[🇧🇩] Energy Security of Bangladesh

[Saif]

Dhaka-Ctg fuel pipeline to open in Aug: BPC

The first ever petroleum pipeline from southeastern port city of Chattogram to capital Dhaka is set to be operational from mid-August, Bangladesh Petroleum Corporation (BPC) officials said in Dhaka on Thursday...

www.newagebd.net

Dhaka-Ctg fuel pipeline to open in Aug: BPC
Bangladesh Sangbad Sangstha . Dhaka 31 July, 2025, 23:15

The first ever petroleum pipeline from southeastern port city of Chattogram to capital Dhaka is set to be operational from mid-August, Bangladesh Petroleum Corporation (BPC) officials said in Dhaka on Thursday.

The BPC officials said they were preparing to make operational the 250-kilometre long oil pipeline expectedly from August 16 as its construction works were completed with the help of army sappers at a cost of about Tk 3,700 crore.

They said state-run corporation will be in charge of operation and maintenance of the pipeline.

‘The pipeline will save a huge amount of money minimizing pilferage and system loss,’ adviser of power, energy and mineral resources ministry Muhammad Fouzul Kabir Khan said.

He said the transportation of oil in petroleum tankers used to cause the system loss twice – during loading and unloading process.

BPC officials supplemented the adviser saying the pipeline would also minimize scopes for pollutions.

The officials said a 16-inch diametre pipe was installed 241 kilometres from Patenga to Godnail in Narayanganj while a depot was installed at Fatullah, 8.29 kilometres off Godnile through a separate pipeline of 10-inch diameter.

A BPC official said the underground pipeline made its way beneath 22 rivers and cannels while nine pumping stations were built in the entire system.

A previous such pipeline called Bangladesh-India Maitree Pipeline was built from India to Bangladesh to import diesel.

BPC officials said they were now also building another pipeline to unload crude oil from the sea.

According to BPC officials oil tankers used to take at least 24 hours to transport petroleum from the port city of the river port won of Narayanganj while the pipeline would transport the oil just in four hours.

Currently, BPC spends Tk 326 crore every year on transporting oil from Chattogram to Dhaka by oil tanker. But if the pipeline is operational, the cost will be Tk 90 crore only and save at least Tk 226 crore annually.

The pipeline will prevent pilferage and steal of oil, the information said.

Authorities sometimes experienced problems to transport of fuel oil due to inclement weather resulting in supply interruptions while the pipeline will solve the problem.

The project was implemented by the 24th Engineer Construction Brigade of the Bangladesh Army installing the computerized Supervisory Control and Data Acquisition or SCADA system to monitor and control the transportation processes.

Bangladesh requires at least 6.5 million tonnes of petroleum annually, of which one million is imported from India through the pipeline and the volume is transported by oil tankers from Chattogram.

The trial operation of the pipeline was held on June 24.

The supplied fuel through pipeline will be pumped from the main tanks of BPC’s fuel marketing subsidiaries Padma Oil Company, Meghna Petroleum and Jamuna Oil Company at Patenga Depot in Chattogram to the tanks of the same companies at Godnail Depot.​

 

[Saif]

Retailers flout LPG price cap, charge Tk 150-200 more despite BERC order

Even though the Bangladesh Energy Regulatory Commission (BERC) had set the price of a 12- kg LPG (liquefied petroleum gas) cylinder at Tk 1,364 for the month of July, many consumers in the capital were being forced to pay between Tk 1,500 and Tk 1,600 — well above the official rate. The pric

thefinancialexpress.com.bd

Retailers flout LPG price cap, charge Tk 150-200 more despite BERC order

Published :
Aug 01, 2025 18:56
Updated :
Aug 01, 2025 19:06

Even though the Bangladesh Energy Regulatory Commission (BERC) had set the price of a 12- kg LPG (liquefied petroleum gas) cylinder at Tk 1,364 for the month of July, many consumers in the capital were being forced to pay between Tk 1,500 and Tk 1,600 — well above the official rate.

The price discrepancy has sparked frustration among households and small businesses, who say they are being burdened with unjustified additional costs amid already mounting living expenses, reports UNB.

A resident of Uttara said, “I went to three different shops in my area, and no one was selling the cylinder for less than Tk 1,500. If the government fixes a price, why is it not being enforced? We, the common people, are suffering.”

“We are the worst sufferers,” said Kokhon, a restaurant owner, adding, “We use a lot of gas cylinders, but the prices are extremely high. Retailers always charge more than the price set by BERC — they don’t care about the official rate. It’s all controlled by a syndicate,” he added.

Akhi Afrin, a housewife from Uttara’s Diabari, expressed similar frustration.

“This is not a luxury item. LPG is a basic necessity for cooking. If prices go up like this, how will we manage our household budget?” she said.

Surprisingly, many consumers remain unaware of the government-fixed LPG price.

When asked, several gave similar responses, UNB observed.

Questioned about the inflated rates, Raju Ahmed, Assistant Director (Tariff-2) at BERC, said the market is currently under surveillance by the Directorate of National Consumers’ Right Protection, in coordination with the respective Deputy Commissioners’ (DC) offices.

In response to why prices remain inflated despite ongoing monitoring, Raju Ahmed told UNB, “It should not be the case, but if such irregularities are occurring, I will bring the matter to the attention of higher authorities.”

He urged consumers to lodge formal complaints with the Directorate, attaching valid receipts as evidence, so that appropriate action can be taken.

Retailers, however, claim they are not deliberately ignoring the government-set rate. Instead, they point to problems in the supply chain and alleged price irregularities at the wholesale level.

“We’re buying cylinders at higher rates from distributors — sometimes over Tk 1,450 per cylinder,” said Jahidul Islam, an LPG retailer in Uttara.

“If we sell at BERC’s price, we’ll incur losses. We are being forced to charge higher just to stay in business,” he said.

Another seller, requesting anonymity, said distributors themselves are not adhering to BERC prices.

“There is no proper monitoring, and small sellers like us are being blamed unfairly,” he added.

He also mentioned that popular brands such as Beximco and Bashundhara are sold at higher rates due to their high demand.

Experts argue that the core issue lies in weak enforcement of BERC’s pricing directives.

“BERC may fix the prices, but without proper monitoring and a transparent distribution chain, consumers will never benefit,” said an energy expert and consumer rights advocate.

“There needs to be strict action against those who are overcharging, including wholesalers,” he said.

Consumers are now calling on the government to intervene and ensure LPG is sold at the regulated price. Many have urged BERC and the Ministry of Energy and Mineral Resources to conduct market inspections and hold both distributors and retailers accountable.

Until then, the gap between official pricing and real-world costs continues to weigh heavily on the average household.​

 

[Saif]

Resolving gas crunch issues

Natural gas has been the lifeblood of Bangladesh's energy security since the '60s of the last century when a global energy giant, Shell Oil, first hit upon five major gas fields in this part of the world. Since then, the country has been considered a gas-rich nation. Later, in 1997, Chevron d

thefinancialexpress.com.bd

Resolving gas crunch issues

FE
Published :
Aug 03, 2025 00:03
Updated :
Aug 03, 2025 00:03

Natural gas has been the lifeblood of Bangladesh's energy security since the '60s of the last century when a global energy giant, Shell Oil, first hit upon five major gas fields in this part of the world. Since then, the country has been considered a gas-rich nation. Later, in 1997, Chevron discovered the Bibiyana gas field in Habiganj. According to Petrobangla, the state-owned oil, gas and mineral exploration and distribution company, Bangladesh has 22 onshore gas blocks, of which 11 have never been explored. In addition, it has also 26 offshore gas blocks in the Bay of Bengal, divided into 11 shallow-sea blocks and 15 deep-sea blocks, which may be contracted out to international gas and oil exploration companies. But so far, response from the foreign companies has been rather lukewarm as was demonstrated by their lack of response to the international tender the government floated to this effect in March last year. The apparent reason for such disinterest was centred, reportedly, around unattractive gas price offer, lack of dependable survey data on potential gas reserves on the seabed, absence of necessary infrastructure (rigs, pipelines, etc.), and so on.

