Bangladesh has made sizeable gains in electricity generation over the past decade, but its transition to renewable energy continues to lag behind many of its Asian neighbours — a gap that comes at a major cost to its ready-made garment (RMG) industry, which is reeling under an acute energy crisis.
According to recent data from the Sustainable and Renewable Energy Development Authority (SREDA), Bangladesh’s total installed generation capacity stands at some 27,424 MW, yet only 1,687 MW, or roughly 6%, comes from renewable sources. Solar power accounts for most of this, contributing approximately 1,394 MW from on-grid and off-grid systems. The rest comes from wind (62 MW), hydropower (230 MW) and biogas/biomass (about 1 MW).
Analysts say the contrast with neighbouring countries is stark. According to the International Renewable Energy Agency (IRENA), solar now provides 24% of electricity demand in India and around 17% in Pakistan. In Bangladesh, by comparison, solar meets only about 5.6% of national demand.
Experts attribute the sluggish green-energy rollout to a range of structural obstacles. Shafiqul Alam, lead energy analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis (IEEFA), has observed that the country “remains almost stuck in place” while its neighbours surge ahead, citing high project costs, land-acquisition challenges and delayed regulatory approvals as major hurdles.
The energy crisis in Bangladesh’s RMG sector is acute, causing many mills in industrial zones including Gazipur, Narayanganj and Savar to operate at just 30–40% capacity. Textile millers report that around 80% of mills are suffering reduced output, threatening both domestic production and export orders.
Against this backdrop, some in the industry see a shift to renewables — especially rooftop solar — as more than a matter of sustainability. In the garment sector, rooftop solar has been touted as having the potential to meet as much as 20% of the industry’s total power demand, according to the Bangladesh Textile Mills Association (BTMA).
Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), has argued that the country needs stronger project management, technical capacity and quality assurance. He has emphasised that the move to renewables is not just a climate measure but a strategic investment in energy security and economic stability.
The central government has set ambitious targets to accelerate the transition. A policy adopted recently aims for 20% of the country’s electricity to come from renewables by 2030, rising to 30% by 2040.
