[🇧🇩] Energy Security of Bangladesh

[Saif]

Govt approves draft ordinance to accelerate rooftop solar installation

Targets 3,000-4,000MW solar capacity before next summer to reduce reliance on imported fossil fuels

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Govt approves draft ordinance to accelerate rooftop solar installation

Targets 3,000-4,000MW solar capacity before next summer to reduce reliance on imported fossil fuels

Star Online Report

The government is preparing a special ordinance to facilitate rooftop solar power installation, targeting 3,000-4,000 megawatts of capacity before next summer to reduce dependence on imported fossil fuels.

The cabinet today approved the draft of the Special Solar Power Installation Ordinance, 2026, to address regulatory gaps in projects financed and operated by private investors.

Existing laws lack specific provisions on key issues, including long-term electricity pricing, rooftop rental payments, and maintenance responsibilities under two investment models, according to a cabinet division statement.

Under the operational expenditure (OPEX) model, private investors bear the installation costs and provide electricity to the building owner. Under the capital expenditure (CAPEX) model, the building owner or another entity funds the installation and owns the system.

The Public Procurement Act, 2006, the Invest Bangladesh Act, 2026, and the Electricity Act, 2018, do not specifically cover solar installation and service arrangements under the CAPEX model. The OPEX model also lacks clear rules on electricity pricing over a 15-year period, rooftop rent paid in electricity and maintenance obligations, the statement said.

The cabinet approved the draft at a meeting chaired by Prime Minister Tarique Rahman at the secretariat.

After the meeting, Cabinet Secretary Nasimul Gani said the recent war had exposed Bangladesh's vulnerability in the energy sector, making solar power more important than ever.

Solar systems can be installed on government and private buildings, as well as unused land, he said. The ordinance is expected to be issued today.

According to the cabinet division, the Power Division has formulated the National Renewable Energy Development Strategy 2026-2030 to reduce reliance on imported fossil fuels, cut electricity subsidies, strengthen energy security and achieve the Sustainable Development Goals.

Under the plan, investors will finance solar installations on buildings owned by government, semi-government and autonomous bodies, local government institutions and state-owned companies. Institutions with their own revenue streams will also be able to install rooftop solar systems using their own funds, the statement added.​

 

[Saif]

Energy crisis, economic stress to take two years to ease

Finance Minister Amir Khosru Mahmud Chowdhury expects the energy crisis and broader economic pressures facing Bangladesh to stabilise within two years, with a full economic recovery taking up to five years.

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Energy crisis, economic stress to take two years to ease

Says finance minister

Star Business Report

Amir Khosru. File photo

Finance Minister Amir Khosru Mahmud Chowdhury expects the energy crisis and broader economic pressures facing Bangladesh to stabilise within two years, with a full economic recovery taking up to five years.

“It makes no sense to give people false hope by saying that we will solve all the problems tomorrow or the day after. We need at least two years,” Khosru said at a meeting of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) in Dhaka yesterday.

“Under the government’s plan, the entire economy, including the energy sector, will be stabilised within the first two years. The economy will gain momentum in the third year and make a full recovery in the fourth and fifth years.”

Speaking at the meeting, titled “Sustainable Power and Energy: Driving Investment in Bangladesh”, Khosru said it would be wrong to offer people unrealistic expectations of a faster recovery.

He urged the private sector to prepare for stronger economic activity in the fourth and fifth years.

Khosru blamed the current economic strain on the previous Awami League government and the ongoing conflict in the Middle East.

“Within just a week of our taking office, a war broke out in the Middle East, leading to the energy crisis. Compounding this are the debts from the previous government and other liabilities we have inherited,” he said.

The finance minister said successive governments had not explored domestic gas resources for 15 years, making this a priority for the current government. Bangladesh Petroleum Exploration and Production Company Limited (Bapex) has been approved to drill 50 new wells, while production-sharing contracts (PSCs) are being finalised, he said.

Exploration will cover both onshore and offshore areas. The government has also set a target of generating at least 10 gigawatts of solar power and granted tax exemptions on solar power infrastructure, he added.

“We are planning to bring three to four new FSRUs [floating storage and regasification units] into operation to address the gas crisis, with South Korean, Chinese and American private investors involved.”

Outlining plans for new energy infrastructure, the finance minister said, “Alongside Matarbari, a new site with a 20-metre draft has been identified near Khulna. A modern terminal will be built there to allow oil and LNG to be unloaded directly from large vessels, creating an energy hub.”

