Category: Energy and Power

Prime Minister Tarique Rahman has apologized to people and industries suffering from the country’s ongoing electricity and fuel shortages, acknowledging the energy crisis as the government’s biggest immediate challenge.

‘We apologies on behalf of the party to all those, including ordinary people and factory owners, who are suffering from electricity and fuel shortages,’ he said recently, while addressing a discussion marking the 48th founding anniversary of the Bangladesh Nationalist Party (BNP) in Dhaka.

Tarique said his government had inherited a fragile economy and weaknesses in several sectors, including energy.

He acknowledged that many people were facing diffi culties but said the government was not using the inherited problems merely as an excuse.

He said the government had already adopted an action plan to address the energy crisis, although its implementation would take time.

The plan is also being designed to protect Bangladesh from similar energy disruptions arising from future global crises.

Additional Secretary Dr Rafi qul Islam has been appointed Chairman of the Bangladesh Petroleum Corporation (BPC), replacing the vacant position that remained unfi lled for nearly two months.

An order appointing Dr Rafi qul Islam as BPC Chairman was issued on September 6.

Before the appointment, Dr Rafi qul Islam served as a member of the Bangladesh Energy and Power Research Council.

The position became vacant after BPC Chairman Engineer Rezanur Rahman was removed from his post nearly two months ago.

Severe fl ooding in Nepal’s Bhotekoshi river system has effectively halted electricity exports to Bangladesh, with Nepal’s overall power exports falling sharply after several hydropower plants were damaged.

Nepal normally exports around 1,000MW during the wet season, but exports have dropped to about 650MW following the August 26 fl oods.

The 22.1MW Chilime and 24MW Trishuli hydropower projects, which supply electricity to Bangladesh through India, have been damaged and remain offl ine.

The Nepal Electricity Authority said it has asked India to allow electricity from alternative projects to be supplied to Bangladesh.

It is also working to restore damaged generation and transmission infrastructure.

Singapore-based energy traders Trafi gura Pte Ltd and Vitol Asia Pte Ltd have submitted offers to supply fuel oil to Bangladesh b e t w e e n September and December under an international competitive tender.

The Cabinet Committee on Government Purchase, at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury on 9 September, directed offi cials to negotiate with the two companies on premiums and reference prices and place the revised offers before the committee at its next meeting.

According to the proposals placed before the committee, Trafi gura has offered to supply 220,000250,000 tonnes of diesel and 50,000 tonnes of Jet A-1 fuel at a proposed total cost of Tk4,803 crore.

Vitol Asia, meanwhile, has offered to supply 200,000230,000 tonnes of diesel and 40,000 tonnes of Jet A-1 at a proposed cost of Tk4,326 crore.

The average price of diesel in the United States reached a record $5.90 per gallon on September 7, according to the American Automobile Association (AAA), as supply disruptions linked to the confl ict with Iran pushed fuel prices higher.

The price was about 30 cents higher than a week earlier and signifi cantly above the $3.71 average recorded a year ago.

Rising diesel costs are putting pressure on trucking, agriculture and construction, with businesses potentially passing higher transport costs on to consumers.

The national average for regular gasoline also climbed to around $4.15 a gallon on September 7, up from about $3.20 a year earlier.

Meanwhile, US diesel prices continued to rise, surpassing $6 a gallon nationally by September 10, according to GasBuddy

Battery-operated three-wheelers, commonly known as auto-rickshaws and easy bikes, have become a widespread mode of public transport across Bangladesh.

These provide an affordable commuting option for millions of citizens, while serving as a vital source of livelihood for drivers and garage operators.

However, their rapid expansion without structured regulatory oversight has introduced severe strain on the country’s electrical grid and public infrastructure, including the environment.

An estimated 5-8 million such vehicles currently operating nationwide consume roughly 5% or more of Bangladesh’s total daily electricity generation.

The three-wheelers mostly use deep-cycle lead-acid batteries.

Most of these vehicles use valve-regulated lead-acid (VRLA) types, while very few newer models and upgrades use lithium-ion alternatives.

