‘Renewable Energy: The Path of Sustainability for Bangladesh

Hasan Mehedi

Chief Executive, CLEAN

In my keynote address at the event, I emphasized the potential for Bangladesh to meet its entire electricity demand through renewable sources. The amount of space needed to produce 100% of Bangladesh’s electricity from renewable sources is almost double the current requirement. By utilizing specific portions of Khas land, water bodies, and rooftops, the country can meet its entire electricity demand from renewable sources. While 207,294 acres of space are needed to generate 100% renewable energy, there are currently 402,617 acres available. According to the draft Integrated Energy and Power Master Plan (IEPMP), Bangladesh’s power requirement is projected to reach 32,659 MW in 2025, 35,412 MW in 2030, 47,146 MW in 2035, 63,118 MW in 2041, 73,139 MW in 2045, and 84,858 MW in 2050. The government is committed to achieving 10% renewable energy by 2025, 30% by 2030, 40% by 2041, and 100% by 2050, as outlined in the 8th Five-Year Plan, Nationally Determined Contribution (NDC), Vision 2041, and Mujib Climate Prosperity Plan. The BELA and CLEAN study, based on GIS mapping, shows that out of 3,421,242.79 acres of Khas land across 61 districts, 403,289.51 acres remain unallocated. An average of 38.74% of these lands, approximately 111,446.25 acres, could be utilized for ground-mounted solar photovoltaics, capable of generating at least 45,690.23 MW of electricity. Chattogram division holds the highest potential with 12,271.08 MW, while Sylhet division could contribute 1,500 MW. Moreover, Bangladesh’s rooftops cover a total area of 4,712 million square meters. Utilizing just 10% of this area, or 471 million square meters, could yield at least 46,644 MW of rooftop solar power. Dhaka Division alone could produce 10,779 MW, with Barishal Division adding another 2,982 MW. The study also highlights the potential of floating solar power. With 1,035,665.59 acres of water bodies, of which 976,239.43 acres are seasonal and 632,868.52 acres are permanent, floating solar power is a viable option. Utilizing 10% of the permanent water bodies, or 63,286.83 acres, could generate at least 21,877 MW. Dhaka again leads with 5,985 MW, while Rangpur offers a minimum of 1,087 MW. Agrivoltaics, which involves combining agriculture and solar power generation, could also contribute significantly. Bangladesh has 1,178,351.7 acres of arable Khas land, with 11% used for vegetable gardening (130,313.22 acres). This land could support 18,099 MW of agrivoltaics, with Rajshahi division leading at 2,640.38 MW and Khulna division at the lower end with 1,783.80 MW.

Syeda Rizwana Hasan

Chief Executive, BELA

For those of us who demand climate justice, our main demand is to transition from fossil fuels to renewables. Fossil fuels are the biggest carbon polluters, heating up the planet. As an environmentalist and a mother, I worry about the future of my children in this environment. The recent floods, heatwaves, and cyclones make me wonder what kind of world we are leaving behind for our children. How much money would be enough to protect them from these disasters? No one can answer that. Thus, money alone cannot combat these disasters. Bangladesh rightly seeks funds from international sources to tackle these challenges. However, my question remains: how much money would be enough for Bangladesh to deal with these natural disasters? If one-third of a country is submerged, can money alone resolve that? Can money save our people and our land? Dipal Barua, sitting next to me, mentioned that we keep only talking about awareness. What if we stop? Have you considered the consequences? If we stop creating awareness and stop demanding changes, there will come a time when no amount of money can save us from environmental disaster. The 2050 target set by Bangladesh is progressing conservatively. Countries like China and India, as well as the developed world, are moving quickly, aligning their economic goals with rapid progress. We must advance in the renewable energy sector like the intelligent nations of the world. Otherwise, Bangladesh will fail to present itself as a leader in this field. Now is the time for Bangladesh to adopt an ambitious plan for renewable energy.

