Proposed renewable energy policy protected fossil fuel business interests: Experts

The proposed draft Renewable Energy Policy 2025's limited targets will not ensure the country's energy security. 

Instead, it will increase dependence on fossil fuels and allow businesses to earn higher profits, ultimately adding financial pressure on public life, concerns raised by experts at a press conference organised by the Coastal Livelihood and Environmental Action Network (CLEAN) at a hotel in the capital on today (23 February).

Hasan Mehedi, chief executive of CLEAN, presented the keynote speech at the press conference, reads a press release. 

He said that there is always a lack of coordination in formulating renewable energy policies in Bangladesh, which results in stagnation in this sector and increased dependence on expensive fossil fuels.

He further pointed out that while the government took more than four years to formulate a renewable energy policy, there is currently no comprehensive energy and power master plan. This absence of a long-term roadmap could create complications in decision-making. Additionally, only 21 days were provided for civil society and experts to give feedback on the draft policy, which is entirely inadequate.

Hasan Mehedi said that the draft policy has reduced renewable energy targets to unrealistic levels—6,145 MW (20%) by 2030 and 17,470 MW (30%) by 2041. However, it does not provide a clear roadmap for decarburization. The policy also lacks a green taxonomy, which many countries have already included in their frameworks. Moreover, there is no coordination plan among ministries, no implementation strategy, and no financing or investment roadmap for the renewable energy sector.
 
He also noted that while companies implementing renewable energy projects receive full tax exemption for 10 years and partial exemption for 5 years, ordinary citizens receive no tax benefits or incentives. In contrast, other countries provide direct financial support of up to 30% for rooftop solar panel installations, but the proposed policy fails to include any such provision.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), said that the government seems to be rushing the formulation of the renewable energy policy, leading to an incomplete and superficial draft. Different government policies present conflicting renewable energy plans, which could confuse investors. 

He further noted that while fossil fuel plans are highly structured, renewable energy policies lack proper organization. "We must recognize that expanding renewable energy within an economic framework heavily dependent on fossil fuels is not practical," he added.

Additionally, the policy overlooks the crucial role of foreign direct investment (FDI), which is essential in the current context. Achieving the country's energy goals requires a balanced mix of both domestic financing and foreign investment. Furthermore, Bangladesh must move away from relying solely on the Integrated Energy and Power Master Plan (IEPMP) and adopt more accurate electricity demand forecasting. Without reliable data, renewable energy projections will not be effective, Moazzem warned.

Bareesh Hasan Chowdhury, coordinator of Friends of the Earth Asia Pacific, said, "While most countries have set net-zero targets, Bangladesh has yet to establish such a goal. The definitions within the renewable energy policy are often confusing. Although it mentions carbon emission reduction, it fails to specify the amount or timeline. The inclusion of a 'carbon market' is also irrelevant in this context. Moreover, the policy lacks a broader vision for the energy transition. Without clear targets, this policy is like a rudderless boat, unlikely to deliver meaningful results."

Shahriar Ahmed Chowdhury, Director of the Center for Energy Research and a renewable energy expert, stated, "Our renewable energy plans are formulated in a way that leaves the targets vague. There is no clear mention of how much electricity will be produced from which sources, making it difficult to achieve these goals. Meanwhile, countries like China, Pakistan, India, and Vietnam are rapidly progressing in this sector."

He pointed out that the renewable energy sector in Bangladesh remains neglected because, in practice, the country continues to protect the interests of the fossil fuel industry. Yet, globally, the cost of renewable energy technology is declining. The money Bangladesh will spend on fossil fuel imports over the next 20 years could be used to develop a renewable energy capacity ten times greater. 

He emphasized that only realistic policy support from the government is needed. If renewable energy projects received the same level of support as fossil fuel-based projects, the private sector alone could drive significant progress in this sector.