Category: Energy and Power

Bangladesh has entered a new era of economic growth and development.

Rapid industrialization, urbanization, digital transformation, and improvements in living standards have signifi cantly increased the country’s demand for electricity.

Yet, despite this progress, Bangladesh’s energy sector remains heavily dependent on imported fossil fuels.

Volatility in global energy prices, pressure on foreign exchange reserves, and the growing threat of climate change have made it increasingly clear that the country must accelerate its transition toward a more sustainable and resilient energy system.

In this context, renewable energy is no longer merely an environmentally friendly alternative.

It has become a strategic pillar for ensuring energy security, economic stability, industrial competitiveness, employment generation, and sustainable national development.

The Government of Bangladesh has already introduced several important policies and initiatives, including rooftop solar, net metering, electric vehicles (EVs), battery energy storage, solar irrigation, and integrated energy planning.

These initiatives have laid a strong foundation for the country’s clean energy transition.

However, policy formulation alone is not enough.

The real challenge lies in effective implementation, investment-friendly fi scal policies, and long-term policy consistency.

From Policy to Implementation: The Need for Greater Momentum Despite positive policy developments, the renewable energy sector continues to face signifi cant implementation challenges.

Lengthy project approval processes, land acquisition complexities, limitations in grid infrastructure, and inadequate coordination among government agencies have delayed many promising projects.

Bridging the gap between policy announcements and on-the-ground implementation is now essential.

Without faster execution, Bangladesh risks falling behind its renewable energy ambitions despite having the necessary policy framework in place.

Short-Term Revenue vs.

Long-Term National Benefi ts Reducing or eliminating import duties on renewable energy equipment may result in some short-term revenue loss for the government.

However, the long-term economic, environmental, and strategic benefi ts far outweigh this temporary fi scal impact.

Lower import costs would signifi cantly reduce the capital expenditure (CAPEX) required for renewable energy projects, making investments more attractive for businesses and consumers alike.

Increased deployment of renewable technologies would reduce dependence on imported fossil fuels, save valuable foreign exchange, create new employment opportunities, lower carbon emissions, and enhance the competitiveness of Bangladesh’s industrial sector.

Viewed from this perspective, tax incentives for renewable energy should not be considered a revenue sacrifi ce but rather a strategic national investment.

Unfortunately, the current fi scal year’s budget has increased taxes and duties on several renewable energy technologies and equipment.

As a result, investment costs have risen, private sector interest has weakened, and market expansion is likely to slow.

A forward-looking national budget should strengthen, not hinder, the country’s transition toward clean energy.

Strengthening Energy Security and Economic Stability Bangladesh spends billions of dollars every year importing coal, oil, and liquefi ed natural gas (LNG).

Fluctuations in international energy markets directly affect electricity generation costs, foreign exchange reserves, and overall economic stability.

Renewable energy offers an opportunity to produce a growing share of electricity from domestic resources such as sunlight and wind.

Expanding renewable energy capacity would reduce import dependency, stabilize long-term electricity generation costs, improve energy security, and signifi cantly reduce pressure on the country’s foreign exchange reserves.

For a country pursuing sustainable economic growth, this transition is not only an environmental imperative but also an economic necessity.

What Can Bangladesh Learn from Global Experience? International experience clearly demonstrates that open and competitive markets play a crucial role in accelerating renewable energy deployment.

Countries such as China, India, Pakistan, Germany, and Vietnam have successfully expanded renewable energy through supportive tax policies, reduced import duties, simplifi ed net metering regulations, accessible fi nancing, and strong private sector participation.

Importantly, these countries have not limited market participation to large corporations.

Importers, distributors, EPC companies, SMEs, and individual consumers have all been able to participate under transparent and competitive market conditions.

This has accelerated technology adoption, lowered prices, and expanded access to renewable energy across society.

Policy Recommendations To accelerate Bangladesh’s renewable energy transition, several strategic policy measures deserve immediate consideration: Maintain Zero Import Duty on renewable energy technologies and equipment until at least 2030.

