Bangladesh is looking to renewable energy as the cornerstone of efforts to reduce mounting debt in its power sector, Energy Minister Iqbal Hasan Mahmud Tuku said on Monday, as the government seeks to curb dependence on imported fuel while tackling inherited financial liabilities.
Speaking at a citizens’ dialogue on the National Renewable Energy Development Strategy (2026–2030), organised by the Consumers Association of Bangladesh (CAB) at the Dhaka Reporters Unity, Tuku described the country’s energy sector as being under severe financial strain.
“We are in a very difficult position with enormous debt and liabilities. The way out of this situation is renewable energy,” the minister said.
The government aims to generate 10,000 megawatts of electricity from renewable sources by 2030 and has introduced tax incentives to encourage private investment, he said. Achieving the target would significantly reduce Bangladesh’s dependence on imported fuel and lower long-term energy costs.
Tuku said the administration was prioritising solar power, including rooftop installations, while ruling out the use of agricultural land for renewable energy projects. Instead, unused government-owned land, including property controlled by Bangladesh Railway and the Roads and Highways Department, could be used for solar developments. He added that advances in agrivoltaic technology would also allow crops to be cultivated beneath solar panels.
The minister reiterated his opposition to further privatisation of electricity generation, arguing that state-owned utilities are better placed to provide affordable electricity because they are not driven by profit. He suggested that electricity distribution, rather than power generation, would have been more suitable for private-sector participation.
He also proposed expanding rooftop solar through a private-sector billing model similar to that used by cable television operators, saying consumers would support the initiative if electricity could be supplied at around Tk7 per unit.
Addressing recent power cuts, Tuku said many outages had resulted from technical failures rather than shortages in electricity generation. He said faults at two power plants had contributed to recent load shedding and acknowledged that privately operated power stations had previously lacked effective technical oversight.
According to the minister, the government has since established a specialist technical team and a high-level inspection committee to improve maintenance standards at power plants while addressing weaknesses in electricity distribution networks.
Tuku also accused the previous Awami League government of leaving behind heavy financial liabilities and approving projects that served commercial and political interests rather than the public. He alleged that many projects undertaken during the party’s more than 15 years in office prioritised private gain over national needs, damaging both the energy sector and the wider economy. Reuters could not immediately obtain a response from representatives of the Awami League to the allegations.
The minister said around 80% of Bangladesh’s electricity is currently generated by private-sector producers under contracts that require the government to purchase power at relatively high prices. He claimed the previous administration left unpaid liabilities totalling Tk560 billion (about US$4.6 billion), forcing the government to continue paying substantial subsidies while meeting new obligations.
“These financial realities have made tariff adjustments unavoidable,” he said, adding that expanding renewable energy would gradually reduce fuel import costs and ease pressure on public finances.
Tuku also said the government was developing plans to maintain strategic fuel reserves equivalent to three months of national demand to strengthen energy security.
Reflecting on the recent Iran crisis, he said panic buying had increased Bangladesh’s fuel import bill by an estimated US$2.5 billion after motorists rushed to filling stations despite the introduction of fuel rationing.
The CAB event also presented an 18-point set of recommendations for the National Renewable Energy Development Strategy. Delivering the keynote paper, energy expert Professor Dr M. Shamsul Alam called for a more ambitious transition towards clean energy.
Closing the event, Tuku said the government would consider the recommendations before finalising the strategy.
“We value the views of the people,” he said. “Their recommendations will be reflected in the final strategy.”