Bangladesh budget 2026-27 puts renewable energy and EVs at center of power sector reforms

Bangladesh's proposed FY27 budget places renewable energy and electric vehicles at the core of power sector reforms. The government targets 20% renewable electricity by 2030, extends zero-percent tax on solar generation until 2035, and offers import duty exemptions for solar equipment. Tax breaks for EV registration and local manufacturing are also included, aiming to cut fossil fuel dependence and subsidy burdens that exceeded Tk40,000 crore annually. The budget allocates Tk17,345 crore to the power ministry and includes reviewing power purchase agreements, retiring inefficient plants, and expanding transmission lines to 25,000 circuit km by 2030. Domestic gas exploration via BAPEX will add 69 new wells. The first unit of Rooppur Nuclear Power Plant is expected online by January 2027. These measures target generation capacity of 35,000 MW by 2030 while improving financial sustainability and energy security.