Category: Energy and Power

Liquefi ed natural gas (LNG) supplied 45% of the European Union’s gas imports in 2025, highlighting the bloc’s continued shift away from pipeline gas, according to the European Commission’s latest gas market report.

The EU imported 131 billion cubic meters (BCM) of LNG last year, with the United States remaining the largest supplier, providing 76 BCM, or nearly 58% of total LNG imports.

Russia ranked second with 18 BCM, followed by Qatar with 11 BCM.

Algeria and Nigeria each supplied about 7 BCM.

The report said the EU expanded its LNG regasifi cation capacity by 8% to nearly 215 BCM in 2025, supported by new infrastructure in Belgium, Germany, Italy and Poland.

Spain, France, Italy and the Netherlands remained the bloc’s largest LNG import hubs.

The government has advanced two major natural gas exploration and production projects worth Tk 11.22 billion to boost domestic gas output, reduce dependence on costly LNG imports and strengthen Bangladesh’s long-term energy security.

The projects, undertaken by Bangladesh Gas Fields Company Limited (BGFCL) and Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), were recently reviewed by the Project Evaluation Committee (PEC) of the Planning Commission.

Under the Tk 6.32 billion BGFCL project, two appraisalcum-development wells- Titas-32 and Titas-33-will be drilled at the Titas Gas Field in Brahmanbaria by December 2028.

The project is expected to add 60 million cubic feet of gas per day (MMCFD) to the national grid and includes construction of a two-kilometer gas gathering pipeline.

Meanwhile, BAPEX will implement a Tk 4.90 billion program to drill nine wells, including appraisal and exploration wells in Chattogram and Noakhali, to discover new gas reserves and enhance production from existing fi elds.

The Bangladesh Energy Regulatory Commission (BERC) has reduced the retail price of furnace oil by Tk4.44 per liter while keeping the prices of diesel and kerosene unchanged for July.

According to a BERC notifi cation issued on 30 June, the retail price of furnace oil has been lowered to Tk109.10 per liter from Tk113.54 per liter.

The revised price will come into effect from 12pm today, the notifi cation reads.

BERC last revised fuel prices on 18 May, when it set the retail price of furnace oil at Tk113.54 per liter.

Japan International Cooperation Agency (JICA) President Tanaka Akihiko has reaffi rmed Japan’s longterm commitment to Bangladesh, describing the MoheshkhaliMatarbari Integrated Infrastructure Development Initiative as a key project for strengthening the country’s energy security and trade connectivity.

During his fi ve-day visit to Bangladesh, Tanaka inspected the Matarbari power plant and deep-sea port, saying the project would play a vital role in supporting Bangladesh’s economic growth while advancing Japan’s ‘Updated Free and Open Indo-Pacifi c’ vision.

He also met Prime Minister Tarique Rahman and senior government ministers to discuss progress on major Japanese-backed infrastructure projects, including the Dhaka Metro Rail, Hazrat Shahjalal International Airport’s third terminal, the Bangladesh Special Economic Zone, and regional energy cooperation under the POWERR Asia initiative.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud has said the interim government inherited nearly Tk 56,000 crore in unpaid liabilities in the country’s power sector from the previous administration, creating a heavy fi nancial burden that continues to affect the sector.

Speaking as the chief guest at a citizens’ dialogue on the National Renewable Energy Development Strategy (2026-2030) at the Dhaka Reporters Unity (DRU) recently, Iqbal said the government is simultaneously clearing past dues while meeting current fi nancial obligations, requiring substantial monthly subsidies to keep the sector operational.

The dialogue was organized by the Consumers Association of Bangladesh (CAB), where energy expert Prof Dr.

M.Shamsul Alam presented the keynote paper.

Bangladesh is facing a challenge in its fi ght for energy independence.

For decades, the country relied on its own natural gas to produce over 60% of its electricity.

Now, those local reserves are rapidly running out.

To make up for the shortage, Bangladesh has fallen into a trap of spending millions of dollars importing expensive and unpredictable foreign fuel like Liquefi ed Natural Gas (LNG), coal and oil.

