Why Bangladesh must pivot to renewable energy now

Why Bangladesh must pivot to renewable energy now khairul.jahin@… Tue, 05/26/2026 - 08:30 .full-viewport-wrapper img { width: 100%; object-fit: cover; object-position: center; height: 100%; max-height: calc(100vh - 71px); } Image Why Bangladesh must pivot to renewable energy now There are moments in a nation’s history when a crisis does more than create hardship. It reveals the weakness of an old system and opens the door to a better one. Bangladesh is now standing at such a moment. The country is facing an energy crisis that no longer centres on power cuts. It is affecting factories, farms, schools, offices, exports, foreign currency reserves, and the daily life of ordinary people. What we are seeing today is not just a temporary shortage of gas or fuel. It is a signal that our energy system has become too dependent on imported fossil fuels. More than 60 percent of Bangladesh’s energy demand is met through imports. LNG, coal, oil, and other fossil fuels have kept the country running for years, but this dependence has become risky and expensive. Global fuel markets are unstable because of geopolitical tension, supply chain disruption, and price volatility. For a country like Bangladesh, this creates double pressure: fuel supply becomes uncertain while fuel costs keep rising. The government is now spending more than BDT 200 crore per day in energy subsidies. Annual energy import expenditure remains around USD 12 billion, putting serious pressure on foreign currency reserves. Nearly 70 percent of Bangladesh’s LNG imports come from Qatar. If supply is disrupted, Bangladesh can quickly face a severe shortage. In the power sector, daily gas demand exceeds 2,500 mmcfd, but supply sometimes falls to 850–900 mmcfd. This can create a power generation shortfall of 1,500–1,800 MW. Overall, the daily gas shortage exceeds 1,100 mmcfd, and peak-time electricity shortages may reach nearly 2,000 MW. Bangladesh also has a weak Strategic Petroleum Reserve. The current reserve capacity is sufficient for only about 35–40 days, well below that of countries such as China and Japan. This makes the national energy system even more vulnerable. Visual: Teeni and Tuni The impact is already visible. In the readymade garments sector, gas shortages and load shedding are reducing productivity by 25–30 percent in many cases. This threatens export earnings, foreign currency reserves, and economic stability. The crisis has also reached ordinary households. Although Bangladesh declared 100 percent electrification in 2022, many rural areas still experience 10 to 20 hours of load shedding every day during summer. This affects education, small businesses, agriculture, and people’s dignity. We have also seen long lines at fuel stations, schools moving online, and offices shortening working hours because of fuel shortages. These are not isolated events. They show how deeply energy insecurity can disturb national life. Over the last 15 years, electricity tariffs in Bangladesh have been increased on many occasions, including more than 10 rounds of increases at both bulk and retail levels. This path is not sustainable. Fossil-fuel-based electricity depends on imported fuel, global prices, the availability of the dollar, subsidies, and repeated tariff adjustments. Solar power offers a different path. With a one-time investment, solar can provide stable energy for 15–20 years. Once installed, its fuel cost is almost zero. The economic comparison is clear. A 1 MW HFO-based power plant produces electricity per year at a cost of nearly BDT 190 crore, with much of the cost paid in foreign currency. In contrast, a 5 MW solar project requires a one-time investment of around BDT 25 crore, after which fuel costs are practically zero. Each 1 MW of solar power can save around USD 325,000 per year in foreign currency. Read more Bangladesh’s looming energy crisis and the choices ahead This is why renewable energy should not be discussed solely in technical terms like decarbonisation, emissions, and sustainability. For Bangladesh, renewable energy means jobs, fuel independence, savings in foreign currency, industrial competitiveness, agricultural protection, and economic strength. Policymakers and stakeholders can lead this transformation, inspiring confidence in a sustainable future. Despite Bangladesh’s potential, renewable energy contributes less than 5 percent to power generation, far below the global 30 percent target by 2030. Clear, measurable goals and timelines are essential for effective policy planning and investment decisions. Renewable energy equipment imports face around 50–60 percent in duties and taxes, hindering local manufacturing growth. Policy reforms that reduce import duties and support local industry can accelerate renewable deployment and reduce dependency on imports. For Bangladesh, renewable energy means jobs, fuel independence, savings in f