Government targets 30% renewable power generation by 2040

The government has announced its decision to generate 30% of the country’s total electricity from renewable sources by the year 2040.

The initiative is part of a broader push toward energy sustainability, transparency, and accountability.

As part of this effort, the controversial ‘Speedy Supply of Power and Energy (Special Provision) Act, 2010’ has been repealed.

A national committee has also been formed to review contracts previously executed under this law. Meanwhile, the 2,400 MW Rooppur Nuclear Power Plant is progressing rapidly toward completion.

A new and updated renewable energy policy is in its final stages of development, replacing the outdated 2008 version.

In alignment with the Integrated Power Sector Master Plan, the government also targets generating 3,400 MW of electricity from clean sources by 2028.

To bolster energy security, the government is expanding its domestic oil and gas exploration.

From FY 2025–26 to FY 2027–28, BAPEX will conduct extensive surveys, with plans to drill 69 wells and perform workovers on 31 wells using its own rigs.

Additionally, a new project is being undertaken to establish Unit-2 of Eastern Refinery Limited, with the capacity to refine 3 million metric tons of crude oil annually to meet the country‍‍`s growing demand for refined petroleum.

This announcement comes as part of the proposed national budget for FY 2025–26, amounting to BDT 7.90 trillion—BDT 70 billion less than the current fiscal year—marking the first time in recent years that the budget has decreased in size.