Various renewable and non-renewable energy sources were used to generate heat and electric power for decades. The depletion of finite resources was not an issue of concern until the end of the 20th century. Circumstances in both industrialised and developing countries now provide renewable resources with unique advantages to meet the increasing demand for electricity in a long-term sustainable global economy. Climate change, coupled with high oil prices, and increasing government support are driving indicators for increasing renewable energy legislation, incentives and commercialisation. Renewable energy is derived from natural processes that are replenished constantly. That's why solar radiation, tides, winds and hydroelectricity are perpetual resources that are in no danger of a lack of long-term availability. Developing countries like Bangladesh face an extreme power crisis due to lack of fossil fuels, which is a great economic impediment. The objective of this study is to know whether the use of renewable resources for producing electric power will be economically sustainable for developing countries like Bangladesh. In rural and remote areas, transmission and distribution of energy generated from fossil fuels can be difficult and expensive. Producing renewable energy locally can offer a viable alternative. Moreover, renewable energy can directly contribute to poverty alleviation by providing the energy needed for creating businesses and employment.