Sebastian Groh

CEO and Co-Founder, SOLSHARE

I’ve been in Bangladesh for about ten years, observing its development, and now the situation has become clear. We are at a critical juncture with our twin goals: the 2026 graduation from LDC status and the ambition to become a developed country by 2041. Additionally, there is an aspiration to be net zero by 2050. These goals must align with and complement each other. If they work against each other, we are likely to fail at both. Looking at the numbers, we often hear 3.7%. If we want to increase that to 30%, 50%, or even 100%—a tenfold, fifteenfold, or thirtyfold increase—we need a broad-based approach. We cannot restrict the sector’s development to a few who are connected through relationships. This relationship-based approach and exclusionary deals lead to inefficient resource allocation in economics. The cost of inaction on climate initiatives is about five times higher than the cost of action. We need a broad-based approach and policy incentives for renewable energy projects. The sector needs flexibility and storage solutions. Creative approaches, such as using batteries from electric vehicles as a virtual power plant, could help buffer the national load.

Mohammad Rashedul Alam

Asst. Director, Sustainable and Renewable Energy Development Authority (SREDA)

To advance our renewable energy initiatives, it is crucial to explore and identify potential locations for solar, wind, and other renewable energy generation. Understanding the availability of land and its suitability for different types of renewable energy projects is essential for our strategic planning. By conducting thorough assessments and feasibility studies, we can determine the most viable areas for renewable energy installations. This not only involves evaluating the geographical and climatic conditions but also considering the socio-economic and environmental impacts. Collaboration with local communities, government bodies, and the private sector is necessary to ensure that the chosen locations maximize efficiency and sustainability. Moreover, we must integrate innovative technologies and practices to optimize land use and enhance energy output. Our goal is to create a resilient and diversified energy landscape that supports our country’s transition to a cleaner and more sustainable future.

Dr. Fahmida Khatun

Executive Director, Centre for Policy Dialogue

I would like to offer a macro perspective. While our production capacity has increased, the quality of our electricity supply remains problematic. Businesses frequently complain about inconsistent and poor-quality electricity despite various measures like independent power producers (IPPs) and quick rentals. Additionally, electricity costs are rising, justified by international market prices, yet we don’t see a corresponding decrease when international prices fall. The profits from electricity are not being reinvested for sector improvements, leaving us reliant on fossil fuels instead of exploring our own gas wells or expanding renewable energy sources. Despite numerous policy discussions, significant subsidies are still provided to the electricity sector—around Tk395 billion (approximately $3.955 billion) in 2023. With IMF oversight, the pressure to reduce these subsidies is increasing, leading to continuous tariff hikes and contributing to inflation. The investment needed in the energy sector is immense, beyond the government’s and private sector’s current capacity. Innovative financing solutions and foreign direct investment (FDI) are crucial. While much of the FDI has focused on fossil fuel-based electricity, it needs to shift towards renewable energy as global investors commit to net-zero targets. Policy anomalies and a lack of coherent governance also pose significant challenges. As we approach the milestone of LDC graduation in 2026, we must prepare for the implications, including subsidy removal and maintaining export competitiveness. Our export sectors, particularly RMG, are making efforts towards cleaner production, but harmonising standards to ensure market access is necessary. In conclusion, preparing for LDC graduation, enhancing policy coherence, investing in renewable energy, and improving the quality and reliability of electricity supply are critical for our future energy strategy.

