BANGLADESH adopted the Renewable Energy Policy in December 2008 with the ambitious goal of increasing the share of renewable energy in the country’s total electricity generation. At the time, this policy was a significant step forward in aligning the nation with global trends toward sustainable energy. However, fifteen years later, the global energy landscape has shifted dramatically, and Bangladesh’s renewable energy progress has remained stagnant. The targets set in 2008 remain largely unmet, and new technological advancements and climate commitments demand an urgent revision of the policy. As the country grapples with energy security challenges, growing carbon emissions, and international commitments to sustainable development, a revised renewable energy policy must address gaps in the existing framework and introduce innovative strategies to accelerate clean energy adoption. This article outlines the key areas where revisions are necessary to make the policy more effective and aligned with contemporary global best practices.

More realistic targets

THE 2008 policy set a target of achieving 10 per cent of electricity generation from renewable energy sources by 2020. However, as of 2023, renewable energy accounts for only around 3 per cent of Bangladesh’s total electricity generation. The revised policy must set more realistic yet ambitious targets with clear milestones for 2030 and 2050, aligning with international climate commitments under the Paris Agreement. The revised policy should include a clear roadmap to achieving at least 20-25 per cent of total electricity generation from renewables by 2030, a commitment to net-zero carbon emissions in the energy sector by 2050, and sector-wise renewable energy targets, including solar, wind, and biomass.

One of the biggest challenges in implementing the 2008 policy has been the lack of coordination among different government agencies. The Sustainable and Renewable Energy Development Authority, the Power Division, and the Bangladesh Energy Regulatory Commission often work in silos, causing delays in policy execution. To ensure better coordination, the revised policy should establish a dedicated Renewable Energy Council with representation from all relevant stakeholders. SREDA should be empowered with more regulatory and financial authority to drive the implementation of renewable projects, and clear accountability measures should be introduced to monitor the progress of renewable energy initiatives.

Diversification of renewable energy sources

THE 2008 policy primarily focused on solar and biomass energy, with little attention to wind and offshore renewable energy potential. Given the advancements in wind- and hydro-based power generation, the revised policy should promote offshore and onshore wind energy projects, particularly in coastal areas like Cox’s Bazar and the Sundarbans region. It should encourage research and development in ocean energy, hydrogen fuel, and waste-to-energy technologies, and develop a framework for hybrid renewable energy projects that integrate solar, wind, and storage solutions.

Private-sector investment in renewable energy has remained limited due to bureaucratic hurdles, policy uncertainty, and a lack of incentives. The revised policy should simplify the approval process for private sector investments in renewable energy, introduce tax incentives and subsidies for independent power producers developing renewable projects, and strengthen public-private partnerships in the renewable energy sector.

The introduction of the Net Metering Guideline in 2018 was a positive step, but its implementation has been slow due to technical and financial barriers. A revised renewable energy policy should expand the net metering framework to encourage more residential and commercial rooftop solar adoption. It should offer financial incentives to households and businesses that invest in solar power generation and promote decentralised mini-grid solutions in off-grid rural areas to enhance energy access.

Land constraints for solar projects

ONE of the major bottlenecks in solar energy expansion is the scarcity of land. To overcome this issue, the revised policy should encourage floating solar farms on reservoirs and water bodies. It should promote the use of industrial rooftops, railway stations, and other underutilised spaces for solar installations and introduce agrivoltaics projects, where solar panels and agricultural activities coexist.

Financing remains a major barrier to renewable energy expansion. The revised policy should introduce a Green Energy Fund to support renewable projects with low-interest loans. It should establish special renewable energy bonds to attract domestic and international investors and develop a mechanism for carbon trading to encourage businesses to invest in clean energy.

Bangladesh has committed to the Paris Agreement and has updated its Nationally Determined Contributions with a focus on reducing carbon emissions. The revised renewable energy policy should align with Bangladesh’s Long-Term Strategy for Low Carbon Development. It should include carbon pricing mechanisms to disincentivise fossil fuel dependency and establish clear guidelines for phasing out coal and reducing dependence on imported LNG.

Technological innovation, local manufacturing

BANGLADESH relies heavily on imported solar panels, wind turbines, and other renewable technologies. To enhance energy security and create jobs, the revised policy should promote local manufacturing of solar PV panels, batteries, and wind turbines. It should provide research and development incentives for universities and research institutions working on renewable energy technologies and encourage technology transfer partnerships with international renewable energy firms.

Given Bangladesh’s vulnerability to climate change, energy infrastructure must be resilient. The revised policy should ensure that renewable energy projects consider climate adaptation measures. It should integrate energy storage solutions to address the intermittency of solar and wind power and establish disaster-resilient energy infrastructure in cyclone-prone areas.

Learning from regional leaders

India and Vietnam offer valuable lessons for Bangladesh in renewable energy policy implementation. India has successfully promoted performance-linked incentives, feed-in tariffs, and large hydropower projects while also setting up mini-grids and renewable energy management centres. Vietnam, on the other hand, has embraced ambitious renewable energy targets, implementing net metering, green energy certificates, and incentives for domestic renewable manufacturing. Both countries have successfully attracted foreign investment through clear policy guidelines and stable regulatory environments. Bangladesh should adopt similar approaches to enhance its renewable energy sector.

The Renewable Energy Policy of 2008 was a visionary step at the time, but it is now outdated and insufficient to meet the challenges of today’s energy landscape. A revised policy must incorporate lessons from the past 15 years, leverage global technological advancements, and align with Bangladesh’s socio-economic and environmental goals. With a strong and modernised renewable energy policy, Bangladesh can not only reduce its reliance on fossil fuels but also position itself as a regional leader in sustainable energy. The time for policy revision is now — failure to act will only deepen the energy crisis and hinder Bangladesh’s journey toward a greener future.

Musharraf Tansen is a development analyst and former country representative of the Malala Fund.