Against this backdrop, according to reports, country's gas production capacity from the existing wells has been declining fast and has come down to 1800 million cubic feet per day (mmcfd). At the current rate of consumption, the remaining gas reserve of less than 9 trillion cubit feet (Tcf) will be exhausted by 2030, experts hold. Since 2018, Bangladesh has also been buying Liquified Natural Gas (LNG) from overseas, mostly from Middle Eastern countries like Qatar and Oman as well from international spot markets to meet the demand and supply gap. This cannot be a feasible option for the country's energy security indefinitely. Meanwhile, at a recent discussion on energy security, it was revealed that the subsidy the government has been providing for LNG purchase surged to Tk 89 billion in FY 25. This amounts to a year-on-year increase by more than 48 per cent. According to an estimate, since the procurement of LNG from international markets started in 2018, the country has so far spent over Tk.367 billion.

Under any circumstances, the government should refocus on exploring gas at home. Exploration work for the idle onshore blocks can well be taken up on this score. In this connection, the interim government is learnt to have been prioritizing domestic gas production through drilling and workover of existing gas wells. To this end, it is reported to be working on drilling 100 wells and workover of 31 wells. And through all these efforts at exploration works and drilling, the government hopes to add 985 mmcfd to the national grid, while from workover wells between 400 and 500 mmcfd could be obtained. All these projections are based on drilling and workover of the onshore gas fields. Reworking of already explored gas fields has its limitations, too.

So, one wonders, why the government is not focusing its attention on the offshore gas blocks which may resolve the issue of nation's energy security. No doubt, exploration work and building the infrastructure for the offshore blocks are very capital-and-technology-intensive options. Those are hardly affordable for the government at present. International oil and gas giants can do the job. The point is to engage them in the actual work of exploration and development. Given the urgency, the government should reach deals with them based on the best incentives it can offer.​

 

[Saif]

How to avoid the disaster lurking in the corner

The growing liquefied petroleum gas (LPG) sector in Bangladesh is facing numerous challenges, especially the illegal cross-filling due to lack of monitoring and awareness. Cross-filling, which means transfer of LPG from one cylinder to another, is being done by many unauthorised individuals or unr

thefinancialexpress.com.bd

Old gas cylinder
How to avoid the disaster lurking in the corner

M Azizur Rahman
Published :
Aug 10, 2025 20:06
Updated :
Aug 10, 2025 20:06

The growing liquefied petroleum gas (LPG) sector in Bangladesh is facing numerous challenges, especially the illegal cross-filling due to lack of monitoring and awareness.

Cross-filling, which means transfer of LPG from one cylinder to another, is being done by many unauthorised individuals or unregulated businesses across the country. It may lead to a disaster anytime risking the lives of consumers and public, it has been alleged.

Improper handling and inadequate equipment can lead to leaks, fires, explosions, and even loss of life as LPG is highly flammable.

Thousands of such LPG gas cylinders are being used across the country although their tempers are expired.

But these cylinders are being repeatedly refilled and sent to customers’ homes, increasing the number of gas explosions and casualties in the country.

The chances of major accidents in the future remain high as the trend of removal of old and hazardous gas cylinders from the market is very low.

Cylinders are being stored in various locations without proper authorization. They are stocked in grocery stores, pharmacies, and other shops, posing serious risks. This situation has led to growing concerns among consumers, as unexpected and deadly gas explosions continue to occur. Experts warn that if this issue is not addressed immediately, more accidents are likely to happen in the future.

However, experts believe that after 10 years, cylinders become increasingly dangerous.

Although some companies remove hazardous cylinders after 10 years, but this has never been maintained by all operators.

To ensure safe use of LPG cylinders and check its cross-filling, the consumers should only refill their LPG cylinders at authorised and licensed filling stations, which usually maintain safety standards.

Public awareness campaigns are also necessary to educate consumers about the dangers associated with LPG cylinder cross-filling.

It is important for individuals to understand the risks involved and to prioritise their safety by choosing legal and regulated sources for LPG cylinder refills.

Bangladesh’s dependence on liquefied petroleum gas (LPG) to meet mounting energy demand in households, automotives, commercial entities and industries is growing consistently due to relentless efforts by the private sector.

The private sector itself is developing necessary infrastructure and ensuring a smooth supply chain to take this clean fuel to the doorsteps of end-users investing billions of taka.

The private sector currently imports over 98 per cent of LPG needed to meet the domestic demand at their own costs, while only around 2.0 per cent is arranged by the state-owned LP Gas Ltd, a wholly-owned subsidiary of Bangladesh Petroleum Corporation (BPC).

The proactive role of the private sector in meeting the country’s growing energy demand by supplying LPG provides the much-needed relief for the government as a significant portion of energy demand is being met by the private sector without any subsidy.

The LPG sector is a capital-intensive one and the private sector has invested around Tk 3.5 billion over the past several years to meet the growing demand for LPG by different sections of consumers, according to the LPG Operators Association of Bangladesh (LOAB).

Moreover, they provide around Tk 6.50 billion in value added tax (VAT) and Tk 2.0 billion in advance income tax (AIT) annually to the government exchequer—National Board of Revenue (NBR).

Privately-owned LPG operators have so far provided around 400,000 jobs and some 4.0 million people including their families are directly benefitted.

Driven by large investments in the private sector, LPG consumption in Bangladesh has almost trebled over the years.

Bangladesh currently consumes around 1.80 million tonnes of LPG annually, against around 650,000 tonnes of LPG during 2017.

The LPG market in Bangladesh started growing significantly after a government decision to suspend piped gas connections to household consumers in 2009.

Despite the ban on household gas connections for a long time, the government did not have to face any significant resentment from the consumers as the privately-owned LPG operators have come up to meet the household demand for cooking fuel.

LPG consumption in automotives, restaurants and other commercial entities increased afterwards to cope with the country’s mounting energy demand and dwindling natural gas reserves and production.

To accelerate further the consumption of LPG, ensuring its safe use is of utmost necessity.​

 

[Saif]

BD renewable ambitions face crosswinds

As of July, 2025, Bangladesh's installed solar energy capacity reached 1,307.15 megawatts (MW), up from 949.65 MW in June 2023-a 38 per cent increase in just over two years. While this surge underlines the growing momentum in the country's transition to clean energy, significant financial, technica

thefinancialexpress.com.bd

Solar energy sees financing crunch
BD renewable ambitions face crosswinds

SAJIBUR RAHMAN
Published :
Aug 10, 2025 20:04
Updated :
Aug 10, 2025 20:04

As of July, 2025, Bangladesh's installed solar energy capacity reached 1,307.15 megawatts (MW), up from 949.65 MW in June 2023-a 38 per cent increase in just over two years. While this surge underlines the growing momentum in the country's transition to clean energy, significant financial, technical, and policy challenges threaten to slow the pace of expansion.

