[🇧🇩] Energy Security of Bangladesh

[Saif]

Bangladesh's energy security faces significant challenges, primarily its heavy reliance on imported fossil fuels (especially LNG and oil) due to depleting domestic gas reserves, leading to price volatility, fiscal strain, and vulnerability to global markets, despite recent massive capacity additions. While improvements have been seen in energy availability, affordability and sustainability remain concerns, necessitating greater focus on domestic resource exploration (gas), renewables, grid efficiency, and stronger governance for long-term stability.

Key Challenges:​

• Depleting Domestic Gas: Natural gas, the backbone of power generation, is declining, forcing a costly shift to LNG imports.​
• High Import Dependency: Over 50% of fuel is imported, straining foreign exchange reserves and exposing the nation to global price shocks.​
• Affordability & Fiscal Burden: Soaring import costs create large subsidies, impacting affordability for consumers and government finances.​
• Infrastructure Gaps: Outdated infrastructure and high transmission/distribution losses reduce efficiency.​
• Slow Renewable Integration: Renewables still form a small part of the energy mix despite policy goals.​

Current Strategies & Progress:​

• Capacity Expansion: Significant investment in power generation capacity (around 28,000 MW).​
• LNG Imports: Expanding LNG imports to bridge the gas gap.​
• Policy Frameworks: Implementing plans like the Power Sector Master Plan (PSMP) to address energy security.​
• Renewable Targets: Commitments to increase renewable energy (solar, hydro) as part of national goals.​
• Gas Exploration: Renewed focus on drilling and offshore exploration.​

Key Concerns & Recommendations:​

• Diversification: Reduce fossil fuel reliance by boosting renewables and exploring domestic coal/gas.​
• Efficiency: Improve grid infrastructure and reduce system losses.​
• Governance: Enhance regulation and implementation of energy policies for better results.​
• Sustainable Financing: Secure cost-effective financing for energy projects, like the World Bank-backed LNG facility.​

In essence, Bangladesh is at a critical juncture, balancing rapid energy demand growth with volatile global markets, needing strategic shifts towards local resources and efficiency for true long-term energy security.​

 

[Bilal9]

Nat'l grid to get Rooppur nuclear electricity soon​

Russian envoy says first unit ready for power supply early next year​

FE REPORT

Published :

Dec 22, 2025 18:22
Updated :

Dec 22, 2025 18:22

Bangladesh could begin receiving electricity from its maiden nuclear power plant early next year, says Russia's ambassador, setting a milestone in one of the country's most ambitious infrastructure projects.

The upcoming commencement of nuclear power feeding into the national grid also manifests the deepening of Moscow's longstanding energy and economic ties with Bangladesh.

Speaking at a press briefing Monday, Alexander Khozin, the Russian Ambassador in Dhaka, said preparations were under way to deliver the first megawatts of electricity from the Russian-built Rooppur Nuclear Power Plant into Bangladesh's national grid.

"This will be an important milestone in the implementation of the project and will confirm its readiness for full-scale operation," Khozin said. "We are making all necessary efforts and systematic progress towards commissioning of the facility."

According to the envoy, work is currently focused on Unit No 1 of the Rooppur plant, which he says has reached the final stage of readiness.

The 2400MW Rooppur project, Bangladesh's first nuclear power facility, has long been seen as central to the country's efforts to diversify its energy mix and reduce pressure on gas-fired power generation amid rising demand from a fast-growing economy.

Khozin also addresses recent changes to the project's financing arrangements, confirming that Bangladesh and Russia agreed to reschedule the repayment timeline of the main loan. Under the amended protocol to the Intergovernmental Credit Agreement, the start of debt repayment has been deferred by 18 months.

"The first installment of the loan repayment is now scheduled for September 15, 2028," he said, adding that the adjustment reflected the extension of the overall credit agreement.

Beyond nuclear energy, the ambassador highlights gas production as another key pillar of bilateral cooperation. Since 2012, Russia's Gazprom International has designed and drilled around 20 gas wells in Bangladesh, including seven on the Bhola island, where significant gas reserves have been discovered.

Russia is also in talks to supply liquefied natural gas (LNG) and crude oil to Bangladesh on a long-term basis, the envoy said, as the country grapples with persistent energy shortages affecting both industrial growth and household consumption.

In addition, Russian companies working in renewable energy have expressed interest in investing in Bangladesh and establishing joint ventures, Mr Khozin told reporters, citing solar technologies as one area of potential collaboration.

Trade relations between the two countries, the ambassador notes, have remained resilient despite global economic disruptions. Bangladesh is Russia's second-largest trading partner in South Asia, with bilateral trade exceeding $2.0 billion annually over the past three years.

