Energy News

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.

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.