Despite robust growth in solar panel installations-ranging from utility-scale solar parks and mini-grids to rooftop and irrigation systems-the financing ecosystem for renewable energy remains underdeveloped. High capital investment requirements, complex regulatory procedures, and inadequate technological expertise are among the major barriers deterring banks and private investors from scaling up their involvement in large renewable projects in the areas like solar, wind, hydro, and biomass power.

After more than 16 years, the government approved a new version of the Renewable Energy Policy in June 2025, enhancing its ambition to harness 20 per cent and 30 per cent renewable energy by 2030 and 2040, respectively, creating optimism among stakeholders, Shafiqul Alam, Lead Energy Analyst for Bangladesh, Institute for Energy Economics and Financial Analysis (IEEFA), told the FE.

However, Bangladesh's renewable energy sector is crawling ahead when most countries are rapidly expanding use of solar, wind and other renewable energy sources. Despite the falling trend of renewable energy costs, Bangladesh had its own set of problems, he said.

The suspension of utility-scale projects and tepid interest of investors in the latest round of tenders for utility-scale projects meant that the country had a barren project pipeline apart from a few under-construction projects, Shafiqul said.

The suspension of utility-scale projects affected investors' confidence. Further, the absence of the 'implementation agreement' was unlikely to attract sufficient bidders. It pointed to a barren period of private-sector-led new utility-scale projects in the next one or two years, he stated.

A recent IEEFA report estimates that Bangladesh will require between US$933 million and US$980 million annually until 2030 to meet the government's renewable energy goal of sourcing 20 per cent of electricity from renewables by that year. This figure will rise to range between US$1.37 billion and US$1.46 billion per year from 2031 to 2040 to meet the 30 per cent target. Given these requirements, public finance alone is unlikely to suffice, necessitating substantial private-sector participation.

Yet policy inconsistency remains a significant hurdle. The suspension of 31 utility-scale projects that were approved through a non-competitive process under the previous government has shaken investor confidence. The abrupt transition to competitive bidding, without a clear roadmap or revenue assurance mechanism, has increased project risks and introduced contractual uncertainty.

According to stakeholders, another critical challenge is access to affordable finance. High interest rates, short loan tenors, and stringent lending norms for green projects make it difficult for developers to secure long-term capital. The central bank's green fund could be more effective, if it moves toward a pre-finance model to streamline disbursement and minimize bureaucratic delays.

Local financing barriers are compounded by external headwinds. The country's low sovereign credit rating-downgraded to B2 by Moody's in late 2024-further discourages foreign investment by raising the cost of international borrowing. Moreover, a weak bond market and limited access to currency hedging instruments constrain long-term funding options for renewable ventures.

Technology also plays a defining role in shaping the solar energy landscape. Over the past 15 years, low-cost Chinese solar components have dominated Bangladesh's market, driven by their affordability and global supply chain strength. According to Infrastructure Development Company Ltd (IDCOL), Chinese manufacturers now command over 60 per cent of the solar home system (SHS) market in Bangladesh, followed by Canada (20 per cent), Germany (15 per cent), and India (5 per cent).

Chinese firms like Longi Solar, JA Solar, Huawei, and Sungrow Power Supply have supplied critical components-PV panels, inverters, and cables-to nearly all of the country's ten operational solar parks. Local stakeholders note that the price per watt of Chinese panels is 30-35 per cent lower than European counterparts, making them the preferred choice for both public and private developers.

Notable examples include Teesta Solar Ltd, which launched the country's largest solar plant (200 MW) in Gaibandha, using panels from Longi and inverters from Sungrow. Energon Renewables, Intraco Solar, and Joules Power have also relied heavily on Chinese tech to build their respective utility-scale projects.

The 200-megawatt (MW) plant, spanning 650 acres on the banks of Teesta River in Gaibandha's Sundarganj upazila, was officially inaugurated on August 2, 2023. It began commercial operation in January 2023.

Mr Alam also said the much-discussed land crisis could be addressed with proper resource mapping and earmarking available land for utility-scale solar projects. Special economic zones could also accommodate a significant amount of new renewable energy capacity.

"The rooftop solar segment with significant potential is still underexplored. While the new rooftop solar programme launched with the target of achieving 3,000MW by December 2025 is a welcome move and could provide the much-needed boost to it. Proper monitoring, quality control and the presence of sufficient resources (both financial and human resources) will be central to its success", he said.

This is the time for project implementation as rapidly as possible while ensuring quality to achieve the renewable energy targets for the country's energy security. However, contrary to any belief that only targets would drive renewable energy growth, a conducive ecosystem was essential in the country, he added.​

 

[Saif]

Bangladesh to be 2nd-largest LNG importer in South Asia by 2035: IEA

Bangladesh’s faster regasification expansion and declining domestic gas fields to drive higher imports

www.thedailystar.net

Bangladesh to be 2nd-largest LNG importer in South Asia by 2035: IEA
Bangladesh’s faster regasification expansion and declining domestic gas fields to drive higher imports

Representational photo: Collected

Bangladesh's liquefied natural gas (LNG) imports are likely to outpace Pakistan's by 2035, making it the second-largest importer in South Asia after India, according to a projection by the International Energy Agency (IEA).

Pakistan and Bangladesh together would import around 75 billion cubic metres (bcm) of LNG in 2035, up roughly 60 percent from 2024 levels, projected the intergovernmental organisation, which provides policy recommendations, analysis, and data.

"In the Stated Policies Scenario, LNG imports in other developing Asia—primarily Pakistan and Bangladesh—increase from 45 bcm in 2024 to 80 bcm in 2035," the IEA said in its latest World Energy Outlook 2025, published yesterday.

The Stated Policies Scenario reflects reading of country-specific energy, climate and related industrial policies that have been adopted or put forward, even if not yet codified in law.

Though the report did not specifically state the share of each country, the outlook data and infrastructural trends showed that Bangladesh would import around 42-44 bcm of LNG in 2035, while Pakistan would import around 33-36 bcm.

In 2024, Pakistan still imported slightly more LNG than Bangladesh. But by the early 2030s, the IEA projections suggest Bangladesh will pull ahead, driven by faster depletion of local gas and larger regasification capacity.

In India, LNG imports have been growing in recent years, driven by opportunistic buyers and strong potential growth in demand, especially in industry, as per the report.

In 2035, India would import 50 bcm of LNG, up from 35 bcm at present, it added.

Both Bangladesh and Pakistan are already dependent on LNG for power generation and industrial feedstock.

However, Bangladesh's expansion of regasification capacity and faster gas-field depletion are expected to lift its import needs beyond Pakistan's over the next decade, the projection suggested.

In Bangladesh, most onshore gas fields are in decline, while new exploration has lagged, driving a steady rise in LNG dependence for electricity generation, fertiliser production, and industries.

The country operates two floating storage and regasification units (FSRUs) and is expected to expand by two more floating and one land-based terminal.

In contrast, Pakistan has been facing financing constraints that have delayed terminal expansion and reduced LNG purchases in recent years.

In countries with mature domestic gas production, such as Thailand, Indonesia, Malaysia, Pakistan, and Bangladesh, LNG is a logical replacement for declining domestic gas, the outlook said.

The report said Asia will remain the key driver of global LNG demand growth amid slowing domestic gas production, accounting for more than 75 percent of total imports by 2035.

"These include Southeast Asia, where LNG imports rise from 35 bcm today to 135 bcm in 2035," it said.

"Lower-priced LNG flows to other parts of the world where affordability is a key consideration, notably India and other parts of South and Southeast Asia," it said, adding that the price would be 40 percent lower than today by that time.

