The latest push by the Bangladesh Power Development Board (PDB) to secure investors for 55 grid-tied solar power plants, totaling 5,238MW, has been met with deafening silence

As the world accelerates towards net-zero targets with trillions of dollars earmarked for renewable energy, Bangladesh finds itself in a concerning predicament. The nation, which floated tenders for over 5,000 megawatts (MW) of solar energy late last year, is now struggling to even sell bid documents, let alone secure vital investment deals.

Outlay doubles for energy and mineral resources division

The allocation for the power division in the national budget for fiscal year 2025-26 is around 30 percent less than that of the previous fiscal year, while it has been nearly doubled for the energy and mineral resources division.

Chinese companies who are installing renewable energy across the globe stayed out of the bidding process

Bangladesh's push for renewable energy from solar power failed to bring the leading national and international power companies on board owing to the policy volatility like abrupt cancellation of deal and lack of sustainable financial model.

LNG import will stand 6.5 million tonnes from 5 million, cut import VAT

The power division received around 30 percent less allocation in the FY26 budget compared to the previous fiscal year, while the energy division saw nearly a 100 percent increase.

With power subsidies projected to surge by 55% this fiscal year, Bangladesh’s interim government faces a critical test: can the upcoming budget pave the way for a sustainable, cost-effective energy future?

Bangladesh's interim government is preparing to unveil its first budget on 2 June 2025 amid high expectations of a balanced allocation of funds to streamline the country's energy transition.

Gas production in the country is steadily declining. Even with increased imports of liquefied natural gas (LNG) to cover the shortfall, the situation remains unmanageable. Supply is not increasing proportionately to meet demand, resulting in a persistent gas crisis. Therefore, the power generation capacity is not being fully realised. Meanwhile, complaints from residential and industrial consumers about the unavailability of gas continue to mount.

The country’s gas crisis kept worsening by the day as its supply lags far behind the demand thanks to steady depletion in local production.

The supply of gas, meeting over half of Bangladesh’s energy demand, plummeted on Thursday after imported liquefied natural gas unloading was suspended due to the rough sea because of inclement weather.

Bangladesh is currently facing one of the most disruptive energy crises in recent months. Extended load shedding, acute gas shortages, and high fuel price hikes have severely impacted daily life and economic activity across the country. According to the national dailies, the industrial production has slowed, transport services have been disrupted, and businesses—especially small and medium enterprises—have reported financial losses and operational downtime.

In addition, there has been environmental degradation, depletion of natural resources, adverse impacts on biodiversity, health and livelihood risks for locals and economic losses

The previous owners of the land acquired for the Rampal thermal power plant have been enduring severe hardship for 14 years now.

The government is exploring the use of liquefied petroleum gas (LPG) as an alternative fuel for the 800-megawatt (MW) Rupsha Power Plant in Khulna, which remains non-operational despite being scheduled for commissioning in February this year.

According to BTMA, nearly 400 gas-dependent factories are unable to operate at full capacity due to the crisis

The country’s factories are reeling from an acute gas shortage, as allocations meant for industries are being diverted to electricity and fertilizer production.

Brand-new power and energy sector assets, including major power plants, are getting stranded, presenting the Bangladesh Power Development Board with new overcapacity challenges.

Stranded assets are investments that have stopped yielding return before the expiry of their economic life.

The cost of keeping the lights on in Bangladesh is drawing ever more intense scrutiny, especially over electricity imported under the agreement with Adani Power. In early May, Adani Power's Chief Financial Officer Dilip Jha disclosed that Bangladesh owes approximately $0.9 billion for electricity supplied from the 1,600?MW Godda Plant in India's Jharkhand state. This follows a $1.2 billion payment made to Adani just last November. By June, the outstanding amount is projected to reach $1.3 billion, once again placing considerable pressure on the country's foreign currency reserves and raising serious questions about the wisdom of the deal.

Renewable energy in Bangladesh is a bit like your overly ambitious cousin who swears they'll start waking up at 6:00 am, run 10 kilometres, and read Tolstoy before breakfast—grand promises, minimal follow-through, and inevitably back to square one by the weekend. Every now and then, we're treated to a flashy announcement: a new solar megaproject here, a bold wind energy target there, all wrapped in glossy government statements and hashtags like #GreenBangladesh.

Industry insiders blame abrupt policy shifts as reason for dismal investor turnout

The government's ambitious push to install 5,238 megawatts of grid-tied solar power at 55 sites across Bangladesh has hit a stumbling block. Despite repeated deadline extensions for tender bids, the initiative has drawn a lukewarm response, signalling eroding confidence in the country's renewable energy policy.