[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt's budget and policy directions fall short of energy transition expectations

The interim government appears to be drifting from its political pledge to achieve the 'Three Zeros'--zero poverty, zero emissions, and zero unemployment--in the national budget for FY2025-26, the Centre for Policy Dialogue (CPD) said on Thursday. Speaking at a dialogue, held in Dhaka, the CPD ana

thefinancialexpress.com.bd

Govt's budget and policy directions fall short of energy transition expectations
Speakers at CPD dialogue call for ensuing uninterrupted power supply, future energy security

FE REPORT
Published :
Jun 27, 2025 01:02
Updated :
Jun 27, 2025 01:02

The interim government appears to be drifting from its political pledge to achieve the 'Three Zeros'--zero poverty, zero emissions, and zero unemployment--in the national budget for FY2025-26, the Centre for Policy Dialogue (CPD) said on Thursday.

Speaking at a dialogue, held in Dhaka, the CPD analysts expressed their concerns that allocations and policy directions in the power and energy sector fall short of aligning with the government's stated commitment to energy-transition and climate goals.

Speakers at the dialogue also called for stronger policy coherence, transparent planning, and a clear roadmap to support the country's energy transition goals and industrial sustainability.

At the event titled 'Power and Energy Sector in the National Budget for FY2025-26: Reflections on the Priorities for Energy Transition', the CPD shared data showing that the Bangladesh Power Development Board (BPDB) remains a 'heavily loss-making' entity.

The state-owned BPDB requires a staggering Tk370 billion in subsidies in FY2025-26, which accounts for 41 per cent of the national subsidy allocations, it mentioned.

In contrast, the Bangladesh Petroleum Corporation (BPC), which made a profit of Tk 20.50 billion in FY2024-25, is expected to see a profit shrink to Tk 6.15 billion in the upcoming fiscal.

According to the CDP, the amount of subsidies on import of liquefied natural gas (LNG) surged to Tk 90 billion, Tk 60 billion up from the previous year.

CPD's Research Director Dr Khondaker Golam Moazzem moderated the dialogue, and its Senior Research Associate Helen Mashiyat Preoty delivered the keynote presentation at the programme.

The presentation stated that Tk 225.20 billion has been allocated for the Ministry of Power Energy and Mineral Resources (MoPEMR) in the FY2025-26, which is 0.8 per cent lower than that of the previous year.

The share of such allocation in the total national budget also fell to 2.9 per cent, down from 3.1 per cent in FY2024-25, it said, mentioning development expenditures declined notably while operational costs increased.

The CPD flagged several worrying trends, including stagnation in renewable energy initiatives and inefficient fossil fuel dependency.

Although no new fossil fuel-based generation projects were launched, overall capacity continues to rise, even though the actual electricity supply remained inadequate.

On the renewable front, 37 Letters of Intent for solar power projects were cancelled, and only three public projects with a combined capacity of 108 MW remain in the pipeline, according to the presentation.

The dialogue also underscored the need for a growing disconnect between fiscal actions and political ambitions, citing delays in revising strategic documents such as the Integrated Energy and Power Master Plan (IEPMP), the Perspective Plan, and the Mujib Climate Prosperity Plan (MCPP).

As a result, the government's 'Three Zeros' goal now risks slipping into what CPD dubbed '2.5 Zeros'.

Energy expert Professor Dr M Shamsul Alam, Adviser to the Consumers Association of Bangladesh (CAB), criticised the continued rise in fuel prices despite the subsidy claims.

"The government says it is enhancing energy security, but the situation remains unchanged," he said.

He also alleged that the country's increased dependence on fuel import, which he termed a legacy of the previous government's 'looting', is continuing under the current administration without meaningful corrective measures.

Director of the BGMEA Mr Faisal Samad, urged the CPD to assess the impact of power disruptions on industry productivity and costs.

"We need to engage with the Power and Energy Adviser and the Chief Adviser to devise a strategic action plan for ensuring smooth industrial operations at least until the upcoming election," he said.

He also stressed the need for a short-term resolution within the next 30 to 45 days.