Ensure long-term, stable, and investment-friendly renewable energy policies.

Expand Green Financing with affordable long-term fi nancing, particularly for SMEs and emerging entrepreneurs.

Simplify and streamline the Net Metering framework to encourage wider adoption.

Create equal market opportunities for CAPEX, OPEX, Residential, and Commercial renewable energy consumers.

Accelerate investment in modernizing the national grid and Battery Energy Storage Systems (BESS).

Strengthen research, innovation, and human resource development while enhancing the institutional capacity of the Sustainable and Renewable Energy Development Authority (SREDA).

Encourage domestic manufacturing while removing unnecessary barriers to the import of renewable energy technologies and essential components.

Conclusion Bangladesh’s energy sector stands at a defi ning moment.

The policy and budgetary decisions made today will shape the country’s energy security, economic competitiveness, and environmental sustainability for decades to come.

Renewable energy should no longer be viewed as a public expenditure.

It should be recognized as a strategic national investment capable of delivering longterm economic returns, strengthening energy independence, and supporting industrial transformation.

With timely policies, a pragmatic national budget, active private sector participation, and effi cient implementation, Bangladesh can successfully build a cleaner, more resilient, and energy-secure future.

Perhaps the most important point is this: the greatest challenge facing Bangladesh’s renewable energy sector is not the lack of technology.

It is the lack of policy consistency, investor confi dence, and fi scal prioritization.

Once these three challenges are addressed, renewable energy can become one of the country’s most powerful engines of economic transformation, industrial growth, and sustainable development

The global green hydrogen market is projected to reach US$166 billion by 2037, expanding at a compound annual growth rate (CAGR) of 48%, according to a new report by research fi rm IDTechEx.

The report, Green Hydrogen Production and Electrolyzer Market 2027-2037: Technologies, Players, Forecasts, says green hydrogen is poised to play a pivotal role in decarbonizing hard-to-abate industries despite currently accounting for less than 1% of global hydrogen production.

Produced through water electrolysis powered by renewable electricity, green hydrogen is considered a key solution for reducing emissions from conventional hydrogen production, which is still dominated by fossil fuelbased processes such as steam methane reforming and coal gasifi cation.

QatarEnergy is readying to extend force majeure on liquefi ed natural gas shipments through midOctober, according to a recent report, citing people with knowledge of the matter.

Several buyers in Europe and Asia said separately they are expecting a formal notifi cation, the report said.

Force majeure is a clause that frees parties from liability if any failure to meet supply obligations is due to events beyond their control.

Qatar accounts for about 20% of global LNG exports, all of which transit the Strait of Hormuz, where shipping has ground to a near-halt amid escalating tensions between Tehran and Washington

The United States has identifi ed small modular reactors (SMRs) as a key pillar of its energy cooperation with Southeast Asia, refl ecting Washington’s broader strategy to strengthen regional energy security amid rapidly rising electricity demand.

Speaking after U.S.

Secretary of State Marco Rubio attended the ASEAN Foreign Ministers’ Meeting in Manila, U.S.

Ambassador to ASEAN Kevin Kim said Washington is engaged in ‘deep discussions’ with several Southeast Asian governments on deploying SMR technology.

Kim described cooperation on SMRs as ‘an absolute priority’ for the U.S.

administration, saying the advanced nuclear technology would play a critical role in meeting the region’s future energy needs.

The initiative follows a memorandum of understanding signed by the United States, Japan and South Korea earlier this month, under which the three countries agreed to jointly promote the deployment of SMRs in third countries, beginning with the Indo-Pacifi c region.

Policymakers, energy experts, business leaders and development partners have called for accelerated domestic gas exploration, greater private sector participation, stronger LNG infrastructure and a predictable regulatory framework to ensure Bangladesh’s long-term energy security and support its transition to a sustainable energy system.

The recommendations came at the ‘Bangladesh’s Energy Security and Transition’ Policy Conclave, organized by Bonik Barta at the Pan Pacifi c Sonargaon Hotel in Dhaka recently.

