TIB finds Tk 2,926 crore irregularities in six renewable power projects

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Dhaka, Dec 24  - Transparency International Bangladesh (TIB) on Wednesday reported irregularities amounting to Tk 2,926.88 crore in six government and IPP-based solar power projects implemented between October 2010 and October 2025.

The findings were disclosed at a press conference held at the MIDAS Centre in Dhanmondi, where TIB unveiled its research report titled ‘Electricity Generation from Renewable Energy in Bangladesh: Governance Challenges and Ways Forward’.

The six solar power projects recorded an average cost of Tk 13.08 crore per megawatt—against the standard Tk 8 crore, resulting in excess expenditure of Tk 2,926.88 crore, according to the study.

The research report was jointly presented by TIB’s Energy Governance Coordinator Newazul Mowla and Assistant Coordinator Ashna Islam.

They said the projects involved not only inflated costs but also irregularities in land acquisition. Agricultural land was reportedly shown as non-agricultural, and land prices were exaggerated.

Besides, the per-unit electricity cost quoted for these projects was several times higher than comparable costs in neighbouring countries such as India, China and Pakistan.

The report pointed to a lack of transparency in procurement and tendering processes in the renewable energy sector, along with multiple irregularities in price determination. These factors, it said, have directly influenced electricity tariffs and significantly increased overall project costs.

TIB also highlighted Bangladesh’s heavy dependence on foreign technology in renewable energy development.

Insufficient government investment, bureaucratic complexities, and the deliberate weakening of the Sustainable and Renewable Energy Development Authority (SREDA) were identified as major obstacles to sectoral growth.

Overall, renewable energy continues to receive far lower policy priority than fossil fuels, despite existing policy and legal provisions, which themselves remain weak and inadequate.

Bangladesh’s installed power generation capacity currently stands at 28,616 megawatts, of which only 1,314 megawatts come from renewable sources. Between 2010 and 2023, nearly USD 30 billion (about Tk 3.3 lakh crore) in foreign investment flowed into the country’s power sector, but 96.7 percent went to fossil fuel-based projects, while only 3.3 percent was allocated to renewable energy. If this trend continues, achieving 100 percent renewable energy by 2050 will be at serious risk, the report warned.

The study found that energy policies and plans have failed to give renewable energy adequate priority. Inconsistencies, discrepancies and lack of coordination in renewable energy targets pose major challenges to achieving time-bound goals.

It said ambitious electricity demand targets were set in the Power System Master Plan without sufficient analysis of ground realities, capacities and existing frameworks. At the same time, renewable energy targets were not aligned with national and international commitments and pledges, creating a significant policy mismatch.

The research also flagged risks of undue influence on government policymaking and planning due to investment-related interests of development partners.

Bangladesh’s energy sector remains heavily shaped by fossil fuel-centric policies, resulting in excessive subsidies and capacity payments that waste state resources. In contrast, inadequate incentives for renewable energy and privatisation policies risk allowing the sector to be dominated by corporate interests.

Speaking at the event, TIB Executive Director Dr Iftekharuzzaman said renewable energy has never received due policy priority in Bangladesh, significantly reducing the likelihood of achieving the country’s renewable energy targets by 2050.

“Bangladesh currently depends on fossil fuels for around 95 percent of its energy, while reliance on renewable energy is just over 4 percent. This clearly shows that the renewable energy sector has been consistently neglected,” he said.

He said there are widespread inconsistencies and ambiguities in energy policies, strategies and planning. The power sector’s master plan is largely based on fossil fuels, leaving renewable energy sidelined.

Dr Iftekharuzzaman also criticised the emphasis on so-called ‘clean energy’ as a way of projecting a transition, calling it untested and misleading.

To ensure transparency and accountability in the renewable energy sector, TIB recommended the formation of an independent oversight and regulatory commission comprising experts and representatives from civil society. - UNB