Written by The Banking Post
Investing in renewable energy could deliver massive economic returns for Bangladesh, with every $1 spent generating up to $17 in long-term benefits, a new study has found.
The findings, presented at a roundtable in Dhaka, highlight the gains from shifting away from costly liquefied natural gas (LNG) imports toward a more self-reliant energy system.
The study estimates that benefits would come from lower fuel import bills, reduced subsidies, and job creation—at a time when Bangladesh remains heavily exposed to global energy price shocks.
Currently, more than 60 per cent of the country’s energy needs are met through imports, putting pressure on foreign exchange reserves. If this trend continues, the report warns, the additional strain could reach $5–6 billion.
Bangladesh’s energy mix is still dominated by gas, furnace oil, and coal, while renewable energy accounts for only a small share. Yet demand is set to surge, with total electricity consumption projected to rise to over 282,000 GWh by 2040, from around 110,000 GWh in 2026.
To meet this demand sustainably, the study proposes a “zero-arable land” strategy—expanding solar and other renewable projects on rooftops, water bodies, and existing infrastructure instead of farmland. Key focus areas include rooftop solar for industries, solar-powered irrigation, and floating solar systems.
Experts, however, cautioned that structural challenges remain. “Despite strong confidence in solar, actual output and efficiency are much lower than expected,” said an expert, pointing to technological gaps and weak system management.
They also highlighted regulatory complexity, limited financing, and policy inconsistencies as major barriers to scaling up clean energy.
“Global markets are increasingly demanding environmentally sustainable production,” another expert noted, adding that expanding renewable energy could strengthen Bangladesh’s competitiveness in export-oriented industries.
The study concludes that a coordinated policy push and investment shift are essential to unlock the sector’s full potential and ensure long-term energy security.
