“Bangladesh’s electricity generation model appears to be unsustainable without a clear transition path. Therefore, policy makers should increase their renewable energy targets and reflect the same in the upcoming Integrated Energy and Power Master Plan (IEPMP),” said Shafiqul Alam.
He adds, “The government should turn renewable energy policy targets into year-wise action plans supported by a monitoring mechanism to track progress.”
The report finds that higher prices of fossil fuels and the resulting increase in the cost of power generation have led to an increase in subsidies required by the country’s power sector. For FY2021-22, the subsidy reached Tk 297 billion (US$2.82 billion), which is almost 152% higher than FY2020-21 and 301 percent higher than FY2019-20.
“Rising subsidies eventually force the government to pass on the rising cost to consumers. This is expected to result in a sharp rise in prices for electricity and various fuels. Despite these price hikes, the subsidy burden of the power sector in FY2022-23 may be higher than the previous year,” Alam said.