South Asia's Fossil Fuel Addiction Threatens Energy Security

South Asia's economies have been severely impacted by global conflicts and energy shocks. The region's dependence on imported oil and gas has left it vulnerable to external disruptions, as seen during the recent tensions between the US and Iran. Bangladesh, Pakistan, and Sri Lanka, which rely heavily on fossil fuels for power generation, have struggled to cope with price spikes and supply shortages.

The 2026 crisis highlighted the region's need to diversify its energy mix and reduce dependence on imported fuels. Alternatives such as solar and wind power are now more affordable and can be deployed rapidly. However, implementing a sector-by-sector roadmap for renewable energy development is crucial to mitigating future disruptions.

Pakistan has made significant progress in expanding its solar capacity, with over 38 gigawatts of distributed generation added since 2020. This has helped reduce fuel imports by an estimated $12 billion and provided a critical buffer during the crisis. Sri Lanka has also set ambitious targets for renewable energy growth, aiming to generate 72% of its electricity from clean sources by 2030.

Despite progress in some countries, Bangladesh lags behind in renewable energy development, with only 3.6% of installed capacity coming from solar and wind power. The country's 2025 Renewable Energy Policy sets a target of 20% of power generation from renewables by 2030, but achieving this requires urgent acceleration.

To accelerate the transition to clean energy, governments in South Asia must prioritize fast-tracked permitting, competitive auctions, and long-term contracts for renewable projects. Removing taxes and import duties on solar, wind, and storage technologies can also help reduce costs and speed up deployment.