Category: Energy and Power

The global clean energy transition is unfolding at a breathtaking pace, shaped by technological breakthroughs, shifting investment landscapes, and ambitious climate policies. Yet, it is also influenced by fiscal and tax reforms in major economies, which send signals across borders and alter capital flows in subtle but impactful ways.

the introduction of a new tax base by the United States is one such reform, which, though designed to meet domestic fiscal objectives, has raised important questions for energy professionals worldwide.

one pressing concern is whether this shift in American taxation could slow down the acquisition of renewable energy in the European Union, at a time when the EU is experiencing a steady decline in the technology cost index for both solar and wind power.

the implications extend beyond the transatlantic relationship.

it also touches the developing countries such as Bangladesh, which find themselves navigating financing bottlenecks, dependency on global markets, and the urgent need for affordable renewable technologies.

the U.S.

tax reform has three potential channels of influence on renewable energy markets, I think. First, the redirection of capital is inevitable when taxation structures shift, leading global investors to prioritize domestic opportunities in the U.S.

over overseas projects. Second, the restructuring of taxation in ways that favor domestic supply chains can create a ripple effect, making American projects more attractive relative to those in Europe.

third, the broader signal effect of U.S.

tax policy is significant: it communicates that America is prioritizing its domestic clean energy industry and reshaping investor expectations accordingly. For Europe, which has long been dependent not only on domestic financing but also on flows of international capital, these changes create uncertainties that could translate into temporary slowdowns in renewable project acquisition. Yet the European Union’s own data tells a story of resilience and cost competitiveness. The technology cost index, calculated from average capital expenditures for solar and wind projects across 27 member states between 2000 and 2024, reveals a decisive downward trend.

in the early 2000s, solar power was prohibitively expensive, with costs averaging more than 450 USD per kilowatt, while wind stood near 110 USD per kilowatt.

over two decades, however, solar experienced the steepest decline, benefiting from rapid learning curves, economies of scale, and improved global supply chains. Wind followed a steadier but significant path of cost reduction.

the convergence of these technologies by the 2020s reflects a diversified and increasingly competitive renewable portfolio for the EU.

this trajectory provides Europe with a critical buffer: even if global capital temporarily shifts toward U.S. projects, the steadily falling costs of renewable technologies make European acquisition structurally viable in the long run. The chart below illustrates this downward trajectory of capital expenditures for solar and wind in the EU from 2000 to 2024, underscoring the steady decline that underpins the resilience of the European market.

as the world prepares for COP30, these dynamics take on added significance, since the summit will play a decisive role in shaping climate finance commitments and technology transfer frameworks.

in my point of view, this evidence also aligns with the expectations for COP30, where discussions on technology cost-sharing and equitable access will directly relate to such downward cost trajectories.

the evidence from the chart is clear. Solar, which began as the more expensive option, has seen the most dramatic reductions in capital expenditure.

this has transformed it from a niche, high-cost option into a mainstream, scalable technology that is now on par with wind in terms of competitiveness. Wind, though beginning at a lower base, has also steadily declined in cost, further diversifying Europe’s energy options. For energy professionals, these dynamics mean that despite potential financial frictions caused by U.S.

taxation policies, the EU’s renewable momentum is unlikely to be fundamentally derailed. Policy frameworks such as the European Green Deal and the Fit for 55 packages only reinforce this trend by ensuring long-term commitment and stability for investors. However, the implications of these developments extend far beyond Europe. Developing countries like Bangladesh are directly affected by the shifts in global taxation and technology cost structures. Bangladesh faces unique challenges: financing constraints, dependency on imported technology, policy inconsistencies, and weak grid infrastructure.

its renewable ambitions are ambitious but often undermined by a lack of affordable capital and reliable technology access.

if global capital is redirected toward U.S. projects due to tax incentives, Bangladesh may find itself facing an even narrower window for concessional financing. Moreover, reliance on imported solar modules and wind components exposes the country to volatility in global supply chains, which are themselves influenced by policy choices in Washington and Brussels.

at the same time, there are opportunities as well.

the steady decline of solar and wind costs in Europe suggests that these benefits will eventually spill over to emerging markets.

as technology matures and becomes cheaper to manufacture, developing countries stand to benefit from lower entry costs. For Bangladesh, this means that while financing may remain a hurdle, the relative affordability of renewable technologies could ease the burden of capital-intensive deployment. The key lies in strategic responses: adopting blended finance models that combine public, private, and concessional funds; fostering regional electricity cooperation with Nepal, and Bhutan; and creating local ecosystems for assembling or manufacturing renewable components to reduce dependency on imports.

