[🇧🇩] Energy Security of Bangladesh

[Saif]

https://www.newagebd.net/post/power-energy/308551/renewables-ambitions-face-financing-bottlenecks-experts

Renewables’ ambitions face financing bottlenecks: experts
Staff Correspondent 03 August, 2026, 00:35

Prime minister’s finance and planning adviser Rashed Al Mahmud Titumir, among others, is present at a seminar organised by the Economic Reporters’ Forum in collaboration with the Distributed Renewable Energy Platform in the capital on Sunday. | Press release

Experts on Sunday identified inadequate access to finance as the biggest obstacle to Bangladesh’s renewable energy transition, warning that the country’s ambitious clean energy drive could fall behind unless entrepreneurs receive easier access to finance and a more supportive policy environment.

They also said that the country needed a coordinated financing framework, simplified access to credit, consistent policies and stronger institutional coordination to accelerate the transition towards distributed solar power and reduce dependence on imported fossil fuels.

The observations came at a seminar titled ‘Distributed Renewable Energy: The Future Solar Solution for Bangladesh,’ organised by the Economic Reporters’ Forum in collaboration with the Distributed Renewable Energy Platform, a forum of organisations working on renewable energy, at the ERF auditorium in the capital Dhaka.

Researchers, industry leaders and development experts said that Bangladesh’s evolving energy landscape had made distributed renewable energy increasingly important in addressing power reliability gaps, improving climate resilience and reducing costly fuel imports.

They said that many aspiring renewable energy businesses struggled to obtain affordable financing, while existing support mechanisms remained complicated and inaccessible.

Experts also identified policy inconsistency as another major obstacle, saying that although the government had adopted several supportive renewable energy policies, entrepreneurs frequently received conflicting directions from different ministries and agencies, creating uncertainty for investors and business associations.

Prime minister’s finance and planning adviser Rashed Al Mahmud Titumir said that Bangladesh’s renewable energy transition would require more than policy support, arguing that a broad-based public movement was needed to create sustained demand for clean energy.

‘If people demand renewable energy, the supply system will follow,’ he said, adding that society needed to be mobilised to recognise access to modern energy as a basic right.

Titumir said that renewable energy should be recognised as a fundamental right rather than a commodity and urged the government, civil society organisations, non-governmental organisations and financial institutions to work together to make clean energy accessible and affordable for all.

The adviser said that Bangladesh should build domestic manufacturing capacity for solar photovoltaic panels, batteries, inverters and electric vehicles to develop local industries, promote innovation and create employment.

At the event, keynote papers were presented by Centre for Policy Dialogue research associate Md Mehedi Hasan Shamim, Bangladesh Sustainable and Renewable Energy Association company secretary ASM Munir, Coastal Livelihood and Environmental Action Network chief executive officer Hasam Mehedi, SOLshare director Ishtique Ahmed and ActionAid Just Energy Transition manager Abul Azad.

They said that Bangladesh now faced a significant retention crisis, with nearly 47 per cent of the country’s six million installed solar home systems no longer functioning.

They said that these stranded assets demonstrated the need to shift towards grid-connected rooftop solar systems capable of supporting long-term electricity demand.

The keynote speakers observed that households accounted for 57.2 per cent of Bangladesh’s electricity consumption.

They estimated that if only 10 per cent of the country’s 40.3 million households installed rooftop solar systems ranging from one to five kilowatt-peak, Bangladesh could add 8,600 MWp of capacity by 2030.

They said that such a scenario alone could supply about 15 per cent of the country’s annual electricity demand while creating another 1.5 million green jobs in addition to the 1.37 million already generated by the solar industry by the end of 2021.

The keynote papers recommended accelerating battery energy storage systems and promoting virtual power plants using the country’s estimated six million electric three-wheelers.

The papers said that the vehicles collectively represented about 6 GW of potential storage capacity and that smart charging technologies could enable them to store electricity during off-peak hours and feed unused power back into the grid during evening peak demand, reducing reliance on expensive furnace oil-fired power plants.

The experts estimated that Bangladesh would require about $980 million in annual investment to achieve its distributed renewable energy targets by 2030.

They said that high upfront installation costs, ranging from Tk 80,000 to more than Tk 2,50,000 for residential systems, continued to discourage wider adoption, while commercial banks remained reluctant to finance such projects because of perceived risks and stringent collateral requirements.

To overcome these challenges, the Distributed Renewable Energy Platform proposed establishing a unified DRE coordination body under the Sustainable and Renewable Energy Development Authority to streamline licensing, planning and data management.

