As the global energy transition accelerates, Bangladesh stands at a crossroads – balancing fossil fuel dependency with the promise of renewables. With ambitious targets to triple its renewable energy share by 2030, the country faces policy gaps, financial strain, and implementation delays that could stall progress.
In this exclusive interview, Shafiqul Alam, Lead Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA) for Bangladesh, discusses the nation’s renewable prospects, policy bottlenecks, and the global climate finance landscape ahead of COP30.
Just Energy News: You once called this the “era of renewable energy” for Bangladesh. Could you elaborate?
Shafiqul Alam: Absolutely. Across South Asia, renewable energy is advancing rapidly. Sri Lanka now generates about 23% of its electricity from solar, with 1,347 megawatts (MW) from rooftop systems as of late 2024.
Pakistan added 15,000 MW of rooftop solar in a single year. Faced with rising fossil fuel costs, it embraced rooftop solar as both affordable and reliable – so much so that tariffs have fallen.
India, which initially targeted 175 gigawatts (GW) of renewable power by 2030, a goal achieved ahead of schedule. India has since raised the target to 500 GW. Renewables now make up half of India’s total capacity, improving both energy security and economic stability. No country can sustain an energy system that depends on imports for 70-90% of its supply.
Bangladesh, by contrast, still imports about 62% of its energy. This dependence drives up tariffs and subsidies for the Bangladesh Power Development Board (BPDB), hurting industries and consumers alike. Industrial production is also suffering due to energy shortages. To reduce import reliance, lower costs, and meet our Paris Agreement pledge, we must accelerate the transition to renewables.
“Benchmark costs are missing – and it’s hurting us”
Just Energy News: Is the current cost structure of renewable energy in Bangladesh sustainable?
Shafiqul Alam: That’s a crucial question. When Bangladesh began solar projects in 2018, costs were around 18.7 cents per unit. By 2024, they dropped to 9.85 cents, a 50% decline, but still double the global average of about 4.3 cents.
High land and transmission costs, limited competition, and the absence of benchmark pricing are to blame. Countries like India regularly revise benchmark costs and use reverse auctions to drive prices down. Bangladesh should do the same.
The claim that we lack land is also overstated. With proper mapping, we could set up 50-100 MW solar plants in each of the 64 districts, adding thousands of megawatts through decentralised, cost-effective projects.
“Two years without new projects – a major setback”
Just Energy News: The government has invited tenders for 5,000 MW of new renewable projects but canceled 37 others. What’s your take?
Shafiqul Alam: It’s a mixed outcome. Streamlining the tendering process was good policy, but the blanket cancellation created what I call an “energy barren period.”
I predicted this back in January 2025, and it’s happening now. As of September, no new projects have entered the pipeline. If elections are held in early 2026, it may take another year for contracts to be finalised, meaning nearly two years without new activity. That’s a major blow and erodes investor confidence.
“5,000 megawatts can be a turning point”
Just Energy News: Is the 5,000 MW tender significant for Bangladesh’s renewable goals?
Shafiqul Alam: Yes, it’s substantial. For a developing country like ours, 5,000 MW is a big capacity addition. Even 2,000 MW coming online soon would lay a strong foundation toward the 2030 target.
However, structural issues persist. The BPDB’s subsidy burden is unsustainable, and tenders often lack payment security clauses, discouraging financiers. A payment guarantee mechanism is essential to attract serious international investors.
“Rooftop solar is the hidden gem”
Just Energy News: The government plans 2,000-3,000 MW of rooftop solar alongside the 5,000 MW tender. Is that realistic?
Shafiqul Alam: Ambitious, but achievable with the right approach. Rooftop solar is ideal for a land-scarce country like Bangladesh. Yet the current plan focuses mainly on government and educational buildings, which together consume only about 12-12.5% of daytime power, equivalent to roughly 1,200-1,300 MW, not 3,000. That said, the target of 3,000 MW from public buildings may be overstated.
The real opportunity lies in industrial and commercial rooftops, which can generate far more. This initiative should serve as a pilot for scaling up rooftop solar across all sectors.
“A realistic 20% by 2030, if we act now”
Just Energy News: What’s your outlook for renewable energy in Bangladesh?
Shafiqul Alam: The potential is strong, but execution is key. We need consistent policies, annual action plans, and effective monitoring. Financial and investor concerns must be addressed urgently.
With coordination and accountability, the 20% renewable target by 2030 is achievable. Rooftop solar, special economic zones, and distributed generation can all contribute to sustainable growth.
Global Climate Finance: “$300 billion is not enough”
Just Energy News: COP30 in Brazil will focus on climate finance. How do you see global progress?
Shafiqul Alam: We need $1.3 trillion annually for clean energy to stay below 1.5°C of warming. The proposed $300 billion by 2035 is far short of that.
Funds must be increased, disbursed faster, and tracked transparently. Many stakeholders argue that development aid is double-counted as climate finance. Also, most funds go to mitigation, not adaptation, yet for vulnerable nations like Bangladesh, adaptation is a matter of survival. The balance should be 50:50.
We also face a renewable energy funding gap of around $400 billion per year globally. Multilateral banks must also expand concessional financing, risk guarantees, and credit support for renewables in developing countries.
“Technology transfer must be real, not rhetorical”
Just Energy News: The last COP discussed free technology transfer to developing nations, but progress remains limited. Why is technology transfer still lagging?
Shafiqul Alam: Technology transfer is essential, and it’s not a new concept. Even during the early days of the COP process, under the Clean Development Mechanism (CDM), there were provisions for technological collaboration.
Imported technologies need local adaptation. For example, Bangladesh’s brick sector modified Chinese hybrid kiln designs to suit local conditions, a process that took time and expertise. So, technology transfer must include capacity-building and localisation support to be truly effective.
“High ambition attracts high support”
Just Energy News: Bangladesh’s interim government proposed a Net Zero goal at COP29. What’s the status?
Shafiqul Alam: The Paris Agreement’s core goal is Net Zero, limiting global temperature rise to 2°C, preferably 1.5°C, by the end of the century. The upcoming COP30 will emphasise Nationally Determined Contributions (NDCs).
Bangladesh will submit an updated version soon. The roadmap is still being developed, but setting ambitious conditional targets, linked to international support, will help attract finance and technology.
Ambition pays off. It strengthens our negotiating position, supports clean energy expansion, and aligns with long-term economic goals.
“Collective action remains the only way forward”
Just Energy News: Can COP30 deliver for vulnerable nations?
Shafiqul Alam: It must. The Paris Agreement is built on collective responsibility – every country acting according to its capacity. Wealthier nations must lead and support developing economies through finance and technology.
With adequate support, Bangladesh can make a meaningful contribution to global Net Zero goals.
Just Energy News: Thank you for your time and insights.
Shafiqul Alam: Thank you.