Bangladesh updates its Renewable Energy Policy, introducing tax incentives and new measures to boost green power generation by 2030.
The government of Bangladesh released its updated Renewable Energy Policy 2025 on 16 June 2025, setting a target to generate at least 20% of the country’s electricity from renewable sources by 2030.
The policy offers a 10-year corporate tax exemption for renewable energy producers, followed by five years of partial relief. All consumer categories—residential, commercial, and industrial—are permitted to install renewable systems and sell surplus electricity under the Net Metering Guidelines 2018.
The policy promotes peer-to-peer (P2P) energy trading and decentralised generation through solar mini, micro, nano, and pico grids, especially in off-grid areas. Distribution companies and private sector operators may develop such systems, with tariffs regulated by the Bangladesh Energy Regulatory Commission. A renewable purchase obligation will require utilities and designated users to source a minimum share of power from renewables, supported by a Renewable Energy Certificate system for compliance tracking and trading.
The policy also encourages agri-voltaic systems and allows the use of unused government land—such as railway, highway, and waterbody-adjacent areas—for renewable energy projects, supporting both energy security and local manufacturing.
The Sustainable and Renewable Energy Development Authority (SREDA) is tasked with implementing the policy, developing a national roadmap, and overseeing equipment standards through accredited testing.