Echoing similar concerns, Director of BTMA Engr. Razeeb Haider raised his concern over the country's growing energy vulnerability.

"We are overly dependent on gas from Bibiyana. What will happen if it underperforms? There are no clear answers on offshore gas imports or the transmission of gas from Bhola to Dhaka," he questioned.

The national budget lacks any clarity to this effect, he lamented.

Energy analyst Mr Monower Mostafa said the allocations for power and energy sector should have better reflected the 'Three Zeros--particularly the goal of zero carbon emissions.

"This sector is the largest emitter, yet no tangible steps were visible in the budget to engage manufacturers or reduce the carbon footprint," he said.

Mr Md. Akhter Hossain Apurbo, Vice-President of BKMEA highlighted the plight of the ready-made garment (RMG) sector due to energy supply disruptions.

"Despite paying high prices for gas and electricity, we are facing frequent outages that disrupt fabric production in Savar, Gazipur, and Narayanganj. We urge the government to ensure uninterrupted supply at a reasonable cost," he said.​

 

[Saif]

Chevron to revive $90m gas compression project

After a year-long standstill, Chevron Bangladesh is set to resume its Jalalabad Compression Project, following the settlement of overdue payments by state-run Petrobangla. The move signals renewed momentum in Chevron's investment plans to bolster Bangladesh's domestic gas output at a time of growi

thefinancialexpress.com.bd

Chevron to revive $90m gas compression project

M Azizur Rahman
Published :
Jun 27, 2025 09:01
Updated :
Jun 27, 2025 09:01

After a year-long standstill, Chevron Bangladesh is set to resume its Jalalabad Compression Project, following the settlement of overdue payments by state-run Petrobangla.

The move signals renewed momentum in Chevron's investment plans to bolster Bangladesh's domestic gas output at a time of growing energy demand and depleting reserves.

"Chevron Bangladesh President Eric M Walker conveyed the company's intent in a recent meeting with me," Petrobangla Chairman Md Rezanur Rahman told The Financial Express Thursday.

He (Mr Walker) formally confirmed it in a letter dated June 22 to Petrobangla's Director (finance) AKM Mizanur Rahman.

The US energy giant plans to invest between $80 million and $90 million to complete the project, which is expected to help arrest the ongoing decline in gas production from the Jalalabad field, said the finance director.

Chevron Bangladesh, a subsidiary of US energy major Chevron, had earlier stalled the Jalalabad Compression Project due to unpaid dues by Petrobangla, which had reached as high as $280 million.

The project aims to enhance gas extraction from the Jalalabad gas field, potentially unlocking an additional 352 billion cubic feet (Bcf) of gas, according to earlier Chevron estimates.

In his June 22 letter, Mr Walker acknowledged Petrobangla's payment of the arrears in April as a "positive outcome" and cited it as the reason for resuming the project.

He, however, noted that continued work on the project will depend on Petrobangla staying current on its monthly gas and condensate payments, and settling outstanding late payment interest, amounting to around $25-26 million, by September 30, 2025.

Petrobangla said it expects to pay the interest by July.

Petrobangla had requested Chevron in April to resume the investment, after clearing the dues and committing to a payment schedule.

The US company had previously deferred the project in April 2024, demanding full repayment of arrears before proceeding.

Meanwhile, Chevron has a separate $500 million investment proposal pending with Petrobangla. It seeks rights to explore Block-11 and expand its reach over Block-12 in the gas-rich Surma Basin in northeastern Bangladesh.

The company aims to discover fresh gas supplies to meet the country's growing energy needs, leveraging its existing Bibiyana gas processing infrastructure to fast-track production if discoveries are made.

Chevron is already the largest natural gas producer in Bangladesh, supplying around 1.08 billion cubic feet per day (Bcf/d) from its three onshore fields-Bibiyana, Jalalabad, and Moulavi Bazar-located in blocks 12, 13, and 14.

From its recently drilled BY-28 well in the Bibiyana field alone, it currently supplies around 40,000 Mcf/d of gas into the national grid.

