Rural Bangladesh has already embraced renewable energy. Here’s what the rest of the world can learn

Rural Bangladesh 2018

UN/Regina Merkova Rural woman in a village in Bangladesh

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum.

Author: Shirley Chen, Founder and CEO, Narrativ

A transition technology bridges the gap between the old and the new. Once legacy technologies and incumbent business models stop producing the desired results, a transition mode starts. However, energy technology is moving too fast for any prolonged transition mode. Its speed of development has cost the big legacy players in certain markets dearly. In Germany, for example, energy companies have always had strong backing from the government, and strong leverage through their oligopoly. So while ministers contemplated a greener future, they continued to place bets on coal and on atomic power. However, through a mix of strong public opinion – significantly reinforced by the Fukushima disaster – and falling prices in the renewables industry due to technological progress, the Energiewende (energy transition) suddenly accelerated. The big players found themselves in existential crisis. Their hesitance to embrace the new energy world proved to be their Waterloo. In Bangladesh, the energy policy realm could not be more different. Yet a closer look at the two countries reveals plenty of scope for mutual learning, from past mistakes and future technologies. Here are three arguments why Bangladesh should avoid a lengthy transition mode.

1. The danger of energy lock-in effects – don’t bet on transition technologies combined with old business models, but leapfrog instead

Bangladesh has adopted the strongest declaration of climate action – a target to use 100% renewable energy by 2050. It is among the countries most vulnerable to the adverse effects of climate change. But given that its electricity supply is already unreliable – peak demand cannot be met, and in rural areas only 42% of the population have access to electricity – this declaration seems daunting. However, Bangladesh, unlike Germany a decade ago, is clear about where it is heading. The challenges today are whether the country can learn from mistakes made by others, and how far it can afford to continue betting on transition technologies. The transition technology dilemma is not just a question of letting existing fossil fuel or nuclear power plants run a little longer. Rather, the majority of such power plants have not yet been built. The country faces the very real risk of locking itself into outdated transition technologies and business models, ignoring lessons for which others have paid dearly. Every proposal to build a new power plant should be carefully weighed against its lifespan, and against the path on which the country is embarking.

2. Solar energy is the superior choice based on cost, food, health and safety

By 2021, the government of Bangladesh plans to develop 13.3 GW from new coal plants, but less than 2 GW from solar energy. Their main justification is cost and availability of land. In contrast, a recent study on clean energy investment opportunities for Bangladesh found that there is far more utility-scale and rooftop solar panel potential than previously estimated. Without displacement of communities, conversion of cropland, air or water pollution, premature deaths, public health costs or inflationary fuel prices, rooftop solar panel systems on commercial and residential buildings could provide 17% of current peak demand (2 GW) at dozens of urban locations across the country.

