Category: Energy and Power

Bangladesh’s draft National Renewable Energy Development Strategy marks a signifi cant shift in the country’s approach to energy security.

The strategy recognizes it as a cornerstone of economic resilience, energy independence, and long-term sustainability.

The ambition is diffi cult to ignore.

Expanding renewable capacity by more than 10,000 MW within fi ve years would transform the sector and reduce its growing dependence on imported fossil fuels.

The emphasis on rooftop solar, private investment, fi nancial incentives, and grid modernization reflects a broader recognition that the future energy security will depend as much on innovation and market confi dence as on government planning.

Yet ambition alone will not guarantee success.

Bangladesh’s renewable energy sector has struggled for years with policy uncertainty, fi nancing constraints, institutional weaknesses, and delays in project implementation.

These challenges cannot be overcome through targets alone.

Investors will require clear regulations, transparent procurement, reliable payment mechanisms, and effi cient project approvals before committing substantial capital.

Equally important is the readiness of the electricity grid.

Expanding solar generation without adequate transmission capacity, battery storage, and demand management could create new operational and fi nancial challenges.

The draft strategy is therefore best viewed as a beginning rather than a destination.

The real test will lie in implementation.

If the government follows through with consistent policies, transparent governance, and sustained private sector engagement, the green pivot could become a defi ning chapter in Bangladesh’s energy transition.

If not, it risks joining a long list of ambitious plans whose promise was never fully realized.

Nearly 100 campaign groups recently called on COP31 climate summit co-hosts Turkey and Australia to ‘lead by example’ by addressing their reliance on planetheating fossil fuels.

Turkey is staging the UN climate talks in November but Australia will oversee the formal negotiations, in an unusual arrangement reached after both countries bid to host the conference The summit is taking shape as war in the Middle East drives up energy and commodity prices and highlights the vulnerability of fossil-fuel dependent economies to supply shortages.

Turkey and Australia have encouraged countries to embrace renewable energy as a bulwark against unreliable energy imports.

But in an open letter on Friday, dozens of non-governmental organisations urged Turkey and Australia to ‘address the number one cause of the climate crisis – the burning of coal, oil and gas’.

‘Action on fossil fuels must start at home,’ said Duygu Kutluay from Beyond Fossil Fuels, one of 94 groups to sign the letter to COP31 president Murat Kurum and negotiations chief Chris Bowen.

Bangladesh could earn nearly US$1.0 billion annually through carbon credit trading from its nationwide 250 million tree plantation program, according to a government report, highlighting a major opportunity to combine climate action with green economic growth.

Prime Minister Tarique Rahman offi cially launched the ambitious fi veyear programme on June 13, aiming to strengthen environmental protection and mitigate the impacts of climate change by planting 25 crore trees across the country.

According to the Climate Financing Budget Report, one of the initiative’s most signifi cant features is its potential to generate substantial carbon credits through largescale afforestation.

Under international carbon market mechanisms, designated plantation areas must be registered in advance and regularly reported to relevant international authorities and participating countries.

By increasing carbon sequestration and reducing net greenhouse gas emissions, the programme could create signifi cant fi nancial returns through carbon credit trading.

The number and mix of climaterelated fi nancial sector policies has continued to expand.

Between 2023 and 2025, their number grew by more than 25%, with transparency dominating the mix (78%), prudential measures on the rise (20%), and monetary policy tools remaining scarce (2%).

Against the backdrop of the large volume of traditional corporate bond issuance to energy and industrial sectors, the report points to untapped opportunities to transition fi nancial flows across geographies.

The Organisation for Economic Co-operation and Development (OECD) has published a report that tracks a variety of climaterelated fi nancial sector policies, assesses the degree to which fi nancial flows align with climate goals, and charts the landscape of climate metrics used in the fi nancial sector.

The report seeks to support investors and policymakers by identifying untapped opportunities to transition fi nancial flows.

The United States Energy Association (USEA) has released a new edition of its Global Briefi ng series, featuring Benjamin Dubertret, Minister Counselor for Economic Affairs at the French Embassy, who discussed expanding energy cooperation between France and the United States.

The briefi ng focused on strengthening bilateral collaboration in nuclear energy, France’s newly adopted energy law, and priorities for its 2026 G7 Presidency, including addressing global development fi nance challenges and securing critical mineral supply chains essential for the clean energy transition.

The discussion is part of USEA’s special interview series marking America’s 250th Anniversary, highlighting the evolution of international energy partnerships and the growing role of transatlantic cooperation in advancing global energy security and decarbonization

capacity alone may already exceed 1,000 MW, considerably higher than offi cial fi gures indicate.