The weighted average gas import prices in emerging markets and developing countries in Asia would be around $7.5 per million British thermal units (MMBtu) in the 2030–2035 period.

For importers like Bangladesh, this glut offers an opportunity to secure long-term supplies at more competitive prices, though the agency warns that excessive dependence on imported gas could expose developing economies to volatility in global markets.

"Even at prices near to the short-run marginal cost of supply, LNG remains a premium fuel in a number of markets in Asia," it said.

"Abundant supply may offer these countries significant optionality for security-of-supply reasons and may help them manage periods of system stress," it said.

"…but the economics of LNG make it difficult to penetrate these markets as a baseload fuel in the long run," it warned.

 

[Saif]

newagebd.net/post/power-energy/282653/energy-security-hinges-on-policy-consistency-experts

Energy security hinges on policy consistency: experts
19 November, 2025, 22:45

The country’s energy security hinged on policy consistency to attract domestic and foreign investments under a transparent regulation, experts said at a seminar on Wednesday in the capital.

The discussants, comprising policymakers, business leaders and energy experts, also said that the long-term predictable policy could only ensure the much-needed investment in the sector as well as the uninterrupted power to hungry industries.

The seminar titled ‘Enabling Bangladesh’s Growth and Prosperity: Developing a Sustainable Power Sector Investment Climate’ was organised by Policy Exchange Bangladesh and the Economic Reporters Forum with support from EMA Power, an investment platform focused on power projects in emerging markets.

Cautioning that without long-term reforms and greater private sector engagement, the speakers said the country could face a major power crisis in the next decade.

Bangladesh Energy Regulatory Commission chairman Jalal Ahmed, speaking as chief guest in the event, highlighted challenges, including over capacity, falling gas supply, lack of diversified fuel solutions and bureaucratic delays in project clearance, plaguing the sector.

Identifying sustainability of power sector depended on renewable energy and referring examples of Pakistan and India on booting renewable energy sources, Jalal Ahmed said that about 4,000 factories could generate huge power through rooftop solar initiatives.

He urged inclusion of industrial renewable energy in long-term planning to meet the country’s growing energy demand.

M Tamim, vice-chancellor of the Independent University Bangladesh, Park Young-sik, South Korean ambassador in Dhaka, Abdul Awal Mintoo, vice-chairman of Bangladesh Nationalist Party, Mahdi Amin, an adviser to the Acting chairman of Bangladesh Nationalist Party, and Mobarak Hossain, member of Shura Council of the Bangladesh Jamaat-e-Islami, participated in the discussion as guests of honour.

M Tamim described the high cost of energy in the country as a major limitation for industrial competitiveness.

He warned that the country might face energy shortages until 2029 and stressed the need for a long-term policy approach to ensure supply stability.

BNP vice-chairman Abdul Awal Mintoo noted that political stability was inseparable from economic progress.

He put emphasis on restoring investors’ confidence to overcome the economic challenges compounded by the lack of energy security.

The country has attained the capacity of generating around 28,000 to 29,000 Megawatts power every day, but half of it remained unutilised due to a weak grid, costly fuel and idle plants.

Despite billions of dollars invested, energy security remains one of the largest concerns, said Mahdi Amin.

Highlighting the past experiences of some mega projects suffered from a culture of impunity, he said that the future policy must be transparent and sustainable.

Predictable policies, transparent regulation and long-term investment confidence were termed by the Jamaat Shura Council member as pre-conditions to strengthen the energy sector.

He emphasized capital investment, energy storage, regional power trade and modernization of institutional frameworks for depoliticising the power sector and enhancing efficiency of it.

Earlier in the day, two panel discussions were held, where Imran Karim, chairman of Confidence Power Rangpur Limited, Kamran T Rahman, president of the Metropolitan Chamber and Commerce Industries, Mahmud Hasan Khan Babu, president of Bangladesh Garment Manufacturers and Exporters Asssociation, Shamsul Alam, energy adviser of Consumer Association of Bangladesh, participated, among others.

Stakeholders expressed optimism that continued reforms and coordinated action among government, private sector and development partners could unlock Bangladesh’s significant economic potential and secure a sustainable, prosperous future.

Vice-chairman of AK Khan Group and Business Initiative Leading Development chairman Abul Kashem Khan and ERF president Doulot Akter Mala gave introductory remarks.

Abu Chowdhury, director of EMA Power Investment Limited and chairman of EPV Thakurgaon Limited, made a power-point presentation.​

 

[Saif]

Gas supply reduced across Titas Gas network until Friday morning

Authorities have warned of low gas pressure in the distribution network of Titas Gas until Friday morning due to reduced liquefied natural gas (LNG) supply. According to an emergency message from Titas on Thursday, the gas supply is decreasing due to “urgent maintenance work” at the LN

thefinancialexpress.com.bd

Gas supply reduced across Titas Gas network until Friday morning

Published :
Nov 20, 2025 22:12
Updated :
Nov 20, 2025 22:12

Authorities have warned of low gas pressure in the distribution network of Titas Gas until Friday morning due to reduced liquefied natural gas (LNG) supply.

According to an emergency message from Titas on Thursday, the gas supply is decreasing due to “urgent maintenance work” at the LNG terminal, bdnews24.com reports.

“As a result, gas pressure will be low at all customer ends in the Titas Gas-affiliated areas until 6am on Friday.”

Petrobangla Director (Operations) Md Rafiqul Islam told bdnews24.com, “An LNG terminal is undergoing 18 hours of maintenance, which has reduced the gas supply by about 250 million cubic feet. The maintenance is expected to be completed by midnight.”

Petrobangla has announced that around 900 million cubic feet of gas are being supplied daily from two floating LNG terminals at sea.​

 

[Saif]

Well driiling and seismic survey in country's gas fields suspeneded

All types of drilling and seismic survey operations of state-run gas exploration companies have been suspended for 48 hours until 8 am on November 25 as a precautionary measure due to earthquake concerns. State-run Petrobangla announced on Sunday the suspension of exploration activities to ensure

thefinancialexpress.com.bd

Well driiling and seismic survey in country's gas fields suspeneded

FE ONLINE REPORT
Published :
Nov 23, 2025 17:58
Updated :
Nov 23, 2025 17:58

All types of drilling and seismic survey operations of state-run gas exploration companies have been suspended for 48 hours until 8 am on November 25 as a precautionary measure due to earthquake concerns.

State-run Petrobangla announced on Sunday the suspension of exploration activities to ensure the safety of the manpower involved in such jobs as well as for the sake of public interest, said a company press release.

If everything goes well, the drilling and seismic survey operations will resume at 8 am in the morning on November 25.

Until the suspension, the exploratory and work-over drillings were being carried out at Srikail-5, Habiganj-5, Kailashtila-1, Beanibazar-2, Sylhet-11, Sylhet-10X, and Rashidpur-11 wells.

Seismic survey operations were being carried out at Sonargaon in Narayanganj.

Earlier on Sunday morning, Power and Energy Adviser Fouzul Kabir Khan said the 48-hour suspension has been imposed, considering the safety of the people involved with exploration as well as of the drilling rigs, as four earthquakes have already occurred within a very short span of time.

Dhaka and its adjoining districts have already been struck by four earthquakes in just 31 hours after the first one on Friday morning.

