[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt should hold power-sector foul players to account

TWO major coal-run power plants — the Rampal power plant owned by a joint venture of Bangladesh’s state-owned Power Development and India’s state-owned National Thermal Power Corporation and the Payra plant owned by a joint venture of...

www.newagebd.net

Govt should hold power-sector foul players to account
30 March, 2025, 00:00

TWO major coal-run power plants — the Rampal power plant owned by a joint venture of Bangladesh’s state-owned Power Development and India’s state-owned National Thermal Power Corporation and the Payra plant owned by a joint venture of Bangladesh’s state-owned North-West Power Generation Company Ltd and China’s state-owned China National Machinery Import and Export Corporation — having blown up their bill by Tk 41.25 billion, as a Power Development Board assessment has found, is worrying. Rampal, owned by the Bangladesh-India Friendship Power Company Ltd, has inflated the bill by Tk 24.78 billion for the 2024 financial year and Payra, owned by Bangladesh-China Power Company, by Tk 15.34 billion for the period of May 2020–June 2023. The overbilling was found when the Power Development Board prepared the assessment in September–November 2024 after the Awami League, which had governed the country in an authoritarian manner for more than a decade and a half, was overthrown in a mass uprising in August that year. There had been no objective evaluation of the financial deals of the power plants during the Awami League’s tenure, when 124 power plants were set up, all in an unsolicited manner.

Eighty-seven privately-owned and two joint-venture power plants, involving the state-owned Power Development Board, were set up during the tenure of the Awami League that have burdened the power board with an overall loss of more than Tk 860 billion. Energy experts say that the findings show how deep the root of financial scams in the power sector is. The case is more serious with private power plants as the producers have had a free rein to do what they liked during the Awami League’s tenure. The Power Development Board on November 21, 2024 notified Bangladesh-India Friendship Power Company of eight discrepancies in its 2023–2024 financial account. The over-billing includes a mismatch of Tk 8.86 billion in energy payment and a mismatch of more than Tk 5.63 billion in return on equity. Bangladesh-China Power Company has submitted an audited account of Tk 218.66 billion in capacity and energy payment for three years since the power plant’s initial operation began on May 15, 2020. The billing demanded more than Tk 75.22 billion in capacity payment, which the power board finds to have been blown up by more than Tk 13.33 billion. Such over-billing appears to have strained the power sector.

The government should, therefore, hold to account the quarters within and outside the public agency for the over-billing in the cases at hand. It should also investigate cases of other power producers to see if there are any issues therein. Finally, it should put in place a mechanism to stop recurrence of such malpractice.​

 

[Saif]

Pressure on govt to allow operation, risking capacity payment

Now pressure builds on the interim government to approve commercial operation date (COD) of a third large LNG-fired power plant at Meghnaghat although the current infrastructure lacks ability to keep it operational alongside already-approved two such plants. The past Awami League governmen

thefinancialexpress.com.bd

Japan's JERA-acquired gas-fired Meghnaghat plant
Pressure on govt to allow operation, risking capacity payment
Two others already on stand-by there for constraints

M AZIZUR RAHMAN
Published :
Mar 30, 2025 00:22
Updated :
Mar 30, 2025 00:22

Now pressure builds on the interim government to approve commercial operation date (COD) of a third large LNG-fired power plant at Meghnaghat although the current infrastructure lacks ability to keep it operational alongside already-approved two such plants.

The past Awami League government had previously approved the two similar unsolicited power plants at the Meghnaghat site -- and under contracts that provide for the much-talked-about capacity payment from the exchequer even if no power is produced or purchased.

After several failed attempts by the Meghnaghat 718-megawatt power-plant owner, Japanese energy-biggie JERA, to attain a COD, the Ministry of Economy, Trade and Industry of Japan recently wrote to adviser Muhammad Fouzul Kabir Khan of the Ministry of Power, Energy and Mineral Resources (MPEMR) to have the COD fixed at the earliest, said sources.

They said the incumbent government is now obligated to approve the COD risking the state-run Bangladesh Power Development Board (BPDB) to count capacity-payment burdens although the power board subsequently won't be able to take electricity for supplying to consumers due to the country's perennial gas crisis and pipeline bottlenecks, market insiders said.

"It is the burden left by the previous authoritarian Awami League government that awarded numerous power plants under unsolicited deals without considering feasibility," a senior BPDB official told The Financial Express.

Most of these power plants were awarded on the basis of unsolicited offers under the now-defunct Speedy Supply of Power and Energy (Special Provision) Act 2010 which had a provision of immunity to those involved with the quick-fix remedies.

State corporation Petrobangla, which was 'made to commit' supplying natural gas to the gas-fired power plants, doesn't have sufficient gas to run the existing gas-fired power plants, says a senior Petrobangla official.

Petrobangla is currently being able to supply only half of the volume of gas required for feeding the gas-guzzling power plants, to the tune of around 1,034 million cubic feet per day (mmcfd), against a total requirement of 2,420 mmcfd, according to official data as on March 24, 2025.