A few years ago, Petrobangla had allowed Chevron to expand its operational area by granting access to a 60 sq km 'flank' zone north of the Bibiyana field.

Chevron subsequently invested $150 million in drilling the BY-27 and BY-28 wells.

According to sources familiar with the matter, if new gas reserves are discovered in Block-11 or the extended area of Block-12, Chevron can swiftly ramp up production, potentially reaching up to 1.35 Bcf/d, using its existing processing facilities.

Petrobangla has yet to formally approve Chevron's broader exploration and investment plans, but energy officials suggest the successful resolution of the arrears dispute may pave the way for deeper collaboration.​

 

[Saif]

Bangladesh trapped into fossil fuel use

After two decades from today Bangladesh will still continue to substantially depend on fossil fuels for energy, with nearly 10,000 MW of the installed power generation capacity in 2045 directly relying on gas, coal, and liquid oil.

www.newagebd.net

Bangladesh trapped into fossil fuel use
Emran Hossain 28 June, 2025, 00:29

After two decades from today Bangladesh will still continue to substantially depend on fossil fuels for energy, with nearly 10,000 MW of the installed power generation capacity in 2045 directly relying on gas, coal, and liquid oil.

The actual fossil fuel dependence in 2045, however, will be far higher because some of the installed capacities in that year will be disguised as clean energy, a definition that replaced renewable energy in the Integrated Energy and Power Master Plan in 2023, introducing technologies yet in infancy but promises to make coal and gas cleaner.

By 2041, the installed power generation capacity in Bangladesh will exceed 60,000 MW, the IEPMP said, stating that 40 per cent of the capacity will be based on clean technology, which energy expert terms as ‘green washing’.

Bangladesh’s plan about the fossil fuel reliance reflects the global admiration for development using dirty energy, which led to a 60 per cent increase in carbon-dioxide emissions from energy and industry sectors since the United Nations Framework Convention on Climate Change was signed in 1992.

‘Perhaps the most interesting aspect of such aggressive fossil fuel expansion is the role foreign investors played behind it,’ said Sharif Jamil, head of Waterkeepers Bangladesh, a nongovernmental and non-profit body dedicated to the protection of water bodies and the restoration of water ecosystems in the country.

The foreign investments in Bangladesh included foreign direct investments and investment from multilateral development banks, which came as part of a deep global conspiracy involving fossil fuel lobbies, said Sharif Jamil.

While destroying Bangladesh’s renewable energy potentials, he said, the investments created a market from where Bangladesh would have no escape for decades.

‘The business model at work is rather brutal where investors profit from destroying economies and environments of third countries,’ said Sharif, explaining that the investors mine fossil fuels in third countries and burn them in others for profits.

‘Bangladesh has turned into a milking cow, always depending on others for energy,’ he said.

Over the past two decades, energy experts said, major power and energy sector plans were penned with help from by the Japan International Cooperation Agency and the Asian Development Bank. Japan provided money and technical support in formulating Bangladesh’s past four power sector master plans since 2005, each invariably promoting fossil fuel while undermining renewable energy potentials.

The ADB, on the other hand, was involved in energy-related plans involving $2 billion over decades, energy experts said.

Bangladesh’s current installed power generation capacity of 27,426 MW, overwhelmingly relying on imported fossil fuel, is the outcome of decades of the energy plans. Only about 4 per cent of the installed generation capacity is renewable energy dependent.

The immediate past authoritarian Awami League government, which was notorious for its widespread human rights violation, built the huge fossil fuel fleet with steady investments from its harshest critics, overseeing a sixfold increase in the installed power generation capacity between 2009 and 2024.

The power projects awarded during the AL era almost always avoided competitions and with unequal power purchase deals that drained foreign currency reserve.

The one hundred per cent electrification project, which mainly involved an expansion of the national grid with funding from development partners and multilateral development banks, in fact, replaced rooftop solar initiatives in remote areas, which took years to build.

‘We have gradually become energy colonies of some countries, whose investment interests determined our energy choices, though they meant us no benefits,’ said Hasan Mehedi, member secretary, Bangladesh Working Group on Ecology and Development, a platform of green activists.

