Bangladesh requires over 35 gigawatts (GW) of renewable power generation capacity to achieve its target of 30 percent clean energy by 2040.
A new study by the Centre for Policy Dialogue (CPD) revealed this information. The think tank estimates this transition will require an investment of up to $42.6 billion between 2025 and 2040.
The findings were presented on Sunday at a dialogue titled "NDC 3.0 for the Power Sector: Is Bangladesh Setting 'Ambitious' Targets?" held at the Brac Centre in Dhaka.
Dr. Khondkar Golam Moazzem, research director of CPD, Helen Mashiyat Preoty, senior research associate, Jebunnesa, visiting associate, Mehedi Hasan Shamim, programme associate jointly conducted the report.
The study report revealed that to meet the 30% target, Bangladesh will need 35,713 MW of renewable capacity.
Currently, renewable energy accounts for a mere 3.6 percent of the national grid, a stark contrast to the 43.4 percent supplied by gas-based fuels as of March 2025.
Challenges and Concerns:
The CPD report also highlighted a looming issue: fossil fuel generation capacity is projected to significantly outpace electricity demand. By 2030, fossil fuel capacity is expected to reach 29,773 MW, which is more than 4,000 MW higher than the projected demand of 22,702 MW. This overcapacity, the report warns, could limit the integration of renewable energy and hinder efficiency.
Experts at the event voiced their concerns. Professor M Rezwan Khan, Chairman of Power Grid Bangladesh PLC, emphasized the need for investor confidence, noting that the Bangladesh Power Development Board (BPDB) frequently defaults on payments to power plant owners.
Imran Karim, former president of the Bangladesh Independent Power Producers Association (BIPPA), stated that reaching a 20% renewable energy share by 2030 would require a $12–14 billion investment. He stressed the need for a streamlined tender process to accelerate private sector involvement.
To overcome these challenges, the CPD report offered several policy recommendations:
Create a detailed implementation plan: This plan should include source-specific interim targets for 2030 and 2035, along with a schedule for phasing out fossil fuels.
Modernize infrastructure: Upgrading grid infrastructure and deploying advanced energy storage systems are crucial for integrating variable renewable energy sources.
Encourage cross-border energy trade: Importing renewable electricity from neighboring countries like Nepal, Bhutan, and India can help address short-term energy gaps.
Secure financing: The report urged the government to engage with multilateral development banks and climate funds to secure concessional financing and attract private capital.
Invest in decentralized systems: Promoting rooftop solar and mini-grids can help broaden renewable energy adoption.
The report concluded that progress can be initiated by slowing the growth of fossil fuel-based projects and aggressively accelerating renewable energy expansion.
The dialogue featured a panel of experts including Rezwan Khan, Imran Karim, Department of Environment Director Mirza Shawkat Ali, and representatives from Independent University Bangladesh, the European Union Delegation to Bangladesh, and the Bangladesh Power Development Board. The session was moderated by Dr. Khondaker Golam Moazzem.