"JERA has already completed all necessary work and is awaiting the opportunity to conduct the final commissioning test, which requires about 10 days' gas supply. However, they have been on hold for more than two and a half months for the commissioning of the final test," the METI letter reads.

The letter is signed jointly by Shirai Toshiyuki, director of international affairs division, agency for natural resources and energy of the MRTI, and Shimano Toshiyuki, director of South East Asia office of Trade Policy Bureau of the METI.

"Further delays in gas supply would incur additional cost for the project and undermine its effectiveness. This type of negative information can spread quickly among investors and dampen their sentiment towards Bangladesh," says the METI letter.

JERA acquired the Meghnaghat 718-MW power plant from Indian conglomerate Reliance and carried out a test run of its power plant in late October but did not get sufficient natural gas to initiate operation.

Since 2019, according to market insiders, the Japanese firm, JERA, has invested $1.0 billion in the project.

The Japan Bank for International Cooperation, a Japanese private development bank like JICA, and the Asian Development Bank have investments in the 718-MW JERA Meghnaghat Power Limited.

Japanese Mizuho Bank, SMBC, MUFG and Societe Generale-all backed by the Nippon Export and Investment Insurance-also invested in the project.

The project has secured major equipment from General Electric (GE), and Samsung C&T Corporation built the power plant as engineering, procurement and construction (EPC) contractor.

When contacted, Smitesh Vaidya, head of contracts & commercial at JERA Meghnaghat Power Ltd, said, "The power plant is just a few days away from achieving commercial operations, subject to uninterrupted gas supply.

"The project has been strongly supported by JERA as sponsor as well as by development- finance institutions, including the Asian Development Bank and the Japan Bank for International Cooperation."

He adds: "We had requested support from the ministry and the BPDB to ensure the COD of the project by the end of December 2024."

He assures that they look forward to making "a significant contribution to the Bangladesh power grid through the state-of-the-art technology, highly efficient turbines and competitive tariff".

Although the project has yet to get COD due to inadequate gas supply, two adjacent gas-fired combined-cycle power plants (CCPPs) -- Summit's Meghnaghat 589-MW CCPP and Unique Meghnaghat 584-MW CCPP -- attained CODs during late April and late January respectively last year.

But, due to gas scarcity and pipeline constraints, both these two power plants are kept idle, mounting a capacity burden on the BPDB.

Sources said the BPDB inked a power-purchase agreement (PPA) in 2019 to buy electricity from the 718-MW plant for 22 years at a levelised tariff rate of 7.3123 US cents (Tk 5.84) per kWh.

State-run Power Grid Company of Bangladesh (PGCB) could not construct six necessary substations, which is necessary for evacuating electricity from the three LNG-based power plants, located near Meghnaghat.

The power substations are unlikely to be readied before August, said sources.

Energy-expert Prof Mohammad Tamim accuses a vested-interest group of projecting inflated electricity demand on money-spinning motives.

"This resulted in the installation of power plants having more than required demand and entailing huge capacity payments," notes Mr Tamim, who was a former special assistant of a caretaker government.​

 

[Saif]

Solar power: Best energy source to bank on

The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distributio

thefinancialexpress.com.bd

Solar power: Best energy source to bank on
Wasi Ahmed
Published :
Apr 09, 2025 00:10
Updated :
Apr 09, 2025 00:10

The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distribution network through net metering. Each of the eight operational circles has been designated to generate 15 MW of solar power. To facilitate this, bids have been invited from international engineering, procurement, and construction (EPC) contractors to design, build, finance, operate, and maintain the systems. At a time when the global focus is shifting towards clean energy, this move is poised to significantly strengthen Bangladesh's energy sector. Moreover, DESCO plans to purchase electricity from the contractors at rates lower than the retail electricity prices set by the Bangladesh Energy Regulatory Commission (BERC), making it a cost-effective solution for sustainable power generation.

Bangladesh has been steadily advancing on solar power generation over the years. Currently, the country's total clean energy generation capacity stands at 1.558 gigawatts, with solar energy contributing 1.264 gigawatts. Notably, Bangladesh is a global leader in the adoption of Solar Home Systems (SHS), a vital segment of renewable energy that has been recognised as the world's largest off-grid renewable energy programme. According to a report by the Paris-based energy think tank REN21, as of 2020, more than six million SHS units and kits were operational worldwide, benefiting approximately 25 million people. Bangladesh alone accounts for over four million of these installations, making it the largest SHS market globally.

This achievement is a testament to the success of the SHS initiative. The Infrastructure Development Company Ltd (IDCOL) has played a pivotal role in spearheading this programme since its inception in 2003. This initiative has illuminated the lives of nearly 18 million people-approximately 12 per cent of the country's total population-which previously relied on kerosene lamps for lighting. The programme, supported by multiple donors, has proven particularly beneficial for inhabitants of isolated char areas and other remote locations where grid connectivity remains a distant dream. Currently, according to the Ministry of Power, Energy, and Mineral Resources, 2.86 per cent of the country's total electricity generation comes from renewable sources, including solar energy.

