Category: Energy and Power

After almost 17 years, Bangladesh has unveiled a revised version of its Renewable Energy Policy that aims to ensure that at least 20 percent of the country’s total electricity supply comes from renewable energy by 2030 and at least 30 percent by 2040.

the policy promises many lucrative incentives, including ten years of corporate tax exemptions for both government and private renewable energy producers, followed by five years of half-exemption, and a waiver of import duty on solar equipment.

it also allows consumers from all segments (domestic, industrial, and commercial) to install renewable energy systems and sell surplus electricity to the government or individual players under the Net Metering Guidelines 2018.

at a broader level, its vision is to decarbonize the energy sector, reduce reliance on fossil fuels, and create an energy-efficient, low-carbon economy by scaling out technology solutions such as solar, wind, biomass, wasteto-energy, biofuels, geothermal, tidal, hydro, and green hydrogen.

the policy additionally encourages innovative solutions such as peer-to-peer energy trading, floating solar projects, solar irrigation, EV charging infrastructure, and Battery Energy Storage Systems for improving grid integration and stability to meet its 6,145 MW renewable capacity target by 2030 and 17,470 MW renewable capacity target by 2041. Despite this renewed ambition, certain issues and gaps exist within the policy design.

the biggest challenge in meeting the renewables target is the financing. According to the Institute for Energy Economics and Financial Analysis (IEEFA), this will cost Bangladesh USD 933-980 million/yr until 2030 and USD 1.37-1.46 billion/yr till 2040.

the energy sector had received only 3.6 percent of the funds it needed by 2023, while banks and non-banking financial institutions financed only BDT 742 crore in renewable projects, in contrast to an estimated requirement of BDT 20,500 crore, as per a study by the Bangladesh Institute of Bank Management (BIBM). Given the funding shortfall, we need substantial private and foreign investments. Some support exists, like 350 million Euro loans from the European Investment Bank and 45 million Euro from EU grants, but that is still far away from the annual requirement.

in the policy, a fund has been proposed named Sustainable Energy Development Fund (SEDF), but it neither specifies its governance structure nor the funding sources, which further decreases investors’ confidence. Provisions such as incentives that the government ‘may’ provide or duty exemptions it ‘might’ grant, whichare often unclear, create uncertainty for investors. Such phrasing completely casts doubt on the true motivation.

uncertainty about implementation and potential support might cause investors and industry players to sit on the sidelines.

investor confidence has also been rattled by the suspension of 31 utility-scale renewables projects for which Letters of Intent were issued through a non-competitive bidding process.

these challenges are compounded by institutional fragility beyond finances and investor confidence.

in the policy, the Sustainable and Renewable Energy Development Authority (SREDA) has been assigned the nodal role in developing the roadmap, establishing standards, and monitoring projects. However, as we realize that without deadlines, milestones, and accountability mechanisms, the commitment to achieving the renewable target risks becoming a mere piece of paper.

adding to this, land scarcity presents another barrier. While the policy suggests Khas land, fallow fields, water bodies, agrivoltaics, and floating solar, these are often stalled by bureaucracy, vested interests, and local resistance. For example, wind projects in Cox’s Bazar might face conflicts with the fisher communities. Such projects are even more at risk of conflict if they are not consulted and compensated adequately.

the policy encourages rooftop solar.

the interim government aims for a 3,000 MW rooftop solar target by December 2025, but it is ambitious in view of systemic constraints such as low standards, weak enforcement, high tariffs on imports, capacity limitations, and funding hurdles. The shortcomings become even clearer when compared regionally.

out of the 1,616 MW of renewable capacity in Bangladesh, only 245 MW comes from rooftop solar (0.8 percent). Sri Lanka, on the other hand, produces 1,347 MW of rooftop solar energy, comprising 23 percent of its renewable mix. With approximately 25 percent of its renewables coming from rooftop capacity, Pakistan performs even better, with 15,000 MW of rooftop solar. Moreover, import duties remain a persistent barrier. We know that inverter duty has now been reduced to 1.0 percent from June 2025, but taxes on Fiberglass Reinforced Polymer (FRP) walkways and Direct Current (DC) cables remain high. In terms of inclusion, this policy does not recognize the agency of women and youth. Women in rural Bangladesh, who manage most household energy and often lead microgrid or rooftop solar projects, are not mentioned anywhere in the policy and receive no recognition or role as stakeholders. Even youth, whose potential for sustainable innovation will be critical for a country with two-thirds of the population under the age of 35, are also ignored. Another major concern is that there is still no Just Transition framework in the policy.

