Realising that the energy sector’s situation is far from ideal, the Bangladesh government typically sets out annual plans to strengthen the country’s energy security, advance the energy transition and reduce costs. Yet, insufficient budgetary allocations and often limited efforts have increased the country’s import dependence and narrowed the scope for building a sustainable energy system. As a result, multiple sectors are experiencing energy supply disruptions. Industries raised concerns over insufficient energy supply in 2025 as well, like they have in the past several years. 

While renewable energy could partially ease energy supply and security challenges, the cancellation of previously awarded letters of intent for solar projects, citing a lack of competition, has adversely affected the renewable energy sector, limiting the addition of new projects in the last one and a half years. Besides, high import duties deter industries and other establishments from investing in profitable rooftop solar systems. Likewise, high import duties on components used in energy-efficient appliances, such as light-emitting diode bulbs and compressors with inverters, raise upfront costs, which could hinder the country’s energy efficiency improvement. 

With the growing risk of unchecked fossil fuel import dependence, the time is ripe for Bangladesh to design and implement an evidence-based and technically sound energy policy. In doing so, the country should rely on its local experts and key stakeholders to map major energy sources while fostering the contribution of renewable energy to meet its energy demand. The policy should also recognise the instrumental role of energy efficiency and conservation in curbing unsustainable growth in energy demand. 

While an updated policy vision would signal a commitment to the energy transition, the Bangladesh government should also develop a supportive ecosystem that incentivises the transition. It should rationalise the high import duties on solar panels and inverters for small-scale projects. At the same time, it should reduce import duties on components used in energy-efficient appliances. 

Any further delay in the energy transition would weaken the country’s energy security, heightening the risks of higher energy costs and supply disruptions. 

This is the translated and abridged version of an article first published in Bonik Barta.