The REN21 report also highlights the crucial role of micro-credit schemes in expanding the SHS market in Bangladesh. The country's micro-credit model has enabled millions of households to adopt SHS, setting an example for other nations looking to develop decentralised renewable energy solutions. Furthermore, the rise of mini-grids and stand-alone systems, along with pay-as-you-go business models supported by mobile technology, has transformed energy access for many underserved communities.

The impact of SHS in off-grid areas is profound, though often underappreciated by those in urban regions. In the char, island, and haor areas, where conventional electricity access is nearly impossible, SHS has revolutionised daily life. Initially, many residents adopted SHS primarily for lighting. However, over time, the technology has facilitated economic transformation by enabling irrigation, small-scale industries, and other productive ventures. Small businesses, once inconceivable in these areas, are now thriving due to innovative solar-powered solutions.

As the momentum of SHS adoption continues, its expansion is expected to reach an even larger segment of the population. Currently, approximately 38 per cent of Bangladesh's population lacks access to electricity. While grid connectivity is increasing due to new power stations, a significant portion of the rural population will likely remain off-grid. This presents a crucial opportunity for SHS to bridge the electricity gap.

To fully capitalise on the potential of SHS, it is essential to support market expansion through strategic policy interventions. The existing mechanism has already demonstrated its benefits, and with the right measures, further progress is inevitable. However, challenges persist, particularly in balancing imports and local production. Domestic manufacturers are advocating for higher import duties on solar components to protect local investments. Policymakers must carefully evaluate the domestic manufacturing sector's ability to meet growing demand and maintain high quality. Achieving a sustainable balance between imports and local production will require close collaboration among stakeholders, including the government authorities, manufacturers, and energy providers.

Another pressing concern is the integration of solar power with national grid expansion. Reports indicate that in several rural areas, households that invested in solar panels are now facing uncertainty as grid connectivity is being introduced. A lack of coordination in government planning could lead to inefficiencies, resulting in financial losses for SHS users. To mitigate such challenges, a harmonised approach is necessary, ensuring that solar investments complement, rather than conflict with, national electrification efforts.

In conclusion, Bangladesh's progress in solar power adoption, particularly through the SHS initiative, is a remarkable success story in renewable energy.

With DESCO's new on-grid rooftop solar project and the ongoing expansion of SHS, the country is making significant strides towards a cleaner and more sustainable energy future. However, to maximise the potential of solar power, a well-coordinated strategy is essential-one that balances local production with imports, integrates SHS with grid expansion, and fosters innovation through supportive policies. If these challenges are addressed effectively, solar power will not only supplement Bangladesh's energy needs but also serve as a catalyst for economic and social transformation across the country.​

 

[Saif]

H&M, Pran, IFC join hands to promote renewable electricity in RMG sector

H&M Group, Pran Group and IFC teamed up to advance the agenda of renewable electricity in Bangladesh's readymade garment (RMG) sector. In this connection, the three organisations signed a memorandum of understanding (MoU) to further renewable electricity uptake in the RMG industry, according to a

thefinancialexpress.com.bd

H&M, Pran, IFC join hands to promote renewable electricity in RMG sector
The MOU paves the way for piloting the first Corporate Power Purchase Agreement in Bangladesh
FE REPORT
Published :
Apr 10, 2025 08:29
Updated :
Apr 10, 2025 08:29

H&M Group, Pran Group and IFC teamed up to advance the agenda of renewable electricity in Bangladesh's readymade garment (RMG) sector.

In this connection, the three organisations signed a memorandum of understanding (MoU) to further renewable electricity uptake in the RMG industry, according to a statement.

Energy secretary Muhammad Fouzul Kabir Khan was present at the event held on Wednesday at a session of Bangladesh Investment Summit 2025 held in a city hotel.

The MOU paves the way for piloting the first CPPA (Corporate Power Purchase Agreement) in Bangladesh, therefore creating the basis for advancing the legal framework that will enable a systematic reduction of the carbon emissions from this key industry of the country, added the statement.

It added that under this project, with financing from the IFC (International Finance Corporation) and the leading role of Pran RFL Group, H&M Group will connect a number of selected suppliers to a new solar park.

The innovative project will constitute the first off-site solar park that will utilise the grid transmission, reaching several RMG factories, that will immediately reduce their emissions.

Additionally, this project will further facilitate the path of the industry towards electrification.

In order to reduce greenhouse gas emissions, and reach the H&M goal to source 100 per cent renewable electricity in the supply chain by 2030, it is the key that H&M's suppliers have access to renewable electricity and solutions in a shift from fossil fuels.

