Bangladesh Targets 20% Renewable Electricity by 2030
Bangladesh is targeting at least 20% of its electricity generation from renewable sources by 2030, with a longer-term goal of 30% by 2040. Prime Minister Tarique Rahman also indicated in Parliament that a plan is being considered to replace diesel-powered irrigation pumps with solar-based electricity.
In a Nutshell
- Prime Minister Tarique Rahman, on 9th September, in Parliament confirmed that the government’s 2026–2030 National Renewable Energy Development Strategy Paper has already been formulated and Bangladesh is targeting at least 20% of total electricity generation from renewable sources by 2030 and 30% by 2040.
- By 2030, 5,500MW is targeted from rooftop solar and another 4,500MW is targeted from land-based solar projects.
- Wind, hydropower, floating solar, agro-voltaics and other technologies are expected to contribute another 450–550MW.
- Solar panels, inverters and battery structures have received exemptions from several import taxes and duties, subject to conditions.
- Rooftop solar systems installed by February 28, 2027 can receive Tk10.50 per unit for surplus electricity supplied to the national grid for three years, until February 2030.
- The government is also working on a plan to move irrigation away from diesel-powered pumps towards solar electricity.
Context
Bangladesh has long relied heavily on fossil fuels for electricity, making rising fuel costs and supply pressures a growing energy concern. The government is now targeting at least 20% of electricity generation from renewable sources by 2030, with 5,500MW from rooftop solar and 4,500MW from land-based solar.
To encourage the transition, several taxes and duties on essential solar equipment have been waived under certain conditions. Rooftop solar users who install systems by February 2027 will also receive Tk10.50 per unit for surplus electricity supplied to the national grid. In Parliament, a supplementary question was raised about replacing diesel-powered irrigation pumps with solar electricity, to which Prime Minister Tarique Rahman confirmed that the government has a plan.
Why It Matters
Bangladesh's energy challenge is not only about producing more electricity, but also about what that electricity is produced from. The rooftop target, particularly, does not depend entirely on large power plants. Electricity generation gradually gets distributed across homes, factories, businesses and other buildings, while surplus power feeds into the national grid through net metering.
Furthermore, if solar electricity eventually replaces a substantial share of diesel-powered pumps, farmers become less exposed to fuel costs while agricultural production becomes less dependent on fossil fuels.
What We Think
Since the Prime Minister confirmed, that means the government has a plan in this area. However, it did not yet establish whether free solar electricity will be provided to farmers, how such a programme will work, or when it will be implemented. Whereas, the actual impact depends on the details that are eventually placed on the table.