Bangladesh's draft renewable energy policy 2025 has come under heavy scrutiny from energy and climate experts who say it lacks a clear roadmap and coherent direction to meet renewable energy targets.

The policy, which took more than four years for drafting, was made available for public consultation for just 21 days through February 24 this year.

Greatly varying capacity charges paid to power companies with similar capacities highlight a chronic ill practice by the past Awami League regime, sending Bangladesh’s economy into a tailspin.

The Bangladesh Power Development Board calculated the capacity charges considering the use of 60 per cent capacities of the power plants.

The commissioning of Bangladesh's first-ever nuclear power plant at Rooppur faces delays due to incomplete gridline work, particularly the crucial 2-km stretch over the mighty Padma river.

The issue was highlighted during an International Atomic Energy Agency (IAEA) inspection in March, which identified 17 areas requiring updates to meet operational standards.

Bangladesh finds itself navigating a delicate balance between rapid economic development and urgent climate action. As the world’s seventh most climate-vulnerable nation, the country contributes a modest 0.4 per cent of global greenhouse gas emissions, yet its domestic emissions are growing at an alarming 5.6 per cent annual rate. This increase stems from the twin engines of industrialisation and urbanisation that are propelling Bangladesh towards its goal of upper-middle-income status by 2031. The nation now faces a critical challenge: how to maintain its impressive development momentum while addressing the major sources of emissions that threaten both its environmental future and economic stability.

Additionally, Moscow has responded to Dhaka’s request by extending the tenure of an $11.38 billion Russian state loan for the main nuclear power project by two years, postponing the start of repayments by 1.5 years

Carbon credits are one of the major pillars of most of the country's climate change strategy. Though many experts stated that, depending on offsets to meet emission reduction goals are mathematically impossible and a recipe for climate disaster. However, it serves as one of the most effective tools in the face of climate change.

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.

The onus is now on the interim government to move forward with its own designs on securing our green energy transition

Bangladesh’s ongoing energy crisis has once again exposed the fragility of its power sector. With frequent load-shedding, rising fuel costs, and an over-reliance on imported fossil fuels, the country’s energy security remains precarious. As the interim government steers the nation through this critical period, short-term measures to stabilize supply must be paired with a long-term commitment to renewable energy -- a shift that is no longer optional, but essential.

As Bangladesh faces growing energy demands, rising fuel costs, and the urgent need to meet climate commitments, the transition to renewable energy is most critical. While the country has made some progress in integrating solar and wind power, its dependence on fossil fuels remains high, exacerbating energy insecurity and environmental degradation. A shift towards renewable energy is not just an environmental necessity but also an economic imperative.

One of the greatest joys and satisfactions of my life has been contributing to the development of Bangladesh’s infrastructure—particularly during a time when the country urgently needed modern port facilities. We built the first inland container depot, port-related infrastructure, and terminals for oil storage. That’s how it all began.

Currently, Bangladesh has the capacity to import a total of 2560 megawatts of electricity from India

With the rising demand, electricity imports from India have increased. Currently, 17.13% of the total electricity produced in Bangladesh is coming from India. This increase in import has occurred amidst ongoing tensions between India and Bangladesh.

The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distribution network through net metering. Each of the eight operational circles has been designated to generate 15 MW of solar power. To facilitate this, bids have been invited from international engineering, procurement, and construction (EPC) contractors to design, build, finance, operate, and maintain the systems. At a time when the global focus is shifting towards clean energy, this move is poised to significantly strengthen Bangladesh's energy sector. Moreover, DESCO plans to purchase electricity from the contractors at rates lower than the retail electricity prices set by the Bangladesh Energy Regulatory Commission (BERC), making it a cost-effective solution for sustainable power generation.

The long-awaited draft of the new Renewable Energy Policy (REP) 2025 was published in February, inviting suggestions and advice for refinement. It promises generation of 20 percent (6,145 MW) of electricity from renewables by 2030 and 30 percent (17,470 MW) by 2041. However, this estimation is based on the overstated electricity demand forecast from the Integrated Energy and Power Master Plan (IEPMP). As per a demand projection by the Centre for Policy Dialogue (CPD), 20 percent renewable electricity in 2030 is 5,600 MW and 30 percent is 10,500 MW. Thus, the target of the draft policy is ambitious on the surface.

With the power demand rising amid heatwaves, the energy mix included more oil to boost electricity generation, leading the interim government away from its plan to reduce energy spending.

The increased use of oil-based power plants keeping cheaper power plants, based on gas and coal, kept idle is caused by the government’s inability to arrange for a cheaper energy, mainly due to the dollar crisis.

The government is set to engage in crucial discussions with the visiting International Monetary Fund (IMF) mission on nine sectoral and fiscal reform measures in the power sector.

“We are preparing through a marathon meeting in the Power Division today,” an official who attended the session told Just Energy News. The official noted that several reforms are already underway, including the suspension of the Special Power Act.