And for this to be possible Corporate Power Purchase Agreements are a key reform. With CPPA, the factories can selectively buy from the grid the renewable energy, through specific contracts.

This will increase the options available today for suppliers. Indeed, there are at the moment limitations to procuring renewable energy: on-site solar projects are capped by the extent of the available rooftops and the portion of the grid that is renewable is at the moment very low (below 5 per cent).

Additionally, legal developments towards enabling CPPA will ensure the next steps of electrification, which is now proven to be the only possible systemic approach to reducing carbon emissions, added the statement.

"Finally, in this way the industry can diversify its fuel use, which today in Bangladesh is largely dependent on gas."

IFC has been involved globally to support the development of renewable energy aligned to IFC's climate commitments, while Pran Group is a pioneer in the area of renewable energy, it said.

H&M Group will support its suppliers’ connection to the project, therefore immediately supporting its commercial viability.

The participation of the Government at the signing ceremony will make sure that learnings of this project can support the next steps of Bangladesh authorities to make CPPA a reality in the country.

The shift towards renewable energy will be a key to maintaining the competitiveness of the RMG industry of Bangladesh, against changing regulatory environment that will require a reduced environmental footprint for products imported to the European Union markets and beyond, it added.

The statement quoted H&M regional country manager Ziaur Rahman as saying, "One of the major obstacles on our decarbonisation journey is access to renewable alternatives in our supply chain."

That is where most of the greenhouse gas emissions take place, and also where they need to find partnerships and industry-wide solutions, he said.

This MoU paves the way for Bangladesh to advance policy reforms and open up for future opportunities to connect the RMG industry with renewable energy generation.

Citing researches, the statement said the fashion industry is one of the highest emitting industries, responsible for between 5.0 per cent and 10 per cent of global emissions.

More than 60 per cent of a garment's climate impact happens during manufacturing, the so-called scope 3 emissions. The production of fibers, material processing, dyeing, and finishing necessitates a substantial amount of energy and relies heavily on various natural resources.​

 

[Saif]

Power producer to sell directly to consumer

Bangladesh is getting into the merchant power generation model for the first time with the signing of a memorandum of understanding between an electricity buyer and seller for a solar power plant. It is a model which allows a power producer to sell directly to the consumers.

www.thedailystar.net

Power producer to sell directly to consumer
MoU signed between H&M and Pran for floating solar plant

Yosef El Natour, head of sustainability for production at H&M; Vikram Kumar, director and regional industry head, infrastructure and natural resources for Asia Pacific at the International Finance Corporation, and Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group; sign the agreement during the third day of the ongoing Bangladesh Investment Summit at the InterContinental Dhaka today. Photo: Pran-RFL Group

Bangladesh is getting into the merchant power generation model for the first time with the signing of a memorandum of understanding between an electricity buyer and seller for a solar power plant. It is a model which allows a power producer to sell directly to the consumers.

Swedish multinational fashion retailer Hennes & Mauritz AB (H&M), Bangladesh's Pran-RFL Group and International Finance Corporation (IFC) signed the MoU Yesterday to build a floating solar power plant in Moulvibazar.

Speakers termed the development as a step towards fostering private sector collaboration for renewable energy in Bangladesh.

The MoU was signed on the third day of the Bangladesh Investment Summit 2025 at the InterContinental, Dhaka, during a discussion titled "Unlocking the Potential of Bangladesh for Investors in Renewable Energy".

Muhammad Fouzul Kabir Khan, power, energy and mineral resources adviser, said the government has opened the power sector business for all.

"You can now set up power plants on your own, avoiding red tape, and without seeing my face, and do business and make money," he told the potential investors who joined the summit.

He said the basic difference between the independent power producers (IPP) model and the merchant power producers (MPP) model is that the Bangladesh Power Development Board (PDB) will no longer be the single buyer of the electricity.

"You can now establish a power plant and sell it to the customers of your choice, at a price negotiated between you and the buyer. Only the wheeling charges will be required for the transmission and distribution facilities provided by the government agencies," he said.

Speaking as the keynote speaker, Fouzul said the IPP model has wasted a huge amount of public money over the years and made the electricity prices extortionary. "There was no competition, and there were deals made under the table which increased the power tariff and caused people to suffer. We are paying Tk 3,000 per capita subsidies only for this sector."

With the competitive procurement process, he said, it is possible to provide solar power at a price below the average electricity prices the customers have been paying, he said.

"We have used most of our proven gas reserves… With the current rate of gas extraction, the reserve will last for another eight to 10 years only," he said.

He urged investors to participate in the bidding process for establishing around 5,000 megawatts (MW) solar power plants across the country.

Michael Miller, ambassador and head of delegation of the European Union in Bangladesh, said, "We are committed to helping the interim government deliver reforms in line with the expectations of citizens and of businesses.

"We support a clean economic growth model, reducing carbon emission, enhanced with affordable, secure and clean energy… in return, we need Bangladesh to step up with renewable energy ambitions and to ensure an investment and trade-friendly environment," he added.