Building the Policy Framework The draft strategy proposes an extensive package of reforms to accelerate renewable energy deployment.

Among the major initiatives are: Expanding rooftop solar through mandatory net metering; Promoting floating solar and agrophotovoltaic (Agro-PV) projects; Converting diesel-powered irrigation pumps to solar energy; Developing waste-to-energy facilities that generate both electricity and organic fertilizer; Integrating solar-powered charging infrastructure for electric vehicles; Modernizing the national grid through smart grid technologies and Battery Energy Storage Systems (BESS); and Improving energy effi ciency by reducing electricity consumption by at least 15 percent across industrial and residential sectors.

The strategy also recommends establishing a national carbon credit trading framework, enabling renewable energy projects to access international climate fi nance through global carbon markets.

Financing the Transition The government identifi es fi nancing as one of the greatest obstacles to expanding renewable energy.

To overcome this challenge, the strategy proposes creating a Renewable Energy Development Fund supported by domestic and international fi nancial institutions, development partners, climate funds, and private investors.

The fund would provide long-term, low-interest fi nancing for renewable projects, while the Ministry of Finance would offer sovereign guarantees for eligible investments.

Development partners would also be allowed to extend additional fi nancial guarantees.

The strategy further proposes concessional fi nancing, loan guarantees, tax incentives, and simplifi ed approval procedures to attract both domestic and foreign investors.

To encourage greater private sector participation, the government also plans to reduce import duties and taxes on solar panels and related equipment, expand Bangladesh Bank’s Green Refi nance Scheme, and simplify fi nancing for small and medium-sized enterprises investing in renewable energy.

The draft additionally proposes a onestop service for project approvals and a digital net-metering system to streamline rooftop solar integration into the national grid.

Private Sector Takes Center Stage The strategy identifi es private investment as the principal driver of Bangladesh’s renewable energy expansion.

Renewable energy projects are expected to be implemented through PublicPrivate Partnership (PPP) and Merchant Power Plant models.

However, the document does not clearly defi ne the future role of the existing Independent Power Producer (IPP) framework.

Industry stakeholders argue that this omission could discourage both domestic and foreign investors, particularly those interested in developing grid-connected solar projects.

Strengthening Energy Security A central objective of the strategy is to reduce Bangladesh’s growing dependence on imported fossil fuels.

The draft notes that reliance on imported energy has increased the country’s exposure to volatile international fuel markets, placing pressure on electricity prices, foreign exchange reserves, and government subsidy requirements.

By expanding renewable energy, the government aims to improve energy security, reduce fuel imports, lower carbon emissions, and build a more resilient and affordable electricity system over the coming decade.

Implementation Challenges While experts have broadly welcomed Bangladesh’s fi rst National Renewable Energy Development Strategy, many caution that achieving its ambitious targets will ultimately depend on implementation rather than policy aspirations.

One of the principal concerns is the absence of a clear roadmap for reducing the cost of renewable electricity.

Zakir Hossain Khan, Chief Executive of Change Initiative, said the strategy presents an ambitious vision but provides limited guidance on how renewable power can become more affordable.

He also questioned whether the proposed Renewable Energy Development Fund could become overly bureaucratic unless supported by strong governance, transparency, and accountability.

Financing remains another critical challenge.

Although the strategy proposes concessional loans, sovereign payment guarantees, tax incentives, and long-term fi nancing, experts note that investor confi dence will depend largely on the effectiveness and predictability of these mechanisms.

Reforming the Investment Environment The strategy acknowledges that Bangladesh’s renewable energy sector has expanded more slowly than anticipated because of limited access to affordable fi nancing, policy uncertainty, weak institutional coordination, and an investment climate that has not been suffi ciently supportive.

To address these constraints, it recommends replacing traditional contractual arrangements with government-backed payment guarantees, thereby reducing fi nancial risks for investors.

The draft also proposes reducing import duties and taxes on renewable energy equipment to as low as one percent and expanding Bangladesh Bank’s Green Refi nance Scheme.

Small and mediumsized enterprises investing in renewable energy would receive simplifi ed fi nancing procedures and easier access to credit.

Although the FY2026-27 national budget introduced duty concessions for renewable energy equipment, industry representatives argue that the incentives remain conditional and are not universally available.

Professor Ijaz Hossain, former Dean of the Bangladesh University of Engineering and Technology (BUET), believes these tax benefi ts should be extended to all renewable energy investors, even for a limited period, to accelerate rooftop solar development.

Rooftop Solar Takes Priority Given Bangladesh’s limited availability of land, rooftop solar occupies a central place in the proposed strategy.