Russia primarily exports machinery, agricultural products and fertilisers to Bangladesh, while importing readymade garments and textile goods. Mr Khozin said Moscow hoped trade figures for 2025 would also be "significant", pending official statistics.

Food security has been another area of sustained cooperation. He mentions that Russia has exported 2.0 million tonnes of wheat to Bangladesh in 2025 and doubled supplies of fertilisers and mustard seeds compared with previous years. Nearly 400,000 tonnes of potash fertiliser were delivered this year alone, while exports of Russian veterinary vaccines rose by 25 per cent.

The ambassador also urges greater emphasis on business-to-business engagement, noting that growing Russian interest in supplying petrochemicals, steel, rolled metal, and ICT products and services. He encourages Bangladeshi companies to explore opportunities on the Russian market.

On the issue of labour migration, Mr Khozin said demand for skilled Bangladeshi workers was increasing in Russia, particularly in construction, agriculture and shipbuilding. In 2024, nearly 2,800 work permits were granted to Bangladeshi nationals, compared with just 115 the previous year. The first group of Bangladeshi workers arrived in Russia's Far East in 2023.

Turning to the red-hot issue of Ukraine war, the diplomat reiterates Moscow's long-stated position that it is open to a negotiated settlement, provided the "root causes" of the conflict are addressed. These, he says, include Ukraine's neutrality, the protection of Russian-speaking populations, and the cessation of Nato expansion.

He mentions that Russia is engaged in talks with the US leadership aimed at developing a long-term political solution and prepared to consider "credible proposals" leading to legally-binding agreements.

Cultural ties were also highlighted at the briefing. Alexandra Khlevnoy, director of the Russian House in Dhaka, said 2025 had seen numerous events marking Russian and Bangladeshi national holidays as well as the 80th anniversary of the end of the Second World War.

She notes a growing interest among Bangladeshi students in pursuing higher education in Russia, underlining people-to-people links alongside expanding strategic cooperation.

 

[Saif]

Govt approves drilling of 5 gas wells in Bhola

The government on Tuesday approved a proposal to dig five gas wells in Bhola at an estimated cost of Tk 9.07 billion to boost domestic gas production, reduce reliance on imported fuel and strengthen national energy security. It also endorsed several large-scale power distribution projects aimed at

thefinancialexpress.com.bd

Govt approves drilling of 5 gas wells in Bhola

UNB
Published :
Dec 23, 2025 21:11
Updated :
Dec 23, 2025 21:20

The government on Tuesday approved a proposal to dig five gas wells in Bhola at an estimated cost of Tk 9.07 billion to boost domestic gas production, reduce reliance on imported fuel and strengthen national energy security.

It also endorsed several large-scale power distribution projects aimed at modernising and expanding electricity infrastructure in the Dhaka and Mymensingh divisions.

The approvals came at a meeting of the Advisers Council Committee on Government Purchase at the Cabinet Division Conference Room of the Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair.

The committee approved the proposal from the Energy and Mineral Resources Division to drill five new gas wells in Bhola.

These include Shahbazpur-5, Shahbazpur-7, Bhola North-3 and Bhola North-4 and Shahbazpur North East-1.

The wells will be drilled through an international tender process using a one-stage, two-envelope procurement method on a turn-key basis.

Following technical and financial evaluation, Sinopec International Petroleum Service Corporation of China was recommended as the responsive bidder.

It is also expected to support industrial growth and ensure a more stable gas supply for power generation and other economic activities.

In the same meeting, the committee reviewed and approved four major power distribution procurement proposals under a special revised project titled “Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division).”

The project include construction and augmentation of 12 air-insulated 33/11 kV substations on a turn-key basis, six substations at a cost of Tk 1.30 billion, another six substations costing Tk 1.14 billion.

Two other approved proposals are construction and augmentation of 14 gas-insulated 33/11 kV substations, seven substations at an estimated cost of Tk 2.21 billion, seven more substations costing Tk 2.08 billion.

The committee noted that the power distribution projects would help meet rising electricity demand, reduce system losses, improve grid reliability and ensure a better quality of power supply across the Dhaka–Mymensingh division.​

 

[Saif]

A smarter solar strategy essential for Bangladesh’s clean energy transition

In recent years, Bangladesh has made notable progress in renewable energy production.

www.thedailystar.net

A smarter solar strategy essential for Bangladesh’s clean energy transition

'While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix.' FILE PHOTO: REUTERS

In recent years, Bangladesh has made notable progress in renewable energy production. The Sustainable and Renewable Energy Development Authority (SREDA) estimates that five percent of the country's total generation capacity now comes from renewables. Solar energy is the primary contributor, accounting for 82 percent of renewable generation. Rooftop solar is steadily expanding, with 4,267 net-metered systems installed nationwide to date. Large-scale solar parks are also playing an increasingly important role.

