DHAKA, June 17, 2026 (BSS) – Experts at a dialogue today observed that the proposed national budget for FY2026-27 has introduced several forward-looking fiscal measures aimed at accelerating Bangladesh's transition to clean energy and called for greater transparency, efficiency and long-term planning in the power and energy sector.

The observations came at the dialogue titled "Proposed National Budget FY2026-27: What Did the Power and Energy Sector Receive?" organised by the Centre for Policy Dialogue (CPD) at its Dhanmondi office in the city.

Presenting the CPD's power and energy budget analysis, Senior Research Associate Helen Mashiyat Preoty said the government had demonstrated a stronger commitment to renewable energy through a range of tax and tariff incentives designed to encourage green investment and reduce dependence on imported fossil fuels.

She noted that the proposed budget offers a zero percent tax rate for the solar power sector until 2035, a 5 percent tax rebate for consumers using solar electricity, and significant reductions in duties on solar equipment and components.

According to the study, these measures are expected to lower investment costs and create a more favourable environment for solar power generation.

Preoty said the Ministry of Power, Energy and Mineral Resources has been allocated Tk 17,345 crore in the proposed budget, reflecting the government's continued focus on strengthening the sector.

She observed that several recommendations made earlier by CPD regarding renewable energy, energy storage systems, electric vehicles (EVs) and grid modernisation had been reflected in the budget, indicating a positive policy shift toward sustainable energy development.

The presentation highlighted substantial incentives for EVs, including the elimination of import duties on EV charging equipment, significant reductions in import taxes on electric vehicles and lower annual income taxes on EV ownership.

Preoty also welcomed the government's emphasis on domestic energy security through expanded gas exploration, offshore bidding initiatives and enhanced exploration capacity, alongside efforts to diversify energy sources.

She said the inclusion of projects related to smart grids, smart metering and renewable energy integration would help modernise the country's power infrastructure and support future renewable energy expansion.

The CPD researcher noted that the fiscal incentives introduced for solar power, battery storage and EVs could create new opportunities for private-sector investment and contribute significantly to achieving Bangladesh's long-term energy transition goals.

However, she stressed the need for further expansion of renewable energy projects, accelerated grid modernisation and additional green fiscal measures to maximise the benefits of the country's energy transition.

The study recommended increasing support for renewable energy projects, modernising transmission and distribution networks, introducing targeted incentives for solar irrigation and adopting a comprehensive green fiscal policy framework.

Moderating the event, Khondaker Golam Moazzem, Research Director of CPD, emphasised the importance of enhancing renewable energy investment, improving governance in the energy sector, reducing system losses and ensuring prudent utilisation of public resources.

Moazzem also underscored the need for stronger institutional capacity, policy consistency and enhanced accountability in project implementation, as well as greater transparency in energy pricing and subsidy management.

Economists, energy specialists and representatives from various stakeholder groups attended the discussion.

The CPD study concluded that the FY2026-27 budget marks a positive step toward building a cleaner, more resilient and energy-secure future for Bangladesh, while highlighting the need for continued reforms to ensure sustainable and efficient energy sector development.