Tk 25,000 crore renewable energy fund sought to cut fuel imports

A coalition of civil society organisations on Wednesday urged the government to establish a Tk 25,000 crore renewable energy financing facility and introduce direct subsidies for small-scale solar systems, saying the measures would reduce Bangladesh’s dependence on imported fossil fuels, strengthen energy security and accelerate the country’s transition to clean energy.

The recommendations were presented by the Bangladesh Working Group on Ecology and Development at a policy dialogue held at the Jatiya Sangsad Bhaban in Dhaka.

Information and broadcasting minister Zahir Uddin Swapon, members of parliament and energy policy experts, among others, attended the event.

Swapon said Bangladesh’s energy security was closely linked to its economic sovereignty.

‘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.

Presenting the group’s recommendations, BWGED said Bangladesh’s increasing dependence on imported fossil fuels had made the country vulnerable to international price fluctuations and geopolitical uncertainties, making renewable energy an economic as well as environmental necessity.

The organisation proposed that Bangladesh Bank create a Tk 25,000 crore renewable energy financing facility to provide low-cost loans through commercial banks for renewable energy projects, with lending rates capped at 5 per cent.

It also called for direct government subsidies of Tk 25,000 per kilowatt for rooftop and agricultural solar systems with capacities of up to 3 kilowatts.

According to BWGED, each additional kilowatt of solar power installed in Bangladesh could reduce fuel oil imports by about Tk 30,000 annually, generating cumulative savings of roughly Tk 5.5 lakh over a 20-year operating period.

‘Supporting rooftop solar is not a government expense; it is a strategic investment that reduces fuel import costs, empowers citizens and strengthens national energy independence,’ said Hasan Mehedi, chief executive of the Centre for Atmospheric Pollution Studies and a representative of BWGED.

The organisation estimated that achieving the government’s target of generating 10,000 megawatts of electricity from renewable sources by 2030 would require investments of around Tk 21,750 crore annually, including about Tk 6,750 crore in direct government support.

BWGED also proposed an additional 10 per cent financial incentive for renewable energy projects led by women, Indigenous peoples and marginalised communities.

It urged the government to withdraw what it described as a discriminatory National Board of Revenue order that limits tax incentives for renewable energy equipment mainly to utility-scale projects operating under long-term power purchase agreements.

Instead, the organisation recommended extending similar tax benefits to rooftop solar installations, solar irrigation systems, solar-powered water supply projects and other distributed renewable energy initiatives.

Among other recommendations, BWGED proposed using 14,166 acres of unused land acquired for coal-fired power projects to develop around 6,000MW of solar and wind power generation without requiring additional land acquisition.

The organisation also called for pilot ‘Green District’ programmes, nationwide renewable energy skills training to create one million green jobs and mandatory battery energy storage systems for all newly approved utility-scale solar projects.

According to BWGED, Bangladesh currently has about 1,679MW of installed renewable energy capacity against the government’s target of 10,000MW by 2030. It said meeting that target would require greater participation from households, farmers, local governments and small businesses alongside large private investors.

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