A tax-reform package for imported LNG has been prepared to help reduce state subsidy burden being created through multiple taxation and marketing the item at cut rates.

To reduce its burden from gas subsidies, officials say, the state-owned Petrobangla has proposed a set of tax reforms on the import of liquefied natural gas (LNG) to be ratified in the upcoming budget for the fiscal year 2025-26.

ENVIRONMENTAL risks associated with coal power generation in Bangladesh are extensive and multifaceted, posing significant challenges to both the environment and public health. A poor management of storage in coal yards can often result in spontaneous fires because of improper handling, producing toxic fumes that expose workers to severe respiratory risks and contribute to air pollution. This problem is exacerbated by high temperatures, often exceeding 30°C, which increase the risk of spontaneous combustion because of coal’s low flashpoint. Workers’ health and safety are frequently jeopardised while the surrounding air quality deteriorates.

BANGLADESH’S renewable energy ambitions remain largely unrealised, despite more than a decade of policy commitments. Today, renewable energy contributes less than five per cent of total electricity generation, according to Sustainable and Renewable Energy Development Authority data. This failure stems not from technological constraints but from regulatory bottlenecks, investment risks and a lack of serious policy commitment. While the country continues to expand its power capacity, it remains heavily reliant on fossil fuels, leaving renewable projects struggling to compete.

Bangladesh's power sector is burdened by overcapacity and systemic inefficiencies, hindering its ability to deliver reliable and cost-effective electricity, says Prof Dr Saifur Rahman, a Bangladeshi expert based in the US.

With a grid system weakened by past neglect and a lack of skilled manpower, the country faces significant challenges in optimising its power generation and distribution, according to Saifur, founding director of the Advanced Research Institute at Virginia Tech University.

Bangladesh is facing a looming electricity shortage this summer as demand is expected to rise from 9,000 megawatts in winter to as high as 18,000 megawatts. To mitigate the impact of this impending crisis, which threatens to severely affect household, commercial, and industrial users, the government has urged all organisations, institutions, and individuals to focus on more efficient use of electricity. As part of this, authorities have instructed that air conditioners be set no lower than 25 degrees Celsius this summer.

As the Rooppur Nuclear Power Plant nears its expected commercial launch in early 2026, concerns are growing among energy experts over its financial viability, with many questioning whether the high project cost could turn it into a white elephant.

The government conceived the idea of setting up the RNPP project in 2009 and signed a Memorandum of Understanding with the Russian Federation on May 13, 2009, on the 'Peaceful Uses of Nuclear Energy'.

Govt must prioritise increasing efficiency, cutting costs

The interim government's move to increase power and fertiliser subsidies in the revised FY25 budget by 57.9 percent highlights, once again, the prevailing mess in the power sector. There had been increases in subsidies during Awami League's tenure too, most of which ended up lining the pockets of vested interest groups and eventually increasing the debt burden of the nation. The interim government seems to be following the same prescription, albeit for different reasons.

The recent move of the Bangladesh Energy Regulatory Commission (BERC) to raise gas tariffs for industrial and captive power users in line with the LNG import price for new connections and consumption in addition to authorized volume has drawn a strong reaction from the business community. And that is not unusual because of the fact that the previous autocratic regime in January 2023 had raised gas tariffs by 150 per cent with the assurance that gas supply to the industries would remain uninterrupted. In reality, the promise was never materialised. Small wonder that the industries suffered enormously for want of uninterrupted energy (gas fuel) supply affecting production in all industrial sectors dependent on gas.

Energy sector experts reiterated the need for urgent decision of the government for utilising domestic coal resources at a seminar held in Dhaka. Policy makers, relevant government department officials, academia and researchers gathered on February 27, 2025 at the seminar titled 'Prospects and ways to overcome challenges of coal resources in Bangladesh.' The seminar was organised by the Hydrocarbon Unit (HCU) under the Ministry of Power, Energy and Mineral Resources at the Biddyut Bhaban, Dhaka. Energy Secretary Mr. Saiful Islam chaired the seminar.

In light of the escalating challenges associated with climate change, the pursuit of a sustainable, renewable, clean, and plentiful source of energy has reached unprecedented importance. Accordingly, physicists have been investigating the energy released during nuclear fusion reactions, but the challenge of converting it into a viable source of energy has proven to be persistently difficult.

AS THE economy revives from the July uprising, concerns loom regarding the nation’s way forward to attaining the objective of undergoing the renewable energy transition in line with the 2030 Sustainable Development Goals. A sub-target under SDG 7 makes it pertinent for all signatories of the pact, including Bangladesh, to substantially raise the share of renewable (or clean) energy in the yearly final energy consumption portfolios. Rather than enhancing this share, the energy sector in Bangladesh has, rather, intertemporally become more dependent on non-renewable, or unclean, energy resources.

Earlier, rooftop solar users could only transmit up to 70% of their generated electricity to the grid through net metering

The government has decided to ease net metering facilities for all in an effort to promote rooftop solar installations, as it aims to generate 40% of its total electricity from renewable sources by 2041, according to energy ministry officials.

Participants in a campaign on Saturday on the occasion of International Women’s Day 2025, urged the government for expanding renewable energy and increasing women's inclusion in the energy sector.

They stressed that to ensure sustainable development, women must have greater decision-making opportunities in the energy sector, and fair access to energy at all levels must be ensured.

Project gets highest allocation in revised budget; MRT, Matarbari also on priority list

Rooppur Nuclear Power Plant has seen the highest allocation for a single project in the revised Annual Development Plan as the interim government wants to make it operational as quickly as possible.

Industrial users are counting 30 to 50 percent production losses for the last couple of months thanks to a gas shortage.

And despite a recent rise in supply through the national pipeline, the textile and spinning mills, and ceramic industries have continued to suffer as the bulk of the gas has been diverted to power production units to meet the growing electricity demand with summer nearing.