Encouraging Renewable Energy in Developing Countries

September 25, 2025

For much of the developing world, electrification represents a complex conundrum. As industrialization and development improve consumer buying power, the demand for electricity rises. Governments can obtain loans to build power plants because when a plant generates electricity, it can be sold for a profit, and the loans repaid.

However, the same cannot be said for the construction of transmission lines, which carry electricity but don’t produce it. Foreign loans are rarely available to build transmission capacity. As a result, governments or local utilities struggle to find the funds to build transmission capacity.

That’s the situation Bangladesh finds itself in, according to 2023 IEEE President Saifur Rahman, an expert in power systems. He was born in Bangladesh, completed his Ph.D in nuclear power plant operations, and continues to research renewable energy, including the integration of electric and wind power into energy grids.

“Bangladesh’s experience is not unique in the world,” Rahman said.

Here, Rahman discusses how developing countries can improve access to renewable energy while also improving access to electricity in rural areas.

How does renewable energy, like wind and solar, fit into rural development in countries like Bangladesh? What challenges does renewable energy face?

Solar and other renewables like wind are cost-competitive now compared to coal, but these are not available 24/7, especially in tropical countries like Bangladesh with long monsoon seasons. Solar energy is a distributed resource. The panels can be located close to where people live, which means these systems don’t need long power lines back to a central station. For this same reason, it’s difficult to supply back-up power when solar is not available.

Battery back-up is a solution, but it can cost as much as the solar plant itself.

By upgrading their transmission and distribution infrastructure, developing countries can avoid frequent outages and voltage fluctuations. But this requires a serious injection of capital, which may be difficult to get. It’s been a contentious issue and is a matter of serious discussion at the UN’s Conference of the Parties (COP). Industrialized countries have made commitments worth hundreds of billions of dollars to help. These funds could also promote solar access.

How can they get the economics right? In a situation of overcapacity, solar installation might make some viable sources obsolete.

In countries like Bangladesh, where available generation cannot serve the unmet load due to inadequate transmission and distribution infrastructure, a two-pronged approach may be followed. Number one, provide solar power for meeting mainly domestic and commercial needs with some local battery and diesel back-up in areas away from main population centers. Number two, build and strengthen transmission and distribution infrastructures to serve major industries and large cities. In this way, they can serve unmet loads in remote areas and keep using legacy power plants, and build new ones as needed.

Some developing nations feature master plans for energy development that include extremely ambitious initiatives, like hydrogen fuel hubs. How important is it for countries to set realistic short- and mid-term targets in their energy plans?

To support the needs of their populations, developing nations would be better off taking a phased approach. Start by purchasing power from neighboring countries in the short term, where it’s available, and deploy small-scale, dispersed solar in large volumes.

Emerging technologies like smart grids, battery storage, and microgrids are often touted as ways for developing countries to leapfrog traditional infrastructure. In your view, what role can these innovations play in integrating solar energy into fragile grids?

Since many developing countries do not have a functioning country-wide transmission grid like those in the industrialized world, local solutions using microgrids and battery storage can address the gap. However, these solutions cannot take advantage of economies of scale and require skilled manpower in remote locations, which is not always easy to obtain.

Energy efficiency measures that reduce electrical demand during peak hours and shift it to off-peak hours through time-of-use pricing are a more cost-effective solution.

As someone who has engaged with global initiatives, what broader benefits do you foresee from the successful integration of solar power in the developing world?

In most developing countries, there is a wide gap in the availability of electricity between urban and rural communities, which affects education, public health, and economic opportunities in disadvantaged communities. The availability of small-scale solar power can help to bridge this gap in many countries in Asia and Africa, but this requires strong financial and policy support from the government, including plans for manpower training.

What message would you give to global technology enthusiasts about supporting these efforts to ensure that the clean energy transition uplifts humanity as a whole?

For technology enthusiasts, my message is: be innovative, use appropriate technologies where locally available manpower can be quickly trained, and ensure local ownership.