Energy experts and civil society leaders on Monday welcomed the government’s plan to generate 10,000 megawatts (MW) of solar power by 2030, calling it a timely and strategic initiative, but warned that major policy and implementation gaps could hinder its success.

The observations came at a press conference at the Jatiya Press Club where speakers highlighted both the urgency and complexity of Bangladesh’s transition to renewable energy.

The press conference was organised by ActionAid Bangladesh, the Just Energy Transition Network Bangladesh (JETNET-BD), and the Bangladesh Sustainable and Renewable Energy Association.

Bangladesh must cut red tape, duties to hit 10,000MW solar target by 2030: Experts

They experts said rising geopolitical tensions, particularly in the Middle East, have disrupted global energy markets, pushing up prices of oil, diesel and coal.

Expanding solar power is critical to reducing Bangladesh’s heavy dependence on imported fossil fuels, they said.

Presenting the keynote paper, Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), said the country is facing a deepening energy crisis driven by growing import reliance, supply disruptions and mounting subsidy burdens.

He said import dependence reached 65 percent in the power sector and 62.5 percent in the overall energy sector in the 2024–25 fiscal year.

Alam also pointed to the temporary closure of the Strait of Hormuz, which disrupted fuel supplies and halted operations at Eastern Refinery, while load shedding exceeded 2,700MW.

He said the government is incurring substantial subsidy costs with over Tk 65 per cubic metre for LNG and up to Tk 70 per litre for diesel, putting pressure on public finances.

“There is no alternative to accelerating the transition to renewable energy,” he said.

Zakir Hussain Khan, managing director of Change Initiative, stressed the need for restructuring renewable energy financing. He suggested reallocating at least 30 percent of fossil fuel subsidies to the renewable sector in the next national budget, which could unlock around $360 million in investment.

He also proposed introducing a modest carbon pricing mechanism that could create up to $10 billion in fiscal space to support clean energy initiatives.

Speakers highlighted the potential for mobilising diaspora investment through a proposed “Probashi Bond” worth about $4.5 billion to finance solar expansion.

They also identified several financial and institutional bottlenecks, including the absence of a dedicated green financing window at Bangladesh Bank and high lending rates from commercial banks.

To address these challenges, they recommended concessional refinancing at 3–4 percent interest and the introduction of corporate social responsibility (CSR)-linked financing mechanisms.

Policy recommendations included full duty exemptions on solar equipment, battery storage and electric vehicles, as well as the creation of a Tk 5,000 crore revolving fund to support renewable energy projects.

Experts said achieving 10,000MW of renewable energy capacity could save between $1.5 billion and $2 billion annually in fuel imports. Additional savings could come from rooftop solar, solar irrigation and transport electrification.

Despite the optimism, speakers expressed concerns over implementation.

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said the target is technically achievable but questioned execution capacity, noting that a previously announced 3,000MW goal saw limited progress.

He also criticised the existing tax regime, saying duties on solar components can reach up to 28 percent, discouraging investment, and called for immediate reductions and the introduction of instruments such as solar bonds.

Speakers also questioned the effectiveness of the current public-private partnership (PPP) model, citing its complexity and potential to delay projects. As an alternative, they suggested assigning projects directly to the Bangladesh Power Development Board (BPDB) for faster implementation.

They also emphasised the need to strengthen the Sustainable and Renewable Energy Development Authority (SREDA) by enhancing its institutional capacity and streamlining approval processes.

Dipal Chandra Barua, chairman of Bright Green Energy Foundation, advocated for a decentralised energy model.

“It is time to implement a system where people generate their own electricity,” he said, urging the government to reduce costs and taxes on solar technologies.

Energy expert Prof Ijaz Hossain warned that failure to resolve the ongoing energy crisis could pose serious challenges for the government and stressed that solar power remains the most viable solution.