Titumir said that the government had already introduced major fiscal incentives, including tax benefits for solar projects and incentives for electric vehicles, to encourage investment in the sector.

He said that Bangladesh needed innovative storage technologies capable of balancing electricity supply and demand while keeping energy affordable for consumers.​

 

[Saif]

Chevron's onshore search offer under fresh vetting

Chevron Bangladesh's fresh investment proposal to ramp up onshore gas exploration gets under processing, sources say, amid a thrust on energy search to meet shortages of fuels in the country. The energy ministry has asked state-run Petrobangla to review the investment proposal from the US mu

thefinancialexpress.com.bd

Chevron's onshore search offer under fresh vetting

Chevron Bangladesh's fresh investment proposal to ramp up onshore gas exploration gets under processing, sources say, amid a thrust on energy search to meet shortages of fuels in the country.

The energy ministry has asked state-run Petrobangla to review the investment proposal from the US multinational.

Chevron Bangladesh, a part of the global energy company Chevron, submitted the investment proposal for further hydrocarbon exploration in block-11 and block-12 in the country's gas-rich northeastern region.

The American company is currently installing a compression station near Jalalbad gas field at a cost of around US$65 million to increase gas production from nearby producing gas fields.

The project is expected to be completed within 30 months, making additional gas available by 2028.

Chevron's investment proposal for these unexplored onshore areas in the Surma basin is long pending for approval by Bangladesh government.

The company has recently renewed interest in making further investment there to ramp up the country's overall natural-gas output against the backdrop of growing energy crisis since the beginning of the Middle East crisis late February, dwindling local gas reserves and mounting demand in industries, power plants and fertiliser factories.

Sources could not confirm how much investment Chevron will pour into these onshore blocks, but said that it would be no less than US$500 million.

"Chevron has planned to drill a good number of wells in new exploration areas and would be able to supply natural gas within the shortest possible time," said one source.

The US company is learnt to have sought to link the gas price to the price of Brent Crude on the international market and demanded that the price should be 10 per cent of the Brent Crude price, which will be variable.

Under the current international market rate, the price would be US$9.0 per cubic meter, considering the Brent Crude price at US$90 per barrel, which is around three times higher than the price at which it sells gas to Petrobangla from the currently operational gas fields.

Chevron placed the proposal after carrying out 'exploration study' in 11 onshore blocks, fully or partially, to delineate new hydrocarbon prospects over the past couple of years.

Among the blocks 1, 2A, 2B, 3A, 3B, 8, 9, 11, 12, 13 and 14, which were studied by Chevron, few are still vacant, or unexplored, some owned by state-run Bangladesh Gas Fields Company Ltd (BGFCL) and some owned by Sylhet Gas Fields Ltd (SGFL) and the remaining are Chevron's.

During the study, the company attained access to relevant data and carried out study in reservoir 'stratography', and unconventional reservoir 'farcies.'

Officials have said the US firm attained a 60-square-kilometer 'flank' area from Petrobangla outside its existing contract zone to the north of the Bibiyana gas field in the gas-rich region during the previous Awami League government.

It also invested around US$150 million in drilling a couple of new wells BY-27 and BY-28.

The onshore block-11 is one of the several blocks that were kept ring-fenced for development by BAPEX.

Chevron Bangladesh is currently the largest producer of natural gas in Bangladesh with its output of around 890 million cubic feet per day (mmcfd) from three of its onshore fields -- Bibiyana, Jalalabad and Moulavi Bazar, which are located in blocks 12, 13 and 14 respectively, according to official data of Petrobangla as on August 1, 2026.

The country's overall natural-gas output hover around 2,151mmcfd, including 500mmcfd regasified liquefied natural gas (LNG) and the remaining 1,651mmcfd from local gas fields that include the Chevron-operated ones.

Previously, the Bangladesh Oil, Gas and Mineral Corporation or Petrobangla had turned down a similar proposal from Chevron to develop onshore Rashidpur gas field, owned by the corporation's subsidiary Sylhet Gas Fields Ltd (SGFL).

Chevron then also had sought 10 per cent of the Brent Crude price for Rashidpur gas after development of the field and initiating production.

Instead of allowing it to develop Rashidpur gas field, Petrobangla has engaged its subsidiary Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) to drill extensively over there.

More than a decade back in 2015, Chevron also had proposed to invest around US$650 million in installing a new compression station at Bibiyana gas field and drilling three more wells in Jalalabad gas field, tagging condition of annual tariff hike by 3.0 per cent for Bibiyana gas.

The US firm later dropped the investment plan as Petrobangla rejected its plea for annual hike in gas tariffs. Chevron instead announced sellout of its Bangladesh stakes to Chinese joint-venture Himalaya Energy in April 2017.

