The proposed budget for FY2023-24 in Bangladesh does not include any fresh or specific incentives for clean energy, despite the country’s goal to generate 40% of its electricity from renewable sources by 2041. The budget speech did not address the issue of import duties on solar accessories, which currently range from 15.25% to 58.6%. These duties increase the project cost for rooftop solar installations. While the government aims to achieve 10% renewable energy in the total electricity generation by 2030, no new incentives were introduced in the budget to support this goal.
Although the overall allocation for the power and energy sectors increased by around 30% compared to the previous fiscal year, the energy sector’s share is only 3% of the total allocation. Experts suggest that increased budgetary allocation for local gas exploration and renewable energy projects would reduce dependence on volatile fossil fuel markets and alleviate the power sector’s subsidy burden. The lack of specific incentives for renewable energy, such as duty waivers or reductions, may hinder the growth of the sector, particularly in the implementation of rooftop solar projects.
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