Zahid Newaz Khan

Head of Digital at The Business Standard

When I was a young journalist back in 1996-97, I was appointed as a reporter in the energy sector. During that time, we primarily worked in areas like supply, credit, and with international oil companies (IOCs). The term "renewable energy" was a new phenomenon for us, and we were trying to understand this emerging concept. Back then, we thought that by the time we reached the age of 50, the renewable energy sector would be robust and significantly influential in our country’s energy landscape. Unfortunately, it has not achieved the target goals as much as needed. I believe the lack of economic and political will might be a factor behind this shortfall in renewable energy generation targets. Currently, renewable energy contributes only 3% to our overall energy sector. However, our goal is to reach 30% renewable energy by 2030, 40% by 2040, and 100% fossil fuel-free energy use by 2050. Our aspirations are ambitious, and time will tell if these targets are myths or achievable realities. In my opinion, the government and various government institutions still do not give renewable energy the attention it deserves, particularly from an economic development perspective. However, there is undoubtedly potential for economic growth in this sector, and that pathway is gradually expanding. Globally, if we look at IOCs, power companies, or even coal companies that are a bit ahead or behind Bangladesh, everyone is involved in this sector. We need to have a clear understanding of the three E’s: energy, environment, and economics. These are essential aspects of our lives.

M Zakir Hossain Khan

Chief Executive of The Change Initiative

Over the past 50 years, many responsibilities that should have been undertaken by the government have been addressed by society or NGOs. This study on land availability in Bangladesh, ideally conducted by the government, is a very elaborate and benchmark study. Change Initiative has not worked extensively on this, but using government data on non-agricultural Khas land, we found that utilizing 5% of this land could potentially generate around 28,500 to 30,000 MW. This study should indeed be considered a benchmark. First, I want to thank TBS for always supporting us. TBS has been a key partner in our renewable energy efforts in Bangladesh. While mainstream media often focus on traditional energy issues, TBS has prioritized renewable energy. Regarding finance, the major point is just the energy transition. Have we established a clear definition of just energy transition for Bangladesh? The target of net zero by 2050 is a later issue. According to the Paris Agreement, our focus should be on access to energy. As mentioned, we allocated Tk100 crore. Whom are we allocating this to? Are we including those who have 100% access but not 14 hours of electricity? This suppression leads to state-induced deprivation. Energy is the lifeblood of the economy, and cost-efficient production and supply are essential for economic growth and transformation. For finance, we noticed that in India, there is a 400-rupee carbon tax per tonne of coal. In Bangladesh, a 10% carbon tax on 70% of our supply could generate about $9 billion annually. This aligns with the global Paris Agreement for mitigation. Additionally, we have $400 million from the European Investment Bank. Combining these, we could create a National Renewable Energy Fund. By addressing these financial mechanisms, we could successfully support our targets.

BD Rahmatullah

Former Director General of Power Cell, Ministry of Power, Energy, and Mineral Resources

There have been significant cost differences between fossil fuel-based and renewable energy-based power plants. Setting up a fossil fuel-based power plant costs Tk 1,300 crore per 100 MW, whereas renewable energy-based plants cost Tk 600-700 crore. This underscores the economic and technical viability of renewable energy, despite the lack of political and administrative will. I want to emphasize a crucial point today: the adverse effects on our environment and health due to carbon emissions and fossil fuel-based energy are major concerns. Fossil fuels are destroying our rivers, canals, and vegetation. Globally, fossil fuels and carbon are recognized as the primary culprits. Bangladesh’s electricity crisis stems largely from financial and administrative challenges, not technical limitations. While we have the technical capability to solve these issues, addressing political and administrative obstacles is essential. Renewable energy projects are not only cheaper but also more sustainable compared to fossil fuel-based power plants. Solar and other renewable energy sources have fixed and permanent components, while the costs associated with fossil fuels are higher and more environmentally damaging. The cost per kilowatt-hour of renewable energy is significantly lower than that of fossil fuels. For example, solar energy costs 5.7 cents per kilowatt-hour, whereas fossil fuels cost 20.5 cents. Our objective should be sustainable development driven by renewable energy. By focusing on renewables, we can benefit our economy, environment, and public health. Therefore, we urgently need political and administrative reforms to prioritize investment in solar and other renewable energy technologies. This is the path towards achieving sustainable development in Bangladesh.