Khosru said the government has managed the global energy crisis reasonably well, although there is room for improvement. The country has incurred $7 billion in out-of-pocket expenditure because of global pressures, he said.

He added that the government is addressing the challenges, although future pressures remain uncertain.

Logistics are also improving as the government opens ports to private-sector participation, which Khosru said will reduce costs and make doing business easier.

The government is also receiving a positive response to discussions on establishing an equity fund in Hong Kong specifically for Bangladesh, he said. The capital will go towards the energy sector, bank recapitalisation and state-owned enterprises (SOEs).

FICCI President Rupali Haque Chowdhury said disruptions in global energy markets have exposed Bangladesh’s vulnerability to imported fuels, raising industrial costs and disrupting production.

She stressed that energy security must go beyond managing supply to ensure reliability and affordability. She called for more domestic gas exploration, diversified liquefied natural gas (LNG) sourcing, modernised grid infrastructure, greater energy efficiency and faster investment in renewables.

She also stressed the need for regional energy cooperation and greater private-sector participation to build a resilient energy system, support export diversification and create jobs.

In the keynote address, Shafiqul Alam, lead analyst for Bangladesh Energy (South Asia) at the Institute for Energy Economics and Financial Analysis (IEEFA), said that domestic gas reserves could be depleted by 2036 without major new discoveries.

He said declining reserves and volatile global fuel prices are putting increasing pressure on power generation costs and industrial competitiveness.

Shafiqul proposed expanding rooftop solar, promoting solar-powered irrigation, improving industrial energy efficiency and pursuing regional hydropower cooperation to reduce dependence on imports. He also called for stable policies, green financing and public-private partnerships to attract sustained investment.

During a panel discussion, speakers highlighted the need for investment-friendly policies and a diversified energy mix to ensure reliable and affordable energy.

Shu Xiong, managing director of Chevron Bangladesh, said attracting foreign investment requires global competitiveness, predictable contracts, respect for contractual commitments and a sense of urgency backed by long-term planning.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), outlined short and long-term measures to ease the ongoing energy crisis.

He said reopening coal-fired and furnace oil-fired power plants running below capacity could provide immediate relief. Securing coal and furnace oil supplies takes an estimated two to three weeks, but restoring the plants to full capacity could be a game-changer, he added.

Prof M Tamim, vice-chancellor of Independent University, Bangladesh, called for a pragmatic balance in the energy mix and urgent foreign direct investment in gas exploration to strengthen energy security.​

 

[Saif]

Bangladesh, Algeria sign MoU on cooperation in hydrocarbons

Bangladesh and Algeria on Tuesday signed a Memorandum of Understanding on cooperation in the field of hydrocarbon to ensure Bangladesh’s energy security. Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood signed the MoU on behalf of Bangladesh while Minister for Hydrocarbon Mo

thefinancialexpress.com.bd

Bangladesh, Algeria sign MoU on cooperation in hydrocarbons

Bangladesh and Algeria on Tuesday signed a Memorandum of Understanding on cooperation in the field of hydrocarbon to ensure Bangladesh’s energy security.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood signed the MoU on behalf of Bangladesh while Minister for Hydrocarbon Mohamed Arkab signed it on behalf of Algeria, officials said.

They also discussed different aspects of energy cooperation, particularly the import of LNG, LPG, and other petroleum products from Algeria to Bangladesh under the G2G mechanism, reports UNB.

They shared views on developing LNG and LPG infrastructures and exploration of oil, gas, and coal in Bangladesh.

The Energy Minister also requested the Algerian Minister to organise training programmes for Bangladeshi Engineers, technicians to learn best practices, and technical knowhow of energy sector of Algeria.

Expressing satisfaction over signing of the MOUs on energy cooperation, the Minister of Bangladesh commented that this engagement opened a new horizon for Bangladesh in the field of energy security, and to import LNG, LPG and other petroleum products from alternate African sources under G2G mechanism.

Najmul Huda, Bangladesh Ambassador to Algeria, Minister for Mine and Mining Industries Mourad Hanafi and Minister for Energy and Renewable Energy Mourad Adjal called on the Energy Minister Iqbal Hassan Mahmood separately to discuss various bilateral issues of common concern.

They focused various ways on strengthening collaboration in trade, investment, energy, fertilizer, and knowledge sharing for mutual benefit of Bangladesh and Algeria.

