Bangladesh’s push toward renewable energy continues to lag far behind its South Asian neighbours, despite a major expansion in overall power-generation capacity over the past decade. Analysts warn the gap is widening as regional countries rapidly shift away from fossil fuels.
Updated figures from the Sustainable and Renewable Energy Development Authority (SREDA) show Bangladesh’s installed capacity at 27,424 MW, but only 1,687 MW—or about 6%—comes from renewable sources. Solar accounts for 1,394 MW, wind 62 MW, hydropower 230 MW, and biogas/biomass just 1 MW.
The contrast across the region is stark. According to IRENA’s 2024 report, solar now supplies 24% of electricity in India, 17.16% in Pakistan, and nearly 40% in Sri Lanka. In Bangladesh, solar meets only 5.6% of demand.
Experts say Bangladesh’s slow start, policy delays, high project costs, land constraints, and slow approvals have hindered progress. Despite falling global solar prices, Bangladesh still pays some of Asia’s highest tariffs—$0.0988 per kWh, compared with the global average of $0.043. Local production costs also remain high, ranging from Tk12.30–Tk22.38 per unit, far above levels in India, Pakistan, and Vietnam.
Years of focusing on quick fossil-fuel solutions, combined with limited technical capacity and oversight challenges, have also contributed to the lag. While solar home systems expanded in rural areas, utility-scale solar was long treated as a climate initiative rather than an energy-security priority.
The interim government has recently revived efforts, targeting 3,000 MW of rooftop solar on public buildings by December 2025, and floating tenders for 55 land-based solar parks with a combined capacity of 5,238 MW—projects that may extend to 2028.
The new Renewable Energy Policy 2025 aims for 20% renewables by 2030 and 30% by 2040. Analysts say these targets are achievable but require accelerated implementation, lower costs, stronger project management, and strict quality control.
“This is not just about climate,” said BSREA President Mostafa Al Mahmud. “Renewables are essential for energy security, reducing import dependence, and protecting Bangladesh’s future.”
