities highlight a simple lesson: countries that depend heavily on imported fuel remain exposed to global geopolitical risks. Strengthening domestic energy resilience must therefore become a national priority.
Bangladesh has expanded electricity generation significantly over the past decade. However, a large portion of this capacity still depends on imported fossil fuels such as oil, coal and liquefied natural gas. According to the International Energy Agency, fossil fuels continue to dominate the country’s energy mix.
Renewable energy offers one of the most practical ways to reduce this vulnerability. Among the available options, rooftop solar power stands out as a particularly promising solution. Bangladesh receives abundant sunlight throughout the year. At the same time, thousands of homes, factories, warehouses and commercial buildings have rooftop spaces that could generate electricity. According to the Sustainable and Renewable Energy Development Authority, the country has significant technical potential to expand rooftop solar installations. Rooftop solar allows buildings to generate electricity during daylight hours and reduce pressure on the national grid. In some cases, surplus electricity can also be supplied to the grid through net-metering policies introduced by the Bangladesh Energy Regulatory Commission.
This approach has several advantages. It reduces dependence on imported fuel, strengthens resilience during supply disruptions and allows consumers to generate part of their own electricity.
Encouragingly, Bangladesh has already taken steps to promote solar power. Import duties on solar panels and inverters have been significantly reduced in recent years to make installations more affordable. These measures demonstrate that policymakers recognise the importance of renewable energy in strengthening national energy security.
Yet rooftop solar adoption remains slower than expected. One major reason is the cost of energy storage. Solar panels produce electricity only when sunlight is available. Batteries are therefore essential for off-grid and hybrid solar systems because they store electricity for use at night or during cloudy periods. Without affordable batteries, many solar systems cannot operate effectively.
At present, high-capacity batteries used in solar installations remain relatively expensive in Bangladesh. As a result, many households and businesses find rooftop solar financially difficult to adopt despite reduced duties on panels and inverters. This issue is not limited to solar power. Similar battery technologies are also used in hybrid and electric vehicles, which are increasingly seen as cleaner alternatives to conventional fossil-fuel transport.
In both renewable energy systems and cleaner transportation, battery technology plays a critical role in reducing dependence on imported fuel. High costs of energy storage therefore affect two national objectives at once: expanding renewable electricity generation and encouraging cleaner mobility.
For example, rooftop solar programmes in Germany turned millions of households into electricity producers through incentives and supportive regulations. Similarly, rooftop solar expansion in India has gained momentum through subsidies, net-metering systems and financing programmes. Another example comes from Vietnam, where favourable policies triggered rapid rooftop solar growth and significantly increased renewable energy capacity within just a few years. These examples show that renewable energy expansion depends not only on technology but also on supportive policies.
Rather than viewing battery taxation as a narrow sectoral issue, policymakers could treat energy storage as a strategic technology for Bangladesh’s long-term energy transition. Lowering the tax burden on such batteries, even temporarily, could accelerate rooftop solar adoption while also supporting the gradual shift toward hybrid and electric vehicles. Encouraging energy storage would also bring broader economic benefits.
Every barrel of fuel imported into Bangladesh must travel through global shipping routes before reaching domestic power plants or fuel stations. Reducing reliance on fossil fuels therefore also reduces pressure on logistics systems, foreign exchange reserves and long-term energy import costs. International experience shows that supportive policies can accelerate renewable energy growth quickly.
Bangladesh has already taken important steps in this direction. However, the next stage of renewable energy growth will likely require stronger alignment between policies supporting energy generation and energy storage. Government institutions can also lead by example. Public buildings, universities, hospitals and administrative complexes often have large rooftops suitable for solar installations. Installing solar systems with energy storage in such facilities would reduce electricity costs while demonstrating the benefits of decentralised renewable energy.
Energy crises often reveal structural weaknesses in national energy systems. They highlight the risks of heavy dependence on imported fuel and the importance of diversifying energy sources. Bangladesh cannot eliminate its reliance on imported energy overnight. But it can gradually reduce that dependence by expanding domestic renewable generation and supporting technologies that make such systems reliable and affordable.
Recognising energy storage as strategic infrastructure, rather than simply another imported product, could unlock the full potential of Bangladesh’s renewable energy transition. In an uncertain global energy environment, policies that reduce dependence on imported fossil fuels should be viewed not as fiscal concessions but as investments in national economic stability. The next global energy crisis is not a question of if – but when. Preparing for that future requires policies that strengthen resilience today.
The writer is a Port Shipping & Logistics Strategist | Adjunct Faculty, Bangladesh Maritime University
