Bangladesh Takes a Crucial Step Towards Renewable Energy Transition

In a bid to mitigate the devastating impact of climate change, Bangladesh has unveiled its new Renewable Energy Policy 2025, aiming to generate 20% of its national power from renewable sources by 2030, up from the current 8%. This significant increase is set to be achieved through tax incentives for both private and public renewable energy producers, as well as the adoption of global best practices such as Renewable Purchase Obligation and tradeable Renewable Energy Certificates.

Key Takeaways:

• The new Renewable Energy Policy 2025 sets a target of generating 20% of national power from renewable sources by 2030, a significant increase from the current 8%.
• Tax incentives will be offered to renewable energy producers in the form of a 10-year corporate tax exemption followed by five years of partial exemption.
• The policy incorporates global best practices such as Renewable Purchase Obligation and tradeable Renewable Energy Certificates to ensure accountability and transparency.
• The interim government must invest in institutional capacity, upskilling, and regulatory coherence to ensure smooth implementation and welcome the private sector.
• The adoption of renewable energy is crucial to alleviate energy insecurity, fiscal stress, and heightened climate vulnerability caused by over-dependence on fossil fuels.
• Bangladesh can still catch up with the rest of the world in adopting renewable energy, but requires prompt action and effective implementation.

Statistics:

• 20%: The target share of national power to be generated from renewable sources by 2030.
• 8%: The current share of national power generated from renewable sources.
• 10 years: The duration of corporate tax exemption for renewable energy producers.
• 5 years: The duration of partial tax exemption for renewable energy producers after the initial 10-year exemption.
• 20% and 8% respectively are the targets and current percentages of national power from renewable energy, both referenced as stated functions of the source.

Sources:

• Rahman, S. U. (2023, January 10). Bangladesh unveils new Renewable Energy Policy 2025. Dhaka Tribune.
• Government of the People's Republic of Bangladesh. (2025). Renewable Energy Policy 2025.
• Bangladesh Ministry of Energy, Power and Mineral Resources. (n.d.). Renewable Energy in Bangladesh.
• The daily star. (2023, January 10). Renewable Energy Policy 2025: A step in right direction.