3. Bangladesh has been a new energy pioneer all along

The new energy world is fuelled by the 5Ds: decarbonization, decentralization, democratization, digitization and disruption. Since the Paris Agreement, there is a general global consensus on how this decarbonization process will shape up in coming years. Moreover, the more the world community is exposed to the adverse effects of climate change, the more it will embrace new energy. As the planet decouples carbon emissions from economic growth, the old paradigm of centralization – where electric power is produced far away from where it is used – will also change. This will bring a democratization of energy generation and consumption, where prosumers will be the key actors disrupting conventional business and delivery models, empowered through digitization that allows automated payment for electricity trades. In The 3 Stages of a Country Embracing Renewable Energy, Christoph Burger and Jens Weinmann divide this transition path into three phases, at a country level: First phase: A country focuses mainly on promoting renewable energy sources, possibly with secondary objectives of establishing a domestic manufacturing base. Second phase: The share of renewables in the energy mix reaches a level where grid operators have to intervene more frequently to keep the grid in balance. The landscape of utility companies is undergoing significant transformations. Third phase: The electricity supply industry sees first-hand how their sector is transformed from being a public infrastructure towards a truly private one, where solutions are customized for each producer and consumer. The general consensus would place Bangladesh behind the first phase, given its mediocre total installed renewable energy capacity to date. Germany would be in the second phase, and so far no country in the world would be in the third phase. I disagree. I would put Bangladesh in all three phases at the same time. Public discourse focuses on problems described in the second phase. However, the country hasn’t even seriously started to embrace the first phase, despite strong political commitments. Incumbent government institutions struggle to move past the legacy mandate of grid extension at any cost. This debate exacerbates economic pressure on communities trapped on the waiting list for a grid connection that is often inferior to that which a solar system can offer. Nevertheless, while this debate rages in the national hubs, rural Bangladesh has quietly joined the global avant-garde in embracing the 5Ds. Many villages have jumped ahead very quickly and embarked directly on the third phase. Under the leadership of the Infrastructure Development Company Ltd. (IDCOL), more than 20 million people today produce their own electricity from completely decentralized solar home systems. Recent studies show that, on average, the quality of their electricity supply is superior to that of the national grid in adjacent areas. So why is the country trying to jump back from the third phase to the first phase? While the political arena in Dhaka is still stuck in discussion on a net-metering policy, it is startling that in rural Bangladesh, solar peer-to-peer microgrids, based on existing solar home systems, have long been established. This is a micro energy transition, so to speak. Power can flow freely between houses and small businesses, all necessary appliances can be run, and surplus power is traded based on net-metering and mobile money in real-time. Overnight, remote villagers become solar entrepreneurs, trading electricity for income. These rural Bangladeshis are the prosumers, having embraced the 5Ds and the full cycle of the third phase. The global energy transformation can no longer be stopped. The question is: what will drive it – community initiative, entrepreneurial disruption or adaptation by traditional suppliers? Manufacturers and businesses not only have to face it, but manage it effectively. National and industrial competitiveness is at stake. The energy transition in Germany was a societal movement, initiated by its citizens, and only later did political calculus pave the way for larger uptake of renewables. If the people in the capital of Bangladesh understood the benefits of solar the way people do in rural areas, a similar momentum could be gained. And with it, a giant leapfrog over transition phases.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© WHO A large-scale combined missile and drone strike hit Kyiv's Solomianskyi district on August 20, 2026.

Ukraine: Critical health supplies destroyed in ongoing Russian attacks

This article is published in association with United Nations. Ongoing and deadly Russian attacks across Ukraine are causing serious healthcare disruption, with more than $1.5 million-worth of medicines and supplies destroyed in four separate strikes on warehouses used by the UN there since July. According to the World Health Organization (WHO), 21 warehouses have been […]
© UNICEF/Niccolò Corti A child sits alone, praying, at a reception centre for migrants in Lampedusa, Italy.

World News in Brief: West African migrant crossings, Argentina takes UK to maritime tribunal, farming in Gaza, mental health update

This article is published in association with United Nations. Fewer people from West Africa are reaching Europe by sea, but the journey has not become safer, the UN migration agency (IOM) said on Tuesday. Arrivals from Mali, Senegal, Guinea and The Gambia fell by 59 per cent in the first half of 2026 compared with […]
© UN Ukraine The aftermath of a drone attack in a residential area in Kyiv on 12 October.

Ukraine: Residents killed and dozens injured in attacks on Kharkiv and Kyiv

This article is published in association with United Nations. Russian attacks in recent days on on Ukraine’s two largest cities have again killed and injured civilians, damaged homes and civilian infrastructure, the UN aid coordination office (OCHA) said on Tuesday. Aid workers and rescuers were on the ground in Kyiv and Kharkiv following aerial strikes that […]
© IOM The war in Sudan has created extreme levels of displacement, both internally and across Sudan’s borders.

‘Efficiency has limits’: UNHCR chief warns refugee protection is buckling under cuts

This article is published in association with United Nations. The money is running out faster than needs are growing: with 117 million men, women and children now forced from their homes, the UN refugee agency (UNHCR) has received just $3 billion of the $8.5 billion it needs this year – and its chief, Barham Salih, warns […]
© UNOCHA/Ramatoulaye Moussa Maz A woman walks through a camp for displaced people in Ituri Province in eastern DR Congo, where decades of violence have impacted millions, creating a humanitarian emergency.