More than 500 participants, including government offi cials, industry leaders, energy specialists, development partners and representatives from fi nancial institutions, attended the event.

Addressing the conclave as the chief guest, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said Bangladesh had focused heavily on expanding electricity generation over the past 17 years while paying inadequate attention to developing domestic fuel resources

Asia reinforced its position as the world’s leading green economy in 2025, generating 47 percent of global green revenues, while the global green economy’s market capitalization exceeded US$10 trillion for the fi rst time, according to a new report by the London Stock Exchange Group (LSEG).

The report, Investing in the Green Economy 2026: Resilience and Reacceleration, found that Asia’s green revenues have grown at an average annual rate of 12 percent over the past fi ve years, outpacing the global average of 10 percent.

China, Japan, Hong Kong and South Korea were the region’s leading contributors.

China remained the world’s largest clean energy investor, spending US$625 billion on renewable energy, energy storage, nuclear power and energy effi ciency projects, while India invested about US$100 billion in clean energy.

Japan also continued advancing its Green Transformation (GX) strategy to accelerate decarbonization.

The government has launched an initiative to strengthen energy audits in major industries as part of a broader effort to improve energy effi ciency, reduce fuel waste and lessen Bangladesh’s dependence on imported energy.

According to the FY2026-27 budget, designated industrial consumers will be encouraged to optimize electricity use and adopt energy-effi cient technologies to help lower rising power generation costs driven by increasing LNG imports and declining domestic gas production.

The government is also promoting renewable energy by offering incentives for local manufacturing of solar panels, wind turbine components and battery storage systems, while targeting 20% of electricity generation from renewable sources by 2030.

Alongside effi ciency measures, the government plans to expand power generation and transmission capacity, modernize the grid with smart technologies, retire ineffi cient power plants and review costly power purchase agreements to improve fi nancial sustainability.

The reforms are aimed at creating a more reliable, affordable and environmentally sustainable power sector while reducing the growing subsidy burden and strengthening long-term energy security.

Bangladesh has no alternative but to transition to electric vehicles (EVs) in both public transport and private mobility.

However, achieving this requires a carefully designed roadmap based on a comprehensive technoeconomic assessment.

The country’s targets must be aligned with the current state of the transport sector, evolving global trends, and technological advancements.

Otherwise, unrealistic planning could hinder the successful transition to electric mobility.

Dr.Md.

Ziaur Rahman Khan, Professor, Department of Electrical and Electronic Engineering, Bangladesh University of Engineering and Technology (BUET), shared these views in an interview with Mollah Amzad Hossain, Editor of Energy and Power.

The government has set a target of having 30% of the country’s vehicles electrifi ed by 2030.

How do you view this goal? If battery-powered rickshaws are included in the count, achieving 30% of the total number of vehicles is not diffi cult, as Bangladesh already has around 4.0 million battery-powered three-wheelers on the roads.

However, if we focus on mainstream transport-such as public transport and private passenger vehicles-the target becomes much more challenging.

In my opinion, achieving a 30% transition in these categories within the next four years is highly unlikely.

The current national budget offers tax and duty incentives for EVs, charging stations and batteries as part of the country’s green energy transition.

What impact do you expect these measures to have? These policy incentives will certainly help reduce electric vehicle prices.

Lower prices will encourage more consumers to purchase EVs.

At the same time, higher import duties on conventional internal combustion engine vehicles have already increased their prices, making EVs relatively more competitive.

The availability of quality EVs from Japan, in addition to Chinese brands, will also strengthen consumer confi dence.

While EVs are unlikely to have a signifi cant impact on the heavy-truck segment in the near future, government incentives can play an important role in expanding the use of electric buses in public transport.

However, quality must remain the highest priority.

Bangladesh should discourage the large-scale import of old reconditioned EVs because many of them come with batteries that have already lost a signifi cant portion of their lifespan.

Such vehicles could create reliability issues and undermine consumer confi dence.

Appropriate tariff measures should be considered to prevent low-quality used EVs from entering the market.

Several companies are preparing to assemble or manufacture EVs locally.