this framework, which is also the backbone of global climate policy, ensures that the transition to renewables is fair and will not leave workers and communities behind. Without it, the transition may risk marginalising vulnerable groups and deepening existing social and economic inequalities. To overcome the challenges, a combination of strategic, institutional, and public interventions is required. Strengthening SREDA needs to be prioritized, which requires more resources, skilled officials, and, more importantly, accountability.

the policy also needs to have a clear, time-bound trajectory with milestones, performance indicators, and responsible agents to address the past gaps.

it is essential to set up a coordination framework across relevant ministries; otherwise, ministries may carry out their own plans without being on the same page. A financing and investment plan should be carefully designed to integrate public funds, private capital, foreign direct investment, and climate finance.

timely and transparent land acquisition, fair compensation, and a mechanism for conflict resolution are critical in reducing local resistance.

the policy should incorporate Just Transition principles, protect workers, and prioritize women and youth as change drivers. Finally, all vague language and obscurity need to be replaced with binding commitments, clear incentives, and strong governance mechanisms.

Infrastructure Development Company Limited (IDCOL), in partnership with SME Foundation, organized a Focused Group Discussion (FGD) titled ‘Unlocking CMSME Potential: Bridging the Gaps.’ The session brought together entrepreneurs, financial institutions, regulators, and development partners to deliberate on the challenges and solutions for Bangladesh’s cottage, micro, small and medium enterprises (CMSMEs). Welcoming the participants, IDCOL CEO Alamgir Morshed stressed that CMSMEs contribute 25 percent of GDP and employ more than 34 million people, yet face a financing gap of over USD 73 billion (approximately BDT 9 lakh crore), constraining their potential. ‘CMSMEs are the backbone of our economy and crucial for resilience and job creation,’ Mr. Morshed remarked. ‘IDCOL has been working for over two decades to promote sustainable infrastructure, renewable energy, and inclusive finance. Building on this track record, we now want to ensure that CMSMEs also benefit from affordable credit, capacity building, and stronger market linkages.’ The consultation was attended by entrepreneurs, banks, NBFIs, MFIs, PKSF, Bangladesh Bank, SME Foundation, the Ministry of Industries, the Microcredit Regulatory Authority, BSCIC, and development partners, who shared their perspectives on the way forward.

The African Union has announced plans to form a coalition of mineral-producing nations to manage the global rush for critical minerals after holding a climate summit. Africa holds vast mineral wealth – from the rare earths in conflict-hit Democratic Republic of Congo to oil-rich Nigeria – but has struggled to capitalize on its resources after decades of colonial plunder, and subsequent mismanagement and corruption.

the 54-nation African Union met this week for a climate summit in the Ethiopian capital, Addis Ababa.

in a statement published recently, it said it would ‘explore and support the establishment of a coalition of critical mineral-producing countries of Africa to promote strategic and sustainable regional cooperation’. Labelling the move ‘Africa’s Green Minerals Strategy’, the AU said it would be a ‘vehicle for harnessing Africa’s vast mineral wealth for climateresilient development’.

the move comes as Washington looks to secure a supply of strategic minerals from the DR Congo, in an attempt to challenge China’s near-monopoly on the lucrative sector.

uN head Antonio Guterres said in August that Africa could become a ‘renewable superpower’ as it taps the raw materials needed for green technology around the world.

Seven people suffered burns in an explosion at Gulshan Petrol Pump in Mohakhali Amtali area of Dhaka recently.

of them, Swapan Molla, 24, Kabir, 18, Rubel, 28, and Khairul, 28, are employees of the Gulshan Clean and Care company, while Masudur Rahman, 44, is another company owner, and Almagir Hossain, 40, and Sojib, 31, are his employees. Gulshan Clean and Care staff member Swapan said they were taken to the petrol pump to clean an underground tank.

once the fuel had been removed, they entered the tank to clean it and used an electric fan to remove the remaining gas inside. ‘At one point, when we went to switch off the electric fan, the explosion occurred inside and all seven of us who were nearby suffered burns.,’ he said. Locals who rushed them to National Institute of Burn and Plastic Surgery said the fire was extinguished immediately after the explosion. Doctors at the burn institute said the injured were kept under observation.