At least 10 people were killed and hundreds were injured after a powerful 5.7-magnitude earthquake jolted Bangladesh on 21 November, damaging multiple buildings in Dhaka and other districts.​

 

[Saif]

newagebd.net/post/power-energy/283671/experts-say-energy-security-is-a-must-for-industrial-development

Experts say energy security is a must for industrial development
Staff Correspondent 29 November, 2025, 23:25

Experts on Saturday said energy security is the key to sustainable industrial development and drafting a robust ‘Industrial Energy Efficiency Policy’ is critical to ensure sustainable industrial competitiveness.

They also said that Bangladesh has been facing a substantial performance gap in energy utilisation when compared to international standards and indicators.

Improving energy efficiency, particularly in the industrial sector, the country’s largest energy consumer, would offer the most viable solution to bridge the gap between ambitious energy targets and current realities, they added.

They were speaking at a seminar titled ‘Bangladesh Industrial Energy Efficiency Policy: A Draft for Sustainable Progress’, organised jointly by the Dhaka Chamber of Commerce and Industry and the South Asian Network on Economic Modeling, at the DCCI Auditorium in the capital.Dhaka real estate

At the discussion, professor Selim Raihan of the University of Dhaka, the executive director of SANEM, delivered the keynote.

He said that Bangladesh is in the 83rd position among 126 countries at the Energy Trilemma Index by the World Energy Council, which is measured by the performance on energy security, energy equity, and environmental sustainability.

Moreover, the World Economic Forum (WEF) recently assessed 120 countries worldwide on their decarbonisation efforts and ranked them in the Energy Transition Index, where Bangladesh ranked 109th.

‘Despite the existence of high-level frameworks like the Energy Efficiency and Conservation Master Plan 2016 and the Integrated Energy and Power Master Plan 2023, Bangladesh lacks a dedicated regulatory policy for energy efficiency,’ he added.

He also said that energy efficiency is not clearly or uniformly defined for industrial applications; as a result, industries are not uniformly incentivised to adopt energy-efficiency practices.

He also said that through focused group discussions and key informant interviews of business leaders as well as government stakeholders, they identified some focused areas including energy efficiency awareness, energy auditing, energy conservation, financing and incentives, stakeholder collaboration, grid modernization, and enforcement and communication.

In his welcome remark, DCCI president Taskeen Ahmed said that ensuring an uninterrupted energy supply to Bangladesh’s industrial sector has become a major challenge, severely hampering production, investment, and overall economic growth.

He also said that although the industrial sector contributes over 35 per cent to the country’s GDP, it is alarming that this large sector, representing 19 per cent of the country’s total gas consumers, is currently facing an existential crisis.

He said that after the record 178 per cent gas price hike in financial year 2023-24, the recent additional 33 per cent increase in gas prices has reduced the production capability of textiles, steel, and fertiliser sectors by 30 per cent–50 per cent.

Moreover, due to this surge in gas prices, many SMEs have been compelled to significantly scale down their operations.

Under such circumstances, he said that ensuring an uninterrupted energy supply and policy priority are a must for sustainable industrialisation.

He also emphasised on reducing dependence on fossil fuels, expanding the usage of renewable energy, establishing a detailed sustainable energy framework and preventing wastage to save the country’s industrial sector and economy.

In his speech as the chief guest, Jalal Ahmed, chairman of the Bangladesh Energy Regulatory Commission, said that although experts have often warned that Bangladesh would no longer have domestic gas reserves after 2030, there has been no significant progress in either offshore or onshore gas exploration.

‘As a result, the country is unable to utilise its own gas resources rather depends heavily on imported gas,’ he added, saying that as the energy sector is deeply interconnected with the entire economy, the government continues to provide subsidies in this sector.

He also said that the current efficiency level in the energy sector is around 30 per cent, and the overall shortages, particularly in the electricity sector, could be significantly reduced by improving this.

‘If the RMG sector prioritises renewable energy use, the situation could improve more rapidly,’ he added.

M Rezwan Khan, chairman of the Power Grid Bangladesh PLC, said that without revising the existing tariff structure, the ongoing problems of this sector cannot be resolved.

He also said that electricity tariffs must be differentiated between peak and off-peak hours.

There is a common misconception that flaws in the electricity supply system are responsible for load shedding; however, he clarified, a major cause of electricity shortages is the government’s insufficient funds for fuel purchases.

Manwar Hossain, chairman of Anwar Group of Industries, said that the government must prioritise the supply of electricity to industries, as inadequate energy supply is causing nearly 50 per cent production disruption, which is very alarming for the economy.

Mohammed Amirul Haque, president of the Bangladesh Cement Manufacturers Association, said that the LPG sector could play an effective role in ensuring country’s energy security.

‘However, instead of financial incentives, the sector faces nearly 10 per cent taxation, which the government needs to reconsider,’ he added.

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association, said that despite declining gas production, demand continues to rise, and the country’s energy demand is increasing by 20 per cent annually.

He said that although Bangladesh has supportive policies, the implementation situation is not promising.

‘Since 50 per cent of the country’s electricity is used in industries, mandatory energy audits are essential,’ he added.

Vidiya Amrit Khan, vice president of the Bangladesh Garment Manufacturers and Exporters Association, said that renewable energy contributed only 4 per cent to the national grid, which is concerning since global buyers place high importance on sustainability.

She also said that although green funding is available for buildings, such support is absent for renewable energy, and financing in the energy sector remains extremely difficult.

SM Monirul Islam, deputy CEO of IDCOL, said that gaps in implementing existing policies are exacerbating the challenges in the industrial sector.

He emphasised the need to introduce green bonds to ensure adequate financing.

Selim Raihan recommended that the government introduce diploma and certification programs at educational institutions, encourage standardisation, enhance technological support, and establish a central data repository system.

He also urged solving the challenges relating to audits, financing and incentives, grid modernisation, and resolving sector-wise challenges.​

 

[Saif]

Correlation between energy crunch and industrial production

Energy consumption has historically been a vital indicator of robust economic activities and improved living standards. But when this input turns irregular and insufficient, driving up its costs to an outrageous level, the manufacturing sector can hardly be sustainable. Bangladesh, according to sea

thefinancialexpress.com.bd

Correlation between energy crunch and industrial production

Published :
Dec 01, 2025 23:54
Updated :
Dec 02, 2025 01:32

Energy consumption has historically been a vital indicator of robust economic activities and improved living standards. But when this input turns irregular and insufficient, driving up its costs to an outrageous level, the manufacturing sector can hardly be sustainable. Bangladesh, according to seasoned business leaders and expert economists, is right now in such a crisis. Industries built a few decades ago were told by political leaders leading the country that the country was floating on natural gas, a comparatively cheap source of energy. But now the projection is that by 2030, the country will exhaust its gas reserves completely. At a parley titled, "Bangladesh Industrial Energy Efficiency Policy: A Draft for Sustainable Progress" participated by business leaders and economists, speakers made it amply clear that outrageous pricing of gas has compelled some industries to slash production and a few others turned completely non-viable. Production in the country's major sectors including textiles, steel and fertilisers has declined by 30-50 per cent.

This is depressing news. Gas price hiked, as claimed by the DCCI president, by 178 per cent in January 2023 has recently been subjected to yet another price escalation by 33 per cent. Intriguingly, small, cottage and some other industries in the SME sector saw the highest ever increase in gas price, with the prices surging to Tk 30 a cubic meter from Tk 10.78. Naturally, production in several industrial units has either stagnated or was forced to suspend. Once moribund, the textile industry here got a new lease of life on account of the flourishing readymade garment (RMG) industry. In fact, it turned out to be a backward linkage industry to the latter. There are several manufacturing units, other than textile, that need natural gas for operation and started thriving, courtesy of the RMG. Now if the vital input, gas that is, is in short supply, there is a negative chain reaction in the industrial sector.