The 1,496MW coal-based Adani power plant is the largest single power plant to remain in operation through 2045, earning a return six times of its initial investment.

Another 5,000 MW of existing coal capacity will remain in operation through 2050, the time by when many countries promise to achieve net zero emissions.

The coal-fired power plants in Bangladesh include 1,224MW Banshkhali power plant, 307MW Barishal power plant, 1,234MW Rampal power plant, 1,244MW Payra power plant and 1,150MW Matarbari power plant.

Of the existing gas-based power plants, over 2,500 MW will remain in operation through 2048. The power plants include two Meghnaghat power plants of 583 MW and 584 MW capacity, 400MW Ashuganj power plant, 230MW Sylhet power plant, Bibiyana power plants of 400 MW and 383 MW, and 260MW Ghorashal power plant.

The IEPMP projected a very ambitious economic growth between 2019 and 2050, justifying the need to aggressively increase energy consumption to power the growth.

The IEPMP noted that the ‘in-between scenario of growth’, among three projected scenarios, would necessitate about a fivefold gas and coal consumption and a sevenfold oil consumption.

A good portion of the gas demand will be met through the import of liquefied natural gas.

The IEPMP plans to increase coal consumption through the 2030s before introducing ammonia-cofiring to curtail greenhouse gas emissions in coal power plants.

Gas-fired power plants, on the other hand, will witness hydrogen co-firing in 2037, said the IEPMP.

The co-firings will take years to eventually replace the fossil fuel completely, obviously depending on the economy’s capacity to afford these highly expensive technologies, energy experts said.

The co-firings in most cases are not clean and emit carbon.

The IEMPM also promotes carbon capture and storage technology to reduce greenhouse gas emissions, though experts held it among false solutions, invented to linger coal consumption.

According to a Center for Policy Dialogue analysis of the IEPMP, renewable energy would not constitute even half of the clean energy target by 2041, which would be 40 per cent of the 61,000MW installed power generation capacity.

Clean energy in the IEPMP accounts for 18 per cent of the installed generation capacity to be achieved in 2030. Less than 6 per cent or 1,726 MW will come from renewable energy. The installed power generation capacity in 2030 will be 40,000 MW.

By 2050, Bangladesh installed power generation capacity is expected to reach 90,000 MW.​

Related News

 

[Saif]

Rooftop solar: Caution before commitment

In what appears to be an attempt to fast-track renewable energy adoption, Chief Adviser Professor Muhammad Yunus recently directed the installation of rooftop solar panels on all government buildings including educational institutions and hospitals. The move is meant to go hand in hand with Banglad

thefinancialexpress.com.bd

Rooftop solar: Caution before commitment

Published :
Jun 28, 2025 21:20
Updated :
Jun 28, 2025 21:20

In what appears to be an attempt to fast-track renewable energy adoption, Chief Adviser Professor Muhammad Yunus recently directed the installation of rooftop solar panels on all government buildings including educational institutions and hospitals. The move is meant to go hand in hand with Bangladesh's Renewable Energy Policy 2025 which targets sourcing 20 per cent of electricity demand from renewables by 2030. As per the latest IRENA report, Bangladesh remains significantly behind its regional peers in solar electricity generation, with only 5.6 per cent of its power coming from solar, in contrast to 24 per cent in India, 17.16 per cent in Pakistan and 39.7 per cent in Sri Lanka. To meet upcoming target, tenders for 55 land-based solar plants have already been floated, but their full implementation could take until 2028. Hence, the government is now looking to rooftop spaces as a more immediate solution.

There are, however, significant doubts over the practicality and efficacy of this large-scale rooftop solar rollout. First off, the claim that 5.6 per cent of national electricity comes from solar power needs further investigation. It is plausible that this figure is indicative of installed capacity rather than actual output, which may be much lower given that many rooftop units stopped functioning soon after installation. Some high-rise buildings installed solar systems only to meet RAJUK's compliance requirements, and it is doubtful whether these systems are operational or connected to the grid in any meaningful way. Before allocating resources to this initiative, policymakers must distinguish between mere installation and reliable energy generation, particularly in a country where public infrastructure projects often neglect long-term maintenance.