The vast majority of the estimated 4-6 million threewheelers run on lead-acid battery packs, which are typically 48-volt or 60-volt systems.

Emerging options and modern upgrades utilize lithium-ion packs offering a longer lifespan and faster charging times.

However, lithium-ion options epresent a smaller market share due to high prices.

Leadacid batteries generally last 12-24 months, whereas lithiumion alternatives can last 3-5 years with proper maintenance.

Drivers frequently purchase trusted domestic and foreign brands like Hamko, Eastern, Rimso, Rahimafrooz, and Kijo.

In Bangladesh, the three-wheelers do not use a single large 48-volt or 60-volt battery unit.

Instead, these run on a series connection of standard 12-volt lead-acid batteries.

A typical deep-cycle tubular or VRLA battery (also known as a sealed lead-acid (SLA) battery) used in these three-wheelers (at 100130 ampere-hour capacity) weighs approximately 30-38 kg per 12-volt unit.

In standard lead-acid batteries, pure metallic lead and lead compounds account for about 60-65% of the total battery weight (with the rest being electrolyte liquid and plastic casings).

Used lead-acid batteries in Bangladesh rarely go to formal landfi lls because lead holds high commercial value.

Instead, informal scrap dealers buy these old batteries, smash the plastic casings, open and dump the toxic sulfuric acid directly onto surrounding soil and into local water bodies.

They then melt the lead plates over open-fi re pits without any safety equipment or pollution fi lters.

According to reports by the Daily Star, Bangladesh generates nearly 4,80,000 tons of lead-acid battery waste every year, with these threewheelers accounting for over 60% of this local battery demand.

The Daily Star further notes that around 80% of used lead-acid batteries in the country are processed through over 1,100 informal recycling sites, discharging millions of liters of untreated acid solution into rivers, canals and farmland.

As documented in studies by Pure Earth and UNICEF, this uncontrolled recycling network releases vast amounts of lead into the environment, leaving approximately 36 million children in Bangladesh (about 60% of children) with elevated blood lead levels and causing severe environmental and long-term public health damage.

A full battery recharge takes approximately 6-8 hours using standard chargers.

Millions of these vehicles rely heavily on informal or illegal grid connections for overnight charging.

This practice draws thousands of megawatts of electricity and places signifi cant stress on the national power grid.

To understand the energy scale required, each individual batteryoperated three-wheeler consumes approximately 5-8 kilowatt-hours (kWh) of electricity per daily charging cycle- depending on battery age, depth of discharge, and vehicle capacity.

Consequently, a baseline fl eet of 5 million three-wheelers requires between 25,000-40,000 megawatthours of electricity every single day.

Thousands of these vehicles undergo charging simultaneously during overnight hours, creating a sharp demand spike that heavily burdens local transformers and distribution lines.

Ultimately, this practice leads to frequent voltage fl uctuations and localized power outages.

The root of this grid instability lies in the vast gap between formal infrastructure and actual demand.

Bangladesh currently has only about 3,300 legally registered charging points.

In contrast, Dhaka alone hosts over 48,000 informal and unauthorized charging hubs operating out of residential garages and makeshift workshops.

These uncontrolled networks rely heavily on illegal direct line connections, causing signifi cant energy theft that deprives the Government of nearly Tk 4,000 crore in annual revenue.

Furthermore, the majority of auto-rickshaws use low-grade lead-acid batteries and ineffi cient charging equipment that dissipate signifi cant amounts of electricity as waste heat, worsening the strain on the national power supply.

Beyond energy consumption, the informal nature of this sector poses environmental, public health, traffi c, and urban management challenges.

Unregulated battery disposal and improper lead recycling contaminate local soil and water, exposing workers and communities to toxic heavy metals.

At the same time, smart traffi c cameras cannot track or enforce traffi c laws due to a lack of offi cial registration and standard license plates.

Addressing the impact of batteryoperated three-wheelers requires a balanced strategy that preserves social benefi ts while protecting both the power sector and the environment.

Establishing a formal policy framework to register every vehicle with traceable identifi cation, alongside replacing illegal power hookups with designated solar-assisted or off-peak commercial charging stations, would substantially shield the grid.

