As climate change accelerates and the global energy landscape undergoes rapid transformation, countries like Bangladesh face a pivotal moment. Long reliant on imported fossil fuels, Bangladesh is at a crossroads-should it continue investing in coal, LNG, and oil to power its growth, or seize the opportunity to transition to a cleaner, more resilient energy system? The answer, though complex, reveals that while Bangladesh has taken early steps toward energy transition, its overall readiness remains mixed and uneven. A closer look at the country's policy landscape, institutional structures, financing models, and technological capacity paints a sobering but hopeful picture.

This round had three deadline extensions

The government's aim to scale up solar energy has once again met with tepid investor interest as the third round of tenders for grid-tied solar power plants closed with poor participation and several projects failing to draw any bids.

US airstrikes in Iran have triggered a surge in global oil prices, spelling trouble for nations reliant on energy imports. Bangladesh braces for the fallout — from inflation and forex pressure to rising subsidies and a renewed energy crisis

Global oil markets were rattled over the weekend following US airstrikes on Iranian nuclear sites — a move that could escalate tensions in the already fragile Middle East and potentially upend global energy flows.

Adani Power Ltd has yet to resolve its ongoing coal tariff dispute with the Bangladesh Power Development Board (BPDB), a disagreement that directly affects the per-kilowatt-hour cost of electricity from the 1,600MW Jharkhand power plant.

The impasse continued during a virtual meeting held on Monday between BPDB officials and a delegation appointed by Adani’s CEO.

Though price of oil in the global market has not so far gone through the roof since Israel's June 13 attack on Iran followed by the latter's retaliatory missile and drone strikes, there is no guarantee that it will remain so in the coming days. It's already unstable. Overall, the price of crude oil rose by 4.0 per cent over the week. But in case, the conflict spirals out of control and Iran blocks the Strait of Hormuz, it is hard to say where it would finally end up. If the US enters the scene and starts a bombing campaign on Iran to what it says destroy Iran's nuclear facilities and Iran blocks the Strait of Hormuz in retaliation, the oil price may even shoot up to US$150 a barrel, some experts fear. In that case, countries that depend completely on imported energy including oil and Liquefied Natural Gas (LNG) are going to be at the receiving end.

Though price of oil in the global market has not so far gone through the roof since Israel's June 13 attack on Iran followed by the latter's retaliatory missile and drone strikes, there is no guarantee that it will remain so in the coming days. It's already unstable. Overall, the price of crude oil rose by 4.0 per cent over the week. But in case, the conflict spirals out of control and Iran blocks the Strait of Hormuz, it is hard to say where it would finally end up.

Bangladesh has slowly been steering towards a sustainable and energy-efficient future. Chief Adviser Professor Muhammad Yunus has already called world leaders to build a 'World of Three Zeros', meaning zero poverty, zero unemployment, and zero net carbon emissions. He also added that people's lifestyles should be based on zero-carbon; thus, there is no fossil fuel but only renewable energy. To accelerate the goal towards zero net carbon emissions, we must realise the full potential of the EV (Electric Vehicle) industry, which can promise far-reaching benefits from decreasing dependency on fossil fuels, reducing greenhouse gas emissions, and enhancing public health.

BANGLADESH stands at a historic crossroads. As the nation experiences rising energy demands driven by urbanisation, industrialisation and demographic growth, its energy planning decisions will shape the trajectory of development, environmental sustainability and climate resilience for generations to come. Against this backdrop, the government unveiled the Integrated Energy and Power Master Plan, IEPMP, 2023, a long-term strategic framework designed with support from the Japan International Cooperation Agency. While the plan was conceived with the intent of creating an efficient, affordable and sustainable energy future, it has been met with significant criticism. From civil society organisations to academics and energy experts, the consensus is clear: the IEPMP 2023 falls far short of the vision Bangladesh needs for a just, inclusive and climate-aligned energy transition.

Decade after decade, Bangladesh's promising renewable energy (RE) sector remains stagnant due to the absence of a well-structured national policy, an investment-friendly environment and skilled leadership. Meanwhile, the country, struggling with a weak economy, has become highly dependent on costly fossil fuel imports, imposing a heavy financial burden on the lower and middle income people.

Bangladesh stands at a historic crossroads. As the nation experiences rising energy demands driven by urbanization, industrialization, and demographic growth, its energy planning decisions will shape the trajectory of development, environmental sustainability, and climate resilience for generations to come. Against this backdrop, the Government of Bangladesh formulated the Integrated Energy and Power Master Plan (IEPMP) 2023, a long-term strategic framework designed with support from the Japan International Cooperation Agency (JICA).

For the first time, the World Bank, which traditionally provides development project loans and budgetary support, has extended its assistance through a guarantee facility to support Bangladesh in purchasing liquefied natural gas (LNG), aiming to ease pressure on the country's foreign exchange reserves.

Target set to meet 20% of power demand from green sources by 2030

The government has updated the Renewable Energy Policy after 17 years, aiming to produce at least 20 percent of the national power demand from green sources by 2030.

Unleashing the potential of renewable energy for a sustainable future

In the wake of pressing global climate challenges, Bangladesh recognizes the crucial need for a robust shift towards renewable energy. This urgency is fueled by the latest resolutions from the global community, notably during COP29 at Baku, where world leaders underscored the necessity of transitioning towards sustainable energy systems to mitigate climate impacts. For Bangladesh, the shift is not just a global commitment but a strategic imperative, vital for securing its environmental sustainability and economic resilience.

ASIA stands at a pivotal moment in its energy history. Home to more than half of the world’s population and the largest share of global energy demand, the region is simultaneously the driver of economic growth and a key contributor to global carbon emissions. As the climate crisis deepens and the energy security landscape becomes increasingly volatile, Asia’s ability to pivot toward renewable, equitable, and resilient energy systems will determine not just the future of the continent but of the planet. The question is no longer whether Asia should accelerate its energy transition — but how fast and how smartly it can do so.

The government's approval of a new renewable energy policy, which sets higher targets of 20 percent and 30 percent electricity generation from renewables by 2030 and 2041 respectively, is a welcome step towards advancing the energy transition. However, despite these enhanced commitments, a lack of support mechanisms and persistent policy inconsistencies continue to hinder progress in the renewable energy sector.