The withdrawal of subsidy has made gas costly. But now the country's overwhelming dependence on imported liquefied natural gas is also a vulnerable factor for industrial slump. At a time when the international fossil fuels' market is down by 15 per cent, the domestic prices in Bangladesh have no reflection of this price fall. Crude oil spot price drops by 15 per cent globally and the projection is that gas price too could fall by 15 per cent over the next five years. This is likely to go in Bangladesh's favour but the problem here is that prices here hardly match the global level, particularly when the market value is down.

The Bretton Woods institutions' recipe for subsidy withdrawal in underdeveloped countries is not always suitable. Bangladesh has to swallow the bitter pills because it had hardly any better option when it was desperately running short of funds. The country's industrial base is not large enough and therefore cannot defy the recipes suggested by the International Monetary Fund (IMF) and the World Bank (WB). Where the country grossly failed is the exploration of natural gas---either onshore or offshore. It should have developed the Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) as a highly efficient entity to explore at least its onshore gas reserves, if not the offshore ones. The energy crunch now threatening to deal a grievous blow to its industries could be avoided.​

 

[Saif]

newagebd.net/post/country/284292/gas-mining-by-local-cos-falls-quickly

Gas mining by local cos falls quickly
Decline sharp over past 16 months, experts for more timely investments

Shakhawat Hossain 06 December, 2025, 00:21

The overall natural gas production by companies under the Bangladesh Oil, Gas and Mineral Corporation — or, Petrobangla — has fallen around 15 per cent over the past five years, with more than 8 per cent in the past 16 months alone because of lack of timely investment.

Experts said that the fall had accelerated because of lacklustre drilling efforts and investment in most part of the past one and half decades to find new wells by the local companies under the Petrobangla.

Gas exploration from a well takes several years after the discovery, according to experts.

Abortive attempts to attract international oil companies to drilling the potential off-shore blocks in the Bay of Bengal have also been attributed to discouragement in production of gas from the local sources.

On December 3, 2025, Petrobangla subsidiaries — the BAPEX, the Bangladesh Gas Fields Company Limited, and the Sylhet Gas Fields Limited — generated 708 million cubic feet gas per day.

The amount was 776.6 mmcfd on August, 8, 2024, when the current interim government assumed power, three days after the Awami League regime was ousted in a mass uprising on August 5, 2024, said Petrobangla officials.

On August 8, 2020, the local companies generated 833.4 mmcfd, they further said.

Since 2010, the local companies have received some Tk 8,000 crore for exploratory activities, said Petrobangla officials.

Of the amount, Tk 6,832 crore was allocated between 2020 and 2023 when the gas exploratory work on 50 wells was undertaken, they said.

But the exploratory work was inadequate as it was mostly linked to the maintenance of old wells, said Ijaz Hossain, a former dean of engineering at the Bangladesh University of Engineering and Technology.

Only 5 new wells were among the lot, he said.

The production of gas by international oil companies has, meanwhile, remained static over the past five years at around 1,100mmcfd on average.

The sharp decline in the production of domestic companies has been met up by the Petrobangla through the import of liquefied natural gas that has become the second biggest source of gas ahead of local companies.

The current Petrobangla collection stands at 2644.7mmcfd — local companies 708 mmcfd, IOCs 1045.1 mmcfd and LNG 891mmcfd — against the demand for around 4,000mmcfd hampering the production of power, fertiliser, and private manufacturing industries.

The gas exploration by the domestic companies has not been pursued with the seriousness it deserved, said Badrul Imam, an honorary professor of geology at Dhaka University,

Referring to the misuse of the gas development fund for importing LNG in 2023, experts highlighted the flawed policy of suppressing gas production by the local companies.

Experts said that the lack of seriousness had also been visible with the current government.

On December 1, the executive committee of the National Economic Council in a meeting approved a project titled ‘Drilling of Three Exploration Wells (Srikail Deep-1, Mobarakpur Deep-1 and Fenchuganj South-1)’ at a cost of Tk 1,136.25 crore, which is expected to be implemented by December 2027.

This is part of the Petrobangla plan to drill around 100 wells between 2025 and 2028 by contractors to be selected through open tenders.

On September 17, the ECNEC approved a project linked to the procurement of a high-capacity drilling rig for the BAPEX under a gas exploration project worth Tk 577 crore.

Petrobangla officials said that around half a dozen projects linked to increasing gas production had already been approved under the current interim government with more in the pipeline.

Refereeing to a calculation in the past November by the Petrobangla, BAPEX information and communication technology and planning head Mohammad Moinul Hossain said that 143mmcfd gas would be added to the national gas grid by the domestic companies at the completion of expletory works on 11 wells.

Badrul Imam said that more funding was needed for increasing gas production by local companies.

He said that energy policymakers were more focused on imports.

Available data show that the country spent an estimated Tk 40,752 crore on the LNG imports in the 2024-25 financial year, pushing up the overall tally to around Tk 2,00,000 crore since the financial year 2018-19.

Shamsul Alam, energy adviser of the Consumers Association of Bangladesh, said that the interim government had failed to bring about major changes to the energy sector structure built by the Awami League government.

On November 18, the advisory council committee on government purchase approved a proposal to import 49th cargo of LNG from the spot market in the current calendar year.

The country imported 30 cargoes of LNG in 2024.​

 

[Saif]

Energy efficiency is Bangladesh's invisible power plant

Every unit of energy saved carries more value than one produced, because imported fuel travels long distances, accumulates technical losses and costs the country twice over. A kilowatt hour conserved at the source prevents the need for two kilowatt-hours of costly generation later. The Internationa

thefinancialexpress.com.bd

Energy efficiency is Bangladesh's invisible power plant
Mohammad Iftekharul Islam

Published :
Dec 06, 2025 22:09
Updated :
Dec 06, 2025 22:09

A view of Payra Power Plant in Patuakhali, Bangladesh —Xinhua Photo

Every unit of energy saved carries more value than one produced, because imported fuel travels long distances, accumulates technical losses and costs the country twice over. A kilowatt hour conserved at the source prevents the need for two kilowatt-hours of costly generation later. The International Energy Agency calls efficiency the first fuel for good reason. Bangladesh is learning this truth as electricity tariffs rise repeatedly, global LNG prices fluctuate sharply and load shedding continues despite record installed capacity. The fastest, cheapest and cleanest power station is the one that never needs to be built.

BANGLADESH'S ENERGY PARADOX: Although the Bangladesh government has extended electricity access to almost every household and built numerous power plants, blackouts still happen. Generators are forced to burn costly diesel and factories shift work hours to catch up with power cuts. Despite having surplus capacity and fuel reserves reportedly above planning norms, many plants sit idle from shortages or repair delays, leaving homes and businesses in the dark. This imbalance costs a great deal. The government pays large sums to keep idle plants on standby, covers subsidies to hold prices down and spends heavily on fuel imports that rise and fall with global markets.

The Integrated Energy and Power Master Plan (IEPMP 2023) is the latest major national document for energy policy. It shows that the country is becoming increasingly dependent on liquid natural gas (LNG), whilst peak demand is expected to rise several times more by 2041-2050. Without a concrete plan, LNG and coal imports will keep rising, exposing the economy to exchange and price volatilities. Bangladesh has been able to add megawatts of capacity, but not enough efficiency, grid performance, or demand-side management to use that capacity well.