Vertical solar specialist Over Easy Solar has broke its own record for the world’s largest rooftop vertical solar array with a 320 kW system in the north Norwegian city of Tromsø. Norwegian startup Over Easy Solar has deployed what it claims to be the world’s largest rooftop installation of vertical solar panels in Tromsø, northern Norway.

the 320 kW solar array features 6,400 vertical solar panels installed on the top of the logistics terminal Tromsøterminalen.

it was mounted by three people in four days, according to the company.

over Easy Solar says vertical solar panels are beneficial in northern latitudes such as Tromsø, which is located within the Arctic Circle, as they capture more energy from the low-angle sunlight common in the north, can generate more electricity in the morning and afternoon, and stay clear of snow accumulation, helping to improve year-round performance. ‘Vertical solar panels are very well suited for northern latitudes and snowy regions, so we hope this becomes a model project for others who want to invest in sustainable power production from flat rooftops in the north,’ commented Over Easy Solar CEO Trygve Mongstad. ‘As far as I know, this is now the city’s largest solar system, and the world’s largest vertical rooftop installation.’

EU countries have sought to settle on an emissions-cutting plan to bring to a key UN conference in Brazil, as divisions on the bloc’s green agenda threaten its global leadership on climate.

environment ministers for the 27-nation bloc gathered recently in Brussels with the clock ticking down on a United Nations deadline to produce plans to fight global warming by 2035.

one of the world’s biggest greenhouse-gas emitters behind China, the United States, and India, the EU has to date been the most committed to climate action, by some margin.

as such, the bloc was hoping to pull ahead and derive its submission to November’s COP30 climate conference from a more ambitious 2040 goal. But that is yet to be agreed by member states, leaving Brussels scrambling for a lastminute solution. Denmark, which holds the EU’s rotating presidency, has suggested submitting to the UN a ‘statement of intent’, rather than a hard target.

that would include a pledge to cut emissions between 66.3 percent and 72.5 percent compared to 1990 levels — with the range expected to be narrowed down at a later stage.

The 30th Conference of the Parties (COP30) to the UN Framework Convention on Climate Change (UNFCCC) is fast approaching. Preparations are underway by the incoming COP30 Presidency of Brazil, which has been issuing a series of letters aimed at encouraging all stakeholders, including UNFCCC parties, to effectively implement the Paris Agreement (PA).

in one such letter, the Presidency expressed hope to avoid the ‘brutality of inaction’ that has characterized many past COPs. Following the subsidiary bodies’ meetings in Bonn last June (SB62), the UNFCCC also held several online consultations with parties and stakeholders, alongside other mandated events in the run-up to COP30, which takes place in just seven weeks.

three of these mandated events on climate finance (CF) were held at the FAO Headquarters in Rome from September 6-11, 2025.

i had the privilege of attending the first event, held on September 6-7, focused on Article 2.1c of the PA, which addresses aligning finance flows with pathways toward low-carbon, climateresilient development (LCCRD).

the event also explored its complementarity with Article 9, which deals with climate finance obligations.

this was the sixth, and apparently final, workshop on the issue. Yet the core debates remain unresolved, particularly regarding the interpretation and scope of Article 2.1c.

this workshop emphasized stocktaking of both domestic and international actions on CF, as well as reflections on progress since the workshops began in 2023.

earlier workshops generated ideas on the scope of Article 2.1c, its operationalization, and its relation to Article 9. But consensus remains elusive. Some contours of the debate are clear, but the real test for the COP30 Presidency will be how it initiates the operationalization of Article 2.1c.

article 2.1c articulates the aspirational goal of achieving LCCRD and can be seen as the outcome of the climate regime.

its scope is broader than Article 9, which is specifically about developed countries providing CF and mobilizing resources through public and private channels, including bilateral and multilateral agencies.

article 2.1c, by contrast, covers broader objectives of achieving LCCRD through sustainable development and poverty reduction.

article 9, therefore, can be viewed as a mechanism for delivering public support and mobilizing additional CF sources-including private finance- to help implement Article 2.1c.

