[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt approves draft offshore PSC to boost oil, gas exploration

The Cabinet Committee on Economic Affairs on Thursday approved the draft of ‘Bangladesh Offshore Model Production Sharing Contract (PSC) 2026’ aimed at accelerating offshore oil and gas exploration in the country. The approval came at a meeting of the committee held at the

thefinancialexpress.com.bd

Govt approves draft offshore PSC to boost oil, gas exploration

bdnews24.com

Published :
May 07, 2026 17:25
Updated :
May 07, 2026 18:18

The Cabinet Committee on Economic Affairs on Thursday approved the draft of ‘Bangladesh Offshore Model Production Sharing Contract (PSC) 2026’ aimed at accelerating offshore oil and gas exploration in the country.

The approval came at a meeting of the committee held at the Secretariat with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.

The proposal was placed by the Energy and Mineral Resources Division, said officials.

The draft PSC 2026 is expected to serve as the updated framework for engaging international oil and gas companies in offshore exploration activities in Bangladesh’s maritime areas in the Bay of Bengal.

Officials said the revised model contract is intended to make the country’s offshore energy sector more attractive to foreign investors amid growing demand for energy security and domestic resource exploration.

At the same meeting, the committee also approved in principle of another proposal related to ensuring uninterrupted power supply across the country.

The proposal, submitted by the Power Division, sought inclusion of government-owned power plants, joint venture power projects and imported electricity from India and Nepal, including power from Adani Power Jharkhand, under the subsidy framework.

Officials said the move is aimed at maintaining stable electricity supply by facilitating subsidy support for imported and locally generated power amid rising generation and import costs.

However, the committee approved the proposal partially after discussion.​

 

[Saif]

Policy push underway to generate more solar power

The government has prioritised renewable energy like solar and wind power since assuming office, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood said Thursday. The ministry has been acting accordingly in line with instructions from Prime Minister Tarique Rahman, he said. Speaking

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Policy push underway to generate more solar power

FE REPORT

Published :
May 08, 2026 11:02
Updated :
May 08, 2026 11:02

The government has prioritised renewable energy like solar and wind power since assuming office, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood said Thursday.

The ministry has been acting accordingly in line with instructions from Prime Minister Tarique Rahman, he said.

Speaking at the inaugural ceremony of the Power, Energy and Infrastructure Expo at the Bangladesh-China Friendship Conference Centre in Dhaka, the minister said the country remains significantly behind its regional neighbours in renewable energy development, while pledging sweeping policy support to accelerate the growth of solar power.

India and Pakistan have already expanded their use of solar and wind energy to reduce dependence on fossil fuels, whereas Bangladesh has lagged behind for many years, he lamented.

Bangladesh, however, is now ready to move forward with solar energy, said the minister, adding that the biggest challenge is policy support.

Mr Mahmood revealed that a committee has been formed under the Prime Minister's directive to accelerate renewable energy development. The committee has already held meetings and prepared the foundation of a new policy framework.

"If the government can provide the right policy support, a revolution in this sector will be possible," he added.

Drawing comparisons with Bangladesh's garment industry boom in the 1980s, the minister said policy measures such as bonded warehouse facilities and back-to-back letters of credit introduced under former President Ziaur Rahman had transformed the country's apparel sector. Similar incentives for solar power, he argued, could rapidly expand the renewable energy industry.

He said the government is working on a simplified framework for importing key solar equipment, including inverters, frames and photovoltaic panels, making it easier for entrepreneurs to install solar systems.

Particular emphasis is also being placed on battery storage technology, he said, noting that electricity generation during daylight hours alone would not be sufficient to meet evening peak demand.

The government is also considering measures to reduce the tax burden on renewable energy investors in an effort to make solar projects more commercially viable.

The minister said a new renewable energy policy is expected to be finalised this month and approved by the cabinet by June before being issued as an official government order.

Bangladesh is targeting the generation of 10,000 megawatts of renewable electricity over the next five years, he added.

The minister also outlined plans to expand rooftop solar generation across Dhaka and other cities. Under the proposal, private investors would be able to install solar panels on commercial and residential rooftops and supply electricity directly to building owners. Bills would then be adjusted through a net metering system at the end of each month, while building owners would also receive a share of the revenue.

He said the initiative could create a profitable market for investors while easing pressure on the capital's electricity supply.

Around 140 companies and organisations from 12 countries are participating in the exhibition, said Rashedul Haque, Managing Director of the organising company Exponet Exhibition.