The US firm reversed its decision in October 2017 when Petrobangla moved to acquire its assets. It decided not to sell off its Bangladesh stakes but to stay in Bangladesh.​

 

[Saif]

https://www.newagebd.net/post/opinion/308636/old-rules-still-shape-energy-transition

Old rules still shape energy transition

Electricity is more than illuminating homes. It sparks opportunities to learn, earn and build a dignified life. Yet Bangladesh’s energy history shows that access alone does not guarantee reliability, affordability or justice.

Back in 2003, only 27 per cent of the rural households had electricity, compared with a national rate of 37 per cent. This disparity contradicted the 1972 constitutional commitment to transform rural areas through electrification. Fast forward five decades, near-universal electricity access is a reality. However, rural households and businesses continue to experience less reliable supply, poor power quality and greater financial pressure than their urban counterparts.

Bangladesh’s energy sector mirrors a deeper flaw in its development model: fragmented policymaking combined with a preference for visible infrastructure. Large power plants become trophies for politicians and a gateway for well-connected businesses. The 2024 White Paper Committee documented how major power-sector contracts were frequently awarded through opaque processes and political connections.

As a result, Bangladesh boosted its power generation but neglected to build an electricity system that is reliable, affordable and financially sound. Infrastructure rose, but the supporting institutions often failed to take shape.

The same contradiction is visible in the shift to renewable energy. Past governments have acknowledged the need to break free from fossil fuels and set bold clean energy targets for 2041. Still, long-term planning remains a missing piece.

The solar home system programme demonstrates both the possibilities and failures of this approach. Launched in 2003 through the Infrastructure Development Company Limited, it became one of the world’s largest off-grid electrification programmes. By 2018, it had provided electricity services to around 20 million people, particularly beyond the national grid.

Yet as the national grid expanded further, demand for these systems faded. Although this development was predictable, no clear strategy was prepared to phase out, repurpose, upgrade or integrate the off-grid infrastructure. Bangladesh still lacks a visible roadmap for transforming it into grid-connected, mini-grid or hybrid renewable energy systems.

Recent policies provide tax incentives for renewable energy products and give greater priority to rooftop solar. This represents an important technological shift, but it also changes who is most likely to benefit.

The earlier solar home system programme was socially oriented and supported by public institutions, NGOs, microfinance organisations and private suppliers. The emerging rooftop solar model is more strongly led by businesses and property owners with the capital, buildings and technical capacity to invest. Without safeguards, it may favour industries, affluent households and urban consumers while leaving poorer rural households with fewer opportunities to participate.

Private sector participation is necessary, but privatisation alone does not ensure affordability or fairness. As seen in Bangladesh’s health and education sectors, private provision has often expanded access while raising costs for poorer households. This is precisely what Sustainable Development Goal 7 calls for — not just access, but affordable and reliable energy for all.

Experiences of implementing past solar programmes offer an important lesson. A 2025 study conducted by Duke University researchers found that under the publicly distributed TR/Kabita Solar Programme, politically connected villages, particularly the home areas of elected representatives, often received more benefits. Political discretion weakened the objective of reaching energy-deprived communities.

The IDCOL programme avoided some of these problems through partnerships with NGOs and microfinance institutions. Yet its loan-based model created another inequality. Poor households able to afford only small down payments needed longer repayment periods and therefore paid more in total. Researchers described this as a ‘poverty penalty’: those with the least financial capacity bore the greatest relative cost.

The delivery mechanism differed, but unequal access persisted.

Ultimately, renewable technology alone cannot deliver a just transition. Without transparent beneficiary selection, affordable finance, accountable institutions and community participation, the new energy system may reproduce political favouritism and economic exclusion.

Local governments will be central to implementation, but their role must be governed by clear criteria, public disclosure and independent monitoring. Existing off-grid systems should be mapped and assessed for integration into mini-grids, community systems or productive-use projects. Subsidies and concessional finance should prioritise low-income households, small farmers, rural enterprises and marginalised communities.

Following the mass uprising of 2024, reform must sit at the centre of Bangladesh’s national agenda. In the energy sector, true reform is not just swapping fossil fuels for solar panels. It must also replace an inherited model of fragmented planning, elite capture and unequal benefit distribution.

Bangladesh’s energy transition will be transformative only when disadvantaged population are placed at the core of policy, financing, implementation and ownership. Otherwise, the country may adopt new technologies while continuing to play by the old rules of development.

Ataur Rahman holds an MA in Sustainable Development Management from Rhine–Waal University of Applied Sciences, Germany.​