VALUE OF EFFICIENCY AND THE PRICE OF NEGLECT: Efficiency reduces emissions and strengthens energy security faster than any other option, and in Bangladesh its benefits multiply. Beyond economics, efficiency directly cuts carbon emissions and local air pollution, reducing the need for new coal or LNG plants that would lock in decades of emissions. Each avoided megawatt-hour is also a step towards Bangladesh's climate commitments under the Paris Agreement.

Each unit saved means less imported fuel, less grid strain, and fewer subsidies. An IEEFA analysis finds that a 1 per cent reduction in transmission and distribution losses alone would save 884 GWh without building anything new. Studies by development partners show that the country could reduce a large share of its energy demand by 2030 with proven steps. Savings in primary energy up to 14.3 per cent can be achieved through appliance standards, building codes, industrial upgrades and loss reductions.

By replacing old motors and boilers with efficient models, factories can recover wasted heat and improve power quality. Homes and offices can lower demand through implementation of appliance standards and building codes. The ADB's Industrial Energy Efficiency Finance Programme shows that such retrofitting can achieve 15-40 per cent savings in factories from textiles to cement, with simple payback periods of 2-4 years.

Because most of these actions pay for themselves within a few years, they are vital for competitiveness at a time when exporters already face rising costs and shrinking margins. One of the most feasible ways to stay competitive is to use less energy for each unit of output. Countries such as India and Vietnam treat efficiency as part of production itself, not as an afterthought, and that has made their industries stronger. Yet the opposite is equally true: ignoring efficiency increases fiscal stress, worsens emissions and weakens competitiveness.

The fiscal impact is clear: subsidies remain high as the government pays large sums to keep idle plants on standby. The environmental cost is just as heavy. Inefficient plants and grids burn more fossil fuel for the same output, worsening urban air quality and greenhouse gas emissions.

The effect extends to businesses too. Small and medium firms lose output during load shedding, whilst large exporters warn that unreliable power delays deliveries and raises costs. When companies hold back on importing new machinery because the energy outlook looks risky, they stay stuck with old equipment. That essentially means burning more fuel than necessary.

The waste carries a wider cost as well. Money spent to cover inefficiency cannot go into roads, skills, or new clean energy that could reduce import dependence over time. Efficiency is not separate from the clean energy transition. It is the entry point that makes the transition affordable.

WHAT OTHERS DID RIGHT (AND WHAT WE CAN ADAPT): Bangladesh does not need to start from zero. India introduced the Perform, Achieve and Trade scheme, which set clear targets for large energy users and allowed companies that beat their goals to trade savings with those that fell short. The first rounds delivered 8.67 million tonnes of verified savings at a relatively low cost. The Vietnamese government required large energy consumers to carry out mandatory energy audits every three years and supported pilot contracts with energy service companies. It also launched a national programme with measurable goals for energy savings by 2030.

Singapore focused on buildings. It strengthened codes for new buildings and then required the largest existing buildings to carry out mandatory improvements. Finance and certification were tied together through the Green Building Masterplan, which gave credibility and support to investors and owners. Germany experimented with competitive tendering, funding the cheapest verified kilowatt-hour saved rather than the most glamorous new power plants or energy related projects. All of these approaches are founded on three core principles: efficiency must be measured, it must be made attractive to investors, and it must be enforced to ensure lasting results.

A ROADMAP AND RESULTS FOR BANGLADESH: Progress so far has been held back less by technology than by institutions. Efficiency responsibilities sit across several ministries with weak coordination and enforcement, whilst utilities lack incentives to cut losses when subsidies cover shortfalls. Access to affordable finance for small and medium firms remains limited, slowing upgrades that would pay for themselves.

For Bangladesh to treat efficiency as the first fuel, as the IEA mentioned, efficiency must stand as a headline policy. IEPMP treats it as one action amongst many, but Bangladesh needs explicit targets for savings across industry, commerce, households and utilities. Annual reductions for large designated consumers, minimum standards for appliances, and clear loss reduction goals for distribution companies should form the core. Baselines and dashboards must make progress visible.

Energy audits should become routine, with large consumers publishing verified results and utilities filing loss audits with corrective plans. Licensing and access to concessional finance should depend on compliance. Finance must flow easily for efficiency. Financial institutions like Infrastructure Development Company Limited (IDCOL) and local banks can expand green credit lines that mix concessional capital with technical support. Risk guarantees and standard contracts can help Energy Service Companies (ESCOs), whilst tax credits or accelerated depreciation can reward firms that install certified high-efficiency equipment.

Competitive tenders can reward projects that deliver verified energy savings at the lowest cost, allowing the government to buy the cheapest kilowatt-hours saved rather than build new generation. A local version of Germany's STEP Up! scheme could invite bids for verified kilowatt hours saved, funding the lowest-cost projects first. Grid modernisation and demand management must move together. Advanced metering, feeder upgrades and data platforms can cut technical losses, whilst time-of-use tariffs and rooftop solar linked with storage can shape demand.

Export competitiveness also depends on efficiency. The RMG sector's green certification shows how lower energy intensity and clean energy adoption can help firms keep orders. Finally, pricing must reflect cost, but fairness requires protection. Cash transfers for vulnerable households and low-cost loans for retrofits can make the transition just.

If Bangladesh treats efficiency as a core energy source, it is possible to quickly achieve three results. Load shedding falls without new plants when demand drops through end-use savings and lower network losses.

Foreign exchange outflows also shrink. Efficiency in gas-fired captive power and better use of waste heat could cut LNG imports by 50.18 billion cubic feet and save about 460 million dollars a year. Those savings help the external balance.

Public spending falls as well. Using existing plants more effectively reduces the need for subsidies and lowers payments to idle capacity. In FY2022-23 alone, capacity charges were about $2.2 billion, and estimates for FY2023-24 placed the figure near $2.7 billion. Over 14 years, total capacity charges exceeded $8.5 billion. Cutting losses and shifting demand would also reduce the subsidy burden by roughly $1.2 billion per year under an IEEFA reform package.

Bangladesh faces a choice. It can continue to rely on costly and unstable fuel imports whilst paying for power plants that sit idle. Or it can make the system smarter and fairer by treating energy efficiency as the country's invisible power plant. That requires clear national targets, strong enforcement, easy access to finance and tariffs that reward saving energy. Results must be measured and published so progress is visible and the benefits are recognised. Each kilowatt hour not consumed is a success. Each garment made with less energy strengthens competitiveness. Each utility that cuts losses reduces the need for subsidies. Each household that saves power sees lower bills and a better quality of life.

The fastest relief for bills, blackouts and the balance of payments is already in our hands. It is time to switch on the power we do not have to build.

The writer is an economics graduate working as a Research Associate in South Asian Network on Economic Modelling (SANEM).​

 

[Saif]

Gas exploration still not on priority agenda

A DECLINE in gas production by 15 per cent in five years, with more than 8 per cent having happened in the past 16 months, is worrying. Experts say that the decline has accelerated because of lacklustre drilling efforts and an absence of investment for about a decade and a half even as the...

www.newagebd.net

Gas exploration still not on priority agenda

A DECLINE in gas production by 15 per cent in five years, with more than 8 per cent having happened in the past 16 months, is worrying. Experts say that the decline has accelerated because of lacklustre drilling efforts and an absence of investment for about a decade and a half even as the authorities struggle to supply gas to industries and households. Many industries, mainly export-oriented textile, ceramic, knitting and apparel, are also reported to be in a difficult situation so much so that production in most factories has almost halved because of the continued gas shortage in recent times. All this suggests that the government has hardly given any attention to issues of gas exploration by local companies. What is further worrying is that the government is more keen on meeting the shortage through import, as the Awami League government, which fell amidst a mass uprising in August 2024. Gas production on December 3 stood at 708 million cubic feet a day, while the production on August 8, 2024, when the interim government assumed office three days after the fall of the Awami League government, was 776.6mmcfd. Gas production on August 8, 2020, however, stood at 833.4mmcfd.