Among those attending the event were Muzaffar Ahmed, Chairman of the Sustainable and Renewable Energy Development Authority; Md Shafiul Alam Uzzal, President of the Bangladesh Elevator, Escalator and Lift Importers Association; Mostafa Al Mahmud, President of the Bangladesh Sustainable and Renewable Energy Association; M Azizur Rahman, Chairman of the Forum for Energy Reporters Bangladesh (FERB); and Mostafa Kamal, Editor of Khaborer Kagoj.

Organisers said the exhibition would continue until Saturday. The three-day expo is showcasing products, technologies and services related to power, energy, construction and infrastructure development. The FERB is serving as the event's media partner.

Alongside this event, Dhaka Industrial Packaging Expo is being held at the same venue, jointly organised by the Bangladesh Flexible Packaging Industries Association.

Six special sessions are also being held, initiated by the Dubai International Chamber, Export Development Bureau, and Business Promotion Council.

This exhibition is a platform for business networking, knowledge exchange, investment collaboration, and technology-driven development.

Participating organisations are presenting their products, technologies, services, and innovative solutions, while also engaging directly with potential buyers, investors, engineers, project implementers, and policymakers.

The exhibition is sponsored by RR Cable, Bright Powertech, and Run Power Engineering.​

 

[Saif]

Renewable delays push Bangladesh into energy trap: experts

Bangladesh has fallen into an "energy trap" where heavy dependence on fuel imports, costing nearly $12 billion annually, has left the country vulnerable to global shocks, business leaders and energy experts warned today

www.thedailystar.net

Renewable delays push Bangladesh into energy trap: experts

Star Business Report

Image: Courtesy

Bangladesh has fallen into an "energy trap" where heavy dependence on fuel imports, costing nearly $12 billion annually, has left the country vulnerable to global shocks, business leaders and energy experts warned today.

Renewable energy could have offered a way out, but more than a decade of delays in shifting from fossil fuels to renewables have left the country far behind its own targets, they said at a roundtable discussion on the future of energy in the country.

The Bangladesh Chamber of Industries (BCI) organised the event at its conference room at Tejgaon, Dhaka.

“Bangladesh is no longer facing just an energy crisis; it is now caught in an energy trap that threatens the country’s medium-term economic potential,” Hossain Zillur Rahman, executive chairman of Power and Participation Research Centre (PPRC), said at the event.

Discussion on the issue must move beyond isolated expert opinions and integrate the experiences of the private sector, which is bearing the brunt of the uncertainty, he said.

Rahman said unpredictability, not cost alone, had become the biggest burden on businesses.

"Even a high but predictable cost can be managed. But uncertainty makes planning impossible," he said, calling for a coordinated transition strategy.

Noting that Bangladesh’s import-dependent energy structure poses a risk to national sovereignty, he called for a diversified solution comprising renewables, coal, regional cooperation, and stronger refining capacity.

He said transitioning into renewable energy could be a “game-changing” national agenda and urged policymakers to focus on practical, politically viable solutions.

Over 52 percent of Bangladesh's primary energy now comes from imports, up sharply from four years ago, said Shafiqul Alam, lead analyst at the Institute of Energy Economics and Financial Analysis (IEEFA).

The growing dependence on imported fossil fuels has become one of the country’s biggest economic vulnerabilities, as it exposes the economy to global shocks and forces the government to spend nearly $12 billion annually on fuel imports.

With global fuel prices rising, the country may need to spend an additional $2.2 billion to maintain current supply levels, said Anwar-ul-Alam Chowdhury Parvez, president of BCI.

The country also faces a daily electricity shortfall of 1,500 to 2,000 megawatts, he added.

The costs are being felt most acutely by smaller businesses. Many rural factories go without electricity for 10 to 12 hours a day. "Small entrepreneurs who invested in these factories are struggling to survive," Parvez said.

David Hasanat, president of the Bangladesh Independent Power Producers' Association (BIPPA), said the risks had been visible for over a decade.

"The country knew about the looming risks more than a decade ago but failed to act decisively on renewable energy and efficiency measures," he said.

Slow policy support, financing barriers, land shortages, and weak implementation had since compounded the problem, leaving industries exposed to rising costs, power instability, and mounting carbon-related trade barriers, he added.

The renewable transition, the most direct route out of the trap, remains stalled. Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association, rejected the argument that a lack of land was to blame for this.

"Our energy transition is being delayed by false narratives, not by a lack of land," he said.

He called on the government to offer five-year tax exemptions on solar equipment and batteries, ensure access to green finance, and guarantee land and grid support.

Siddique Zobair, adviser to GreenTech Foundation Bangladesh, said Bangladesh remained far behind the renewable energy targets it set in 2008.