Transitioning the fl eet from lead-acid batteries to energyeffi cient lithium-ion technology would further optimize power use and eliminate illegal lead smelting and acid dumping while protecting soil, water, and public health.

Through coordinated regulation, modernized charging networks, and technological upgrades, Bangladesh can convert these essential utility vehicles into a sustainable component of its national transport ecosystem without compromising energy security and the environmen

A technical problem with a valve has delayed the target to supply around 300MW of electricity from the Rooppur Nuclear Power Plant to Bangladesh’s national grid, Science and Technology Minister Faqir Mahbub Anam said.

Fuel loading at the plant began on April 28, with the government initially expecting power generation within four to six months.

However, one of the plant’s valves has failed to open at the required pressure, preventing the project from advancing to the next critical stage.

The minister said Russian and Bangladeshi scientists are working to resolve the problem.

Removing, repairing, reinstalling and testing the valve could take one to one and a half months, he said.

He added that Rosatom has assured Bangladesh it will send additional teams of specialists to identify and resolve the problem

A prolonged shortage of piped gas in parts of Dhaka has triggered a sharp rise in demand for electric cooking appliances as households seek alternatives to unreliable gas supplies.

The crisis began on July 22 after disruptions involving fl oating storage and regasifi cation units (FSRUs) cut liquefi ed natural gas supplies to the national grid by around 450 million cubic feet per day (MMCFD), or nearly 17 percent.

Although supplies have improved in some areas, daytime gas pressure remains inadequate in many households.

The disruption has boosted sales of infrared and rice cookers in particular.

Industry players estimate Bangladesh’s annual electric cooker market at less than Tk200 crore.

RFL Chief Marketing Offi cer Murshid Muneem said demand for infrared cookers had more than doubled year-on-year, while rice cooker sales had increased by around 200-300 percent.

I DCOL will begin fi eldlevel activities this month under its Distributed Rooftop Solar (DRS) program, targeting at least 500MW of new capacity by next February.

At the same time, the ongoing rooftop solar program is expected to add another 500MW of rooftop solar capacity in the industrial sector.

Overall, IDCOL aims to facilitate the development of 4,800MW of solar capacity by 2030 through IPP, Merchant Power Plant (MPP) and rooftop solar projects.

Infrastructure Development Company Limited (IDCOL) Managing Director (Acting) S.M.

Monirul Islam disclosed this in an interview with Energy and Power Editor Mollah Amzad Hossain.

The government has announced an incentive package to promote rooftop solar projects with battery storage, aiming to achieve signifi cant progress within the next six months.

How effective do you think the incentives will be in encouraging new projects? There are also questions about the decision to purchase surplus electricity at Tk 10.50 per unit for only three years.

What is your view? There is no doubt that this program’s implementation period is short.

However, the potential of the sector is enormous.

So, although there are challenges, the target is achievable.

Institutions like IDCOL have extensive experience in implementing residential off-grid solar programs in rural areas.

Therefore, we believe the target can be achieved.

Regarding the price and purchase of surplus electricity, the government has already clarifi ed the relevant issues.

As part of the fi nancial incentives, exemptions from duties and taxes have been provided for solar equipment.

Under the net-metering guidelines, consumers were initially allowed to install solar systems with capacity below their total demand and adjust the electricity exported to the grid against their electricity bills.

The issue of surplus electricity has emerged as the scope of solar installation has expanded.

Initially, the net-metering ceiling allowed solar systems up to 70% of a consumer’s sanctioned load.

This was later increased to 100%.

Under the current guidelines, systems of up to 80kW can be installed under the applicable arrangement.

For example, if your electricity demand is 500 units but your rooftop solar system can generate 1,000 units, you can generate the additional electricity and sell the surplus to the government at Tk 10.50 per unit.

Does this create an opportunity for investment under an OPEX model? Residential consumers may not always have the capacity to invest themselves.

IDCOL is going to launch a Distributed Rooftop Solar (DRS) program for the residential sector.

We previously implemented similar programs in the offgrid sector.

