Bangladesh now looks to import liquefied natural gas (LNG) from Saudi oil- giant Aramco under an envisaged long-term deal to reduce reliance on volatile spot market for the must-have fuel.

Market insiders say the country may import around 1.0-million-tonne-per-year (MTPA) of LNG, to begin with, from this year once the deal is inked.

Even though most of the agencies concerned are claiming that the Rooppur Nuclear Power Plant (RNPP) is ready to start power generation, experts say that the plant is unlikely to be able to deliver any electricity before 2026.

According to official sources and industry insiders, there is still a long way to go before the RNPP can start commercial operation by the end of 2025.

Numerous obstacles, including the pandemic and war, have delayed the progress of Bangladesh's first nuclear power project

Before the change in government, the Awami League administration indicated that the first unit of the Rooppur Nuclear Power Plant was likely to be operational in January this year.

The government has been in a dilemma regarding the energy security of the country. At one hand it has a large amount pending dues in the middle eastern markets for energy which we had secured earlier while we are struggling to pay local Independent Power Providers and local gas supplier, i.e., Chevron. Today our energy tenders are not being responded as this require a sovereign guarantee or we need to pay significant risk premium for anyone to touch it with a pole. At the same time, we have the warm season impending summer coming back when local demands will peak while we struggle to supply the gas guzzling manufacturing industries. Such catch-22 situation (a dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions) which makes it very difficult for the power regulators to manage. This is leading to regulators contemplating unprecedentedgas price hikes.

THE transition to renewable energy in Bangladesh has been suffering due to an unfavourable investment environment. The Bangladesh Power Development Board has recently extended its deadline for the submission of proposals to tender calls for solar power plants because no investor has submitted any proposal. The BPDB floated three tenders for solar power plants with the capacity to produce 10-100 MW in phases starting from December 2024 but received no response from the investors so far.

Already burdened by unpaid dues amounting to at least Tk3,662 crore as of October 2024, the power producers warn that this latest move could cripple their ability to import fuel, leaving plants idle and triggering intensified load shedding.

In a way, Bangladesh maintains a vertically integrated state monopoly in the power sector. Although the generation segment was liberalised by the private sector power generation policy of 1996, the growth of private generation is fully controlled by the Bangladesh Power Development Board (BPDB) in terms of fuel type, location, size, and approval. There is no competition, as BPDB is the single buyer. Similarly, generation was segregated, and the distribution system was divided among government-formed distribution companies (DisCos) without any true freedom except self-governance within the franchise. BPDB is the single seller of electricity to the transmission company Power Grid Bangladesh (PGCB), which allocates power to the DisCos through the National Load Dispatch Centre (NLDC), which it controls.

The interim government has placed the 2508MW of imported electricity from India among its top priorities, as the tariff rate is comparatively lower than local generation costs.

“We have made major payments for the 1160MW of Indian electricity under bilateral agreements and continue regular payments for the 1348MW Adani Power import to ensure full capacity ahead of the hot summer,” Bangladesh Power Development Board (BPDB) Chairman Engr Rezaul Karim told Just Energy News on Monday.

Clean energy solutions require a significant commitment of capital from the private sector. Bangladesh Bank's low-cost green refinance schemes, offered at interest rates of up to five percent, can enable the private sector to channel this capital towards clean energy projects. These low-cost schemes increase the viability of clean energy projects as opposed to loans offered at market rates. However, information asymmetry, lack of awareness and lengthy disbursement processes prevent the proper utilisation of these schemes.

Despite Bangladesh's lofty aim of generating 40 percent of its energy from renewable sources by 2040, the country faces a significant funding gap, as only 3.6 percent of the required funds were allocated to the sector in 2023, according to a study.

SunEdison blames top official of past regime for deal rescinding

Five years after the power-purchase agreement (PPA) was terminated, SunEdison USA has sought permission to build a 200-megawatt solar power plant in seaside Cox's Bazar.

The 1320-MW Rampal power plant, a joint venture between state-owned power companies of India and Bangladesh, shut down early Friday, drawing on the force majeure clause of the power purchase agreement between the parties.

Waste management remains one of the most pressing challenges for governments worldwide. According to available statistics, the waste generation rate in Bangladesh was estimated to be 0.52 kg per capita per day in 2021. Projections indicate that the daily waste generation rate is expected to rise to 0.80 kg per capita per day by 2030 and 1.19 kg per capita by 2041.

Dhaka, often grappling with poor air quality, has earned the grim distinction of having the worst Air Quality Index (AQI) score worldwide on several occasions over the last few months. The smog serves as a reminder of the environmental degradation driven by fossil fuels, the primary source of energy. While solar and wind power dominate discussions about cleaner alternatives, their limitations highlight the need for a more reliable solution. Nuclear energy, despite its efficiency and cleanliness, has been overshadowed by public fears and misconceptions. Regardless, nuclear power holds the potential to bridge the gap until solar and wind energy become more viable options in the long term or nuclear fusion is successfully achieved.

Bangladesh has asked Adani Power to fully resume supplies from its 1,600-megawatt plant in India, a Bangladesh official said, after more than three months of reduced sales with supplies halved due to low winter demand and payment disputes.