As summer approaches, sweltering heat looms over Bangladesh, pushing both public life and agricultural fields to their limits. With rising temperatures, the demand for electricity is also set to surge, reports UNB.
Energy Adviser Fouzul Kabir Khan on February 5 said electricity demand is expected to reach 15,700 MW during Ramadan, and may rise further to 18,000 MW in the peak summer months when irrigation demand increases.
Despite Bangladesh Power Development Board (BPDB) data indicating a total installed capacity of 27,790 MW, the country faces persistent fuel shortages, creating a major obstacle to stable electricity supply. Daily load-shedding could range between 700 MW and 1,400 MW during this period.
However, while fossil fuels remain central to the country's energy strategy - relying heavily on gas, coal, and furnace oil - the role of renewable energy remains uncertain.
The Sustainable and Renewable Energy Development Authority (SREDA) reports that the country's current on-grid renewable energy capacity, including solar, wind, and hydro, stands at just 1,176 MW, increasing to 1,557 MW when off-grid systems are included.
Currently, the contribution of renewables to the national grid is below 5.0 per cent. A number of other issues also make the target of 40 per cent a far cry.
These issues include non-alignment of major plans prepared by the Ministry of Power Energy and Mineral Resources (MoPEMR) and the Ministry of Environment and Climate Change (MoECC) with regard to the target, a number of non-renewable energy mixes considered 'clean energy' along with renewable energy under the plan prepared by the MoPEMR, and lack of clarity about the disaggregated amount for 40 per cent to be generated from renewables, since the projected demand for electricity in 2041 is questionable, according to the Centre for Policy Dialogue (CPD).
Experts opine that Bangladesh's heavy reliance on energy imports - both fossil fuels and electricity - necessitates a stronger focus on domestic renewable energy. Increasing renewable energy capacity would help reduce dependence on international markets, lessen import costs, and preserve foreign currency reserves.
During 2022-2028, the government would have to spend over US$228 million for importing LNG, according to CPD.
A report from the Institute for Energy Economics and Financial Analysis (IEEFA) estimates that a more ambitious clean energy capacity target of 40 per cent by 2041 would require an annual investment of $1.53 billion to $1.71 billion from 2024 through to 2041.
Shafiqul Alam, Lead Energy Analyst for IEEFA Bangladesh, identified high import duties on renewable energy equipment as a key issue.
He mentioned that the process of getting finance for it is a bit complicated, especially the green finance fund of the Bangladesh Bank (BB) is a bit difficult to access.
Solar irrigation, an area with significant potential, also faces hurdles. "A more structured business model is needed as an alternative to costly diesel-based irrigation."
Land scarcity poses another problem for large-scale solar projects. He pointed out that acquiring land is highly complex due to fragmented ownership. The government could have allocated state-owned land for such projects.
A revised renewable energy policy is in the works, and there is discussion about offering tax waivers for decentralised rooftop solar systems.
Alam suggested that the BB should consider creating a dedicated financing scheme for renewable energy, and that SREDA should actively motivate industry owners to promote adoption.
Dr S M Nasif Shams, associate professor and director of the Institute of Energy at Dhaka University, as well as a board member of SREDA, highlighted growing international interest in Bangladesh's renewables sector.
"Several foreign companies are eager to invest.
© 2025 - All Rights with The Financial Express