Under the new program, we have fi nalized Demand Aggregators (DAs).

They will assess local demand and install rooftop solar systems with battery storage for consumers.

They will also be able to obtain refi nancing from IDCOL on favorable terms.

The fi nancing model will require the customer to provide a 20% down payment, while the Demand Aggregator will contribute another 20%.

IDCOL will provide the remaining 60% as a loan.

IDCOL’s Solar Home System program is considered a successful initiative and is still being followed internationally.

Drawing on that experience, you are now launching a domestic rooftop solar program.

What is its objective? How much capacity do you expect to add by next February? Let me fi rst explain the system sizes.

Considering differences in consumer demand, we have identifi ed several rooftop solar packages with battery storage.

Each package has been designed with battery storage equivalent to three hours of the consumer’s full demand.

Through effi cient use of electricity, the three-hour backup can potentially be extended to around fi ve hours.

We have fi nalized different packages for systems ranging from 2kW to 80kW.

However, considering the availability of rooftop space in residential buildings, we expect 3-5kW systems to be the most popular packages.

How much investment would be required for a 3-5kW system with the planned battery storage? A 3kW system with three hours of battery backup, a hybrid inverter, and an energy meter will cost slightly more than Tk 200,000.

We have also determined prices for other packages based on a review of market conditions.

However, it is important to understand that these prices represent the maximum investment levels under our program.

A Demand Aggregator or investor can offer the system at a price lower than the ceiling we have set.

I believe that as the market expands and competition increases, prices will gradually come down.

Will these Demand Aggregators (DAs) be IDCOL’s partner organizations? How are they being selected, and how will they operate? Essentially, the DAs will work as our partner organizations.

As you know, the implementation period is very short.

Therefore, we want to deploy organizations with the necessary experience as quickly as possible.

During the implementation of the off-grid Solar Home System program, we worked with a number of partner organizations that have extensive experience in this fi eld.

Among them, organizations with good records, including loan repayment performance, have been selected initially as DAs.

Alongside them, we will issue an Expression of Interest (EoI) to enlist other organizations that have gained experience in solar installation.

Interested organizations will be evaluated and enlisted as DAs as quickly as possible.

You mentioned at the beginning that IDCOL wants to achieve signifi cant progress through the DRS program by February.

What exactly is your target? We want to add at least 1,000MW of rooftop solar capacity by next February.

There are two components to this target.

The fi rst is rooftop solar in the industrial sector, where we have been working for several years.

We plan to accelerate the ongoing program and add another 500MW of capacity during this period.

At the same time, the new DRS program is expected to add at least another 500MW.

Thus, our immediate target is to add at least 1,000MW through these two programs by next February.

In the longer term, IDCOL is working to facilitate the development of around 4,800MW of solar capacity by 2030 through different fi nancing programs.

The government has fi nalized a development strategy to expand renewable energy capacity through 2030.

Under the strategy, the target is to add 10,450MW of renewable energy capacity, including 5,500MW of rooftop solar.

What programs does IDCOL have to help achieve this target? Let me start with large-scale solar projects.

IDCOL is working on fi nancing IPP projects that are currently in the pipeline.

We expect to bring around 1,000MW of projects in this segment under our fi nancing program by 2030.

Work is also underway to fi nalize the wheeling charge policy under the Merchant Power Plant (MPP) Policy.

Entrepreneurs have already approached us seeking investment support for around 1,000MW of solar power projects under the MPP framework.

IDCOL will work on these projects.

In the industrial sector, we are working to add 500MW of new rooftop solar capacity by February and 1,000MW by 2030.

We also aim to add another 1,000MW through the Domestic Rooftop Solar (DRS) program, although the potential in this segment is much higher.

At the same time, IDCOL is working to mobilize fi nancing.

The government has already agreed to provide the funds required for such programs.

Considering the overall target, IDCOL is currently working to facilitate fi nancing for around 4,800MW of solar capacity by 2030.

IDCOL has been leading the development of solar-powered irrigation systems.

It has been suggested that a business model is needed to replace diesel-powered irrigation with solar irrigation.

