Access to Energy Finance: Development of Renewable Energy in Bangladesh

Advancement of renewable energy in Bangladesh is essential for enhancing energy access and promoting sustainable development, especially in rural regions. This chapter purposes to explore the present state of energy finance in Bangladesh, focusing on access to energy financing and challenges and prospects of funding renewable energy projects as well as to propose new financing techniques. A mixed research method is used to thoroughly investigate its objectives. The recent emergence of renewable energy technology innovations in the energy sector also faces many challenges due to inadequate financing approaches. This study explores the major causes behind the slow progress of renewable energy sector and the appropriate way to manage the causes. The study revealed that Bangladesh has considerable potential to utilize renewable energy to improve energy access. Despite this opportunity, financing remains a key hindrance due to high initial costs, borrowing costs are high, solely dependent on international organizations’ funding, and limited access to capital markets. Moreover, this study explores various innovative financing mechanisms, including green bond, public–private partnerships, foreign private investment, crowdfunding, and pay-as-you-go (PAYG) approach that can be leveraged to overcome these barriers. Finally, the findings summarize the main challenges and future of renewable energy in Bangladesh. Additionally, the role of government policies, international aid, and regulatory frameworks in facilitating investment in renewable energy is analyzed. By identifying effective strategies for mobilizing financial resources, this study is to offer a roadmap for accelerating the deployment of renewable energy in Bangladesh, ultimately contributing to sustainable development.