Introduction: A Strategic Call for Green Reform
On 23 April 2025, the European Union (EU) articulated a clear expectation for Bangladesh to significantly enhance its reliance on renewable energy, targeting an increase of over 3% through systematic restructuring of its energy sector. Simultaneously, the EU emphasized the necessity for political stability, encouraging democratic practices as a foundation for sustainable growth. This call was not made in isolation but reflected a broader, strategic initiative rooted in the EU’s commitment to fostering global energy transitions.
The European Union’s Commitment to Bangladesh’s Energy Transition
During the inauguration of the Renewable Energy Festival 2025, held at the Bangladesh University of Engineering and Technology (BUET), Michal Krejza, the Head of Development Cooperation and Minister Counselor at the EU Delegation in Dhaka, reaffirmed the EU’s dedication to assisting Bangladesh in its green transformation journey. Krejza announced that the EU, under the framework of the Team Europe Initiative Green Energy Transition (TEI GET), had pledged an impressive EUR 1.3 billion. This financial support—comprising both grants and concessional loans—is aimed at catalyzing Bangladesh’s transition to a renewable-based energy system.
The TEI GET platform, jointly chaired by the European Union and Germany, represents a collective European effort to drive energy reforms in Bangladesh. Member states such as France, Sweden, Denmark, the Netherlands, Spain, and Italy have rallied behind this initiative, creating a unified and strategic European approach to support Bangladesh’s energy transition goals.
A Comprehensive Vision for Bangladesh’s Energy Landscape
The EU’s officials outlined a holistic vision for Bangladesh’s future energy system. They proposed that the country’s power infrastructure should move towards achieving near-complete energy coverage through renewable sources while simultaneously promoting energy efficiency to curb demand. This dual-pronged strategy aims not only to increase the share of renewables but also to optimize energy consumption patterns.
According to Krejza, enhancing regional energy connectivity is crucial for expanding renewable energy penetration. Regional collaboration can unlock significant potential, enabling Bangladesh to access cleaner energy sources, share technological innovations, and ensure a resilient energy grid across South Asia.
The Renewable Energy Festival 2025: Setting New Benchmarks
The Renewable Energy Fest 2025, hosted at BUET, served as an important platform for stakeholders to outline actionable steps towards a greener future. The event sought to establish a roadmap for a just and equitable energy transition through comprehensive policy reforms.
BUET’s Vice Chancellor, Professor Abu Borhan Mohammad Badruzzaman, inaugurated the festival by highlighting the urgency of accelerating renewable energy adoption. The festival reaffirmed Bangladesh’s aspiration to achieve 15% renewable energy usage by 2030 and 100% by 2050. This ambitious commitment underscores Bangladesh’s recognition of renewable energy not merely as an environmental imperative but as a cornerstone of future economic and social development.
Organized collaboratively by BUET, ActionAid Bangladesh, and the Just Energy Transition Network Bangladesh (JETnet-BD), the festival emphasized that citizen-centric, inclusive, and cost-effective energy solutions must guide future energy policies.
Barriers to Renewable Energy Expansion: Financing and Policy Challenges
While the commitment to renewable energy is commendable, several structural barriers threaten to impede progress. Notably, the CEO of Infrastructure Development Company Limited (IDCOL) pointed out that high taxes and elevated interest rates pose significant hurdles to renewable energy expansion.
“Without reducing taxes and interest rates, expanding renewable energy is impossible,” the IDCOL chief warned. His comments highlight a critical tension: while international funding is available, local financial conditions must be restructured to make renewable projects economically viable.
There was a broad consensus among festival participants that structural reforms are necessary. These reforms would include reducing financial barriers, incentivizing private sector investment, and facilitating access to low-interest financing. Without such changes, achieving the ambitious 15% renewable energy target by 2030 could remain elusive.
Energy Awakening: The Need for Immediate Action
One of the major events on the festival’s opening day was the “Energy Awakening” session, chaired by ActionAid Bangladesh’s Country Director Farah Kabir. In her address, Kabir emphasized that the expansion of renewable energy sources is no longer optional for Bangladesh—it is an urgent necessity.
Bangladesh’s projected electricity demand is expected to soar to 58,410 MW by 2041. Meeting this demand sustainably will require substantial investments in renewable infrastructure. Kabir argued that without a proactive and immediate shift towards clean energy, Bangladesh risks falling into a cycle of energy insecurity and environmental degradation.
“Expanding renewable energy sources is now imperative,” she declared, stressing that a diversified energy mix is essential for meeting future demands while safeguarding the environment.
Regional Cooperation: Unlocking the Potential of South Asia
Michal Krejza’s emphasis on regional energy connectivity brings into focus a critical dimension of Bangladesh’s energy future: collaboration with neighboring countries. South Asia holds immense potential for cross-border renewable energy projects, including solar, wind, and hydropower initiatives.
Stronger energy ties between countries such as Bangladesh, India, Nepal, and Bhutan could enable resource sharing, stabilize supply chains, and reduce costs. In this context, Bangladesh must position itself strategically to benefit from regional renewable energy grids and partnerships.
Political Stability: An Essential Precondition
In addition to technical and financial reforms, the EU has linked Bangladesh’s energy transition to political stability. Democratic elections and an inclusive political process are seen as foundational to building investor confidence, securing international partnerships, and ensuring the successful implementation of large-scale renewable energy projects.
The EU’s call for political stability reflects a recognition that sustainable development cannot occur in a vacuum. Good governance, transparency, and adherence to democratic principles are essential enablers of long-term economic and environmental resilience.
Conclusion: Charting a Path Forward
The European Union’s call for Bangladesh to enhance its renewable energy share by over 3% signals a pivotal moment in the country’s development trajectory. With EUR 1.3 billion in committed support, Bangladesh has a unique opportunity to leap towards a sustainable, inclusive, and resilient energy future.
However, realizing this vision will require more than international funding. Bangladesh must enact sweeping policy reforms to lower financial barriers, foster a conducive environment for private investment, and prioritize regional cooperation. Moreover, ensuring political stability through democratic governance will be critical to sustaining momentum.
As highlighted during the Renewable Energy Fest 2025, the time for action is now. Bangladesh must seize this opportunity to reshape its energy landscape, not only to meet its growing electricity demands but also to safeguard its environment, boost its economy, and secure a sustainable future for generations to come.
