Despite remarkable progress in recent decades, Bangladesh remains highly vulnerable to the global climate crisis. Ranked 7th among the world's most disaster-prone nations, the country faces growing climate risks that are expected to intensify in the coming years, with the hardest impact among the rural lives and livelihoods.

This reality creates the dual challenge of addressing growing energy demand and also ensuring universal access. This article examines empirical evidence on how renewable energy supports rural livelihoods in Bangladesh, outlining its economic, social, and environmental benefits, reviewing policy and institutional arrangements and offering practical recommendations to expand fair and inclusive access to clean energy.

Bangladesh's journey from nationwide electrification to solar innovation demonstrates why renewable energy is vital to bridging the remaining rural energy gaps. In terms of energy access, Bangladesh has achieved near-universal electricity coverage, rising from just 15 percent in 1991 to 100 percent in 2022. Yet this does not mean every household has electricity access. Government figures define 'universal electrification coverage' as providing connections to all who apply for a connection, but many poor and vulnerable rural households cannot afford to do so due to financial difficulties. Equity in access to electricity therefore remains uneven, particularly in hard-to-reach rural areas, underscoring the need for off-grid and renewable energy solutions.

Bangladesh receives an average of 5 to 6 hours of sunlight daily, making solar power a highly viable energy option. The country's flat landscape enables easy installation of solar panels. Countrywide improved transport and communication networks in recent years have further supported the expansion of solar systems. At the same time, solar energy is clean and renewable energy, helping Bangladesh to progress towards its commitment of reducing greenhouse gas emissions by 6.7 percent below the Business-as-Usual scenario. In this context, renewable energy, particularly solar technologies, has emerged as a transformative force in reshaping rural livelihoods, advancing social and economic inclusion, and strengthening resilience in a rapidly changing climate.

Evidence shows that the renewable energy, particularly solar technologies, has become a powerful driver of rural livelihoods in Bangladesh. A World Bank study (2021) found that farmers using solar irrigation spend from 30 to 40 percent less on water for cultivation compared to those using diesel pumps, as sunlight is free and operating costs are minimal after installation. Research conducted by the International Food Policy Research Institute (IFPRI), further shows that solar irrigation not only reduces fuel expenses but also boosts crop productivity, since farmers can irrigate more regularly without the burden of high diesel costs. Integrating renewable energy into agriculture therefore reduce farming costs, lower dependence on expensive fuel, stabilizes irrigation, and ultimately increases yields and household earnings.

Similar benefits extend to off-farm activities. Off-grid solar systems allow longer working hours for small businesses and cottage industries, supporting entrepreneurship, employment, and income diversification. An econometric study (2024), using data from the Bangladesh Integrated Household Survey published in 2020, found that household adoption of solar photovoltaic (PV) systems raises income from 9 to 13.5 percent and reduces the poverty gap from 20 to 26 percent.

Renewable energy also plays a critical role in building human capital through education and healthcare, particularly in the rural areas. Studies show that students in electrified households perform better in exams because they can study at night and during flexible hours. Schools using renewable energy benefit from multimedia classrooms, ICT-based learning, and extended study times. Electricity from renewable energy sources also allows schools to operate water pumps, purifiers, and basic healthcare equipment, creating a more enabling learning environment.

In healthcare, solar-powered clinics can refrigerate vaccines, operate diagnostic devices, and provide reliable care. Community clinics in hard-to-reach areas, where grid electricity is often unreliable, benefit most from adopting solar solutions. Off-grid solar systems ensure clinics in remote or flood-prone areas remain functional when conventional electricity fails. Replacing diesel generators with solar power further reduces indoor air pollution and lowers operational costs, allowing facilities to allocate more resources to patient care.

