Energy News

The Asian Development Bank’s (ADB) decades-long emphasis on fossil fuel financing is intensifying Bangladesh’s energy, economic and environmental vulnerabilities, according to a new civil society analysis presented at the Bangladesh Energy Conference 2025.

Experts warned that ADB’s continued reliance on gas-based power is locking Bangladesh into an expensive, fuel-dependent and unstable energy system, while renewable energy remains significantly underfunded despite rising global consensus in favor of low-cost, climate-resilient solutions.

Energy and climate experts at a discussion on Saturday urged the urgent revision of the Integrated Energy and Power Master Plan to increase the share of renewable energy in the country’s energy mix.

Bangladesh Working Group on Ecology and Development in collaboration with 16 national partner organisations held the discussion at the Bangladesh Military Museum in Dhaka city during the inauguration of the 3rd Bangladesh Energy Conference 2025.

Experts have urged an urgent revision of Bangladesh's Integrated Energy and Power Master Plan (IEPMP) to increase the share of renewable energy.

They came up with the call during the inauguration of the 3rd Bangladesh Energy Conference 2025 on Saturday at the Bangladesh Military Museum in DhakaEnvironment Adviser Rizwana was present as the chief guest.

China has cemented its position as Bangladesh's largest infrastructure partner through its Belt and Road Initiative (BRI). While these investments are crucial for development, experts highlighted serious social, environmental, and governance risks. They point to limited transparency in China-funded projects, gaps in environmental and labour safeguards, and inadequate engagement with affected communities.

Says a leader of ceramic manufacturers’ association

The country's ceramic industry is facing one of its toughest periods in recent years, as rising production costs driven by persistent energy shortages and weak domestic demand take a toll on manufacturers. Irfan Uddin, general secretary of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA), highlighted the sector's challenges in an interview with The Daily Star.

Two rounds of cost escalation nearly double initial budget; expensive machinery deteriorating

The key objectives of the project are to reduce pressure on land through modern waste management. Additionally, the project is being implemented to ensure environmentally sound collection, transportation, and disposal of waste, cut carbon emissions, and convert waste into renewable energy.

Bangladesh’s faster regasification expansion and declining domestic gas fields to drive higher imports

Bangladesh's liquefied natural gas (LNG) imports are likely to outpace Pakistan's by 2035, making it the second-largest importer in South Asia after India, according to a projection by the International Energy Agency (IEA).

Delayed payments to companies have triggered threats of legal action and arbitration, as experts warn the disputes could harm Bangladesh’s credibility and investor confidence

Payment disputes have deepened tensions between the Bangladesh Power Development Board (BPDB) and private power producers, several of whom are now threatening to take legal action and even suspend operations if the impasse persists.

Company invites consultants for feasibility study for solar plant to substitute coal-fired power plants

A major 430-megawatt grid-tied solar-power plant is being established at Matarbari in Cox's Bazar instead of planned coal-fired facilities at the seaside transport-economic hub.

Officials of the Bangladesh Power Development Board (BPDB) have informed a visiting International Monetary Fund (IMF) team that the upcoming elected government will be entitled to adjust the power tariff.

BPDB officials conveyed this during a meeting with the IMF delegation, which inquired about the implementation of the three-year roadmap to phase out power subsidies and achieve a zero-subsidy regime.

On the outskirts of Gazipur, north of Dhaka, bulldozers roar across the sprawling landscape of the Kaliakoir Hi-Tech Park – Bangladesh’s flagship technology zone.

Steel and concrete frames towered over the clay; cables snaked through trenches; and the air hummed with the promise of digital data sovereignty. Local and foreign firms, building data centers and computing power to enable artificial intelligence (AI), rising rapidly across the park.

Bangladesh has been facing a gas shortage for several years. Even with the import of expensive LNG (liquefied natural gas), demand remains unmet. Domestic gas production continues to decline.

To increase exploration and production, the government aimed to complete work on 50 wells—covering development, refurbishment, and exploration—by December this year. So far, work on only 20 wells has been completed.

Bangladesh, the second-largest economy in South Asia and the tenth in the Asia-Pacific region, has swiftly evolved from reliance on aid to become one of the fastest-growing economies. Despite significant economic expansion and a decrease in poverty, it confronts the combined task of maintaining industrialisation while mitigating energy-related carbon emissions.

Given its status as one of the globe’s most climate-vulnerable nations, Bangladesh’s strategy for incorporating CO? emission reduction, technology advancement, and sustainable development will be pivotal in determining its long-term economic and environmentally sustainable development.

The Energy and Mineral Resources Division has submitted a revised proposal for the “Modernisation and Expansion of Eastern Refinery Limited (ERL 2)” project to the Planning Commission for approval, according to commission sources.
After months of unsuccessful efforts to secure foreign loans, the government has now decided to implement the long-delayed second unit of the Eastern Refinery Limited (ERL-2) with its own funds – a long-cherished project expected to save the country millions of dollars annually by cutting refined oil imports.

Bangladesh's heavy reliance on fossil fuel imports has emerged as a major threat to its fiscal health and overall macroeconomic stability. Despite mounting fiscal pressures and increasing volatility in international energy markets, the country continues to raise its subsidy allocations for the power and energy sector. In the national budget for FY25-26, the government allocated Tk 37,000 crore in subsidies for this sector—slightly lower than the originally proposed Tk 40,000 crore for FY24-25. However, the revised power subsidy for FY24-25 was later increased to Tk 62,000 crore.