Providing political guidance on energy efficiency and renewable energy
Policy Advice for the Promotion of Energy Efficiency and Renewable Energy II (PAP II)
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Client
German Federal Ministry for Economic Cooperation and Development (BMZ)
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Co-financier
Delegation of the European Union (EUD) to Bangladesh
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Country
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Political sponsors
More
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Runtime
2024 to 2027
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Involved
Bangladesh Sustainable and Renewable Energy Development Authority (SREDA), World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), Delegation of the European Union (EUD) to Bangladesh, Bangladesh Energy Regulatory Commission (BERC), Bangladesh Ministry of Local Government, Rural Development and Co-operatives (MoLGD), Women’s organisations, universities, industrial companies
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Products and expertise
Sustainable infrastructure: water, energy, transport

Context
Bangladesh generates almost 98 per cent of its electricity from fossil fuels. This accelerates climate change and pushes up energy prices. The government is increasingly recognising the need to invest in renewable energy (RE) and energy efficiency (EE). It is therefore aiming for clean energy to make up 40 per cent of the total by 2041. However, it faces some challenges:
The electricity transmission and distribution network is unstable, leading to frequent power outages. This also makes it overly sensitive to fluctuations caused by renewable energy sources such as wind and solar power.
At the same time, digital transformation in the public sector is progressing only slowly, making it difficult to plan and implement energy management systems.
While Bangladesh’s energy sector is now undergoing a green transformation, businesses and the general public have yet to fully benefit from energy savings and affordable RE.
A lack of incentives, expertise and personnel are also hindering a socially just and environmentally sustainable energy transition.
Experience from Germany’s energy transition shows that it is essential to involve the public and private sector in decision-making. That is where the project comes in.

Objective
The institutional, economic and labour conditions have been improved to support a socially just and environmentally sustainable energy transition.
Approach
The project is focused on three key areas:
- It is advising the Bangladeshi Government on the energy transition process, as well as educating and training decision-makers, businesses and the public.
- It is developing a market for renewable energy and supporting the expansion of EE.
- In addition, it is supporting the creation of jobs for women and young professionals in the energy sector.
The project is being planned with additional funding of five million euros from the European Union.
Last update: February 2025