Adopt sustainable energy to protect economy: experts

Bangladesh must urgently transition to a sustainable and investment-ready energy system to protect industrial growth and ensure economic stability, experts said at a policy dialogue today.

The dialogue, titled "Enabling Bangladesh's Growth and Prosperity: Developing a Sustainable Power Sector Investment Climate," was jointly organised by Policy Exchange Bangladesh and the Economic Reporters Forum (ERF) at The Westin Dhaka.

Business leaders, policymakers, and sector specialists highlighted that rising energy demand, high production costs, and inconsistent policies are undermining investor confidence, despite years of billions invested in infrastructure.

They cautioned that without long-term reforms and greater private sector involvement, Bangladesh could face a major power crisis within the next decade.

"Bangladesh doesn't just need more megawatts—it needs megawatts that are sustainable, investable, and competitively priced," said Abu Chowdhury, director of EMA Power Investment Limited and EPV Thakurgaon Limited.

He noted that declining gas supplies, delayed project implementation, and limited fuel diversification are weakening the sector. "Instability in tariffs and regulatory uncertainty continue to deter both local and international investors," he added.

Chowdhury urged policymakers to review long-term contracts, accelerate renewable energy integration, and provide predictable returns, noting that "the window for meaningful intervention is shrinking."

Jalal Ahmed, chairman of the Bangladesh Energy Regulatory Commission, stressed the need to modernise the country's energy policy framework, which has not been updated since 1996.

"Power sector planning has long relied on optimistic demand projections, leading to generation-focused expansion with inadequate investment in distribution and transmission," he said.

Referring to the single-buyer model, he added, "If the buyer is not financially solvent, the entire power chain suffers."

Ahmed also highlighted the potential of rooftop solar in the garment sector, saying, "If 4,000 RMG factories each generate 5–10 MW, it could yield 20,000–40,000 MW." He described the dialogue as "timely and insightful."

CALL FOR DIVERSIFIED, PRIVATE SECTOR-LED ENERGY

Mahdi Amin, adviser to the acting BNP chair, warned that industries have repeatedly suffered due to shortages of energy, gas, and even water.

He alleged that a culture of impunity has fuelled corruption in past projects and called for a diversified, sustainable energy mix, including solar, wind, waste-to-energy, nuclear, and coal, while reducing reliance on imports.

"Future policy must be private sector-driven, investment-friendly, and free from political influence," he said.

Kamran T Rahman, president of Metropolitan Chamber of Commerce and Industry, said, "Bangladesh must secure at least 4 percent of its total power from new renewable sources, especially solar."

He added that land scarcity remains a barrier and urged reforms to encourage solar investment.

Abdul Awal Mintoo, former president of the Federation of Bangladesh Chambers of Commerce and Industry, said, "Economic strength strengthens political stability," calling for joint action by business leaders, civil society, and policymakers to protect the energy sector and aid recovery from prolonged inflation.

Mahmud Hasan Khan Babu, president of Bangladesh Garment Manufacturers and Exporters Association, said high electricity tariffs, especially from the Rural Electrification Board, are hurting industrial competitiveness.

He urged fixing tariffs for at least five years and stressed the importance of a reliable energy supply.

Abul Kashem Khan, chairman of Business Initiative Leading Development, called power the "engine of economic growth," highlighting its role in boosting exports and attracting investment. Referring to JICA's Big-B initiative in Maheshkhali, he underscored its importance for energy sustainability.

M Tamim, vice chancellor of Independent University Bangladesh, warned that the absence of a long-term energy policy remains the biggest challenge. "We could face energy shortages until 2029," he said, adding that high energy costs are increasingly affecting industrial competitiveness.

Other speakers at the event included Doulot Akter Mala, president of ERF; Enamul Haque of Standard Chartered Bank; Md Ariful Hoque of Bida; Ahmed Zubaer Mahmud of Bangladesh Bank; and Imran Karim of Confidence Power Rangpur Limited.