The government plans to expand rooftop solar installations across ministries, government offi ces, and public institutions through private investment, allowing investors to recover their costs under the net-metering system.

The strategy also recommends making net metering mandatory for industries operating in Economic Zones (EZs) and Export Processing Zones (EPZs).

In addition, amendments to the Bangladesh National Building Code (BNBC) are proposed to require that between 30 and 70 percent of rooftop space in new residential, commercial, and industrial buildings be reserved for solar photovoltaic installations.

For utility-scale renewable energy projects, the strategy emphasizes competitive bidding, Public-Private Partnership (PPP) implementation, merchant power projects, and mandatory Battery Energy Storage Systems (BESS) to enhance grid stability.

Beyond Solar Although solar energy dominates the strategy, the government also intends to diversify renewable energy sources.

The draft highlights the signifi cant wind energy potential of Bangladesh’s coastal regions while promoting floating solar and waste-to-energy projects.

Another major proposal involves gradually converting approximately 1.2 million diesel-powered irrigation pumps and 400,000 electric irrigation pumps to solarpowered systems.

Besides reducing diesel imports and easing pressure on the national grid, the transition could lower government subsidies while enabling farmers to sell surplus electricity back to the grid through net metering.

What the Experts Say Energy experts generally view the strategy as an important milestone toward a more structured and coordinated clean energy transition.

Professor Ijaz Hossain believes the strategy can attract substantial private investment only if Bangladesh reforms its land-use policy for renewable energy projects.

He recommends that the government identify suitable land, ensure transmission connectivity, establish benchmark tariffs, and allocate projects through transparent competitive auctions.

Such measures, he argues, would both improve transparency and reduce electricity costs.

He also cautions that technical challenges could become increasingly important as renewable capacity expands.

During winter months, Bangladesh’s electricity demand falls to around 10,000 MW, while approximately 7,000 MW of baseload generation from coal and nuclear power plants must remain in operation.

Consequently, the grid may be unable to absorb more than about 3,000 MW of solar generation during off-peak periods without adequate battery storage capacity.

Engineer Shafi qul Alam also views the strategy positively, noting that it extends beyond renewable electricity generation by incorporating energy effi ciency, demand-side management, and proposals such as adjusting offi ce hours to improve electricity demand management.

He particularly welcomed the proposal to establish a dedicated Renewable Energy Development Fund and introduce government-backed payment guarantees, saying these initiatives could help restore investor confi dence.

However, he stressed that several provisions require greater clarity before the strategy is fi nalized.

Conclusion Bangladesh’s National Renewable Energy Development Strategy (2026- 2030) represents the country’s most comprehensive blueprint yet for accelerating the clean energy transition.

It combines ambitious renewable energy targets with policy reforms, fi nancial incentives, private sector participation, and investments in modern grid infrastructure and energy storage.

Yet the strategy also underscores that setting targets is only the beginning.

Questions remain over the governance of the proposed Renewable Energy Development Fund, the implementation of payment guarantees, and the broader investment framework needed to mobilize private capital.

Experts also recommend simplifying Power Purchase Agreements (PPAs), Implementation Agreements (IAs), and tendering procedures while developing a broader Green Energy Transition Roadmap that provides a clear pathway toward lower carbon emissions and reduced dependence on imported fossil fuels.

Equally important is the need to strengthen the electricity system itself.

As renewable capacity expands, Bangladesh will have to modernize its transmission network, deploy large-scale battery energy storage, and improve the management of variable renewable generation.

Without these investments, surplus renewable electricity could become stranded, undermining both fi nancial sustainability and energy security.

Ultimately, the green transition is about far more than increasing the share of renewable energy in the national electricity mix.

It reflects Bangladesh’s effort to build a more secure, resilient, and affordable energy future.

Whether that vision becomes reality will depend not only on the ambition of the strategy but also on the government’s ability to translate policy into projects, attract sustained private investment, and implement reforms with transparency and consistency

Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam recently said more than 1,000 megawatts (MW) of electricity from unit-1 of Rooppur Nuclear Power Plant (RNPP) is expected to be added to the national grid by December this year.

Of the 1000 MW, 300 MW of electricity will be added to the national grid by the end of August this year, he said.

The minister made the remarks while addressing a two-day strategic roundtable discussion, titled ‘Nuclear Energy: Strategy, Realities and Bangladesh’s Path Forward,’ at the Swapnadeep Resort conference hall in Ishwardi, Pabna.

He also said nuclear fuel loading for the second unit of the nuclear power plant is expected to be completed in April 2027.