The management of gas production is neither a short-run nor even a medium-run affair. Gas extraction from a well takes several years after discovery. Experts and the media have for long talked about strengthening Bangladesh Petroleum Exploration and Production Company Limited, or Bapex, to drill wells for hydrocarbon exploration. The domestic wells that meet the demand now were discovered in the 1960s–1990s. The government had plans to drill 108 wells in 2016–2021, but the plans remained on paper. After the gas crisis surfaced in 2022, the government had plans to increase domestic gas production by digging 46 wells by 2025, but the plans have never taken off. Local companies have received Tk 80 billion for exploration since 2010, and Tk 68.32 billion of the amount was allocated in 2020–2023 for exploration in 50 wells. But the exploratory work was inadequate and was mostly related to the maintenance of old wells. The work, overall, included only five new wells. With production by international oil companies having been static, on an average, at 1,100mmcfd for five years, the government leaned towards liquefied natural gas imports from the spot market. Data show that the authorities spent an estimated Tk 407.52 billion on liquefied natural gas imports in the 2025 financial year, pushing up the overall amount to about Tk 2,000 billion since the 2019 financial year.

The government may tie some loose ends to improve supply in the short run, but it should take long-run measures, with increased efficiency and further investment, for a lasting solution to gas production problems.​

 

[Saif]

Pledges for increased use of renewable energy and Bangladesh reality

This year's COP30 failed to reach a consensus on finalising roadmaps and timeframe to phase out fossil fuel. However, UN member countries have been submitting their own Nationally Determined Contributions (NDC) targets for reducing Greenhouse Gas (GHG) emission. Bangladesh has submitted its NDC rep

thefinancialexpress.com.bd

Pledges for increased use of renewable energy and Bangladesh reality

Mushfiqur Rahman
Published :
Dec 10, 2025 23:07
Updated :
Dec 10, 2025 23:07

This year's COP30 failed to reach a consensus on finalising roadmaps and timeframe to phase out fossil fuel. However, UN member countries have been submitting their own Nationally Determined Contributions (NDC) targets for reducing Greenhouse Gas (GHG) emission. Bangladesh has submitted its NDC reports and voluntarily offered to reduce GHG emission and increase renewable energy use. As per the NDC targets Bangladesh pledged to increase its share for electricity generation from renewable sources and reduce its reliance on fossil fuel use. The Renewable Energy Policy, 2025, Bangladesh targets to meet 20 per cent electricity demand within 2030 and 30 per cent within 2040 from renewable energy sources. As per International Renewable Energy Agency report (2024), India meets 24 per cent electric energy demands from renewable energy sources, Pakistan 17.16 per cent, Sri Lanka 39.7 per cent respectively. Published reports suggest that India has installed (as on March 2025) a total renewable energy generation capacity to 220.10 GW. Despite the rise of renewable energy share in India, rise of clean source-based energy utilisation remains slow due to its lower capacity utilisation, restrictions in the electricity grid and the constraints for battery storage facilities. India's baseload electricity demand is largely met by coal fired power (up to 75 per cent of the country's energy mix). China, on the other hand, is expected to reach 1,200 gigawatts (GW) target by 2025 and has pledged to attain 1,000 GW of solar power by 2026. Fossil fuel-based electricity generation now contributes less than 50 per cent of China's total installed power generation capacity. Published reports further suggest that 'in the next and every subsequent five-year plan, China made strategic investments in all aspects of renewable technologies, from solar and wind capacity, green hydrogen, and geothermal projects to reach and investment in battery storage and its supply chains'.

Bangladesh is far behind the South Asian neighbours in terms of commercial use of renewable energy. However, before the COP30 a disappointing picture in terms of NDC report submissions from the UN member countries was reported. The analysis of submitted 64 NDC reports (from the respective member countries from within 295 UN member countries) suggests that if the targets in the reports are attained, global emission might decline only 17 per cent by 2035 (compared to 2019 level). But the major GHG emitting countries have not submitted updated NDC reports. The United States have withdrawn from COP process and did not send its official representatives to COP30 UN Climate Conference in Brazil. The previous COP conferences (global climate change summits) had set net-zero targets and roadmaps for maintaining atmospheric temperature levels at 1.5 degree celsius. From that said roadmap, it is clear that a 60 per cent reduction of GHG emission within 2025 will be necessary to achieve net-zero targets. However, NDC targets will remain valid at the centre of global climate crisis. Surely, there is no alternative to securing sufficient investments for keeping the global atmospheric temperature level within 1.5°c alive.

Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh suggests only 5.38 per cent (or 1689.71 MW) renewable energy share for electricity generation mix has been installed in Bangladesh. Among the renewable energy sources, solar energy's share remains dominant (on-grid 1019.45 MW and off-grid 377.17 MW). Installed capacity of on-grid hydro electric generation capacity is 230 MW and wind Energy (on-grid) 62MW only. On the other hand, coal accounts for 22.97 per cent (7,179 MW); natural gas (including imported LNG) 39.45 per cent (12,384 MW); furnace oil 18.75 per cent (5,885 MW); high sulfur diesel 0.92 per cent (290 MW); imported electricity (1,160 MW) and captive power generation 8.92 per cent (2800 MW).

Bangladesh has limited scope to diversify electricity generation from various clean and renewable sources. Solar energy has been the major contributor in renewable energy-based electricity generation. On the other hand, utility scale electricity generation in a sustainable way demands significant land (one megawatt electricity generation demands approximately three acres of land with the present technology). Some experts argue that the land constraints may be offset by allocating one per cent of agriculture land for solar power generation in Bangladesh. They further argue that one per cent of the country's land allocated for solar power generation may help generate approximately 50,000 MW electric power. The shortfall of agriculture (due to allocation of land for solar power generation facilities development) may be substituted by imports. Bangladesh fails to reduce a considerable amount of loss and damage of crops due to lack of poor conservation and adequate storage facilities. Also, Bangladesh has been losing annually approximately one per cent of agricultural land because of unplanned urbanisation and various development activities. Careful monitoring and advance management of land and agricultural crop conservation may improve better use of land in the country. At the same time, expansion of solar and renewable energy generation may contribute to improved environment and climate change induced crisis in the country.

Government's initiative to generate additional 2,000-3,000 MW solar power using rooftop spaces of the government buildings, educational institutes and hospitals (the interim government has taken initiatives to generate 1,454 MW electricity using roof top spaces within February 2026) have been progressing slow due to lack of investors' confidence. A recent survey report carried out by the non-government think-tank CPD informed that the relevant agencies of the government invited tender for installation of 55 solar power plants in the country. But the response was very poor (response received only for 22 sites for installation of solar power plants) as the potential investors were hesitant due to unresolved risks, rigid price offer, weaker incentives. President of the Independent Power Producer's Association, David Hasnat was critical about the rate of power purchases offer for the tendered sites putting forward his own arguments. He suggested to consult with the investors prior to declaring government policies for renewable energy development in the country.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues.​