Dhaka: Prime Minister’s Adviser on Telecom and ICT Rehan Asif Asad on Sunday stressed the need for a balanced long-term energy strategy for Bangladesh, warning that expanding renewable energy must not come at the cost of agricultural land.
According to United News of Bangladesh, the adviser emphasized at a seminar titled ‘Renewable Energy in the Upcoming Budget: Expectations and Realities,’ organized by the Centre for Policy Dialogue (CPD) at a city hotel, that renewable energy is crucial for Bangladesh’s future, but not at the expense of arable land. Asad, an MIT graduate in electrical and nuclear engineering, asserted that energy is a crucial driver of national development and sustainable economic growth relies on proper planning and predictability in the sector.
He provided an example from Rajshahi, where solar panels placed directly on farmland had negatively impacted crop output, prompting a move to rooftop installations on irrigation pumps-a more effective arrangement. ‘Agriculture is the backbone of our economy. We cannot promote renewable energy by damaging farmland and putting food production at risk,’ he stated.
Asad highlighted nuclear power as a reliable electricity source, noting that fresh nuclear fuel has begun arriving at the Rooppur plant. He cautioned that large-scale nuclear projects require seven to ten years from construction to power generation, necessitating careful long-term planning. He also mentioned advances in nuclear technology, particularly small modular reactors, which could be well-suited for Bangladesh.
On energy storage, Asad said the government is reviewing possible reductions in taxes and VAT on lithium-ion batteries to make technology more affordable. The CPD study presented at the event flagged that lithium-ion batteries currently face a total tax incidence of 61.80 percent in Bangladesh, the highest among key renewable energy components.
Regarding electric vehicles, Asad acknowledged the global trend towards EVs but cautioned that Bangladesh must first assess the impact of mass EV adoption on the national grid. ‘Without strengthening charging networks and grid capacity, importing more EVs could create new challenges,’ he warned.
He acknowledged ongoing discussions on whether tax exemptions and incentives should be extended to the renewable energy sector, stressing that every decision must be made cautiously given the country’s limited fiscal capacity. Bangladesh’s tax-to-GDP ratio is approximately 6.5 percent, among the lowest globally, compared to 11 to 14 percent in neighboring Southeast Asian countries.
Asad expressed hope that some recommendations from the event would be reflected in the upcoming national budget. ‘The government is working toward a holistic approach covering renewable energy, electric vehicles, battery storage technology, and overall electricity demand management,’ he concluded.
The CPD seminar was moderated by Research Director Khondaker Golam Moazzem, with a study titled ‘Renewable Energy in the National Budget 2026-27: Overshadowed by Fossil Fuels?’ presented by Programme Associate Md. Khalid Mahmud. Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir attended as chief guest.