If everything proceeds according to plan, an additional 1,000 MW from unit-2 will be connected to the national grid by December 2027.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Ministry of Environment, Forest and Climate Change held a highlevel meeting to explore practical measures for improving environmental compliance while supporting the sustainable growth of Bangladesh’s apparel and textile industry.

The meeting took place at the Bangladesh Secretariat, where a BGMEA delegation led by President Mahmud Hasan Khan met with Environment, Forest and Climate Change Minister Abdul Awal Mintoo.

Discussions focused on aligning environmental regulations with the operational realities of the ready-made garment (RMG) and sustainable textile sectors.

During the meeting, industry leaders reaffi rmed their commitment to environmental sustainability while highlighting several technical and implementation challenges associated with the Environmental Conservation Rules 2023

Bangladesh needs a market-based approach involving battery tracking, fi nancial incentives and stronger regulation to tackle unsafe lead-acid battery recycling, researchers and policymakers said recently.

They said around 80 percent of used lead-acid batteries are currently processed through informal and illegal facilities, creating serious public health, environmental and economic risks.

The challenge is not only to stop unsafe recycling but also to build a system where batteries are properly tracked, safely recycled and managed through a responsible circular economy, they said at a seminar titled ‘Evidence to Action: Economic and Policy Pathways for a Safer Lead-Acid Battery Circular Economy in Bangladesh’.

Presenting a new policy study at a city hotel, Prof Erica Plambeck of Stanford University said informal recyclers dominate the sector because they avoid taxes, environmental compliance costs and regulatory requirements.

Efforts to strengthen global climate action gained renewed attention in June.

Still, negotiations at the UN Climate Change Meetings in Bonn were overshadowed by persistent disagreements over climate fi nance and key policy issues, highlighting the growing challenge of translating climate ambitions into concrete action, according to the latest report by IISD SDG Knowledge Hub.

Negotiators faced signifi cant diffi culties in advancing discussions on several major agenda items, including the Mitigation Work Program (MWP), the Global Goal on Adaptation (GGA), the transition of the Adaptation Fund to serve exclusively under the Paris Agreement, the Just Transition Work Program, and research and systematic observation.

Deep divisions among countries meant that, on many issues, delegates were unable to agree on draft negotiating texts to advance at the 2026 UN Climate Change Conference (COP31), scheduled to take place in Antalya, Trkiye, later this year.

Climate fi nance remained one of the most contentious issues throughout the Bonn meetings.

Developing countries continued to stress that greater fi nancial support is essential for implementing mitigation and adaptation measures, while developed countries faced increasing pressure to scale up commitments.

During the conference, the Organization for Economic Cooperation and Development (OECD) released a new assessment showing that substantial untapped opportunities exist to better align global fi nancial flows with climate goals.

The report suggested that redirecting investments toward low-carbon and climate-resilient development across regions could signifi cantly accelerate the global transition.

Ocean-based climate action also received renewed attention during the annual UNFCCC Ocean and Climate Change Dialogue, where governments, scientists and stakeholders emphasized the need to better connect local adaptation needs with existing international climate fi nance mechanisms.

Participants argued that stronger fi nancial support is necessary to help coastal and island communities cope with rising climate risks.

Beyond formal negotiations, several side events highlighted the growing recognition that climate action must be integrated across multiple sectors.

Experts called for stronger links between the Ocean and Climate Change Dialogue and broader UN climate negotiations to ensure greater policy coherence.

Discussions under the Turquoise Nexus Initiative focused on the interconnected challenges of food security, sustainable water management and climate adaptation.

Specialists also urged governments to strengthen cooperation across the three Rio Conventions by incorporating wildlife conservation into climate policies.

Meanwhile, the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) highlighted the role of its Multilateral System in improving global access to plant genetic resources, supporting food security, biodiversity conservation and climate resilience.

Outside the UNFCCC process, climate scientists and agricultural experts met to review the latest evidence on climate change and agrifood systems.

Their recommendations will contribute to the Intergovernmental Panel on Climate Change (IPCC) Seventh Assessment Report (AR7).

Participants agreed that future climate policies should move beyond individual sectors and adopt a comprehensive agrifood systems approach.

Building resilience to climate impacts remained a central theme throughout June.

Experts emphasized the critical role of peatlands in storing carbon, protecting biodiversity and strengthening resilience against climate change.

Organizers also opened applications for the Earthna Prize 2026, which recognizes innovative resilience solutions rooted in traditional knowledge, with submissions remaining open until 20 July 2026.

Despite limited progress in formal negotiations, the June discussions underscored growing international recognition that stronger climate fi nance, cross-sector collaboration and integrated policy approaches will be essential for raising global climate ambition ahead of COP31