Energy experts, environmental leaders and civil society organisations (CSOs) have called for urgent fiscal and policy reforms in the upcoming national budget to accelerate Bangladesh’s renewable energy transition and strengthen long-term energy security.
At a press conference titled “Renewable Energy for Energy Security: Policy Shifts Needed in the National Budget” held in Dhaka on Friday, speakers warned that without bold interventions, Bangladesh could remain dependent on costly fossil fuel imports, face rising electricity prices and increased economic vulnerability.
The event was jointly organised by the Coastal Livelihood and Environmental Action Network (CLEAN) and the Bangladesh Working Group on Ecology and Development (BWGED), along with co-organisers Bangladesh Environmental Lawyers Association (BELA), Ethical Trading Initiative Bangladesh (ETI Bangladesh), Lawyers for Energy, Environment and Development (LEED) and Manusher Jonno Foundation.
Presenting the concept note, CLEAN Networking Advisor Monowar Mostafa highlighted a gap between Bangladesh’s renewable energy ambitions and actual implementation.
According to the speakers, Bangladesh currently generates only 1,679MW of electricity from renewable sources, including hydropower, against an estimated potential of 132,000MW from solar and wind combined.
They said high taxes and duties on clean energy technologies remain a key barrier to expansion. Renewable energy equipment currently faces taxes and duties ranging from 27% to 61%, making solar systems less affordable for households, farmers and small entrepreneurs.
In contrast, they said fossil fuel-based power generation continues to receive direct and indirect policy support, creating a distorted energy market.
The CSO representatives proposed reducing all duties, VAT and taxes on renewable energy equipment to a symbolic 1% for the next decade. They argued that government revenue from these taxes is less than 0.05% of total revenue, while it discourages clean energy investment.
They also proposed a Tk 25,000 crore revolving fund under Bangladesh Bank, offering low-interest financing at below 5% for renewable energy projects.
Other recommendations included a Tk 25,000 per kilowatt subsidy for rooftop solar installations, along with a 10% additional incentive for women-led and indigenous community projects.
Speakers further called for mandatory Battery Energy Storage Systems (BESS) in new utility-scale renewable projects, activation of Corporate Power Purchase Agreements (CPPA), and introduction of a progressive carbon emissions tax.
The conference also stressed prioritising rooftop solar, agrivoltaics and floating solar systems over land-intensive utility projects to protect agricultural land and decentralise energy access.
CLEAN Chief Executive Hasan Mehedi said continued dependence on imported fossil fuels would deepen economic instability.
“Without immediate policy reform, Bangladesh risks remaining trapped in rising energy costs, import dependency and long-term economic uncertainty,” he said, adding that renewable energy should receive greater fiscal incentives in the upcoming budget.
Bangladesh Sustainable & Renewable Energy Association (BSREA) President Mostafa Al Mahmud said uninterrupted electricity supply is essential for industrialisation and employment generation, adding that renewable investment could strengthen energy security and create jobs.
LEED Research Director Advocate Shimonuzzaman said stronger fiscal support is needed to bridge the gap between renewable targets and actual investment.
Speakers warned that continued fossil fuel subsidies could increase pressure on foreign exchange reserves, raise electricity generation costs and undermine climate commitments, while expanded domestic renewable energy could improve economic resilience and reduce import dependency.