Implementing solar panels across all government buildings would require an enormous investment, possibly running into thousands of crore taka. Without proper planning, this could turn into a massive misallocation of public funds. There is a real risk that many of these panels would exist only on paper, much like the proverbial cow that exists in the book but not in the shed. Government hospitals, in particular, need uninterrupted and stable electricity to run life-saving equipment. Poorly installed systems, equipment failures or even overcast skies during the rainy season could damage sensitive medical devices and endanger lives. Similarly, schools and colleges that are already struggling with limited resources may end up with faulty or inefficient solar systems that become long-term financial burdens. The idea of public-private partnership, where private companies install and maintain systems out of their own commercial interest, appears promising at first glance, but previous experiences with such arrangements do not inspire much confidence. The government must also assess whether older buildings can bear the added weight of solar panels, and whether institutions in shaded or congested areas get enough sunlight to justify the cost. A nationwide rollout without checking these basic facts would be irresponsible, no matter how noble the intentions behind it.

Before moving ahead, the government must undertake a thorough feasibility study to examine whether a nationwide rooftop solar rollout is truly worth the investment. As part of this, it must assess the existing installations, especially those installed under the RAJUK directive, to see how many are still functioning, how much electricity they actually generate and what maintenance issues have arisen over time. The study must also evaluate costs, technical challenges and the potential for grid integration across different categories of buildings. Only after establishing the project's practical benefits and sustainability should large-scale implementation proceed. There is no denying that renewable energy is the way of the future, but rushing in without proper groundwork could easily turn a well-intentioned plan into a costly misadventure.​

 

[Saif]

Govt plans to launch onshore bidding after 28 years

The interim government is preparing to offer several onshore blocks in hilly regions to international oil companies (IOCs) under a proposed production sharing contract (PSC), aiming to enhance domestic natural gas production amid rising demand. "We are planning to offer onshore Block-22A and Block

thefinancialexpress.com.bd

Boosting Gas Output
Govt plans to launch onshore bidding after 28 years

FE Report
Published :
Jun 28, 2025 23:37
Updated :
Jun 28, 2025 23:37

The interim government is preparing to offer several onshore blocks in hilly regions to international oil companies (IOCs) under a proposed production sharing contract (PSC), aiming to enhance domestic natural gas production amid rising demand.

"We are planning to offer onshore Block-22A and Block-22B, along with several other hilly onshore blocks," Petrobangla Chairman Md Rezanur Rahman told The Financial Express on Saturday.

He said the long-anticipated onshore bidding round is likely to be launched within the next two months.

The Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) is currently reviewing a draft of the new Model Production Sharing Contract (MPSC), which was prepared and submitted by state-run Petrobangla.

The new MPSC aims to attract foreign investors by offering more competitive terms, developed in consultation with global energy consultancy Wood Mackenzie.

However, Mr Rahman did not disclose the exact number of blocks to be offered or specific pricing details.

Petrobangla's move comes nearly three decades after the last onshore bidding round, as the government seeks to ramp up hydrocarbon exploration in underexplored hilly regions to meet the surging demand for natural gas in industries, power plants, and other key sectors.

One major update in the new MPSC is its pricing mechanism. Under the proposed terms, the gas purchase price would be linked to 8 per cent of the dated Brent crude average over three months, with a price cap to mitigate extreme volatility.

A Petrobangla official said this could set the gas price at around $5.00 per million British thermal units (MMBtu), based on current Brent crude assumptions.

This price would align more closely with the cost of imported liquefied natural gas (LNG), which the country increasingly relies on due to stagnating domestic output.

In comparison, the 1997 MPSC linked gas pricing to high sulphur fuel oil (HSFO), with a fixed floor and ceiling. Under that structure, US-based Chevron currently receives $2.76 per MMBtu and Singapore's KrisEnergy receives $2.31 per MMBtu.

Petrobangla also purchases gas from its state-owned subsidiaries.

