Procurement challenges and opportunities in scaling up renewable energy in Bangladesh

Abstract

This report on “Procurement Challenges and Opportunities in Scaling Up Renewable Energy in Bangladesh” explores the country’s renewable energy landscape with a focus on procurement practices in the RE projects. Bangladesh has set ambitious renewable energy goals through the Renewable Energy Policy 2025 and the Integrated Energy and Power Master Plan (IEPMP 2023). The nation aims to generate about 20% (around 6,145 MW) of its electricity from renewable sources by 2030 and 30% (around 17,470 MW) by 2041. These objectives are closely tied to Vision 2041 and the commitments made under the Paris Agreement. Strengthening procurement systems is therefore crucial to ensure energy security, promote sustainability and support the country’s transition to a low-carbon future. As of September 2025, the country’s installed RE capacity is 1,632.29 MW which is about 5.3- 5.6% of total installed capacity. The most from solar resource as of 1,338 MW including 377 MW off-grid and 961 MW on-grid (of which 2459 rooftop net-metered systems contribute 111 MWp). The other RE resources such as wind 62.9 MW, hydro 230 MW, biomass and biogas less than 1.5 MW by the SREDA, 2025 RE data source. To compare with the country’s total installed power generation capacity of about 30,787 MW, more than 90 percent is still derived from fossil fuels, mostly gas. This conventional energy sources-based power generation underscores the pressing need to accelerate renewable energy expansion through more effective procurement strategies.