Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud on Monday said Bangladesh was forced to spend an additional US$2.5 billion on fuel imports to meet rising domestic demand amid the global energy crisis, stressing that expanding renewable energy is the only sustainable way to reduce the country's financial burden.
Speaking at a citizens' dialogue on the National Renewable Energy Development Strategy (2026�"2030), organised by the Consumers Association of Bangladesh (CAB) at the Dhaka Reporters Unity, the minister said the government had inherited massive liabilities from the previous administration, leaving the power and energy sector under severe financial pressure.
"We are in a very difficult position because of enormous debt and liabilities. The only sustainable way out is to accelerate the transition to renewable energy," he said. The minister said the government aims to generate 10,000 megawatts of electricity from renewable sources by 2030 and has introduced tax incentives to encourage private investment. Achieving the target would reduce Bangladesh's dependence on imported fuel and lower long-term energy costs.
He said the government is prioritising solar power, particularly rooftop installations, while ruling out the use of agricultural land for renewable energy projects. Instead, unused government-owned land, including land owned by Bangladesh Railway and the Roads and Highways Department, could be utilised for solar projects. He also noted that advances in agrivoltaic technology would allow crops to be grown beneath solar panels.
Iqbal Hasan reiterated his opposition to further privatisation of electricity generation, arguing that state-owned utilities are better positioned to provide affordable electricity because they are not driven by profit.
"This is my second innings at this ministry. I am not in favour of handing over power generation to the private sector because it will seek profits. If the government handles generation, we can provide electricity without a profit motive," he said, adding that electricity distribution would have been a more appropriate area for private-sector participation.
He also proposed expanding rooftop solar through a private-sector billing model similar to that used by cable television operators, saying consumers would embrace the initiative if electricity could be supplied at around Tk7 per unit.
Addressing recent power outages, the minister said many had been caused by technical failures rather than electricity shortages. Faults at two power plants had contributed to recent load shedding, while privately operated plants had previously lacked adequate technical oversight, he added.
The minister alleged that the previous Awami League government had left unpaid liabilities of around Tk560 billion (US$4.6 billion) and approved projects that prioritised commercial interests over public needs. He said around 80 per cent of Bangladesh's electricity is currently generated by private producers under contracts requiring the government to purchase power at relatively high prices.
"These financial realities have made tariff adjustments unavoidable," he said, adding that greater reliance on renewable energy would gradually reduce fuel import costs and ease pressure on public finances.
Referring to the recent Iran crisis, the minister said panic buying and precautionary imports had increased Bangladesh's fuel import bill by an estimated US$2.5 billion despite fuel rationing measures.
At the dialogue, CAB presented an 18-point set of recommendations for the National Renewable Energy Development Strategy. The minister assured participants that the proposals would be taken into account, saying public opinion would be reflected in the final policy document.