It buys gas at Tk 28 per Mcf (1,000 cubic feet) from Sylhet Gas Fields Ltd (SGFL) and Bangladesh Gas Fields Company Ltd (BGFCL), and at Tk 112 per Mcf from Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).

By contrast, LNG from long-term suppliers QatarEnergy and OQ Trading International cost $10.66 and $10.09 per MMBtu, respectively, over the first seven months of the current fiscal year.

Officials said that Petrobangla is also working to harmonise exploration benefits across contracts to better attract IOCs, after the offshore bidding round in 2023 failed to draw interest.

That round offered 24 offshore blocks under terms that priced gas at 10 per cent of dated Brent, or around $7.08 per MMBtu based on current prices.

The last onshore bidding round in 1997 saw the award of four blocks -- Block-5, Block-7, Block-9, and Block-10.

At present, four IOCs are engaged in exploration activities in Bangladesh.

Chevron operates gas fields under Blocks 12, 13, and 14. KrisEnergy produces gas from the Bangora field in Block-9. ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) are jointly exploring shallow-water blocks SS-04 and SS-09.

To meet the shortfall, Bangladesh imports lean LNG from long-term partners RasGas of Qatar and Oman Trading International (OTI), as well as from the spot market.

Currently, the country's total gas output, including re-gasified LNG, stands at around 2,883 million cubic feet per day (mmcfd), against a demand of more than 4,000 mmcfd.​

 

[Saif]

BD pays most part off, avoids $20m penalty

In a major financial manoeuvre, the interim government has paid nearly all outstanding dues to India's Adani Power, securing a waiver of US$20 million in late payment interest. The Bangladesh Power Development Board (BPDB) confirmed a record monthly payment of $437 million in June to settle ar

thefinancialexpress.com.bd

ADANI’S OUTSTANDING BILLS
BD pays most part off, avoids $20m penalty

M Azizur Rahman
Published :
Jun 30, 2025 00:08
Updated :
Jun 30, 2025 00:08

In a major financial manoeuvre, the interim government has paid nearly all outstanding dues to India's Adani Power, securing a waiver of US$20 million in late payment interest.

The Bangladesh Power Development Board (BPDB) confirmed a record monthly payment of $437 million in June to settle arrears with the Indian conglomerate.

This is the highest single-month payment made to Adani since Bangladesh began importing electricity from its Jharkhand-based Godda power plant in April 2023.

"We paid around US$437 million this month (June) to Adani to reduce the outstanding overdue payment," Bangladesh Power Development Board (BPDB) Chairman Md Rezaul Karim told The Financial Express on Sunday.

He expressed hope that the remaining overdue amount would be cleared soon. Adani has responded positively to the payment and has waived the late interest charges, he added.

With this payment, Bangladesh has so far remitted approximately US$1.5 billion to Adani Power Jharkhand Ltd (APJL), though a dispute remains over the exact amount still owed.

BPDB officials estimate the remaining dues at US$193 million, while Adani claims the figure is closer to US$340 million, highlighting ongoing disagreements over coal pricing formulas and capacity charges, according to sources familiar with the backlog.

Officials attribute the discrepancy between Adani's and BPDB's figures to differing coal pricing formulas and capacity charge calculations.

Despite the variance, Adani has agreed to waive US$20 million in interest, signalling a willingness to move forward as both sides continue negotiations.

Adani has so far received overdue payments until March, officials noted.

The company expects the Bangladesh government to clear the remaining dues by September and maintain regular payments going forward.

The payments come amid mounting pressure on Bangladesh's foreign exchange reserves and heightened scrutiny over the cost structure of imported electricity.

Adani Power, which operates the 1,496 MW Godda Ultra Supercritical Thermal Power Plant in Jharkhand, began supplying power to Bangladesh in April 2023.

Before the recent payments, unpaid bills had reportedly ballooned to nearly US$900 million, according to Adani's estimates.

The power purchase from the APJL plant has become a much-debated issue in Bangladesh since power flow began, under what many critics see as an overrated deal signed by the now-deposed Awami League government.

