Experts call for inclusive, affordable path to Bangladesh's energy transition

Energy sector experts and officials have emphasised the need for inclusive participation, efficient management, and affordable international financing to ensure a fair and sustainable energy shift in Bangladesh.

The call came at a dialogue titled "Towards a Just Energy Transition" organised by Oxfam Bangladesh at a city hotel in Dhaka today (4 November). 

Speaking as the chief guest, Jalal Ahamed, chairman of the Bangladesh Energy Regulatory Commission (Berc), said that the transition process must involve all stakeholders – government, private sector, NGOs, and academia.

"We cannot achieve any transition by ignoring the young workforce we have. Multi-sectoral dialogue is crucial because Bangladesh is undergoing a major transformation," he said.

Jalal noted that Bangladesh's current electricity generation capacity exceeds demand, resulting in large capacity payments that are straining the economy.

"We often think fossil fuel dependence is the main obstacle, but the challenge goes deeper. Our overcapacity creates economic pressure, making renewable transition even more urgent," he added.

Highlighting renewable energy prospects, the Berc chairman pointed out that coastal areas such as Maheshkhali and Sandwip Island in Noakhali hold vast potential for solar and wind power. However, he cautioned that efficient management and long-term planning remain major challenges.

AKM Sohel, additional secretary of the Economic Relations Division (ERD), stressed the need for clarity in energy planning.

He said that since independence, Bangladesh has received development cooperation commitments worth $127 billion, of which $107 billion has been utilised. "About $21 billion went into the energy sector – over 94% as debt," he noted.

Sohel emphasised that while knowledge in the power sector can be shared freely, technology and finance rarely come without cost.

"To ensure a just transition, Bangladesh must secure concessional loans with low interest and extended repayment terms. Globally, such loans come below 2% interest, but for climate-vulnerable countries like ours, it should be less than 1%," he said.

Speakers collectively underscored that a just energy transition requires more than simply technological change – it fundamentally demands equity, inclusion, and fair financing frameworks to ensure no community or demographic is left behind in the shift to renewables.

The programme, moderated by Rubaya Nasrin Shejuti, program officer for Just Energy Transition (JET), Climate Justice and Natural Resources Rights at Oxfam Bangladesh, was also attended by participants from diverse backgrounds, including NGO leaders, corporate executives, and climate activists.