in this sense, Article 9 is a subset of the broader finance flows envisioned for LCCRD. Both articles rest on the principle of common but differentiated responsibilities, tailored to national circumstances and respective capacities.

the Co-Chairs of this agenda will prepare a final report for considerationat COP30 and CMA 7 of the PA.

achieving LCCRD involves every sector of the economy and financial systems at both global and national levels.

article 2.1c thus encompasses public and private finance, as well as international and domestic initiatives. From my participation in four of these workshops, I observed that developed countries often try to shift the burden of mobilization from international to domestic financial systems. This underscores the need to build the capacity of national regulators and private sector actors. While capacity building is necessary, domestic finance can only complement-not replace-international support, especially in low-income and least developed countries. When discussing climate change, we cannot overlook its origins: historical emissions from developed countries. While developing countries, including China, now lead in current emissions, this reality should not justify shifting responsibilities from international to domestic and private financial systems. Moreover, robust monitoring and tracking of CF is needed under both articles. Yet without a common definition of climate finance-still absent after more than 25 years of debate- effective tracking remains impossible. Such deadlocks only deepen mistrust between developed and developing countries.

the seventh letter from the COP30 Presidency highlights the role of the private sector and the profitable investment opportunities in addressing climate change.

the private sector is indeed critical for mobilizing CF, particularly given shifting geopolitics, geoeconomics, and shrinking global aid budgets. However, its contributions to CF remain far smaller than those of the public sector. With its strong advocacy of global norms and values, the progressive Brazilian Presidency faces the challenge of ensuring that this COP avoids the ‘brutality of inaction.’ Success will depend on its ability to unite parties and non-parties in providing and mobilizing climate finance to operationalize a roadmap for achieving LCCRD

Titas Gas Transmission and Distribution Company Limited conducted a mobile court drive in Narayanganj recently and severed illegal gas connections to curb unauthorized use and safeguard government revenue.

the operation was carried out at Langalbandh under Bandar Thana where 6,655 cubic feet of gas wastage was prevented, valued at around Taka 18,100 per day and Taka 506,000 per month. During the drive, 320 feet of illegal pipelines spread across a two-kilometer area were removed, leading to the disconnection of 300 residential burners, nine commercial burners and one oven.

the mobile court also imposed a fine of Taka one lakh on an accused for using illegal gas connections.

IDCOL has organized a comprehensive two-day training program aimed at accelerating the adoption of rooftop solar energy among industries in Bangladesh. The training focused on the opportunities and financing mechanisms available to promote renewable energy in the industrial sector, aligning with the nation’s goal of generating 40% of electricity from renewable sources by 2030.

the event started with the opening remarks by Mr.

alamgir Morshed, Executive Director and CEO of IDCOL who emphasized the importance of industrialscale rooftop solar in supporting the country’s clean energy future. The program also featured a session of gratitude from Deputy CEO and CFO of IDCOL, S. M. Monirul Islam, who expressed appreciation to all participants and stakeholders for their commitment to Bangladesh’s green transformation.

expert insights into technical and engineering considerations were provided by Dr. M. Rezwan Khan, Director of IDCOL and Professor Emeritus at the United International University (UIU). Key training sessions were led by Md.

enamul Karim Pavel, Head of Renewable Energy at IDCOL, focusing on the technical and operational aspects of rooftop solar projects.

Transportation of jet fuel from Patenga to Chittagong airport through a pipeline began recently.

the project has been implemented at a cost of Tk 170 million to supply fuel oil to aircraft in a modern, environmentally friendly, time- and cost-saving manner. Previously, the cost of transporting jet fuel through tank lorries was Tk 80 million per year.

under the pipeline, 140 cubic meters of fuel will be transported per hour through an 8-inch diameter underground pipeline. Secretary of the Energy and Mineral Resources Department, Mohammad Saiful Islam, inaugurated the ‘Jet A-1 Pipeline from the main installation at Patenga to Shah Amanat International Airport’ in the port city on Tuesday morning. Jet fuel will now be transported through a 5.77-kilometre pipeline from Padma Oil’s main facility in the Guptakhal area of Patenga. Previously, jet fuel was supplied to the airport by tanker from Patenga, which was eight kilometers away