Jul 8, 2026
| Desk Report
The Bangladesh Working Group on Ecology and Development (BWGED) has proposed the creation of a Tk25,000 crore renewable energy financing facility and direct subsidies for rooftop and agricultural solar systems.
The proposal aims to accelerate the country's clean energy transition, reduce fossil fuel imports and enhance long-term energy security.
BWGED proposes Tk25,000 crore renewable energy fund to strengthen Bangladesh's energy security
Figure: The proposal aims to accelerate the country's clean energy transition, reduce fossil fuel imports, and enhance long-term energy security. Courtesy: Collected
The recommendations were presented at a policy dialogue held at the Jatiya Sangsad Bhaban, attended by Information and Broadcasting Minister Zahir Uddin Swapon, members of parliament and energy sector stakeholders.
Speaking at the event, the minister said Bangladesh's energy security is closely linked to its economic sovereignty, stressing the need for stronger political commitment to accelerate the country's shift toward renewable energy.
"Energy security is not merely about ensuring electricity supply. It is about protecting Bangladesh's economic independence and development aspirations. We must move forward with strong political commitment and accelerate our transition toward clean, renewable energy," he said.
BWGED said Bangladesh's growing dependence on imported fossil fuels has increased exposure to global price volatility and geopolitical risks, making renewable energy both an economic and environmental priority.
Presenting the group's findings, Hasan Mehedi, Chief Executive of CLEAN and a BWGED representative, said every additional kilowatt of solar capacity installed in Bangladesh could reduce fuel oil imports by around Tk30,000 annually, generating cumulative savings of approximately Tk600,000 over a 20-year operating period.
Among its key proposals, BWGED recommended establishing a Tk25,000 crore renewable energy financing facility under Bangladesh Bank to provide low-interest loans through commercial banks, with interest rates capped at 5 percent.
The organization also called for a Tk25,000 per kilowatt direct subsidy for household and agricultural solar systems of up to 3kW, estimating that achieving Bangladesh's 10,000MW renewable energy target by 2030 would require around Tk21,750 crore annually, including approximately Tk6,750 crore in direct government support.
BWGED further proposed an additional 10 percent incentive for renewable energy projects led by women, Indigenous peoples and marginalized communities, alongside equal tax benefits for rooftop solar systems, solar irrigation, solar-powered water supply projects and other distributed renewable energy initiatives.
The organization also recommended utilizing 14,166 acres of unused land previously acquired for coal-fired power projects to develop around 6,000MW of solar and wind power without additional land acquisition.
Other recommendations included launching pilot Green District programs, introducing nationwide renewable energy skills training to create one million green jobs, and making battery energy storage systems mandatory for all newly approved utility-scale solar projects.
According to BWGED, Bangladesh currently has 1,679MW of installed renewable energy capacity, well below the government's target of 10,000MW by 2030.
The organization said achieving this goal will require greater participation from households, farmers, local governments and small businesses in addition to large-scale private investment.
BWGED said expanding renewable energy would help reduce dependence on imported fossil fuels, ease pressure on foreign exchange reserves, improve industrial competitiveness and strengthen the country's long-term energy security.
News Link: BWGED proposes Tk25,000 crore renewable energy fund to strengthen Bangladesh's energy security