CPD suggests 8 measures to boost foreign investment in renewable energy

The Center for Policy Dialogue (CPD) has outlined eight strategic proposals aimed at increasing foreign investment in Bangladesh's renewable energy sector.

While the nation has successfully attracted billions in energy sector investments from countries such as the United Kingdom, Hong Kong, the Netherlands, the United States, and China over the past 13 years, much of these investments remained concentrated on fossil fuels, he said referring a Chinese case study.  

Bangladesh, has set ambitious targets of power sector development to incorporate 30 percent renewable energy by 2030 and 40 percent by 2041, offering immense potential for foreign investment in the renewable energy sector.

In a virtual dialogue 'Opportunities and Challenges of Foreign Investment in Renewable Energy Sector in Bangladesh: Case Study of China' held on Monday, CPD's Research Associate, Mashfiq Ahsan Ridoy, unveiled these proposals.

He emphasized the critical need for political stability, infrastructural development, a skilled workforce, and investor-friendly incentives to lure foreign investments.

Bangladeshi government already offers various tax exemptions to foreign investors. However, investors often encountered complications stemming from bureaucratic hurdles and slow service delivery to discourage the flow of investment in this sector, he said.

Dr. Khandaker Golam Moazzem, CPD Research Director highlighted China's role as a global leader in renewable energy adoption, drawing a sharp contrast with Bangladesh's ranking of 111 out of 190 countries in renewable energy usage. He said Bangladesh could learn from China's renewable energy development.

Some of the eight point proposals include creation of an additional investment attraction authority similar to Bangladesh Investment Development Authority and increasing government investment to build confidence among foreign investors in solar energy projects.  

It also includes establishing a one stop investment service center to streamline the process and reduce investors' hassles, focusing investment on renewable energy infrastructure and facilitating technology transfer.