Mohamed Arkab received Iqbal Hassan Mahmood at VIP Presidential Lounge at the Houri Boumediene International Airport on Monday.​

 

[Saif]

3,000–4,000 MW solar power possible before next summer: State minister

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit on Wednesday expressed hope that Bangladesh will be able to generate 3,000-4,000 megawatts of solar power before next summer, citing growing public interest in solar energy. He made the remarks while speaking to journalists a

thefinancialexpress.com.bd

3,000–4,000 MW solar power possible before next summer: State minister

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit on Wednesday expressed hope that Bangladesh will be able to generate 3,000-4,000 megawatts of solar power before next summer, citing growing public interest in solar energy.

He made the remarks while speaking to journalists after inaugurating a solar power system at the Jashore district BNP office, according to a PID handout.

Amit said a 6-kilowatt solar panel system was installed at the party office in line with the Prime Minister’s policy on solar power generation.

The system was installed with the office’s own funds, and arrangements have been made to supply surplus electricity to the national grid after meeting its own needs.

The state minister said the installation cost was expected to be recovered within three to three-and-a-half years.

He also expressed hope that the initiative will encourage other political parties to install solar panels at their respective offices.

Amit said the government is providing policy support following growing public interest in solar power, creating opportunities for small entrepreneurs and generating new employment.

He added that irrigation pumps will gradually be converted to solar power, which will ease pressure on diesel and electricity supplies and reduce farmers’ production costs.

Local leaders BNP and its associate bodies were present at the programme.​

 

[Saif]

Govt plans Tk 592cr project for two Titas wells

The government plans to drill two new wells at the Titas Gas Field at a cost of Tk 592 crore to increase domestic gas production by around 30 million cubic feet per day (mmcfd).

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Govt plans Tk 592cr project for two Titas wells

BSS

Photo: Collected

The government plans to drill two new wells at the Titas Gas Field at a cost of Tk 592 crore to increase domestic gas production by around 30 million cubic feet per day (mmcfd).

The project, titled “Drilling of Two Appraisal-cum-Development Wells (Titas-32 and Titas-33) at Titas Gas Field”, will be placed before the Executive Committee of the National Economic Council (ECNEC) for approval at a meeting scheduled for October 25, an official familiar with the process told BSS yesterday.

ECNEC Chairman and Prime Minister Tarique Rahman will preside over the meeting at the Bangladesh Secretariat.

Bangladesh Gas Fields Company Limited (BGFCL), a subsidiary of Petrobangla, will implement the project under the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources from October 2026 to September 2029, a Petrobangla official said.

Of the estimated cost, Tk 414.40 crore will come from government funds and Tk 177.60 crore from BGFCL’s own funds, the official added.

Petrobangla Chairman Abdul Mannan told BSS that the two wells are expected to produce around 30 mmcfd of gas, along with condensate.

The new wells will add to the supply of the national gas grid and produce around 18 barrels of condensate, helping reduce dependence on imported liquefied natural gas (LNG), he said. The government is working to drill more wells to meet its domestic gas production targets.

Mannan said the government aims to drill 150 wells by 2031 and another 150 between 2031 and 2035 to boost domestic gas production further.

According to the project proposal, the two wells could produce around 100.74 billion cubic feet of gas and 60,444 barrels of condensate over 10 years.

At BGFCL’s existing wellhead prices, the estimated value of this output is Tk 339.07 crore, including Tk 285.26 crore from gas and Tk 53.81 crore from condensate. At consumer-level gas prices, the gas output alone would be worth an estimated Tk 6,523.97 crore over the same period.

BGFCL currently supplies around 480 to 485 million cubic feet of gas a day to the national grid from five of its six operational gas fields. The Titas Gas Field, its largest, produces around 330 million cubic feet a day from 23 of its 28 drilled wells.

The project follows a review of three-dimensional seismic survey data collected at the Titas and Bakhrabad gas fields between 2010 and 2012. BGFCL hired BGP Inc, part of China National Petroleum Corporation, to review the data. The consultant recommended drilling 16 infill wells and seven deep wells.

The government has prioritised Titas-32 and Titas-33 under its plan to drill 150 onshore gas wells to increase domestic production.

The project will involve hiring a foreign contractor to drill the wells, appointing local and foreign consultants, installing gas-gathering pipelines and carrying out related work.

The Infrastructure Investment Facilitation Company conducted the feasibility study in 2026. The Planning Commission said the project would help increase domestic gas production, support industrial development and save foreign currency by reducing LNG imports.

The proposal was revised after a Project Evaluation Committee meeting on June 18, 2026, recommended cutting costs. The estimated cost was reduced by Tk 40 crore, from the initial Tk 632 crore to Tk 592 crore.​