During a discussion after the MoU signing, Sarah Negro, global head of public affairs at H&M, said they need to move forward with renewable electricity generation.

"Only the rooftop solar options wouldn't meet our [suppliers] electricity demand. We will need 2,500MW solar just to cover the present use of electricity in our suppliers [garment factories]. Today's MoU wouldn't be able to meet our demand, it is only a start," she said.

Ahsan Khan Chowdhury, chairman and CEO of Pran-RFL Group, said they have 300 acres of water body in Moulvibazar, which would be used for aquaculture and a floating solar power plant.

"I figured that it is a very good business for us as there was no problem with fundings. The IFC and the European Investment Bank were there and there were customers like H&M," he said, adding that the pricing of the electricity from the plant would be cheaper than that of the grid.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said they had taken a very aggressive target to reduce the carbon footprints to 50 percent level in 2030 of what they had in 2019, but did not find a way forward.

"The challenge is in our mobile phones. We are using more and more data, and will be consuming three times more electricity in 2030. And the electricity we use from the grid is not clean. That is why we are planning for alternative energy," he said.

He said there are around 22,000 Grameenphone base stations and some data centres across the country. "It's not possible to install solar plants in all those locations. That is why we need a concentrated location where green energy would be produced."

"When the adviser said the MPP is allowed, it comes as a music to my ear. Now I am thinking it is possible to achieve our targets," he added.​

 

[Saif]

Coal imported for Matarbari power plant sent back due to heavy soil mix

The coal is sourced from Indonesia by an India-based company

www.tbsnews.net

Coal imported for Matarbari power plant sent back due to heavy soil mix

Matarbari plant in Moheshkhali, Cox's Bazar. File Photo: Nupa Alam/TBS

The Coal Power Generation Company Limited (CPGCL) has rejected a shipment of 63,000 tonnes of coal after detecting a significant presence of soil in the consignment meant for the Matarbari Power Plant in Cox's Bazar.

The cargo has been sent back to the outer anchorage of Chattogram port following the decision.

The Ultra Super Critical Coal-Fired Power Plant at Matarbari, built on 1,600 acres along the Bay of Bengal, has a capacity of 1,200MW. The first unit began commercial production in December 2022, followed by the second unit in August 2023.

According to CPGCL sources, the coal, supplied by an India-based company that won the tender to source the material from Indonesia, was found to be heavily contaminated with soil, rendering it unusable for power generation.

"We declined to receive the shipment and issued an official letter to the supplier on Friday," Nazmul Huq, executive director at Matarbari coal-fired plant project, told The Business Standard.

Chittagong Port Authority (CPA) sources confirmed that the coal-laden vessel was sent back to the outer anchorage following instructions from CPGCL and the shipping company handling the cargo.

The coal was transported aboard the Singapore-flagged MV Orient Orchid, which entered the Matarbari Channel on 17 March. The ship was operated by Meghna Group of Companies.

Ujjal Kanti Barua, deputy general manager (shipping operation) at Meghna Group, declined to comment, stating, "We are in discussions with the CPA, and the port authority is handling the matter."

Meanwhile, port officials said the conveyor belt used to unload the coal frequently broke down due to the excessive soil mixed with the shipment. "During unloading, we found mostly soil rather than coal," said a CPA official, speaking on condition of anonymity.

Captain Abu Sufian, dock master of CPA, confirmed that the vessel was directed to the outer anchorage in compliance with instructions from the shipping company.​

 

[Saif]

One unit at Adani Power Plant resumes production with 45.79 MW

After a 17-hour forced shutdown, one unit of the Adani Power Plant in Jharkhand resumed generation at 7 pm on Saturday. According to both Adani and Power Grid Bangladesh PLC, Unit 1 of the plant has come back into operation with 45.79 MW, against its actual capacity of 800 MW. Officials mentioned

thefinancialexpress.com.bd

One unit at Adani Power Plant resumes production with 45.79 MW
Published :
Apr 12, 2025 23:05
Updated :
Apr 12, 2025 23:05

After a 17-hour forced shutdown, one unit of the Adani Power Plant in Jharkhand resumed generation at 7 pm on Saturday.

According to both Adani and Power Grid Bangladesh PLC, Unit 1 of the plant has come back into operation with 45.79 MW, against its actual capacity of 800 MW.

Officials mentioned that the generation will gradually increase from this unit.

The Adani Power Plant has two units, each with a capacity of 800 MW.

Earlier on Saturday, electricity generation from this unit had come to a halt, and another unit ceased production on April 1.

Following this, Bangladesh experienced increasing load-shedding due to the shutdown of the generation unit caused by technical faults.

Data from Power Grid Bangladesh PLC, which tracks hourly power generation and transmission statistics, reveals that the country faced its highest load-shedding of 428 MW at 3 pm on Saturday, a weekly holiday when electricity demand is typically lower than on working days.