The adoption of renewable energy has reduced women's workloads by eliminating the need to collect firewood and by improving indoor air quality through clean cooking solutions. The shift from kerosene lamps to solar lighting, along with the use of energy-efficient stoves, has significantly reduced indoor air pollution and the risk of respiratory disease. Solar streetlights have also enhanced safety for women and children, fostering greater mobility and security in rural communities. Since less time is required for household chores, women are able to pursue education, engage in small businesses, and participate more actively in community life. A UN Women study (2020) found that renewable energy projects designed for women, such as solar-powered sewing units, poultry farms, and food processing ventures significantly increased women's income, decision-making skills, and enable more participation in the community level activities contributing to broader social empowerment. As education and skills expand, women can take the roles as solar technicians, entrepreneurs, and operators of micro-enterprises in the renewable energy sector.

Renewable energy is also beneficial to both climate adaptation and mitigation in Bangladesh; one of the world's most climate-vulnerable and disaster-prone countries. It reduces greenhouse gas emissions, lessens reliance on fossil fuels, and improves energy resilience in one of the. Decentralized solar mini-grids provide uninterrupted electricity during floods, cyclones and other natural disasters, supporting households and shelter centers. Biogas and solar systems convert organic waste into energy, reducing pollution and enhancing soil quality. Using solar or biogas for cooking also lowers dependency on firewood, protecting forests and ecosystems. In char and coastal areas, solar irrigation reduces dependence on unreliable rainfall and costly diesel, enabling climate-resilient farming practices. According to a recent IDCOL report, replacing diesel pumps with solar systems cuts carbon emissions by about 1,000 tons of CO₂ per pump annually, demonstrating substantial environmental benefits.

In terms of policy arrangement, Bangladesh requires comprehensive energy planning and effective implementation to secure a sustainable energy future. The country's first Renewable Energy Policy (2008) set the targets of achieving 5 percent renewable energy by 2015 and 10 percent by 2020, yet by 2020 renewable energy accounted for only about 3 percent of generation capacity, hindered by financing gaps, land constraints, weak enforcement, and tariff uncertainties. A draft Renewable Energy Policy developed in 2025 aims to strengthen energy security, diversify the mix, and meet climate goals through grid modernization, energy storage, and investor incentives such as tax breaks and duty exemptions. However, concerns remain over its ambitious targets, weak alignment with other national strategies, and limited financial and implementation mechanisms.

Institutionally, the Sustainable and Renewable Energy Development Authority (SREDA), established in 2012, coordinates renewable energy and efficiency initiatives, while the Bangladesh Energy Regulatory Commission (BERC) oversees tariffs, licensing, and project standards. Expansion largely follows a public–private partnership model, with the Infrastructure Development Company Limited (IDCOL) mobilizing finance, setting technical standards, and linking NGOs, microfinance institutions, and private suppliers. Development partners such as the World Bank, GIZ, and ADB provide technical and financial support, while NGOs plays the role of key implementers at the grassroot level. Yet frameworks remain fragmented, targets weakly enforceable, subsidies inconsistent, and gender considerations limited.

The renewable energy transition in Bangladesh continues to face major obstacles. High upfront costs exclude many poor households and farmers, while limited maintenance services reduce system reliability. Policy gaps and unclear tariff structures hinder the growth of solar irrigation and mini-grids. Gender inequity also persists, with women underrepresented in technical and decision-making roles despite constituting nearly half of the rural workforce.

Fostering expansion of the renewable energy in Bangladesh requires inclusive financing models for poor households and small farmers, stronger rural maintenance networks, and rapid scaling of solar irrigation to replace diesel pumps. Decentralised solutions such as mini-grids and rooftop solar should be prioritized for remote areas and policy and monitoring frameworks must be strengthened with clear targets and regulatory support. Mobilizing international climate finance, such as GCF, CIF needs to be fostered to support large-scale renewable energy projects, especially for adaptation in the vulnerable communities. Creating investor-friendly incentives will also help unlock large-scale projects. Gender-sensitive approaches must need to be ensured with full participation of women as entrepreneurs, technicians, and decision-makers.

In conclusion, renewable energy offers Bangladesh not only a path to cleaner power but also a means to strengthen rural livelihoods, improve social services, empower women, and build resilience against climate risks. With stronger policies, inclusive financing, and sustained investment, Bangladesh can truly light the way toward a just, equitable, and sustainable energy future.

News Link: Lighting rural growth: The promise of renewable energy in Bangladesh