The Bangladesh government’s new 8th Five Year Plan (8FYP) provides strong evidence that the government has changed its thinking on power development since 2016. From a reliance on coal and LNG which have put an unsustainable financial strain on the power system, the Plan shows the government now has an increased focus on renewable energy, energy efficiency and the financial sustainability of the power system.
The 8FYP has identified that continued subsidisation of fossil fuels has contributed to Bangladesh not meeting its previous renewable energy targets. This means Bangladesh has not been able to capitalise on the ever-lower global cost of solar and wind power which can help Bangladesh reduce the average cost of power generation, improving the financial sustainability of the power system.
Read the full report by IEEFA here