After power deliveries began, the BPDB requested revisions to the power purchase agreement (PPA) with Adani, particularly concerning electricity imports from the Jharkhand plant, but without success so far.

The original deal, signed in November 2017 for a 25-year term, includes a dedicated 400kV transmission line linking the Indian plant to Bangladesh's national grid.

The agreement has come under fire for contentious issues such as coal pricing, capacity payments, tax waivers, and other associated costs.

Adani shut down one of its two power units in Jharkhand on November 1 last year, halving cross-border electricity supply to Bangladesh due to a payment backlog of around US$850 million.

The company also threatened to halt the remaining unit from November 7 last unless dues were cleared.

However, Adani reversed its decision after BPDB paid US$170 million by opening a letter of credit (LC) through Bangladesh Krishi Bank.

Sources said the original agreement has drawn criticism for its coal pricing formula, which ties costs to volatile international benchmarks and includes high freight charges due to Adani's coal sourcing from distant suppliers like Australia.

A technical committee formed by Bangladesh's interim government has flagged these terms as disproportionately favourable to Adani, especially compared to other coal-based plants such as Payra.

Despite the disputes, both sides are now engaged in negotiations to reconcile differences.

Adani has expressed a willingness to revisit the pricing formula once all outstanding payments are settled, sources said.

The interim government, led by Nobel laureate Muhammad Yunus, has also launched a broader review of foreign power deals signed under the previous administration.

The Adani agreement, Bangladesh's single largest energy deal with an Indian investor, is under particular scrutiny for its long-term cost implications and lack of transparency.​

 

[Saif]

BD risks losing billions in Chinese RE investments

The Centre for Policy Dialogue (CPD) has cautioned that Bangladesh could lose billions in Chinese renewable-energy investments unless immediate steps are taken to streamline regulations and stabilise the investment climate. This warning came during the third Bangladesh-China Renewable Energy For

thefinancialexpress.com.bd

BD risks losing billions in Chinese RE investments
Says CPD at the Bangladesh-China Renewable Energy Forum

FE REPORT
Published :
Jul 01, 2025 00:05
Updated :
Jul 01, 2025 00:05

The Centre for Policy Dialogue (CPD) organised the 3rd Bangladesh-China Renewable Energy Forum dialogue titled 'Recent Challenges for Chinese Overseas Investment in Bangladesh's Renewable Energy Sector: Way Forward' at a city hotel on Monday. CPD Research Director Dr Khondaker Golam Moazzem and Programme Associate Abrar Ahammed Bhuiyan presented the keynote paper. — Focus Bangla

The Centre for Policy Dialogue (CPD) has cautioned that Bangladesh could lose billions in Chinese renewable-energy investments unless immediate steps are taken to streamline regulations and stabilise the investment climate.

This warning came during the third Bangladesh-China Renewable Energy Forum, held in the capital on Monday.

At the event, CPD researchers Dr Khondaker Golam Moazzem and Abrar Ahammed Bhuiyan revealed that the current policy landscape is proving increasingly inhospitable to foreign investors, particularly those from China, who have emerged as the largest contributors to foreign direct investment (FDI) in Bangladesh's renewable energy.

The CPD study highlighted a number of systemic challenges, including sluggish bureaucratic procedures, policy inconsistencies, unreliable digital services, and inadequate institutional support-all of which are deterring investment even before projects break ground.

A major blow to investor confidence, the researchers said, was the government's sudden cancellation of 31 solar power initiatives despite having issued Letters of Intent (LoIs).

The affected projects, totalling an estimated 3,300 megawatts and attracting prospective investments of around USD 6 billion, had already seen preliminary commitments of about USD 300 million from Chinese firms for land acquisition and groundwork. With these developments now stalled, investors face significant financial setbacks and a loss of trust in the country's investment reliability.

Representing the Chinese business community, Han Kun, President of the Chinese Enterprises Association in Bangladesh, voiced serious concerns about retroactive changes to power tariffs. He cited examples of operational plants-such as those in Patuakhali and Barishal-that received directives to alter the pricing structures agreed upon in signed contracts. "For investors, learning that key terms will be revised after construction is deeply unsettling," Han remarked. "Such unpredictability sends a strong deterrent signal to future financiers."