Despite these advances, Bangladesh's solar potential remains largely untapped. Experts estimate this potential at 50,174 MW—sufficient to meet around 80 percent of the country's projected energy demand of 60,000 MW by 2041. The urgency to harness this potential has been heightened by the recent energy crisis. Responding to these challenges, the interim government announced ambitious targets in its Renewable Energy Policy of June 2025, aiming to generate 20 percent of energy from renewables by 2030 and 30 percent by 2040.

While rooftop solar continues to grow, Bangladesh must explore more effective alternatives to increase the share of renewables in its overall energy mix. Advances in solar, storage, and smart-grid technologies offer opportunities to leapfrog traditional power systems. One promising innovation is perovskite solar cells, a new class of photovoltaic (PV) material capable of converting up to 50 percent more sunlight into electricity than conventional silicon panels. This makes them particularly suitable for low-light conditions, including Bangladesh's monsoon seasons. Lightweight and adaptable, these cells can be printed or spray-coated, enabling applications such as "solar paint" on roofs or walls. Unlike traditional silicon PV, perovskites can be processed at near room temperature, significantly reducing manufacturing energy use and costs. Such high-efficiency, low-cost PV technologies could allow Bangladesh to expand capacity within limited rooftop and urban spaces while lowering adoption costs for households, industries, and SMEs.

Alongside perovskites, emerging technologies such as thin-film and organic photovoltaics (OPV) offer distinct advantages. They are lightweight, flexible, and inexpensive to manufacture. Thin-film cells can be produced on rolls or plastic substrates, making them suitable for curved roofs, portable devices, and building-integrated solar windows. In Bangladesh, thin-film modules could be installed on lightweight rooftops and building exteriors where heavier panels are impractical, while OPV films could supply power to village shops and small electronic devices.

Solar power generation typically requires more land than conventional power plants. As Bangladesh faces acute land constraints, floating photovoltaic (FPV) systems provide a way forward by enabling solar deployment on reservoirs, lakes, and ponds. Water acts as a natural coolant, improving panel efficiency and durability, while also reducing evaporation and algae growth. Bangladesh has already installed an FPV plant in Bagerhat, and this modular, scalable technology could rapidly add capacity without displacing farmers or occupying scarce land.

Agrivoltaics offers another solution by integrating solar panels and agriculture on the same land. Elevated PV arrays create dual-use fields where crops grow under partial shade while panels generate electricity. Studies show that this approach can increase overall land productivity, reduce water requirements, and raise combined crop and energy yields by 35 to 73 percent. In Bangladesh, trials with BRRI-33 rice indicate that intermittent shading does not reduce yields and may even improve plant growth, soil conditions, and water retention. A 100 MW semi-agrivoltaics project is already planned in Jamalpur, where green chillies, turmeric, and ginger will be cultivated beneath solar panels.

Beyond photovoltaic systems, solar thermal technologies also offer potential for renewable power generation. Thermoelectric generators, for example, can convert solar heat directly into electricity. Other solar thermal options, such as concentrating solar power (CSP), use mirrors or lenses to heat fluids that drive turbines. Unlike PV systems, CSP can store energy as heat—often using molten salt—and deliver electricity on demand. This feature is particularly valuable as it allows energy supply during periods of low sunlight. Feasibility studies, especially in the Dinajpur region, have identified significant potential for CSP deployment.

In addition to CSP, several storage technologies are being developed to support photovoltaic power. Flow batteries store energy in liquid electrolytes held in external tanks, separating power capacity from storage volume. They offer long lifespans, often exceeding tens of thousands of cycles, and allow full depth-of-discharge. Although their energy density is lower than that of lithium-ion batteries, flow batteries are well-suited to large-scale, multi-hour grid storage and can smooth daily or weekly fluctuations in renewable generation with minimal degradation. Bangladesh currently has no grid-scale flow battery installations, but declining costs could make them viable for island grids or long-duration solar storage.

Among long-duration storage solutions, pumped-storage hydropower (PSH) is the most established. It uses surplus electricity to pump water to an elevated reservoir, releasing it later to generate power during peak demand. PSH offers large capacity at a relatively low cost per kilowatt-hour and can operate reliably for decades. Although Bangladesh has no PSH plants at present, the 2016 Power System Master Plan has set a target for the first project by 2030. Locations such as Kaptai, where an existing hydroelectric dam operates, or reservoirs in the hilly northeast could provide gigawatt-hour-scale storage.

