π Bangladesh’s Renewable Energy Outlook: Challenges and Opportunities
1. Introduction
Bangladesh continues to face an acute shortage of electricity, a crisis likely to worsen as domestic fossil fuel reserves decline and energy demand keeps rising. Despite significant natural resources — coal, gas, and some petroleum — the country’s main source, natural gas, once supplied over 75% of electricity but is being rapidly depleted. Back in 2020, experts predicted gas reserves might run dry within that decade — and the urgency to diversify has only grown since then.
Meanwhile, Bangladesh’s energy demand is growing at nearly 10% per year, fueled by population growth, urbanization, and industrial development. Around 60% of the population now has access to electricity — an improvement from a decade ago — but rural areas still lag far behind, with millions living off-grid.
Given the unsatisfied energy demand and the challenge of universal grid coverage, renewable energy is Bangladesh’s best hope for a sustainable, inclusive energy future. Bangladesh has huge potential in solar, biomass, biogas, micro-hydro, and coastal wind power. For a country where nearly 70% of people still live in rural areas, distributed renewables offer a realistic path to clean power and economic growth.
2. Current Electricity Scenario
Bangladesh’s population — over 170 million today — makes it one of the world’s most densely populated countries. Despite strong GDP growth (averaging 6–7% annually), energy supply remains fragile.
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Per capita electricity generation is still very low by global standards — around 450–500 kWh as of 2024, compared to over 1,000 kWh in many developing nations.
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About 85% of power generation still relies on fossil fuels, mainly gas.
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The government’s Power System Master Plan (PSMP) targets 60,000 MW generation capacity by 2041 to meet demand — up from about 25,000 MW today.
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Renewable energy’s share remains under 5%, despite a target of 10% renewables by 2030.
3. Renewable Energy Sources
☀️ 3.1 Solar Power
Bangladesh’s subtropical location — between 20.30°N and 26.38°N — provides abundant sunshine for most of the year. Average daily solar radiation ranges from 4–6.5 kWh/m², peaking in March-April and lowest in December-January.
Solar has emerged as the fastest-growing renewable sector. Over 6 million Solar Home Systems (SHS) have been installed, mainly in off-grid rural areas — one of the world’s largest programs of its kind.
Key initiatives:
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Solar irrigation pumps replacing costly diesel pumps.
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Mini-grids powering island and remote villages.
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Urban rooftop solar installations.
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Pilot solar parks supplying power to the national grid.
Under the Government’s Vision 2041, public and private partnerships are expected to deliver large-scale grid-tied solar projects while continuing social initiatives like rural health center solarization, school electrification, and street lighting.
♻️ 3.2 Biogas
Bangladesh’s agriculture and livestock sectors produce abundant organic waste, making biogas a logical renewable option.
Biogas is generated by anaerobic digestion of animal dung, crop waste, and food waste. Typical biogas is 40–70% methane, making it useful for cooking and decentralized power.
Key examples:
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The National Domestic Biogas and Manure Programme (NDBMP), led by IDCOL and partners like SNV Netherlands, helped build over 65,000 household biogas plants to date.
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Pilot biogas-based power plants, e.g., in Rajshahi and Gazipur, power poultry farms and feed organic fertilizer markets.
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NGOs like Grameen Shakti have been instrumental in community-level rollout.
π¬️ 3.3 Wind Power
Bangladesh’s 724 km coastline and offshore islands offer promising wind energy potential. Recent government studies estimate wind power capacity at 2,000 MW or more, especially in coastal regions and river deltas.
The Bangladesh Power Development Board (BPDB) expects wind power could supply up to 10% of the country’s energy needs if fully developed. Wind is also cheaper per unit than solar at scale, especially for coastal communities far from the grid.
Recent pilot wind farms have been tested in coastal Cox’s Bazar, Kuakata, and islands like Kutubdia.
πΎ 3.4 Biomass
As an agricultural country, Bangladesh is rich in biomass feedstock: rice husk, jute sticks, cow dung, poultry litter, municipal organic waste, and crop residues.
Key facts:
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Rice husk-based biomass plants alone could supply 300 MW.
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Cattle waste and poultry litter can add another 350 MW.
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Community-based gasifiers and biomass mini-grids are being explored for off-grid villages.
Despite huge potential, commercial-scale biomass power is still in early stages and needs more technology transfer, investment, and capacity building.
π§ 3.5 Micro and Mini Hydro
Large-scale hydro is limited in Bangladesh due to its flat topography. The Karnafuli Hydro Power Station in the Chittagong Hill Tracts remains the country’s only major plant, with capacity increased from 230 MW to nearly 330 MW.
Some micro and mini hydro sites (10 kW to 5 MW) have been identified in the Hill Tracts and river rapids. These could be vital for remote indigenous communities where grid extension is expensive.
π 3.6 Other Emerging Renewables
Other sources — biofuels, gasohol, river current, wave and tidal energy — are largely untapped but could contribute in the future. Studies on offshore wind and floating solar are underway, offering new hope for diversification.
✅ Resources at a Glance
Renewable Source | Potential | Key Stakeholders |
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Solar | Huge — millions of rooftops, rural areas | Public & private sectors |
Wind | 2,000 MW+ coastal potential | BPDB, PPP |
Micro Hydro | Limited (500 MW max, mostly micro/mini) | BPDB |
Domestic Biogas | 8.6 million m³/year | IDCOL, Grameen Shakti, NGOs |
Biomass (rice husk, cattle waste) | 600–700 MW combined | Private sector, cooperatives |
π Conclusion: The Road Ahead
Bangladesh’s energy future cannot rely on fossil fuels alone. To reach universal electricity access and sustainable growth, the country must scale up renewable energy — not just with big projects but through decentralized, community-owned solutions.
With the right policies, public-private partnerships, and continued support for rural energy access, renewables can power millions of homes, reduce inequality, and build climate resilience for the next generation.
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