Delays in land allocation, weak financing, and the absence of sovereign guarantees continue to deter private investment, he said.​

 

[Saif]

Tap indigenous resources for energy security: Experts

Experts and industry leaders at a roundtable discussion on Saturday urged the government to prioritise indigenous energy resources and sustainable policies to ensure national energy security and foster long-term industrial growth. According to them, reducing high import dependency and rationalisin

thefinancialexpress.com.bd

Tap indigenous resources for energy security: Experts

FE REPORT

Published :
May 10, 2026 10:45
Updated :
May 10, 2026 10:45

Experts and industry leaders at a roundtable discussion on Saturday urged the government to prioritise indigenous energy resources and sustainable policies to ensure national energy security and foster long-term industrial growth.

According to them, reducing high import dependency and rationalising electricity prices are essential to overcome the energy trap currently threatening the competitiveness of the nation's diverse manufacturing sectors.

The Bangladesh Chamber of Industries (BCI) organised the event titled "Future of Energy in Bangladesh: Security, Sustainability, and Investment Opportunities" with the support of Bangladesh Sustainable and Renewable Energy Association (BSREA) and GreenTech Foundation Bangladesh (GTFB) at its office in the city's Tejgaon industrial area.

The discussion focused on addressing the systemic challenges hindering the country's energy transition.

Executive Chairman of Power and Participation Research Centre (PPRC) Dr. Hossain Zillur Rahman joined the event as the chief guest, with BCI President Anwar-ul Alam Chowdhury (Parvez) in the chair.

Lead Analyst at Institute for Energy Economics and Financial Analysis (IEEFA) Shafiqul Alam presented the keynote paper.

Member of Bangladesh Energy and Power Research Council (BEPRC) Dr Rafiqul Islam, former Senior Secretary Siddique Zobair, Executive Director of GreenTech Foundation Lutfor Rahman, President of BSREA Mostafa Al Mahmud and Senior Vice President of BCI Priti Chakraborty spoke, among others.

In his speech, Dr. Hossain Zillur Rahman underscored the need for developing innovative ideas. "We need to move towards our own energy security for which solar can be a solution," he said.

He also underscored the need for certainty in polices so that the industries get scope to make plans. "Uncertainty is a bigger problem than that of the abrupt energy cost escalation," he said.

BCI President Mr Chowdhury said the industry in Bangladesh has developed due to relatively cheap gas and fuel and labour.

"But after 2022, we can no longer say cheap gas and fuel. Our gas extraction is decreasing by about 100 MMCF every year, while the government is trying to meet the deficit by importing LNG," he said.

Terming energy the most important for the country's industry and employment, he said every stakeholder has to come forward to find a way out of the crisis.

"We have to convince the government with a specific proposal on how we can overcome such problems and how our future will be more secure so that the government can also take the issues positively," he said.

According to the keynote, fossil fuels dominate Bangladesh's energy and power sectors. Besides, high exposure to international fossil fuel markets amid limited success in renewable energy and declining domestic gas production weakens the country's energy system, leading to a perpetual vulnerability.

It also recommended policy support to accelerate Bangladesh's energy transition, including waiving import duties on rooftop solar components, maintaining rational renewable energy tariffs and strengthening regional energy cooperation beyond 2030.

It also stressed the need for capacity building and awareness programmes to promote energy-efficient technologies.

Mr Siddique Zobair pointed out that while fossil fuels will remain the mainstay for the next 15 years, the failure to meet renewable targets set in 2008 is a collective setback.

He proposed a complete duty waiver on solar components and battery storage to offset the massive subsidies currently spent on imported fuel.​

 

[Saif]

Energy crisis top barrier to investment, says BIDA Chairman

Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun on Monday warned that the country's unresolved energy crisis remains the single biggest obstacle to attracting both local and foreign investment, and that no amount of policy reform will convince

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Energy crisis top barrier to investment, says BIDA Chairman

UNB

Published :
May 11, 2026 23:29
Updated :
May 11, 2026 23:29

Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun on Monday warned that the country's unresolved energy crisis remains the single biggest obstacle to attracting both local and foreign investment, and that no amount of policy reform will convince investors without a reliable power and gas supply.

“Until we solve the energy problem, we can talk about investment but it's going to be very difficult for local and foreign investors to believe in the Bangladesh story,” Ashij was speaking at a roundtable on ‘Trade Policy, Industrial Protection, Investment Impacts, and Consumer Welfare,’ organised by the Policy Research Institute's (PRI) Center for Trade Policy and Protection Research (CTPPR) with support from the Foreign, Commonwealth and Development Office (FCDO), held at PRI's Banani office.

Ashik said Bangladesh's fundamental investment challenge is not the absence of good policy but the failure to implement it.

He cited the difficulties businesses routinely face in clearing raw materials at Chattogram Port as a case in point, a problem where policies exist on paper but enforcement and execution remain dysfunctional. “At the principal level, there are policies regarding these problems but no execution.”

