Bangladesh should aim for renewables to make up 40% of its total power generation capacity by 2041, says this report by the Institute for Energy Economics and Financial Analysis (IEEFA), which charts a path for the country to transition its electricity sector away from dependence on expensive imported fossil fuels and ease its growing subsidy burden. The report estimates that a more ambitious clean energy capacity target of 40% by 2041 (without storage facilities) would require an annual investment of US$1.53 billion to US$1.71 billion from 2024 through to 2041, which is less than the power sector’s fiscal year (FY) 2021-22 subsidy burden. It adds that a faster transition to renewable energy would free up financial resources that otherwise end up as subsidy payments.
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