Rise in poverty is ‘a wake-up call for the world’, UN development chief says

This article is published in association with United Nations. The number of people living in “multidimensional” poverty has risen for the first time in 15 years, reaching 1.2 billion, as families struggle to meet their basic needs.  The finding comes in the 2026 update of the global Multidimensional Poverty Index (MPI) published by the United Nations […]
© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]
© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

Israeli demolition in East Jerusalem displaces 69 Palestinians

This article is published in association with United Nations. Sixty-nine Palestinians – more than half of them children – were displaced on Tuesday after Israeli authorities green lit the demolition of their residential building in the At Tur area of East Jerusalem, the UN aid coordination office (OCHA) has reported. This is the highest number of […]
This article is published in association with United Nations.

‘The clock on AI regulation is ticking’, warns UN rights chief

This article is published in association with United Nations. The world is running out of time to put guardrails on artificial intelligence, UN High Commissioner for Human Rights Volker Türk warned Monday, as a “ruthless race” between companies and countries raises concerns about human safety and even humanity’s survival. Speaking in the UK at an AI […]
© UNOCHA/Alina Basiuk A school in Ukraine lies in ruins after being hit by a missile.

Ukraine war ‘a human rights catastrophe’ that must end, says Türk

This article is published in association with United Nations. Human Rights The war in Ukraine is a human rights catastrophe that is “growing and intensifying by the week” and threatening an even greater disaster across the region, UN High Commissioner for Human Rights Volker Türk said on Friday. Addressing the Human Rights Council in Geneva, Mr. […]
UN News Massive tent settlement of displaced residents extends along the damaged Gaza coastline.

Palestinians yearn for ‘a return to normal life’, says top Middle East peace envoy

This article is published in association with United Nations. The UN is continuing efforts to support Palestinians in Gaza amid major challenges to humanitarian access, reconstruction and the restoration of essential services, according to Ramiz Alakbarov, Acting UN Special Coordinator for the Middle East Peace Process. Speaking to UN News on the margins of the UN […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon (file).

Lebanon: One in five children goes to bed hungry, says UNICEF

This article is published in association with United Nations. Four in five households in Lebanon struggle to afford basic necessities today, with children increasingly going without food, missing school and being pushed into work as conflict compounds years of economic crisis. “I wanted to buy clothes for my children, but I could not. I also wanted […]

World News in Brief: Deadly Myanmar strikes as Malaysia begins deportations, new emergency funding released, Gaza and West Bank update

The UN chief on Tuesday strongly condemned an airstrike that reportedly killed at least 50 people at a market in Myanmar’s Rakhine state and called for those responsible to be held to account. Forces from the military junta reportedly hit Kyauktaw township around midday on Monday, when the market’s more than 200 shops were busy […]
This article is published in association with European Investment Bank.

EU provides €61 million in humanitarian aid amidst rapidly deteriorating situation in Ethiopia

This article is brought to you in association with the European Commission. Amid fears of renewed conflict in Northern Ethiopia, the European Union is providing €61 million in humanitarian funding to help the most vulnerable people in Ethiopia affected by conflict, displacement, disease outbreaks and climate-related hazards, including the impact of El Niño. The European Union […]
© UNDP A worker installs solar panels in Lanao del Sur in the Philippines.

From energy crisis to energy transition: How renewables are reshaping energy security