Ashik added that the government's current priority has shifted from chasing headline growth figures to generating sustained, employment-driven growth, and that BIDA is working to merge and streamline investment promotion institutions to reduce friction for investors.

The BIDA chief disclosed that investment promotion agencies have submitted 46 specific recommendations to the National Board of Revenue (NBR), including 19 proposals on deregulation. Among the key proposals is the introduction of a structured VAT slab system to provide clearer incentives for local value addition and reduce policy uncertainty.

Ashik also pushed back against criticism that BIDA favours foreign investors over domestic businesses, saying the agency advocates for all investors from within the government.

While foreign direct investment brings technology transfer and efficiency gains, he noted that domestic investment remains the backbone of Bangladesh's economy. “Bida's responsibility is to advocate from within the government on behalf of all local and foreign investors.”

In his keynote address, PRI Chairman Dr. Zaidi Sattar painted a stark picture of a trade policy framework that has for decades prioritised protecting domestic producers at an enormous and largely invisible cost to ordinary Bangladeshis.

He said Bangladesh's average tariff burden of 28 percent, against a global average of 6 percent and a lower-middle income country average of 7.2 percent, combined with a web of para-tariffs, has pushed the nominal protection rate to 27.9 percent in FY26, making domestic sales far more profitable than exporting and creating a structural anti-export bias across the economy.

The roundtable was chaired by Dr. Sattar. Panelists included Consumer Association of Bangladesh President AHM Shafiquzzaman, former NBR member Md Farid Uddin, Dhaka Chamber of Commerce and Industry President Taskeen Ahmed and Policy Exchange Bangladesh Chairman and CEO M Masrur Reaz.​

 

[Saif]

Govt plans three‑month energy reserves amid global volatility

Finance minister unveils energy security plan

www.thedailystar.net

Govt plans three‑month energy reserves amid global volatility

Finance minister unveils energy security plan

Star Online Report

Bangladesh is planning to build reserves capable of supporting energy demand for up to three months amid growing concerns over geopolitical instability and volatile global fuel prices, Finance Minister Amir Khosru Mahmud Chowdhury said today.

The move is part of the government's plan to ensure long-term energy security and reduce vulnerability to global supply disruptions, he said, responding to businesspeople at a dialogue on Bangladesh's economic future during global uncertainty. Bonik Barta, a Bangla newspaper, organised the discussion at Sheraton Dhaka.

Khosru said the new government inherited unpaid liabilities worth Tk 40,000 crore to Tk 50,000 crore in the energy sector from previous administrations.

“When we came in, we found that nearly Tk 42,000 crore in energy sector bills had not been paid,” he said.

As part of the new strategy, the government is preparing two separate policies for oil and gas and for the power sector, while also reassessing several ongoing and previously approved projects.

“For energy security, we want to ensure at least three months of reserves so that there is no disruption in oil, gas, and power supply,” he said.

Bangladesh currently depends heavily on imported liquefied natural gas (LNG), petroleum products, and coal to run its power plants and industries, leaving the economy highly exposed to external market disruptions and currency pressures.

The proposed storage expansion comes as policymakers grow increasingly concerned about supply chain uncertainties caused by geopolitical tensions and instability in global fuel markets.

He cited uninterrupted power, gas, and internet connectivity as three critical pillars for sustaining industrialisation and economic growth.

“If we can ensure uninterrupted power, uninterrupted gas supply, and a robust internet system, then the private sector, young entrepreneurs, and industries are ready to move forward,” he said.

Alongside increasing storage capacity, the government is also seeking to diversify energy sources through regional power trade. Khosru said Bangladesh is discussing the possibility of importing 4,000 to 5,000 megawatts of hydropower through a regional grid involving neighbouring countries such as Nepal.

He added that hydropower would be comparatively cheaper than conventional fossil fuel-based electricity generation.

The government is also counting on electricity generation from the Rooppur Nuclear Power Plant, which is expected to add around 2,000 to 2,500 megawatts to the national grid by the end of next year.

However, Khosru acknowledged that Bangladesh's biggest challenge is no longer only power generation but also transmission infrastructure.

“Power transmission is now a major problem. So, we are focusing on strengthening the existing transmission capacity,” he said.

The government also plans to tighten project monitoring and implementation, which officials admit has long remained a major weakness in Bangladesh's development process.

According to Khosru, his ministry is introducing a digital dashboard system to track project progress in real time and identify delays or bottlenecks quickly.

He said all ministries would be required to submit monthly monitoring reports, while projects would be evaluated based on four criteria: value for money, return on investment, job creation, and environmental impact.​