The South Asian Network on Economic Modeling (SANEM) has identified an investment need of up to $45.2 billion to transition Bangladesh’s energy sector to green and clean sources. Studies presented on November 23, 2024, outlined three investment scenarios requiring $36.3 billion, $6.7 billion, and $45.2 billion under least-cost approaches, with maximum-cost projections rising to $64.8 billion. Bangladesh’s renewable energy capacity currently stands at 1219.24 MW, just 4.16% of total electricity generation, signaling a critical need for investment to meet future goals. Experts emphasized reducing dependency on fossil fuels and highlighted poor institutional coordination as a barrier to progress.
The studies also revealed that coal and LNG price shocks significantly impact inflation, exchange rates, and long-term macroeconomic stability, hindering development plans such as the SDGs by 2030 and the upper middle-income target by 2041. Key recommendations include diversifying energy sources, improving infrastructure, adopting efficient technology, and attracting foreign investment in renewable projects.
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