Bangladesh has been a shining example in numerous macroeconomic and social parameters. Based on research by Standard Chartered, it is forecasted to become the 23rd largest economy (measured by market exchange rate) by 2030. This trajectory has been achieved on the back of the nation’s stable government, sustained infrastructure investment, and a strong, growing domestic demand.
A key enabler of this growth has been the remarkable progress in increasing its electricity access rate from just 47 percent in 2009 to 100 percent in 2022. But with progress comes a growing appetite for power—with peak demand expected to grow at an annual growth rate of 6.8 percent till 2040.
According to the Bangladesh Power Development Board (BPDB), 55 percent power generation was from gas in FY2021-22, followed by 27 percent from furnace oil, nine percent from power import and only 0.4 percent from renewables. This dependence on imported fossil fuels exposes the country to price volatility and environmental risks. At the same time, Bangladesh has committed to reducing carbon emissions by 22 percent within 2030 under the Paris Agreement, which also includes an unconditional emission-reduction commitment of 6.7 percent. To achieve these goals, investment in renewable energy sources will be vital.