the triangular relationship between the U.S., the EU, and developing countries such as Bangladesh underscores the interconnectedness of the renewable energy transition. Decisions taken in Washington have ripple effects in Brussels, and their consequences are felt in Dhaka.

if U.S.

tax reforms concentrate capital domestically, the EU’s cost competitiveness offers a counterweight that ensures global supply of affordable renewable technologies continues to grow. Bangladesh, for its part, must leverage these global trends strategically, turning potential vulnerabilities into pathways for resilience. Looking ahead to COP30, where global cooperation on climate finance and technology transfer will be central to the negotiations, it becomes even more crucial to recognize these dynamics.

in conclusion, I believe that the new U.S. tax base may create short-term frictions in financing and investment flows, but the broader trajectory of renewable acquisition in the EU remains robust due to steadily declining technology costs. Developing countries like Bangladesh face challenges, but they also have opportunities to harness the benefits of cheaper technologies and innovative financing strategies. For energy professionals, the lesson is clear: global renewable energy dynamics are deeply interlinked, and resilience will depend not only on domestic policies but also on the ability to navigate and capitalize on the ripple effects of decisions made far beyond national borders.

The International Atomic Energy Agency (IAEA) and the Autonomous Rosatom Corporate Academy will implement a series of joint initiatives, educational programs, seminars, and strategic sessions to promote increased participation of women and youth in the nuclear industry. An agreement to this effect, for a period of two years, was signed on the sidelines of the 69th General Conference of the IAEA, held recently in Vienna. Mikhail Chudakov, Deputy Director General of the IAEA, and Yulia Uzhakina, Director General of the Rosatom Corporate Academy, signed the agreement on behalf of their respective sides.

tatyana Terentieva, Deputy Director General for Human Resources at Rosatom, was also present. ‘Today, we are signing a landmark agreement that opens a new chapter in our long-standing and fruitful cooperation with Rosatom.

this is the first step of the Corporate Academy towards obtaining the prestigious status of the IAEA Cooperation Center, and we see great potential in this,’ Mikhail Chudakov said. ‘As part of the partnership, we pay attention to strategically important areas, primarily working with talented youth, supporting and developing the leadership potential of women professionals in the nuclear industry.’

The Advisers Council Committee on Government Purchase (ACCGP) on 16 September cancelled the tender for appointing an Operations and Maintenance (OandM) contractor for the Single Point Mooring (SPM) project.

the committee approved the cancellation when the Energy and Mineral Resources Division placed the proposal at the meeting chaired by Finance Adviser Dr Salehuddin Ahmed at the Secretariat.

earlier, on 21 November 2024, the government had approved in principle the appointment of China Petroleum Pipeline Engineering Company Ltd (CPPEC) as the OandM contractor on a governmentto-government (G2G) basis.

the approval was given in a meeting of the Advisers Council Committee on Economic Affairs (ACCEA). The CPPEC had been working as the contractor for the SPM project, and BPC selected the firm for the OandM job without any competitive bidding process. The proposal was moved to ACCEA by the Energy and Mineral Resources Division under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010. But a few days after the approval, the government repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010 on 1 December, following an order from the High Court that removed the scope for signing the contract with the Chinese firm.

The government has taken several decisions to make the Bangladesh Secretariat free from single-use plastics from October 2 under a pilot initiative.

the decision would be implemented by putting in place a strict checking system at all the secretariat entrances to prevent the entry of identified single-use plastic items, said a recent press release from the environment, forest and climate change ministry.

each ministry will appoint a focal person and form a monitoring committee, while the ministries and departments located outside the secretariat premises will also implement the decision. If this pilot program succeeds, it will serve as a model to scale across the country, as per the release.

the government’s first initiative in this regard came in August last year just after the interim government’s takeover when single-use plastic bottles were banned on the Chief Adviser’s Office premises.

Some of the world’s leading banks provided more than twice as much finance for fossil fuels between 2021 and 2024 as for sustainable alternatives, a new study said recently.

the study by Reclaim Finance and partners such as WWF, Urgewald, and Rainforest Action Network said ‘the biggest 65 banks are not on track when it comes to financing the energy transition.’ Top global banks such as HSBC, JP Morgan, and Santander had between 2021 and 2024 allocated only $1,368 billion ‘for sustainable power such as solar, wind, and related infrastructure … while $3,285 billion was allocated to fossil fuels,’ it said. ‘This.. means for each dollar allocated to fossil fuels, just 42 cents went to sustainable alternatives,’ it said.

the study said US and Canadian banks provide four times more financing for fossil fuels than for sustainable alternatives.

institutions in Asia and Europe were better, but still ‘well below’ levels needed for the energy transition.

the study quoted UN Secretary General Antonio Guterres as saying this year that ‘the (energy) transition is not yet fast enough or fair enough.’

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.’