Bangladesh’s interim government faces criticism as a long-term energy master plan raises concerns over transparency, fossil fuel dependence, renewable targets and financial risks amid weak consultation and demand projections.
Bangladesh’s interim government is facing growing scrutiny after a draft 25-year energy policy was submitted for approval earlier this month, raising questions about transparency priorities and long-term financial risks. The plan titled the Energy and Power Sector Master Plan 2026-2050 aims to expand electricity generation capacity from around 17 gigawatts in 2025 to 59 gigawatts by 2050. Officials say it is designed to modernize the energy sector, ensure long-term energy security and reduce fiscal pressure on the state.
However, experts and civil society groups have expressed concern that the plan was prepared without public consultation and may deepen Bangladesh’s reliance on fossil fuels. Reports indicate key stakeholders, including industry representatives and researchers, were not consulted. The process only became clear after the draft was submitted for approval.
Three-Phase Roadmap to 2050
The master plan divides the 25 years into three phases. The first phase, covering 2026–2030, prioritizes offshore gas exploration, refining capacity expansion and fast-tracked priority projects. The second phase from 2030 to 204,0 focuses on scaling up renewable energy and gradually phasing out subsidies. The final phase, 2040–2050, aims to deploy advanced energy technologies such as hydrogen ammonia co-firing and carbon capture while achieving 50 percent clean energy in the national power mix.
Renewable energy capacity targets include 20 percent by 2030, around 6,145 megawatts, 30 percent by 2040, roughly 17,470 megawatts and 50 percent by 2050. The plan proposes ten-year tax exemptions for renewable energy producers and renewable energy certificates to incentivize investment.
Concerns Over Fossil Fuel Dependence
Analysts question whether the plan genuinely prioritizes renewable energy. Imported liquefied natural gas remains central, with infrastructure investments estimated between 25 and 30 billion US dollars. Energy specialists warn this could lock Bangladesh into long-term import dependence and expose the economy to global price volatility.
Experience adds to these concerns. Previous power plans overestimated demand, producing surplus capacity and rising capacity payments to private producers, which increased from about 1.2 billion US dollars in 2020 to nearly 1.95 billion US dollars in 2025. Critics argue that projecting peak demand at 59 gigawatts by 2050 risks repeating this costly pattern.
Debate Over Clean Energy Technologies
The plan’s inclusion of hydrogen ammonia co-firing and carbon capture technologies has drawn criticism. Experts note these remain expensive and unproven at scale and should not replace mature renewable sources such as solar and wind. Large-scale hydropower is approached cautiously due to environmental and social concerns, including risks of displacement from dam projects.
Bangladesh’s renewable energy growth has been minimal over the past decade, accounting for just 2 percent of installed capacity while fossil fuels dominate the power mix.
Experts Warn Fossil Fuel Dependence Hampers Growth
At a recent roundtable in Dhaka hosted by national daily Prothom Alo experts highlighted bureaucratic barriers, policy inconsistencies and the influence of entrenched fossil fuel interests as major obstacles to renewable energy expansion.
Khondkar Golam Moazzem, research director at the Centre for Policy Dialogue, said, “Renewable energy is no longer theoretical. It is viable but our reliance on fossil fuels is the biggest barrier. A powerful fossil fuel nexus involving senior officials and business leaders continues to shape policy from appointments to national strategies.”
M Shamsul Alam, energy adviser at the Consumers Association of Bangladesh, warned, “Solar power production in Bangladesh exceeds 12 taka per kilowatt-hour, much higher than in India or Pakistan. This high cost encourages imports and undermines local energy security. We need independent assessments and pricing that reflects true energy justice.”
Shafiqul Alam, lead analyst at the Institute for Energy Economics and Financial Analysis, noted, “Low solar irradiation, 3.7 to 3.9 hours daily compared with up to seven hours in Pakistan, makes open competition essential to drive costs down.”
Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association, said, “Renewable energy is a blessing for a country dependent on imports but political will is missing. Without decisive action, this sector cannot reach its potential.”
Farah Anzum, Bangladesh lead at the Global Strategic Communications Council, added, “Data from the past five years shows heavy dependence on fossil fuels. The interim government has set a renewable energy policy targeting 20 percent by 2030 and 30 percent by 2041. But the roadmap to 100 percent renewable energy is missing.”
Neowazul Mawla, coordinator at Transparency International Bangladesh, said, “SREDA remains overly dependent on bureaucracy and lacks autonomy. This raises questions about future renewable energy expansion.”
Energy Sector: From Syndicates to Structural Reform
The energy sector reflects Bangladesh’s governance failures more clearly than any other. Energy adviser Fouzul Kabir criticized the 2010 Quick Enhancement of Electricity and Energy Supply Act, saying, “This law suspended competition. Procurement became negotiated and shielded from scrutiny, leading to massive rent extraction.”
Under the interim government, limited reforms have reintroduced competition. Recent fuel procurement reforms expanded the supplier base, broke long-standing syndicates and reportedly reduced premiums by 35 percent, saving around Tk1,500 crore in six months. Kabir noted, “Competition works, but sustaining it requires political backing, something an interim administration lacks by design.”
He also emphasized the link between elections and economic reform. “When power is concentrated in one office, decisions become arbitrary. Even routine administrative actions need top-level instructions. A functioning economy cannot operate like this,” Kabir said. He stressed that elections must restore parliamentary oversight, stronger opposition participation and safeguards against unchecked executive authority. Without political reform, economic reform will remain fragile and reversible.
Sohanur Rahman, executive coordinator of YouthNet Global, told The Climate Watch, “Climate and energy decisions cannot wait. The government must ensure renewable energy is prioritized, reduce fossil fuel dependence and involve youth in shaping a sustainable energy future.”