What are the obstacles to developing such a model? We have been working on solar irrigation pumps for many years, and 1,523 projects have already been implemented.

There is signifi cant potential for success if dieselpowered pumps can be replaced with solar pumps.

The challenge is that water has to be supplied at a relatively lower cost than under diesel-powered irrigation.

To achieve that, these projects currently require around a 50% subsidy.

This raises questions about how long such subsidies can be provided and how long a subsidy-dependent business model can remain sustainable.

However, additional initiatives are needed to make solar irrigation more attractive.

Solar capacity can be fully utilized for irrigation for around fi ve months of the year.

If the electricity generated by the system during the remaining period can be integrated into the grid and sold, it would improve the project’s economics.

Therefore, just as preferential tariffs have been considered for rooftop solar, introducing a preferential tariff for solar irrigation could create new interest in replacing dieselpowered irrigation pumps with solar systems.

Agrivoltaic solar is now receiving growing attention globally.

A project has already been connected to the grid with support from the German government and IDCOL.

How much potential do you see in this sector? A pilot agrivoltaic project has been implemented in Chuadanga under an initiative of Wave Foundation, with fi nancing from IDCOL.

GIZ is providing technical assistance through a foreign expert on the design and the types of crops that can be cultivated under the system.

IDCOL has also received fi nancial support from KfW for the project.

However, the pilot project itself is not the main issue.

The future expansion of agrivoltaics will depend largely on how agricultural practices and productivity evolve.

Based on the experience and agricultural outcomes of the pilot, we will consider the scope for implementing similar projects on a larger scale.

Financing, particularly low-cost fi nancing, is crucial for expanding renewable energy.

But globally, sources of grants and lowcost development fi nance are shrinking.

What challenges does Bangladesh face in fi nancing renewable energy development, and what preparations does IDCOL have in this regard? Low-cost development fi nance is continuously declining, while the terms and conditions imposed by IDCOL’s fi nancing partners have also become more stringent.

For rooftop solar, IDCOL has mobilized fi nancing from different sources and created a blended fund.

We are using this fund to provide fi nancing to the market at affordable interest rates.

What will be the interest rate on fi nancing provided under the DRS program? The matter has not yet been fi nalized.

However, IDCOL will provide loans to Demand Aggregators (DAs) at an interest rate of 5% for seven years.

The DAs will then provide loans to residential customers for fi ve years, with the interest rate expected to be around 9-10%.

The fi nal lending rate will be determined once implementation of the program begins.

Although electric vehicles have yet to develop signifi cantly in Bangladesh, a large amount of electricity is being consumed to charge battery-powered rickshaws.

Is IDCOL considering developing solarbased charging systems? We have some involvement in electric mobility.

However, if IDCOL is to support any project or vehicle, it must have a legal basis.

Battery-powered rickshaws are not yet fully covered by the legal framework.

A project to manufacture lithium batteries has already approached us for fi nancing, and it is under consideration.

We are also working on the development of solar charging stations and exploring how to establish a viable commercial model.

If the initiative proves successful, you will see IDCOL taking initiatives in this area in the future.

In addition, we have undertaken some RandD projects on hybrid cold storage systems.

Work is underway to develop an economic model for these systems.

If successful, we will consider promoting such projects at growth centers across the country.

Bangladesh has launched a package of incentives, tax concessions and fi nancing initiatives to accelerate rooftop solar deployment ahead of next summer, amid severe power shortages and rising fuel costs.

The government targets 3,000-4,000MW, with IDCOL aiming to facilitate 1,000MW through residential and industrial programs.

However, industry stakeholders and energy experts question the generation-cost assumptions and tight implementation deadline.

They have called for longer project timelines, improved fi nancing, streamlined approvals, and more attractive, dynamic tariffs for surplus electricity Bangladesh is stepping up efforts to expand rooftop solar as worsening power shortages, rising fuel costs and pressure on foreign exchange reserves expose the vulnerability of its energy system.

With load shedding reaching around 3,800MW during the current summer, the government is seeking to add thousands of megawatts of rooftop solar capacity before next summer through incentives, tax concessions and new fi nancing models.