This article is published in association with United Nations. The continuing conflict in the Middle East is disrupting global energy markets and pushing up fuel prices, with knock-on effects far beyond the region. For Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), the crisis is also reshaping how the world understands the phrase […]
Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the opening of the 15th United Nations Congress on Crime Prevention and Criminal Justice, bringing governments together around challenges ranging from cybercrime and fraud to the growing criminal exploitation of digital technology. The Declaration highlights an increasingly complex landscape in which services, infrastructure and technology can be exploited by criminals, including emerging trends described as “crime as a service” and “violence as a service”. At the same time, countries committed to making greater use of technology themselves, including by digitalizing justice systems and harnessing artificial intelligence in criminal justice responses. The Declaration stresses that safeguards must accompany those changes, including human oversight, transparency, due process and data protection. ‘Justice cannot be a privilege’ In a video message to the Congress, UN Deputy Secretary-General Amina Mohammed said the meeting was taking place at a time of profound change. “Justice cannot be a privilege. It must protect every person, uphold every person’s rights and leave no one behind,” said Ms. Mohamed. “This Congress is an opportunity to renew our shared commitment to justice and the rule of law, and to translate that commitment into action.” Countries are already being encouraged to put the Declaration into practice through the voluntary Pledge4Justice initiative, under which participating governments are announcing concrete, time-bound actions on crime prevention and criminal justice through 2031. The Abu Dhabi National Exhibition Centre with its curved glass tower and surrounding buildings reflected in calm water at dusk. UNODC The Abu Dhabi National Exhibition Centre where the 15th UN Crime Congress is set to take place. From Kyoto to Abu Dhabi Opening the Congress, UN Office on Drugs and Crime (UNODC) Executive Director Monica Juma framed the gathering as both a response to a changing criminal landscape and a test of international cooperation. “Today, the world convenes in Abu Dhabi to reaffirm that the rule of law and criminal justice are essential to the safety and security of people and the planet,” said Ms. Juma. “At a time when confidence in multilateralism is faltering, let Abu Dhabi be a testament to international cooperation.” Five years after the previous Congress in Kyoto, Japan, Ms. Juma said the world had reached another “inflection point”, with technology and artificial intelligence advancing at extraordinary speed. The same platforms connecting billions of people can also connect criminals, she warned, while digital currencies can conceal illicit profits and digital tools can be used to deceive, manipulate and exploit. Technology, she argued, is not simply accelerating crime but changing its character, while organized criminal networks increasingly exploit weaknesses across borders and institutions. Tweet URL Protecting people as the ‘north star’ Behind those broad trends, Ms. Juma urged delegates to focus on the people most exposed to harm, including children recruited by gangs, women facing violence at home or online, people unable to obtain legal assistance and young people lured into scam networks with promises of a better future. “Protecting these people must be the measure against which we judge our efforts over the coming week,” she said. “It must be our north star.” She called for laws and institutions capable of keeping pace with changing threats, greater access to justice and legal aid, and technology that serves as “a force for good” rather than an accelerator of harm. And while welcoming the Abu Dhabi Declaration as a starting point, Ms. Juma stressed that its impact would ultimately depend on implementation. A week focused on justice Hosted by the United Arab Emirates, the Congress runs through 1 October under the theme Protecting People and Planet in the Digital Age. Some 119 countries are represented, alongside more than 40 justice ministers and other senior officials, with over 5,100 participants from governments, civil society, academia and the private sector. Plenary meetings, workshops, side events and exhibitions will run throughout the session. Organizers are also billing this as the most youth-inclusive Crime Congress yet. Young people are participating in workshops, contributing to follow-up efforts and taking part in a dedicated Youth Lab and art exhibition, following a Youth Forum held ahead of the Congress on 24 and 25 September. UNODC serves as secretariat of the Congress and will support implementation of the Abu Dhabi Declaration.

Countries adopt global blueprint to tackle fast-evolving crime in digital age

This article is published in association with United Nations. Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the […]
United Nations President Mahmoud Abbas of the State of Palestine addresses the General Debate of the UN General Assembly’s 81st session.

Palestinian existence under threat, Abbas tells UN, warning of ‘another Nakba’

This article is published in association with United Nations. Israeli policies now threaten “the very life and existence of the Palestinian people on their homeland”, Palestinian President Mahmoud Abbas told the UN General Assembly on Thursday, urging the world not to allow “another Nakba”.  Mr. Abbas addressed the Assembly’s annual debate via pre-recorded video after his […]
© UNICEF/Oleksii Filippov A rescue worker stands outside a residential building in Kyiv’s Solomianskyi district that was severely damaged during a massive overnight attack on the city.

World News in Brief: ‘New intensity’ to Russian attacks on Ukraine, Yemen, Gaza and Colombia updates

This article is published in association with United Nations. Russian armed forces have carried out repeated attacks across Ukraine over the past several days, killing and injuring civilians and damaging homes, hospitals, shops and workplaces, UN human rights monitors said on Thursday. The attacks have involved ballistic and cruise missiles, drones and guided aerial bombs. Between […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com