Sheikh Monowar Ahmed

Head of Business, Rahimafrooz

Since 2011-12, utility companies like DPDC or Desco have mandated solar panels as a condition for new electricity connections. If you look at your building, it may have 12 owners, but only one is using the solar panel, and the association doesn’t take ownership of it. The benefits are often not directly visible to individual residents, as the energy might be going to common areas. In many cases, solar panels were installed just to tick a box for getting the connection. Some people even rented solar panels temporarily just to meet the requirement and then disconnected them. While the panels are technically working, producing electricity as long as the sun shines, whether that electricity is being utilized effectively is another matter. We need to raise awareness about this issue. I appreciate Mehedi Bhai for conducting detailed research and informing us about it. I would like to add a few points related to policy and our goals. Our prime minister has set a target of achieving 40% renewable energy by 2041 and 100% by 2050. To achieve this, we need a clear strategy, especially for rooftop solar. For instance, if I have a rooftop, why should I face barriers when installing solar panels? There are many public institutions, like universities and schools, with large rooftops that could support 400-500 kilowatts of solar panels, but their energy needs are only 10-20 kilowatts. They can’t utilize their full potential due to their low load capacity.

Nawazul Mawla

Energy Governance Coordinator, Transparency International Bangladesh (TIB)

The study is conducted at a time of uncertainty about the energy sector in Bangladesh and globally, with an increasing reliance on fossil fuels. However, the Bangladesh government is committed to producing renewable energy in line with national and international pledges to combat climate change. Globally, the cost of generating electricity from renewable sources is decreasing, and the demand for renewable energy is rising. Despite this, discussions about expanding and promoting renewable energy often face resistance from influential fossil fuel lobbyists who propagate the myth that there isn't enough land available for renewable energy generation. This study provides evidence-based data that challenges this myth, demonstrating that there is potential for a minimum of 20,555 MW of power generation using available spaces, including Khas land, building rooftops, char land, and water body spaces.

Dipal Chandra Barua

Founder and Chairman, Bright Green Energy Foundation (BGEF)

Today’s event represents fundamental research. Often, when we discuss renewable energy, land scarcity or unavailability is cited as a reason to negate its implementation. If the government categorizes and lists suitable areas for solar parks, it will attract both domestic and international investments. Currently, we have only 3% renewable energy. However, our Prime Minister has stated that we aim for 40% by 2041. To achieve this, we need a clear strategy and policy coherence, which we currently lack. After working in this field for so long, I believe we need a Renewable Energy Act. This would create a binding commitment for the government, the public, and Parliament. Without such an act, discussions like these, no matter how excellent, will not translate into real-world action. A Renewable Energy Act would serve as a binding commitment for everyone, ensuring that our goals are met. We are wasting time and resources on endless research. Instead, we should support today’s findings and use them to our advantage. Additionally, we need to produce our own electricity. Why should we be dependent on the government? If the government relies on us, it benefits both parties. If we depend on the government, we end up needing subsidies and other support.

Lutfor Rahman

Executive Director, GREENTECH Foundation, Bangladesh

Bangladesh is at a pivotal moment in its development journey. With a rapidly growing economy and increasing energy demands, the shift to renewable energy is not just an option; it is a necessity. The private sector has a crucial role to play in this transformation, bringing in much-needed investment, innovation, and expertise. Government policies and incentives are vital to encouraging private sector investment in renewable energy. These can include tax breaks, subsidies, and tariff incentives for renewable energy projects. A stable and supportive policy environment will reduce investment risks and attract both local and international investors. Additionally, creating favorable conditions for public-private partnerships can stimulate large-scale projects that drive the renewable energy agenda forward. Access to finance is one of the biggest hurdles for renewable energy projects. Innovative financing mechanisms such as green bonds, climate funds, and concessional loans can bridge this gap. Financial institutions should develop tailored products to support renewable energy initiatives, and we should also explore the potential of blended finance, combining public and private funds to de-risk investments and attract more capital. Sustainable business development through renewable energy use is essential for long-term success. Companies need to integrate sustainability into their core business strategies, not just as a compliance measure, but as a competitive advantage. Adopting energy-efficient technologies, reducing carbon footprints, and investing in renewable energy projects can enhance corporate reputation, reduce operational costs, and open up new market opportunities.

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