"This has been the highest amount of load-shedding in recent days, when power shortages typically remained between 50 and 150 MW," said a Power Grid official.

Officials at Power Grid Bangladesh PLC and the Bangladesh Power Development Board (BPDB) are concerned that the shutdown of one of the largest sources of power supply may lead to further increases in load-shedding on working days.

"The extent of load-shedding may further increase on Sunday with the start of the working week," a top official at the BPDB told UNB.

HC orders formation of committee to review power deals with Adani Group

It is assumed that, typically, the country's rural areas in the northern districts are preferred for power cuts because several power plants there run on costly fuels like liquid petroleum, diesel, and furnace oil.

"If diesel is used, each unit of electricity costs over Tk 40, and it's Tk 20 if furnace oil is used," said a senior BPDB official.

Energy Adviser Dr. Fouzul Kabir Khan, however, recently assured that there would be no discrimination in load-shedding allocation. "We'll prefer to resort to power cuts first in Dhaka city and then in other areas," he told reporters in Chattogram.

Meanwhile, the BPDB has requested the Oil, Gas, and Mineral Resources Corporation (Petrobangla) to provide additional gas supply to power plants to boost electricity generation from local power stations.

Official data show that the country's demand was forecasted to be 12,600 MW during daytime peak hours and 13,800 MW during evening peak hours.

Bangladesh has been importing electricity from Adani's Jharkhand Power Plant since April 2023 under a 25-year power purchase agreement (PPA).​

 

[Saif]

RENEWABLE ENERGY POLICY: Revision in order

BANGLADESH adopted the Renewable Energy Policy in December 2008 with the ambitious goal of increasing the share of renewable energy in the country’s total electricity generation. At the time, this policy was a significant step forward in aligning the nation with...

www.newagebd.net

RENEWABLE ENERGY POLICY: Revision in order
by Musharraf Tansen 13 April, 2025, 00:00

Bangladesh Sangbad Sangstha

BANGLADESH adopted the Renewable Energy Policy in December 2008 with the ambitious goal of increasing the share of renewable energy in the country’s total electricity generation. At the time, this policy was a significant step forward in aligning the nation with global trends toward sustainable energy. However, fifteen years later, the global energy landscape has shifted dramatically, and Bangladesh’s renewable energy progress has remained stagnant. The targets set in 2008 remain largely unmet, and new technological advancements and climate commitments demand an urgent revision of the policy. As the country grapples with energy security challenges, growing carbon emissions, and international commitments to sustainable development, a revised renewable energy policy must address gaps in the existing framework and introduce innovative strategies to accelerate clean energy adoption. This article outlines the key areas where revisions are necessary to make the policy more effective and aligned with contemporary global best practices.

More realistic targets

THE 2008 policy set a target of achieving 10 per cent of electricity generation from renewable energy sources by 2020. However, as of 2023, renewable energy accounts for only around 3 per cent of Bangladesh’s total electricity generation. The revised policy must set more realistic yet ambitious targets with clear milestones for 2030 and 2050, aligning with international climate commitments under the Paris Agreement. The revised policy should include a clear roadmap to achieving at least 20-25 per cent of total electricity generation from renewables by 2030, a commitment to net-zero carbon emissions in the energy sector by 2050, and sector-wise renewable energy targets, including solar, wind, and biomass.

One of the biggest challenges in implementing the 2008 policy has been the lack of coordination among different government agencies. The Sustainable and Renewable Energy Development Authority, the Power Division, and the Bangladesh Energy Regulatory Commission often work in silos, causing delays in policy execution. To ensure better coordination, the revised policy should establish a dedicated Renewable Energy Council with representation from all relevant stakeholders. SREDA should be empowered with more regulatory and financial authority to drive the implementation of renewable projects, and clear accountability measures should be introduced to monitor the progress of renewable energy initiatives.

Diversification of renewable energy sources

THE 2008 policy primarily focused on solar and biomass energy, with little attention to wind and offshore renewable energy potential. Given the advancements in wind- and hydro-based power generation, the revised policy should promote offshore and onshore wind energy projects, particularly in coastal areas like Cox’s Bazar and the Sundarbans region. It should encourage research and development in ocean energy, hydrogen fuel, and waste-to-energy technologies, and develop a framework for hybrid renewable energy projects that integrate solar, wind, and storage solutions.

Private-sector investment in renewable energy has remained limited due to bureaucratic hurdles, policy uncertainty, and a lack of incentives. The revised policy should simplify the approval process for private sector investments in renewable energy, introduce tax incentives and subsidies for independent power producers developing renewable projects, and strengthen public-private partnerships in the renewable energy sector.

The introduction of the Net Metering Guideline in 2018 was a positive step, but its implementation has been slow due to technical and financial barriers. A revised renewable energy policy should expand the net metering framework to encourage more residential and commercial rooftop solar adoption. It should offer financial incentives to households and businesses that invest in solar power generation and promote decentralised mini-grid solutions in off-grid rural areas to enhance energy access.

