IEEFA’s Comments on Bangladesh's “Draft Renewable Energy Policy 2025”

24 February 2025

Energy Efficiency & Conservation-1
Power Division
Ministry of Power, Energy and Mineral Resources 
Government of the People’s Republic of Bangladesh

Sub: IEEFA’s Comments on the “Draft Renewable Energy Policy 2025”    

Thank you for giving the Institute for Energy Economics and Financial Analysis (IEEFA) an opportunity to comment on the Draft Renewable Energy Policy 2025 (DREP). 

IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies. The institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

IEEFA appreciates the Government of Bangladesh for taking this important step to finalise a new renewable energy policy to replace the previous one. This sends a clear signal to local stakeholders and international investors on the country’s renewable energy ambition. IEEFA notes that the Government of Bangladesh, through this initiative, has established the urgent need to ramp up renewable energy to enhance the country’s energy security, reduce costs, protect the environment and promote sustainable development. 

IEEFA acknowledges that the DREP manifests the country’s enhanced renewable energy ambition when compared with the 2008 policy. It accounts for a possible import duty waiver for decentralised renewable energy systems, proposes a Sustainable Energy Development Fund for research and human resource development, and keeps open the option of reviewing the policy every three to five years. Among other things, it considers the importance of a time-based roadmap for renewable energy implementation, peer-to-peer trading, open access renewable energy transmission to industry/commercial establishments, and conducting a study to identify suitable land for renewable energy projects. 

While the DREP incorporates important policy aspects that are essential for a planned renewable energy expansion, there is scope for improvement. Some of the initiatives the government can consider are:

• Incorporating renewable energy policy into broader energy and climate policies 
• Broadening the scope for renewable energy financing
• Resource mapping for critical minerals 
• Developing capacity of stakeholders and institutions (including SREDA), raising awareness, and education
• Making guidelines for reverse auctions and battery energy storage

Thanking you,

Shafiqul Alam
Lead Energy Analyst for Bangladesh, IEEFA (email: [email protected])