He further mentioned instances where payments were withheld or arbitrarily reduced-such as a USD 1.45 million deduction from a Chinese-funded project for an alleged delay in performance bond submission, despite no such penalty clause in the original agreement. In another case, over USD 200 million owed to the 1320 MW SSI plant remains unpaid.

CPD's analysis, which evaluated Bangladesh's investor facilitation framework against the United Nations Conference on Trade and Development (UNCTAD) Global Action Menu, pointed to multiple flaws across different tiers.

At the national level, abrupt rule changes and ineffective enforcement of bilateral treaties were cited. At the intermediate level, the report flagged non-transparent procurement procedures and land-related complications. On the ground, cumbersome documentation, inconsistent digital portals, and inadequate multilingual support-particularly in English and Chinese-were found to be hampering investor engagement.

Speakers at the forum also called attention to missed opportunities in sectors such as rooftop solar and merchant power generation. Despite the government's emphasis on expanding clean energy, limitations on rooftop capacity and the absence of a structured framework for merchant power projects are curbing investor interest.

Wang Weiquan of the Chinese Renewable Energy Industries Association attributed China's success in attracting renewable investment to policy consistency, fixed tariffs, and guaranteed off-take mechanisms. Bangladesh, he noted, lacks similar enabling conditions.

Md Shahidur Rahman, Bangladesh country head for Jinko Solar, emphasised that in many countries, governments help secure land for solar facilities-something Bangladesh has yet to do effectively. He also warned about the proliferation of low-quality, unauthorised solar panels entering the market, undermining industry standards.

SK Md Ruhul Amin, representing Chint Solar, questioned the rationale behind the cancelled LoIs, which the government claims were scrapped due to corruption. "We still haven't been informed where exactly the alleged irregularities occurred," he said. "We followed all formal steps, from land purchase to fund transfers, yet we're left without clarity or resolution."

Masudur Rahim, CEO of Omera Renewable Energy Ltd, highlighted gaps in the existing tender system-particularly the absence of implementation agreements, lack of payment security, and inconsistent tariff policies, which he said undermine confidence in long-term investment.

The CPD urged immediate reforms, including a centralised digital platform for all business processes, simplified and unified licensing procedures, and the removal of restrictive caps on rooftop installations. The think tank also recommended offering alternative projects or compensation to investors impacted by cancelled agreements, along with the creation of a formal grievance redress mechanism.

Dr Moazzem stressed the urgency of establishing a stable and transparent investment regime. "As global momentum for clean energy accelerates, Bangladesh must make itself a more predictable and investor-friendly destination-or risk falling behind in the race for sustainable development."​

 

[Saif]

Bangladesh clears Adani arrears, ‘settles’ issues in power purchase agreement

Bangladesh has resolved its payment dispute with India’s Adani Power, clearing overdue bills and removing uncertainty over power supply from the company’s Jharkhand-based plant. A PTI report citing New Delhi sources reveals that Bangladesh made a record single payment of $437 million i

thefinancialexpress.com.bd

Bangladesh clears Adani arrears, ‘settles’ issues in power purchase agreement

bdnews24.com
Published :
Jul 01, 2025 23:12
Updated :
Jul 01, 2025 23:12

Bangladesh has resolved its payment dispute with India’s Adani Power, clearing overdue bills and removing uncertainty over power supply from the company’s Jharkhand-based plant.

A PTI report citing New Delhi sources reveals that Bangladesh made a record single payment of $437 million in June, settling past arrears, transmission charges, and all issues related to the power purchase agreement (PPA).

Bangladesh now has no pending dues. In addition, it has issued a letter of credit (LC) equivalent to two months’ worth of bills, along with a sovereign guarantee covering all outstanding amounts.

With the financial issues settled, the Bangladesh Power Development Board (BPDB) has formally requested Adani Power to continue supplying electricity from both units of its Jharkhand plant at the contracted rate.​