Feb 23, 2025
| Daily Sun Report
Experts warn coordination issues, unclear goals threaten energy security and investment
Bangladesh’s renewable energy policies suffer from a lack of coordination and clear direction, creating uncertainty for investors, said experts at a press conference.
Speaking at the event organised by the Coastal Livelihood and Environmental Action Network (CLEAN) in Dhaka on Sunday, Centre for Policy Dialogue (CPD) research director Khondaker Golam Moazzem criticised the rushed formulation of the renewable energy policy, resulting in an incomplete draft. He noted that conflicting government plans could confuse investors, while fossil fuel policies remain structured and prioritised.
“We must recognise that expanding renewable energy within an economy heavily reliant on fossil fuels is impractical,” he said. Moazzem also stressed the importance of foreign direct investment (FDI) in meeting energy goals, calling for a balanced mix of domestic and foreign financing. He urged the government to move beyond the Integrated Energy and Power Master Plan (IEPMP) and adopt more accurate electricity demand forecasting, warning that unreliable data would hinder renewable energy projections.
Hasan Mehedi, chief executive of CLEAN, argued that the proposed Renewable Energy Policy 2025, with its limited targets, would not ensure energy security but instead increase dependence on fossil fuels, benefiting businesses while burdening the public. He highlighted the persistent lack of policy coordination, which has stalled the sector’s growth.
Despite taking over four years to draft the policy, the government has yet to establish a comprehensive energy and power master plan. Moreover, only 21 days were provided for expert and civil society feedback—an insufficient timeframe. Mehedi criticised the draft’s unrealistic renewable energy targets—6,145MW (20%) by 2030 and 17,470MW (30%) by 2041—without a clear decarbonisation roadmap. He pointed out the absence of a green taxonomy, inter-ministerial coordination, an implementation strategy, and a financing or investment plan.
Additionally, he noted the disparity in tax benefits: while renewable energy companies enjoy full tax exemptions for a decade, ordinary citizens receive no incentives. In contrast, other countries provide up to 30% direct financial support for rooftop solar installations, a provision missing from the draft policy.
Bareesh Hasan Chowdhury, coordinator of Friends of the Earth Asia Pacific, noted that Bangladesh has yet to set a net-zero target. He criticised the policy for vague definitions and an ambiguous approach to carbon emission reductions. “Without clear targets, this policy is like a rudderless boat, unlikely to deliver meaningful results,” he said.
Shahriar Ahmed Chowdhury, director of the Centre for Energy Research, highlighted that Bangladesh’s renewable energy targets lack specificity, making implementation difficult. Meanwhile, countries like China, Pakistan, India, and Vietnam are advancing rapidly in the sector. He argued that Bangladesh’s continued protection of the fossil fuel industry is hampering renewable energy development, despite global declines in renewable technology costs.
He emphasised that funds allocated for fossil fuel imports over the next two decades could instead develop a renewable energy capacity ten times greater. “With proper policy support, the private sector alone could drive significant progress,” he concluded.
News Link: Policy gaps, fossil fuel reliance hinder Bangladesh’s renewable energy