- Bangladesh recently secured €300 million in funding from the European Union and the European Investment Bank.
- The EU expects Bangladesh to increase its renewable energy use by over 3%, restructure its energy sector, and ensure political stability through democratic elections.
The European Union (EU) expressed its expectation on Wednesday, April 23, that Bangladesh would enhance its renewable energy use by over 3% by reforming its energy sector and ensuring political stability through democratic elections.
“We expect Bangladesh to increase its renewable energy use by more than 3%, reform its energy structure, and pursue political stability through democratic elections,” said a senior EU official based in Dhaka.
Speaking at the Renewable Energy Fest 2025 opening in Dhaka, the EU’s Head of Development Cooperation and Minister Counsellor, Michal Krejza, reiterated the Union’s long-term support.
In collaboration with the European Investment Bank, he revealed that the EU had pledged EUR 1.3 billion to help Bangladesh achieve a green energy transition. This funding combines grants and loans under the Team Europe Initiative Green Energy Transition (TEI GET), co-chaired by the EU and Germany.
EU officials said the initiative aims to help Bangladesh develop a power system that meets most of the country’s energy demand through renewable sources while also reducing overall demand through improved energy efficiency.
Several EU member states actively support the initiative, including France, Sweden, Denmark, the Netherlands, Spain, and Italy. Together, they aim to help Bangladesh establish a power system that maximises renewable energy coverage while promoting energy efficiency to curb demand.
To further emphasise the importance of collective action, Krejza highlighted the role of regional energy connectivity in expanding renewable infrastructure across South Asia. According to him, the initiative is about technological upgrades and aligning with global best practices and sustainable governance.
The recent EUR 100 million secured by the EU and the European Investment Bank demonstrates growing international confidence in Bangladesh’s energy transition plans. The funding will support renewable energy generation and capacity building.
The Renewable Energy Fest 2025, hosted by the Bangladesh University of Engineering and Technology (BUET), was a platform for academic, government, and private sector stakeholders to outline a roadmap toward a just and inclusive energy transition.
BUET Vice-Chancellor Professor Abu Borhan Mohammad Badruzzaman delivered the keynote address, affirming the university’s commitment to sustainable development.
The festival also called for a more citizen-centred and cost-effective approach to clean energy in partnership with ActionAid Bangladesh and the Just Energy Transition Network Bangladesh (JETnet-BD). Organisers reaffirmed Bangladesh’s target of achieving 15% renewable energy by 2030 and 100% by 2050.
The Managing Director of City Bank Plc, M Mahbubur Rahman, and the Chief Executive Officer of the Infrastructure Development Company Limited (IDCOL) joined the discussions. The IDCOL chief identified tax and high interest rates as key barriers to scaling up renewable energy investments. He insisted on structural reforms and low-interest financing to ensure fair benefits for all stakeholders.
One of the most striking appeals came from Farah Kabir, Country Director of ActionAid Bangladesh. During a special “Energy Awakening” session, she called for urgent investment in renewable energy to meet the nation’s projected electricity demand of 58,410 MW by 2041. She stated, “Expanding renewable energy sources is now imperative.”
As the festival concluded its first day, the message was clear: Bangladesh’s journey toward energy sustainability demands coordinated efforts across government, development partners, and the private sector.