The initiative has generated considerable interest, particularly in the industrial sector, but stakeholders remain concerned about whether the ambitious targets can be achieved within the proposed timeframe.

Financing, equipment supply, approvals, net-metering arrangements and the economics of battery storage could determine whether the government’s plans translate into actual capacity.

Bangladesh is under growing pressure over energy supply.

The situation has been aggravated by supply shortages and rising fuel costs, while the confl ict in the Middle East has further increased energy expenditure and put additional pressure on foreign exchange reserves.

Although load shedding has remained relatively manageable in the capital and major cities, it has become severe in rural areas.

Reports have emerged that some regions are experiencing power outages for nearly half of the day.

The crisis is disrupting industrial production, business activities, and daily life, while also increasing diesel consumption.

Prime Minister Tarique Rahman has apologized to the people for the continuing power shortages.

At the same time, the government has begun preparations to meet next summer’s electricity demand.

At a meeting with business leaders on September 14, the Prime Minister said gas and electricity supplies would return to the levels prevailing before the crisis that emerged in July from the night of September 15.

The government also presented plans to expand renewable energy, increase coal and gas exploration, and strengthen import infrastructure.

Alongside efforts to ensure adequate primary fuel for power generation, the government has introduced a special package, including duty-free facilities, to accelerate rooftop solar installations, particularly in the residential sector.

The aim is to achieve signifi cant rooftop solar capacity before February next year.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit told Parliament that the government wanted to add at least 3,000MW of rooftop solar capacity before next summer.

The Power Division, meanwhile, is working with an even higher target of 4,000MW.

Special Incentive for Rooftop Solar with Battery Storage The government has introduced a special incentive package to accelerate the installation of rooftop solar systems with battery storage as part of its efforts to expand renewable energy and strengthen long-term energy security.

Under a government notifi cation issued on September 1, the maximum generation cost for rooftop solar systems with battery storage has been set at Tk 8 per unit.

After adding a 20% profi t margin and an 11.25% premium, the incentive tariff for surplus electricity supplied to the grid has been fi xed at Tk 10.50 per unit.

Under the Net Metering Guideline 2025, customers installing storage-integrated rooftop solar systems by February 28, 2027, can receive Tk 10.50 per unit for surplus electricity supplied to the national grid after meeting their own demand.

The incentive will remain available for three years, until February 28, 2030.

If customers install systems at a cost below the government’s benchmark, the savings will accrue to them.

Distribution companies will maintain records of participating customers, electricity supplied to the grid and payments, including the incentive.

The incentive will be paid directly into customers’ bank accounts or mobile fi nancial service accounts; cash payments will not be allowed.

Systems installed after February 28, 2027, will not qualify for the incentive.

All equipment, including solar panels, batteries, inverters and meters, must meet the technical standards set by the relevant authorities, including BSTI and SREDA.

Assistance will be available through the Power Division’s one-stop service center and district- and upazilalevel offi ces of distribution companies.

Tax and Duty Concessions for Solar Equipment The government has also approved tax and duty concessions on the import of equipment and machinery required for renewable solar power projects.

Under the approved proposal, imports made within six months of the issuance of the relevant notifi cation will be exempt from customs duty, regulatory duty, supplementary duty, VAT, advance tax and advance income tax above the applicable 1% threshold.

The government expects the facility to boost solar power generation, reduce pressure caused by electricity shortages and support uninterrupted industrial production.

It is also expected to lower project costs, reduce losses associated with imported equipment and encourage investment and economic activity in the solar sector.

Local Entrepreneurs to Drive Rooftop Solar Expansion The government has also launched an initiative to expand rooftop solar through local entrepreneurs and build a nationwide network of renewable energy service providers.

Qualifi ed service providers will be enlisted on a district and geographic-area basis.

They will provide technical assistance, investment and business packages, customer services, and operation and maintenance facilities for rooftop solar and other renewable-energy technologies.

All electricity distribution companies have invited applications for enlistment.

Individuals and joint ventures will be eligible to participate.

