US$2b fuel bill spurs solar drive
Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud has urged non-governmental organisations (NGOs) to help expand Bangladesh’s rooftop solar net metering system, saying the government aims to generate 10,000 megawatts of solar power during its current term to reduce dependence on imported fuel.
The call comes as the government has spent nearly US$2 billion on importing petroleum and other fuels within two months of taking office, highlighting the growing financial burden of energy imports and the need to accelerate renewable energy development.
Speaking at the National Workshop on Voice of Development, organised by the National Development Programme (NDP) at the Bangladesh-China Friendship Conference Centre on Sunday, the minister said the government had made renewable energy a key priority in addressing the country’s energy challenges and easing pressure on foreign exchange reserves.
He said a new solar policy had already been approved to support the transition towards cleaner energy.
“The solar programme will be implemented through cluster-based projects and rooftop net metering, under which consumers can feed surplus electricity generated from rooftop solar panels into the national grid after meeting their own demand and receive financial benefits. NGOs could play a vital role in expanding the system,” he said.
The minister noted that international development partners, including the World Bank, are showing increasing interest in financing renewable energy projects, creating opportunities for NGOs to access concessional funding for solar, wind and biogas initiatives.
He encouraged NGOs to move beyond dependence on grants and instead utilise low-cost financing from development partners and banks to implement commercially viable renewable energy projects, including solar-powered irrigation and rural net metering schemes.
“This would strengthen the country’s energy security,” he said.
Highlighting the challenges confronting the energy sector, Iqbal Hasan Mahmud said Bangladesh’s reliance on imported fuel had significantly increased electricity generation costs.
He said the government had spent nearly US$2 billion on importing petroleum and other fuels within two months of assuming office, placing considerable pressure on the country’s foreign exchange reserves.
At the same time, rising global liquefied natural gas (LNG) prices had pushed up power generation costs and increased subsidy requirements.
The minister also praised the contribution of NGOs, including Grameen Bank and BRAC, to Bangladesh’s socio-economic development, while urging them to uphold good governance and avoid becoming family-centric organisations.
Responding to requests from NGO representatives, he said he would convey their proposal for a meeting with the prime minister.
Speaking at the workshop, Manusher Jonno Foundation Executive Director Shaheen Anam said the development sector had faced a severe funding crisis since the Covid-19 pandemic, with more than 25,000 development workers losing their jobs because of declining foreign assistance.
She called for stronger collaboration among NGOs, the government and the private sector, greater utilisation of corporate social responsibility (CSR) funds, and efforts to dispel negative perceptions surrounding NGOs.
Chairing the session, National Development Programme Executive Director Alauddin Khan urged organisations to reduce dependence on foreign aid by mobilising domestic resources, including planned zakat funds, CSR contributions and a portion of remittance income for productive local investment.