Could local production make EVs more affordable? Local manufacturing and assembly can certainly reduce costs, but quality cannot be compromised.

We have seen examples where locally assembled vehicles became cheaper but failed to match the quality of internationally manufactured models.

That experience should serve as a lesson.

Consumers are increasingly willing to adopt new technologies, but they will only continue to do so if product quality is maintained.

Reliable aftersales service is equally important.

The government should therefore focus on developing skilled technicians and establishing a nationwide service network.

At the same time, the expansion of service centers, EV sales, and charging infrastructure must progress together.

During the initial stage, the government should play a leading role in developing a sustainable business model for the EV ecosystem.

Many believe that a nationwide charging infrastructure is critical for EV adoption.

What is your assessment of solar-plus-battery charging stations? At this stage, I would not recommend solar-plus-battery charging stations as the primary model, as the business case is not yet commercially attractive.

However, solar-powered charging stations should certainly be encouraged to reduce pressure on the national electricity grid.

The Sustainable and Renewable Energy Development Authority (SREDA) has already established a committee to approve EV charging stations.

Many investors have obtained approvals but have yet to install the facilities.

Existing charging stations in Bogura, Dhaka, Rajshahi, and Narayanganj remain underutilized because the number of EVs is still very limited.

Before a large-scale EV rollout, Bangladesh should consider expanding the use of plug-in hybrid vehicles.

They could serve as an effective transitional technology, helping familiarize consumers with electric mobility.

The government has already introduced fi scal incentives for plug-in hybrids in the national budget, but these incentives should be further strengthened.

To build public confi dence in new technologies, greater tax and duty incentives should be provided for high-quality plug-in hybrid and fully electric vehicles.

Electrifying public transport, in addition to private vehicles, would deliver broader social and environmental benefi ts.

The government has already launched some initiatives through BRTC, but Bangladesh’s public transport system is largely operated by the private sector.

What steps should the government take to accelerate the transition? Numerous operators dominate Bangladesh’s public transport system, and it lacks proper regulation.

Many buses currently operating in cities are not even roadworthy.

Before introducing electric buses on a large scale, the government should designate dedicated EV bus routes where diesel- and CNG-powered buses are discouraged.

Without designated EV-only routes, unhealthy competition and non-cooperation from existing diesel and CNG bus operators may undermine the effi ciency and reliability of electric buses.

The transport sector itself also needs reform.

Drivers must receive specialized training to operate electric buses effi ciently; otherwise, the energy-effi ciency benefi ts of EVs will not be fully realized.

At the same time, the country needs to develop skilled technicians for maintenance and servicing.

The government has announced plans to introduce 100 electric buses and another 100 minibuses for women through BRTC.

Similar attempts to improve public transport with modern buses, such as Volvo buses, have been made in the past but did not achieve the expected results.

Instead of deploying all 200 vehicles at once, I would recommend introducing them in phases.

The initial fl eet should operate on dedicated routes reserved exclusively for electric buses.

Lessons learned from the fi rst phase should be used to improve operations, driver training, maintenance capacity, and service quality before expanding the program.

Over time, private transport operators should be encouraged to invest in electric buses.

Both BRTC and private operators should also develop their own charging infrastructure.

Finally, Bangladesh must consider local road conditions.

Many roads are regularly fl ooded during the monsoon, so detailed studies are needed to assess how waterlogging may affect EV operations before scaling up deployment.

Battery-powered rickshaws using lead-acid batteries have spread rapidly across the country, raising concerns about lead contamination of soil and water.

What policy measures should the government take? First, we need to distinguish between two types of vehicles.

Battery kits fi tted to traditional pedal rickshaws should be phased out gradually because they pose safety and traffi c management problems.

On the other hand, purposebuilt battery-powered three-wheelers with proper engineering and design should be brought under the existing regulatory framework for threewheelers.

Bangladesh now has nearly four million battery-powered rickshaws.

The government should develop a comprehensive policy and business model to replace lead-acid batteries with lithium batteries.

NGOs and microfi nance institutions could play a signifi cant role by providing affordable fi nancing for battery replacement.