The initiative is expected to create opportunities for local businesses, small and mediumsized enterprises, young and women entrepreneurs, and technology-based companies to enter the renewable energy sector.

Increased competition could also lead to more affordable and innovative investment and service packages for consumers.

The Power Division expects the initiative to make rooftop solar an important component of Bangladesh’s energy transition while creating new opportunities for local investment, skills development, small and mediumsized businesses and employment.

IDCOL Targets 1,000MW Infrastructure Development Company Limited (IDCOL) is working to facilitate 1,000MW of solar capacity before next summer.

The state-owned specialized fi nancial institution aims to contribute one-fourth of the government’s broader target of 4,000MW of renewable energy capacity by next summer.

Of the IDCOL target, 500MW is planned under a new Domestic Rooftop Solar (DRS) program, while another 500MW is expected from expansion of its existing industrial rooftop solar program.

The DRS initiative is expected to be launched shortly.

IDCOL Managing Director (Acting) SM Monirul Islam said homeowners would provide 20% of the system cost as a down payment, while demand aggregators (DAs) would contribute another 20% as equity.

IDCOL would refi nance the remaining 60% through loans to the DAs.

Under the model, homeowners would repay their fi nancing over fi ve years and DAs over seven years.

The model is intended to make rooftop solar more affordable while reducing dependence on grid electricity.

Can the Target Be Achieved Before Summer? The government’s rooftop solar initiative comes at a critical time.

Bangladesh needs to reduce pressure on the grid while also containing the rising cost of imported fossil fuels.

Rooftop solar, particularly when combined with battery storage, can help reduce daytime grid demand and provide backup power during outages.

However, the target of adding 3,000- 4,000MW before next summer is highly ambitious.

Project approvals, fi nancing, equipment supply, technical standards, installation capacity, and net-metering procedures could all affect the pace of implementation.

The experience of an earlier six-month rooftop solar program targeting 3,000MW also suggests that ambitious capacity targets alone may not be suffi cient.

A longer implementation window, easier access to fi nancing, streamlined approvals and a more attractive and predictable surplus-power purchase mechanism may be necessary.

The government’s initiative to use rooftop solar to ease pressure on the grid before summer is therefore a welcome step.

But to turn the target into actual capacity, the incentive package and implementation framework may need further review in consultation with investors, entrepreneurs, equipment suppliers, distribution companies and energy experts.

If these bottlenecks can be addressed quickly, rooftop solar could become not only a short-term tool for reducing summer load pressure but also an important pillar of Bangladesh’s longer-term energy transition.

Under the proposed model, homeowners will repay their share of the fi nancing over fi ve years, while demand aggregators (DAs) will repay their loans over seven years.

The effective cost of electricity for households could be Tk 6-8 per unit, signifi cantly lower than the prevailing electricity tariff.

SM Monirul Islam said the Domestic Rooftop Solar (DRS) program could potentially unlock around 33,000MW of rooftop solar capacity in the long term if market players participate on a large scale.

However, several issues, including the selection of DAs, equipment standards, and supply-chain readiness, need to be addressed before the program is rolled out nationwide.

IDCOL plans to deploy the selected DAs in the fi eld within the next two weeks.

Initially, it is selecting DAs from organizations that previously worked as partner organizations under its Solar Home Systems program and have a good track record, including satisfactory fi nancial records and no loan defaults.

The number of DAs will later be expanded to include private-sector companies and new entrepreneurs.

BSREA Seeks Review of Solar Package The Bangladesh Sustainable and Renewable Energy Association (BSREA) has welcomed the government’s initiative to expand rooftop solar but has proposed a seven-point set of recommendations to make the incentive package more effective.

The association has called for a realistic assessment of project costs, taking into account system size, technology, fi nancing, operation and maintenance expenses, particularly battery-storage costs.

Based on such an assessment, it has proposed setting the generation cost at around Tk 8 per unit.

BSREA has also recommended reviewing the existing Tk 10.50 per-unit tariff for purchasing surplus electricity and introducing a dynamic or indexed tariff linked to changes in the bulk electricity tariff.

