Bangladesh has been demonstrating steady economic growth and is set to graduate in 2026 from least-developed country status under the United Nations classification. A key challenge to be resolved to sustain long-term growth is elevated electricity cost in Bangladesh that undermines industrial competitiveness. The power system remains highly dependent on import fossil fuels, leaving the country exposed to price volatility.

In this context, expanding solar renewable energy offers Bangladesh a cost-effective and climate-friendly alternative. Scaling up grid-connected solar power will help displace most expensive thermal plants, ease pressure on limited gas supplies, and support progress towards the Nationally Determined Contributions of Bangladesh under the Paris Agreement.