Although lithium batteries require a higher upfront investment, they are far more economical over their lifetime.

A lead-acid battery typically lasts about one year, whereas a lithium battery can last at least fi ve years.

More importantly, replacing lead-acid batteries would signifi cantly reduce soil and water pollution.

The solution is not to ban batterypowered rickshaws altogether.

Rather, technically compliant electric threewheelers should be registered, and drivers should receive formal training and licensing.

Otherwise, these vehicles could become an even greater road safety challenge in the future.

Many argue that charging batterypowered rickshaws is placing additional pressure on the electricity distribution system, especially because many operators use residential electricity connections instead of commercial tariffs.

What should be done? One major problem is the lack of standards for battery chargers.

Both lead-acid and lithium batteries need chargers.

But Bangladesh lacks proper technical standards for these devices.

As a result, many poor-quality chargers are in use.

They waste energy and also harm the electricity network.

In my research, I found that simple technical improvements to charger design could increase energy effi ciency by up to 20%, resulting in substantial electricity savings nationwide.

Poor-quality chargers also shorten transformer life and contribute to feeder overloading.

Illegal electricity use for charging is primarily an enforcement issue for utilities.

A prepaid charging system should be introduced to address electricity theft.

Current regulations already allow residential consumers to charge two or three electric three-wheelers from a household connection, while larger commercial charging facilities are expected to use approved electricity connections.

Some experts believe Bangladesh should announce a clear roadmap with a timeline for transitioning all vehicles to electric mobility.

Do you agree? Absolutely.

Bangladesh must transition to electric mobility.

However, one of our biggest challenges is the lack of policy consistency.

Different policymakers often make different announcements, resulting in fragmented implementation.

The government should fi rst undertake a comprehensive techno-economic study and then prepare a detailed national EV roadmap with realistic targets, timelines, and implementation strategies.

Without such a roadmap, the country is likely to face signifi cant challenges during implementation, thereby delaying the transition rather than accelerating it.

The Government of Bangladesh and the International Organization for Migration (IOM) have signed an agreement to implement a pound 1.125 million European Unionfunded project aimed at strengthening climaterelated migration management, enhancing institutional capacity, and promoting regional cooperation across South Asia.

The three-year project, titled ‘Advancing an Integrated Approach to Climate-Related Migration in South Asian Countries,’ will be implemented under an agreement signed between the Economic Relations Division (ERD) of the Ministry of Finance and IOM Bangladesh.

The agreement was signed by ERD Secretary Mohammad Shahriar Kader Siddiky and Dr.

Laura TommBonde, Chief of Mission of IOM Bangladesh.

Organizations with strong commitments to sustainability, climate action and Environmental, Social and Governance (ESG) principles have been invited to participate in a high-profi le initiative alongside the 2026 UN Climate Change Conference (COP31) in Antalya, Trkiye.

The COP31 100 Global Impact Leaders program, jointly organized by the UN World Women Organization, the Global CSR Foundation, and international business publication The European, aims to recognize organizations that are making signifi cant contributions to the United Nations Sustainable Development Goals (SDGs) and climate action.

The initiative will bring together businesses, investors, policymakers, fi nancial institutions and sustainability leaders during COP31, providing selected participants with opportunities for global recognition, executive networking and media exposure.

At the heart of the program is the publication ‘100 Global Impact Leaders: Advancing the SDGs Toward 2030,’ a special supplement highlighting companies, institutions, policymakers and innovators demonstrating measurable progress in sustainability and responsible business practices.

The initiative comes as sustainability reporting and ESG disclosure continue to gain prominence worldwide.

Organizers noted that the UN Sustainable Development Goals have become central to corporate investment and reporting strategies, while new international sustainability reporting standards and growing investor expectations are increasing demand for transparent climate and ESG performance.

According to the organizers, the program is designed to help participating organizations demonstrate leadership in climate action, strengthen relationships with investors and policymakers, highlight sustainable business practices, enhance executive visibility and build international partnerships ahead of the 2030 SDG deadlin