Press Release
Dhaka, 24 December 2025: Despite state commitments and global pledges, the continued strategic dominance and over-reliance on fossil fuels have become the primary obstacles to the growth of renewable energy-based power generation. Governance deficits, policy neglect, and collusion by vested interest groups are creating long-term environmental and economic risks in the renewable energy sector. This alarming picture has emerged in a research report by Transparency International Bangladesh (TIB) titled “Generating Power from Renewable Energy in Bangladesh: Governance Challenges and Way Forward.” The report highlights that the interests of the fossil fuel lobby are being protected by marginalizing renewable energy in the energy sector's master plans, resulting in the failure to realize the vast potential of renewable energy. TIB has proposed 15 specific recommendations to address the existing institutional and policy challenges and build a sustainable and transparent energy system.
The report was released today at a press conference held at TIB’s Dhanmondi office graced by TIB Executive Director Dr. Iftekharuzzaman, Advisor, Executive Management Professor Dr. Sumaiya Khair, and Director of the Research and Policy Division Muhammad Bodiuzzaman. The press conference was moderated by Outreach and Communication Director Mohammad Tauhidul Islam, while Energy Governance Coordinator Newazul Moula and Assistant Coordinator Ashna Islam presented the report.
Highlighting that the power sector remains almost entirely dependent on fossil fuels despite promises of radical change, TIB Executive Director Dr. Iftekharuzzaman said, “A purposeful over-reliance on fossil fuels has been created through a long process of policy capture driven by conflicts of interest. As a result, the potential and commitment to transition to renewable energy are not being met, while fossil fuel dependence has become more entrenched. Budgetary allocations for the renewable energy sector are negligible compared to the requirement. Renewables have been neglected rather than receiving due priority in policy. Various inconsistencies and ambiguities have been created in energy sector policies, strategies, and plans. Specifically, the Integrated Energy and Power Master Plan (IEPMP) was formulated under the influence of the fossil fuel lobby, centered on fossil fuels, which is why policy, institutional, and financial incentives were not provided to renewable energy. Conversely, instead of actual renewable energy, priority is being given to untested, so-called ‘green energy’”.
Commenting that the argument of land scarcity as a barrier to renewable power generation is scientifically baseless, the TIB Executive Director added that, “It is regrettable that even in the limited investments made in the renewable energy sector, instances of various irregularities, wastage of funds, and collusion-based corruption were observed in the projects covered by the study. During the era of the fallen kleptocracy, the fossil fuel-based power sector was one of the most corrupt sectors in the country. Irregularities and corruption were institutionalized here through capacity charges and other fraudulent collusions, and this ‘disease’ is now being seen infecting the renewable energy sector as well. The same pattern of irregularities seen in other infrastructure sectors regarding land purchase, acquisition, and compensation is visible in the renewable energy sector. Due to the lack of policy priority for renewable energy, it is not unreasonable to fear that Bangladesh will not be able to achieve its Net-Zero emission targets by 2050. To achieve this goal, the fossil fuel-dependent master plan must be immediately restructured to include strategies prioritizing renewable energy in the mainstream. Overall, the formation of an independent oversight authority is essential to ensure transparency and accountability in the power sector.”
The research found that the “Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010” is being misused to sign power purchase agreements based on personal relationships at high tariffs instead of competitive bidding, which are nearly four times higher than in neighboring countries. Furthermore, the cost of solar power projects has been estimated to be on average 1.5 times higher than the actual cost, leading to an estimated additional expenditure of approximately BDT 2,926.88 crore. In just five projects covered by the study, more than BDT 249 crore in corruption occurred regarding land purchase and compensation. This corrupt money was distributed among a section of IPP officials, local land office staff, and influential politicians and members of parliament.
According to the data presented in the study, 96.7 percent of foreign investment in Bangladesh's power sector goes to fossil fuels, while only 3.3 percent goes to the renewable sector, which is both environmentally harmful and economically suicidal. Under the influence of domestic and foreign lobbies, plans are being made to restart cancelled coal-based projects, which contradict national and international commitments. Essentially, the renewable energy sector is now at risk of being held hostage by corporate entrepreneurs.
The corruption scenario revealed in the study shows that while BDT 8 crore per megawatt is required for solar power projects according to the Bangladesh Power Development Board (BPDB), the six projects covered by the research had an average estimated cost of BDT 13.8 crore. This means BDT 2,926.88 crore of state resources were wasted through inflated cost estimates. Furthermore, a powerful syndicate has emerged for land purchase, consisting of a section of IPP officials, union and upazila land office staff, and local public representatives.
To overcome the problems in the renewable energy sector, TIB has presented 15 recommendations, which include immediately canceling the existing fossil fuel-dependent energy master plan and creating and implementing a new master plan based on the principles of reducing fossil fuel use and increasing the share of renewable energy in the energy mix; formulating a realistic roadmap for power generation from renewable sources with uniform targets in all existing policies including the Renewable Energy Policy 2025; amending the Power Act 2018 to provide a legal basis for power generation from renewable energy and providing clear instructions on the transmission, supply, and distribution of generated power through national or alternative grids; simplifying the installation of net-metered solar power for industrial and residential consumers, implementing feed-in tariffs, and providing incentives to encourage them; forming an independent oversight and regulatory authority composed of relevant experts and civil society representatives to prevent policy capture and ensure accountability in decision-making; ensuring the monitoring and verification of flawless EIA activities for all types of energy and power projects; granting SREDA the status of an autonomous institution to lead renewable energy transition activities and increasing its technical, human resource, and infrastructural capacity; prioritizing renewable energy production in BPDB’s activities; initiating necessary reforms to increase the legal and institutional capacity of the Bangladesh Energy Regulatory Commission (BERC) while creating a competitive market for public and private institutions to ensure transparency; and reducing foreign dependence for technology in the renewable sector while increasing the capacity of public and private entrepreneurs. It is noted that the scope of this research includes analysis of laws, policies, plans, and regulations from 2008 to 2025, and information regarding the planning, approval, and implementation phases of renewable energy-based power projects based on governance indicators from 2012 to 2025.
Media Contact:
Mohammad Tauhidul Islam
Director, Outreach and Communication
Phone: +8801713107868
Email: tauhidul@ti-bangladesh.org