Modernising the power grid is essential to integrating renewable energy effectively. Smart grids use digital sensors, automated controls, and real-time data to optimise electricity flows and manage intermittent supply. In Bangladesh, US-funded studies have launched pilot projects in Dhaka and at the national transmission level to improve grid efficiency and flexibility. The 2025 net-metering reforms mark another important step. Under the revised policy, households and businesses can use rooftop solar for self-consumption and export excess electricity to the grid. Net exporters receive energy credits, which can be used to purchase electricity later. These measures encourage decentralised generation. When combined with smart-grid investments, these measures will help Bangladesh manage its expanding renewable capacity more efficiently.

Nafis Mubarrat is programme associate at South Asian Network on Economic Modelling (SANEM). He can be reached at nafis.sanem@gmail.com.
Sheikh Tausif Ahmed is research associate at SANEM.​

 

[Saif]

Industry first in gas supply to fuel economic growth

Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say. "Industry will be on top of our priority and we want that the industrial consumers will

thefinancialexpress.com.bd

Rationing fuel in govt recipe
Industry first in gas supply to fuel economic growth
Petrobangla to ramp up LNG import in new year

M Azizur Rahman
Published :
Dec 27, 2025 23:37
Updated :
Dec 27, 2025 23:37

Industrial consumers will get top priority in gas supply as the government prepares such a fuel-feeding recipe aimed at fuelling economic growth, now largely subdued following political upheavals, sources say.

"Industry will be on top of our priority and we want that the industrial consumers will get as much gas as possible next year to run their industries," state-run Petrobangla Chairman Md Rezanur Rahman told The Financial Express Saturday.

As part of this plan, Petrobangla will be importing increased volumes of liquefied natural gas (LNG) from global suppliers next year," he said.

In 2026--the year close by now-the government corporation will import some 115 LNG cargoes, 5.50-percent higher than current year's imports.

Petrobangla now imports some 109 LNG cargoes from the international market under its set arrangements, he mentions.

"We don't want industrial output be hindered due to natural gas crisis," he says, adding that Petrobangla will utilise current year's experience in the coming year to ensure sufficient natural gas supplies to industries.

"We have month-wise data over demand for natural gas and supply to industries."

Currently, he says, they are providing natural gas to industries to the extreme level of their capacity.

Fertiliser factories are also getting increased volumes of gas, says Mr Rahman.

In the coming year, industrial consumers will get sufficient more gas even when the demand for natural gas for other consumers will increase, he assures.

In the current year, natural gas supply to industries increased by 21 per cent during the first four months until April 2025 compared to the same period of the previous year, 2024, according to official data of the Ministry of Power, Energy and Mineral Resources (MPEMR).

Average gas supply to industries during the first four months until April this year was 997 million cubic feet per day (mmcfd), compared to 823 mmcfd during the same period of the previous year, MPEMR data showed.

Petrobangla has raised gas supply to industries by around 150 million cubic feet per day (mmcfd) since late May following a government decision to import six additional LNG cargos.

The agency reduced gas allocations for gas-fired power plants to 1,050mmcfd from existing 1,200mmcfd to ramp up the fuel feeding to industries by 150mmcfd.

Some 100 mmcfd of additional gas was supplied to industries from additional LNG imports and some 150 mmcfd of gas was diverted to industries to ensure around 250mmcfd additional gas in total for industries from June to October before the advent of winter, said a senior MPEMR official.

The government is spending an additional Tk 110 billion to ensure enhanced gas supply to the industry this year.

"The government will have to count subsidy worth around Tk 35 per cubic meter for importing the additional LNG cargoes for industries," the official adds.

Sources have said that currently the government is providing new gas connections as an unofficial moratorium in previous years amid gas crisis is lifted. Rampant illegal gas connections across the country during the previous Awami League government over the past 16 years had led to the ceasing of new gas connections to industries 'unofficially,' industry insiders say.

"A strong syndicate led by the previous government high-ups, local public representatives, top officials of gas-marketing and -distribution companies and contractors provided scores of illegal connections depriving new industries where the necessity of such connections was vital," says one of the sources.

Currently, new piped gas connections to CNG (compressed natural gas)-filling stations, households and commercial consumers are stopped.

The commercial consumers include restaurants, residential hotels and guest houses, private hospitals, clinics, laboratories, educational institutions, community centres, community clubs, convention centres, snack -and bakery-item makers.

Traditional glass, chocolate, 'chanachur', vermicelli, biscuit, soap, ceramic, medicine, colour, 'agor-ator' distilled water, tannery, ice and ice-cream, and salt makers, who use hand-operated tools to manufacture their products, also belong to the commercial-consumer group.

New gas connections to hospitals, educational institutions and jails, however, continued.

New gas connections to captive power plants are discouraged, considering the increase in the country's overall electricity generation.

Country's overall natural-gas scarcity prompted Petrobangla to ration new connections to industries, fertiliser factories and power plants since June 2009.​