Energy News

Carbon credits are one of the major pillars of most of the country's climate change strategy. Though many experts stated that, depending on offsets to meet emission reduction goals are mathematically impossible and a recipe for climate disaster. However, it serves as one of the most effective tools in the face of climate change.

BANGLADESH adopted the Renewable Energy Policy in December 2008 with the ambitious goal of increasing the share of renewable energy in the country’s total electricity generation. At the time, this policy was a significant step forward in aligning the nation with global trends toward sustainable energy. However, fifteen years later, the global energy landscape has shifted dramatically, and Bangladesh’s renewable energy progress has remained stagnant. The targets set in 2008 remain largely unmet, and new technological advancements and climate commitments demand an urgent revision of the policy.

The onus is now on the interim government to move forward with its own designs on securing our green energy transition

Bangladesh’s ongoing energy crisis has once again exposed the fragility of its power sector. With frequent load-shedding, rising fuel costs, and an over-reliance on imported fossil fuels, the country’s energy security remains precarious. As the interim government steers the nation through this critical period, short-term measures to stabilize supply must be paired with a long-term commitment to renewable energy -- a shift that is no longer optional, but essential.

As Bangladesh faces growing energy demands, rising fuel costs, and the urgent need to meet climate commitments, the transition to renewable energy is most critical. While the country has made some progress in integrating solar and wind power, its dependence on fossil fuels remains high, exacerbating energy insecurity and environmental degradation. A shift towards renewable energy is not just an environmental necessity but also an economic imperative.

One of the greatest joys and satisfactions of my life has been contributing to the development of Bangladesh’s infrastructure—particularly during a time when the country urgently needed modern port facilities. We built the first inland container depot, port-related infrastructure, and terminals for oil storage. That’s how it all began.

Currently, Bangladesh has the capacity to import a total of 2560 megawatts of electricity from India

With the rising demand, electricity imports from India have increased. Currently, 17.13% of the total electricity produced in Bangladesh is coming from India. This increase in import has occurred amidst ongoing tensions between India and Bangladesh.

The decision by the Dhaka Electric Supply Company (DESCO) to generate 120 MW of rooftop solar power by installing on-grid solar systems across its eight operational circles is a commendable initiative. These systems will be deployed on rooftops in urban areas and integrated into DESCO's distribution network through net metering. Each of the eight operational circles has been designated to generate 15 MW of solar power. To facilitate this, bids have been invited from international engineering, procurement, and construction (EPC) contractors to design, build, finance, operate, and maintain the systems. At a time when the global focus is shifting towards clean energy, this move is poised to significantly strengthen Bangladesh's energy sector. Moreover, DESCO plans to purchase electricity from the contractors at rates lower than the retail electricity prices set by the Bangladesh Energy Regulatory Commission (BERC), making it a cost-effective solution for sustainable power generation.

The long-awaited draft of the new Renewable Energy Policy (REP) 2025 was published in February, inviting suggestions and advice for refinement. It promises generation of 20 percent (6,145 MW) of electricity from renewables by 2030 and 30 percent (17,470 MW) by 2041. However, this estimation is based on the overstated electricity demand forecast from the Integrated Energy and Power Master Plan (IEPMP). As per a demand projection by the Centre for Policy Dialogue (CPD), 20 percent renewable electricity in 2030 is 5,600 MW and 30 percent is 10,500 MW. Thus, the target of the draft policy is ambitious on the surface.

With the power demand rising amid heatwaves, the energy mix included more oil to boost electricity generation, leading the interim government away from its plan to reduce energy spending.

The increased use of oil-based power plants keeping cheaper power plants, based on gas and coal, kept idle is caused by the government’s inability to arrange for a cheaper energy, mainly due to the dollar crisis.

The government is set to engage in crucial discussions with the visiting International Monetary Fund (IMF) mission on nine sectoral and fiscal reform measures in the power sector.

“We are preparing through a marathon meeting in the Power Division today,” an official who attended the session told Just Energy News. The official noted that several reforms are already underway, including the suspension of the Special Power Act.

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.