Land constraints for solar projects

ONE of the major bottlenecks in solar energy expansion is the scarcity of land. To overcome this issue, the revised policy should encourage floating solar farms on reservoirs and water bodies. It should promote the use of industrial rooftops, railway stations, and other underutilised spaces for solar installations and introduce agrivoltaics projects, where solar panels and agricultural activities coexist.

Financing remains a major barrier to renewable energy expansion. The revised policy should introduce a Green Energy Fund to support renewable projects with low-interest loans. It should establish special renewable energy bonds to attract domestic and international investors and develop a mechanism for carbon trading to encourage businesses to invest in clean energy.

Bangladesh has committed to the Paris Agreement and has updated its Nationally Determined Contributions with a focus on reducing carbon emissions. The revised renewable energy policy should align with Bangladesh’s Long-Term Strategy for Low Carbon Development. It should include carbon pricing mechanisms to disincentivise fossil fuel dependency and establish clear guidelines for phasing out coal and reducing dependence on imported LNG.

Technological innovation, local manufacturing

BANGLADESH relies heavily on imported solar panels, wind turbines, and other renewable technologies. To enhance energy security and create jobs, the revised policy should promote local manufacturing of solar PV panels, batteries, and wind turbines. It should provide research and development incentives for universities and research institutions working on renewable energy technologies and encourage technology transfer partnerships with international renewable energy firms.

Given Bangladesh’s vulnerability to climate change, energy infrastructure must be resilient. The revised policy should ensure that renewable energy projects consider climate adaptation measures. It should integrate energy storage solutions to address the intermittency of solar and wind power and establish disaster-resilient energy infrastructure in cyclone-prone areas.

Learning from regional leaders

India and Vietnam offer valuable lessons for Bangladesh in renewable energy policy implementation. India has successfully promoted performance-linked incentives, feed-in tariffs, and large hydropower projects while also setting up mini-grids and renewable energy management centres. Vietnam, on the other hand, has embraced ambitious renewable energy targets, implementing net metering, green energy certificates, and incentives for domestic renewable manufacturing. Both countries have successfully attracted foreign investment through clear policy guidelines and stable regulatory environments. Bangladesh should adopt similar approaches to enhance its renewable energy sector.

The Renewable Energy Policy of 2008 was a visionary step at the time, but it is now outdated and insufficient to meet the challenges of today’s energy landscape. A revised policy must incorporate lessons from the past 15 years, leverage global technological advancements, and align with Bangladesh’s socio-economic and environmental goals. With a strong and modernised renewable energy policy, Bangladesh can not only reduce its reliance on fossil fuels but also position itself as a regional leader in sustainable energy. The time for policy revision is now — failure to act will only deepen the energy crisis and hinder Bangladesh’s journey toward a greener future.

Musharraf Tansen is a development analyst and former country representative of the Malala Fund.​

 

[Saif]

Gas prices jacked up 33pc for industrial usages

New industries are now to pay Tk 40 and captive power plants Tk 42 per cubic meter of gas as the government jacked up tariffs of the basic fuel by 33 per cent on average, overriding objections. The hike takes "immediate effect from today," it was officially announced as Bangladesh Energy Reg

thefinancialexpress.com.bd

Businesses, rights groups' outcry goes unheard
Gas prices jacked up 33pc for industrial usages
New industries to pay Tk40, captive power plants Tk42 per unit
FE REPORT
Published :
Apr 14, 2025 00:32
Updated :
Apr 14, 2025 00:32

New industries are now to pay Tk 40 and captive power plants Tk 42 per cubic meter of gas as the government jacked up tariffs of the basic fuel by 33 per cent on average, overriding objections.

The hike takes "immediate effect from today," it was officially announced as Bangladesh Energy Regulatory Commission (BERC) Sunday pushed the decision through protests and opposition from businesses and rights groups.

Heretofore, the tariff rate for new industries had been Tk 30 and for captive power plants Tk 31.50 a unit.

The commission chairman, Jalal Ahmed, announced the new tariffs at a press briefing at the BERC auditorium in Dhaka's Karwan Bazar business heartland.

New industries and captive plants, which already attained commitments or demand notes for raising gas loads, must pay 50 per cent, or half the new gas commitments, at current rates.

On the other hand, the remaining half would have to be paid in accordance with the new tariff rates.

Besides, the owners of existing industries and plants must pay tariffs as per new rates for utilising additional gas above their existing approved loads, according to the BERC announcement.

Gas tariffs for all the existing consumers, including power plants, industries, fertiliser factories, CNG filling stations and tea estates are, however, kept unchanged.

The hike in the natural-gas tariffs came after a public hearing against the demand for a rise up to 152.40 per cent or to Tk 75.72 per cubic metre placed by state-run Petrobangla and gas-marketing and-distribution companies.