It has further proposed extending the electricity purchase period from three years to fi ve to 10 years, or an appropriate period.

The association has also suggested providing collateral-free fi nancing at an interest rate of 3-4% for rooftop solar projects.

To speed up project implementation, BSREA has recommended time-bound approvals, with SREDA and BSTI approvals completed within 10 working days and net-metering approvals from distribution companies within seven working days.

It has also proposed establishing a one-stop service and a central digital monitoring system to ensure smooth implementation of the entire program.

BSREA Secretary General Engineer Ataur Rahman Rozel said adding 4,000MW of rooftop solar capacity before next summer would be extremely challenging.

He also expressed concern that IDCOL’s proposed approach could remain largely dependent on NGOs.

The government, he said, must ensure access to fi nancing for private entrepreneurs and individuals interested in installing rooftop solar systems.

‘Even then, I do not think the target can be achieved within the next fi ve months,’ Rozel said.

However, he noted that residential and commercial consumers could become increasingly interested in rooftop solar once load shedding intensifi es during the summer.

Experts Question Generation Cost and Timeline Former Bangladesh Energy Regulatory Commission (BERC) member Engineer Mizanur Rahman said the proposed tariff for purchasing surplus electricity was not suffi ciently attractive.

According to his assessment, the generation cost would be around Tk 10.39 per unit for a 1kW solar system with 1kW of battery storage.

If the system is paired with 0.5kW of battery storage, the generation cost would still be around Tk 9.43 per unit.

‘It is diffi cult to understand on what basis the generation cost has been estimated at Tk 8 per unit,’ he said, urging the Power Division to reassess the cost.

Institute for Energy Economics and Financial Analysis (IEEFA) Lead Energy Analyst Engineer Shafi qul Alam also said the target of adding 4,000MW of rooftop solar before next summer was unrealistic.

He pointed out that a previous program announced in 2025 aimed to add 3,000MW of rooftop solar capacity within six months, but failed to implement any projects under the program.

Under the latest package, projects are eligible for the incentive only until February next year.

Alam suggested extending the implementation window to at least one year.

He also called for changes to the surplus electricity purchase mechanism.

Instead of limiting the Tk 10.50 per-unit tariff to a fi xed period, he proposed that electricity exported to the grid through net metering should receive the tariff throughout the entire project lifetime.

‘Despite these concerns, the incentive for rooftop solar installation is commendable,’ he said.

BSREA President Mostafa Al Mahmud said the government’s successive initiatives to promote renewable energy were encouraging.

However, he also called for a fresh review of the rooftop solar package, particularly the tariff structure.

He said the tariff should be dynamic and that the opportunity to sell surplus electricity should remain available throughout the lifetime of the project.

A Promising Initiative That Needs Fine-Tuning A quiet rooftop solar revolution is already underway in Bangladesh, particularly in the industrial sector.

Around 1,500MW of rooftop solar capacity has reportedly been added so far, while interest in combining rooftop solar with battery storage is growing.

Although Bangladesh has adopted several plans to expand renewable energy, the sector has rarely received meaningful fi nancial incentives.

The latest package marks a signifi cant step by providing incentives for rooftop solar systems with storage.

However, stakeholders believe the package needs to be revisited, particularly regarding its implementation period, electricity purchase tariff, and duration of the purchase arrangement.

Similar incentive programs have achieved success in countries such as Vietnam, where the electricity purchase arrangement was kept open for a longer period.

The government has also recently announced tax and duty concessions for rooftop solar equipment for six months.

Industry stakeholders have called for extending this period to at least one year.

In 2025, Bangladesh announced a program to add 3,000MW of rooftop solar capacity within six months, but no projects could be implemented under the initiative.

The latest storageintegrated rooftop solar program also has a six-month implementation window.

Sector stakeholders argue that Bangladesh’s lengthy project approval process and bureaucratic complexities should allow at least one year.

The government’s initiative to accelerate rooftop solar deployment ahead of the summer is widely seen as a positive move.

However, stakeholders believe the Power Division should revisit the program and package after consulting industry players and experts to ensure it can achieve its ambitious targets