Bangladesh's banking sector must strengthen its focus on renewable energy financing to meet the country’s renewable energy targets, as highlighted during a workshop organized by Unnayan Shamannay on Wednesday.
The workshop, titled “Renewable Energy Financing Trends in Bangladesh,” brought together representatives from banks, non-bank financial institutions (NBFIs), solar energy companies, and other stakeholders. Participants discussed the current challenges and opportunities in financing renewable energy projects.
Presenting the background note, former Bangladesh Bank governor and Dhaka University Emeritus Professor Dr. Atiur Rahman noted that while domestic banks and NBFIs are constrained in financing large-scale renewable energy projects, they are also underutilizing opportunities to finance small-scale initiatives. Dr. Rahman emphasized the potential impact of financing solar irrigation pumps, which could save 81 lakh liters of diesel annually.
He pointed out that the current trend in renewable energy financing allows domestic banks and NBFIs to contribute just 10% of the required investment. With greater efforts, however, renewable energy sources could meet 37% of Bangladesh's projected electricity peak demand by 2030.
Dr. Rahman also warned of governance risks in green financing, stressing that insufficient oversight could lead to resource wastage and erode stakeholder interest in renewable energy projects.
The workshop, attended by representatives from four banks, eleven solar energy companies, and other stakeholders, concluded with a call for a more robust and coordinated approach to renewable energy financing in Bangladesh.
