Experts call for policy reform and investment

Power and Energy Adviser Muhammad Fouzul Kabir Khan has emphasised that Bangladesh is transitioning from subsidies and inefficiencies to a new era of transparency and accountability in the energy sector.

This shift is essential for a sustainable energy future, he added.

The adviser made the remark at a roundtable hosted by Standard Chartered Bank at a city hotel recently, says a statement.

Emerging markets, including Bangladesh, are estimated to require $3.5 to $4 billion annually in transition finance to achieve net zero by 2050, with a substantial portion needed for renewable energy projects.

Experts at the event highlighted the importance of financial innovation and global partnerships in bridging this financing gap.

Dr. Ahsan H. Mansur, Governor, Bangladesh Bank, said, "Renewable energy is undoubtedly the way forward for Bangladesh, but the path to sustainability must be rooted in financial viability and structural reform."

"To unlock the sector's potential, we need policy consistency, reduced costs, and a collaborative approach to overcome challenges like land acquisition and financing gaps," he said.

Dr. Mansur advocated for the use of innovative solutions such as blended finance and tax reforms to build a sustainable energy sector that benefits both investors and consumers.

Naser Ezaz Bijoy, CEO, Standard Chartered Bangladesh, said, "We all recognize the need to fast-track the transition. Standard Chartered's Opportunity 2030 report highlights a staggering $74 billion in private investment needed in Bangladesh's power sector to ensure affordable and sustainable energy for all. Any delay in securing this financing means the annual run rate required will only continue to rise."

John Murton, Senior Sustainability Advisor, Standard Chartered, said, "Standard Chartered is committed to mobilizing sustainable finance that delivers impact. Across our markets, we are leveraging our expertise in blended finance, carbon markets, and green bonds to unlock private investment in renewable energy. By aligning policy, finance, and innovation, Bangladesh can position itself as a regional leader in the low-carbon economy."

Participants also emphasised the need for collaboration and strategic reforms to meet these ambitious goals.

Policymakers shared that the government is advancing a Merchant Power Policy to enable direct electricity sales between producers and consumers, expanding Net Metering to include single-phase and high-voltage customers, and developing Solar Parks with land and evacuation facilities to reduce investor risk.

Participants from the private sector emphasised that Power Purchase Agreements (PPAs), fair pricing, and robust dispute resolution frameworks will help build confidence.

However, concerns remain over policy consistency, project bankability, and investment incentives. Balanced policies ensuring competition in rooftop solar and merchant power are critical.

Additionally, battery storage solutions must be incentivized through tax reductions and financing mechanisms to enhance grid stability and maximize renewable energy utilization.

A multipronged financing approach-leveraging multilateral funding, capital market development, blended finance, and carbon credit opportunities-will be key to driving sustainable investments. Key recommendations from the workshop will be submitted to Bangladesh Bank and Ministry of Power, Energy and Mineral Resources to take them forward.