Tk25,000cr green fund urged to boost renewable energy

A coalition of civil society organisations has urged the government to introduce a Tk25,000 crore renewable energy financing facility and provide direct subsidies for small-scale rooftop and agricultural solar systems, arguing that such measures would strengthen Bangladesh's energy security, reduce fossil fuel imports, and create one million green jobs.

The recommendations were presented by the Bangladesh Working Group on Ecology and Development (BWGED) at a policy dialogue held at the Jatiya Sangsad Bhaban on Wednesday. 

The event was attended by Information and Broadcasting Minister Zahir Uddin Swapon, members of parliament, and energy policy stakeholders.

Speaking at the dialogue, Swapon said Bangladesh’s energy security is closely linked to its economic sovereignty.

“Energy security is not merely about ensuring electricity supply. It is about protecting Bangladesh's economic independence and development aspirations. We must move forward with strong political commitment and accelerate our transition toward clean, renewable energy,” he said.

BWGED argued that Bangladesh’s growing dependence on imported fossil fuels has exposed the country to global price volatility and geopolitical risks, making renewable energy an economic as well as an environmental necessity.

Presenting the organisation’s findings, BWGED said every additional kilowatt of solar capacity installed in Bangladesh could reduce fuel oil imports by around Tk30,000 annually, resulting in cumulative savings of approximately Tk550,000 over a 20-year operating period.

“Supporting rooftop solar is not a government expense; it is a strategic investment that reduces fuel import costs, empowers citizens and strengthens national energy independence,” said Hasan Mehedi, chief executive of CLEAN and a representative of BWGED.

Among its key proposals, BWGED called for the creation of a Tk25,000 crore renewable energy financing facility under the Bangladesh Bank to provide low-cost loans through commercial banks, with interest rates capped at 5%.

The organisation also urged the government to provide Tk25,000 per kilowatt in direct subsidies for household and agricultural solar systems with capacities of up to 3kW. 

It estimated that meeting Bangladesh's 2030 renewable energy target would require around Tk21,750 crore annually, including approximately Tk6,750 crore in direct government support.

BWGED further recommended an additional 10% incentive for renewable energy projects led by women, Indigenous peoples, and marginalised communities.

The organisation also demanded the withdrawal of what it described as a discriminatory National Board of Revenue (NBR) order that limits tax incentives for renewable energy equipment primarily to large utility-scale projects operating under long-term power purchase agreements.

Instead, it said equal tax benefits should be extended to rooftop solar users, solar irrigation systems, solar-powered water supply projects, and other distributed renewable energy initiatives.

BWGED proposed allocating 14,166 acres of unused land acquired for coal-fired power projects for renewable energy development, saying the land could accommodate around 6,000MW of solar and wind generation without requiring additional land acquisition.

It also recommended launching pilot “Green District” programmes, introducing nationwide renewable energy skills training to create one million green jobs, and making battery energy storage systems mandatory for all newly approved utility-scale solar projects.

According to BWGED, Bangladesh currently has around 1,679MW of installed renewable energy capacity against the government's target of 10,000MW by 2030.

The organisation said achieving that goal would require broader participation from households, farmers, local governments and small businesses, rather than relying solely on large-scale private investors.

BWGED argued that expanding renewable energy would help reduce Bangladesh's dependence on imported fossil fuels, ease pressure on foreign exchange reserves, improve industrial competitiveness and strengthen long-term energy security.

The dialogue also featured a panel discussion attended by Khulna City Corporation Administrator Nazrul Islam Manju and members of parliament ABM Mosharraf Hossain, Dipen Dewan, Kamruzzaman Kamrul, Mohammad Abu Sufian, Mohammad Shafiqul Haque Milon, Mahbubur Rahman Belal, and Sultana Jesmin Jui.