The Consumers Association of Bangladesh (CAB) had boycotted the public hearing while business leaders and associations opposed the tariff-hike move, but to no avail.

"We have raised the gas tariff at a tolerable level for new industries and captive power plants although the demands from the state-run entities were for raising further by over 150 per cent," said the BERC chairman at the press conference.

Mr Ahmed could not say whether the tariff hike would impact future investment, but said that it would create an opportunity to look for alternative energy sources like liquefied petroleum gas (LPG) and solar power for future industries.

If the tariffs had been hiked as per the demands of state-run gas entities, Petrobangla could earn around Tk 32.40 billion but with the 33-percent hike the corporation would be able to get around Tk 11 billion additionally, he expected.

The BERC chairman could not also say about the amount of subsidy Petrobangla would require due to the new gas tariffs, which are less than their expectations.

But, the BERC chairman expects. the subsidy requirement would decrease.

"Having different gas tariffs for same type of consumers is discriminatory and a violation of the basic rights as mentioned in the constitution," CAB energy adviser Prof M Shamsul Alam told The Financial Express in an instant reaction over the tariff hike.

Petrobangla could save around Tk 35 billion if double taxation against imports of expensive liquefied natural gas (LNG) could be removed, he said.

The tariffs have been hiked by the BERC arbitrarily bypassing the opposition raised during the public hearing, he said.

It went against the spirit of July-August uprising and was a continuation of the 'previous BERC,' which was dominated by the previous government, Professor Alam alleged.

Bangladesh's gas-guzzling export-oriented sectors might face slump in export earnings due to uneven competition after the gas-tariff hike for new industries, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said.

"No new industries would be established fearing uneven completion with the existing ones," he feared.

Mr Hatem urges the interim government to take necessary steps for checking gas pilferage.​

 

[Saif]

Gas tariff hike dampener for new investors

Just days after the investment summit was held where investors from home and abroad were welcomed by the interim government with open arms, the country's energy regulator in a paradoxical move reportedly hiked up gas price for new industrial and captive power plant connections by 33 per cent.

thefinancialexpress.com.bd

Gas tariff hike dampener for new investors
FE
Published :
Apr 15, 2025 22:21
Updated :
Apr 15, 2025 22:21

Just days after the investment summit was held where investors from home and abroad were welcomed by the interim government with open arms, the country's energy regulator in a paradoxical move reportedly hiked up gas price for new industrial and captive power plant connections by 33 per cent. However, for older industries with existing (gas) connections, unless they are going to increase their consumption exceeding the allocated load, for instance, moving to further expand their business activities, the older rate of tariff will apply. Similarly, existing consumers including power plants, fertilizer factories, CNG filling stations, tea estates, etc., will pay tariff according to the pre-hike rate . Now, one wonders, how can new investments take place, if fuel (gas) price is increased in such an arbitrary fashion? Unsurprisingly, the new arrangement for gas price has drawn flak from both industries and consumer rights bodies alike since the measure is clearly discriminatory for new industries as well as the existing ones planning to expand their business activities. It may be recalled that around two months before this latest round of gas price increase, Bangladesh Energy Regulatory Commission (BERC) had convened a public hearing on a gas price hike proposal that argued in favour of reducing the deficit of government-owned companies like Petrobangla. As expected, representatives of industries, consumer rights activists and others who attended the hearing were at one in criticising the regulators' proposal as it harks back to the bygone era of autocracy when gas and power prices were increased arbitrarily.

Notably, before this gas price hike by the interim government, the last time it happened was during autocracy in 2023, when the gas price for industries was nearly doubled from Tk16 per unit to Tk30. No doubt, the energy policy of the autocratic government of that time was a flawed one as it was based on LNG import. Now the question is if the incumbent interim government is also following that old policy rejected by the people! Interestingly, the head of the BERC reportedly held the view that the fresh gas tariff hike was tolerable for new industries and captive power units since the state-run gas and energy companies were demanding a 150 per cent increase. It's indeed a strange logic as it defies the general consumers' interest. Protection of that interest is the responsibility of the energy regulator--- a statutory body. The BERC chief's observation that the gas tariff hike would create the opportunity to look for alternative energy sources like Liquefied Petroleum Gas (LPG) and solar power for future industries was, if anything, rather tentative.

But whatever decisions policymakers might make on as serious an issue as pricing of fuels for industries, it has to be carefully considered and planned. There is no scope for experiment here. In truth, the energy regulator needs to devise its fuel pricing policy with an eye to serving the interests of its consumers, especially industries more than that of the state-run companies including Petrobangla. In the final analysis, these state-run companies, too, are to serve the interest of the consumers and not make profit. The interim government needs to think out of the box while devising its energy policy. It must avoid falling in the old trap of imported LNG. On the contrary, it should stress developing the existing and proven reserves of gas as well as explore new wells. There is no short-cut to resolving our energy issue.​