This massive spending is draining the country’s foreign currency reserves and hurting the economy.

To truly protect its independence, Bangladesh must shift away from imports and build a domestic energy system powered by local renewable energy sources.

Bangladesh’s Climate Prosperity Plan aims for a bold 40% clean energy share by 2041, but red tape is blocking progress.

At fi rst, the proposed National Budget for FY 2026-27 brought hope by removing import duties, value-added tax (VAT), and advance income tax (AIT) on solar equipment.

However, the National Board of Revenue (NBR) quietly weakened this plan.

Just three days before the budget announcement on 11 June 2026, the NBR issued Statutory Regulatory Orders (SROs) with strict conditions that directly undermine the government’s green goals.

The SROs implement contrasting tax policies, scaling back broad fi scal support for fossil fuels while offering a signifi cant, phased income tax holiday to encourage utility-scale clean energy generation.

The comparative table below outlines the primary tax and incentive structures by the NBR: Stakeholder groups criticize current NBR policies.

Groups like the Centre for Policy Dialogue (CPD) and Bangladesh Solar and Renewable Energy Association (BSREA) point out restrictive eligibility.

They argue these tax waivers mainly benefi t large corporations instead of residential rooftop users or small farmers.

Analyzing the above table, NBR SROs act as a barrier to energy independence by creating an unfair market.

It grants duty and tax waivers only to VAT-registered Renewable Energy Service Companies that generate electricity under a PPA.

Instead of encouraging a widespread solar boom across households and villages, the policy limits tax and duty benefi ts almost entirely to large commercial operations and utility-scale projects.

The SROs potentially exclude everyday residents, small-scale farmers and rural entrepreneurs, who are completely excluded from tax incentives.

As a result, while a massive industrial conglomerate can import solar components duty-free to cut costs, an ordinary citizen trying to install a modest 02 kW solar system on a village roof must pay heavy import duties.

By shutting out everyday consumers, the SROs are choking the massive potential of decentralized clean energy.

Bangladesh has the technical capacity to generate over 100,000 MWp from advanced rooftop solar alone.

To unlock this, the public must be empowered to become active energy producers.

When fi nancial policies create barriers for the average household, it stunts the growth of the clean energy grid and slow down job creation.

While the national budget aims to create over half a million generic jobs, civil society groups point out that a fully unlocked renewable energy sector could independently create over one million green jobs.

Unfortunately, this economic potential is currently stalled by bureaucratic red tape.

This regulatory barrier may reveal a deeper conflict in the state’s economic strategy.

Its old attachment to fossil fuels is undermining its new climate goals.

Even though offi cial statements celebrate a green transition, Government funding continues to back dirty energy.

This keeps fossil fuels artifi cially cheap and slows down the shift to clean energy.

The contrast between fossil fuel incentives and renewable energy support in the current National Budget (FY 2026-27) could be examined as follows: Sector Present Status and Allocation Impact on Energy Independence Renewable Energy Allocation Only 2.20% (Tk 379.24 crore) of the total Tk 17,193 crore power development budget Severely inadequate to fund the Tk 21,750 crore annual investment required for a green transition Fossil Fuel Subsidies 15% VAT and 2% advance income tax waivers remain active for LNG imports Artifi cially lowers fossil fuel costs and prolongs dependence on imported energy Coal Project Expansion Active funding for domestic coal mining (like Barapukuria), where extraction costs (USD170/ tonne) exceed global prices (USD 90-120/tonne) Wastes national funds that could otherwise support solar energy development Ultimately, setting clean energy goals means nothing without the right regulations to back them up.

To escape the expensive trap of importing fuel before its own gas reserves run out, Bangladesh must align its tax policies with its long-term vision.

Resolving this crisis requires immediately canceling or majorly revising the restrictive NBR-issued SROs so that everyone gets equal tax benefi ts.

True energy independence cannot be achieved by only favoring big corporations.

Instead, the country needs an open, inclusive framework that empowers every household, farm and community to contribute to a green energy future

Information and Broadcasting Minister Zahir Uddin Swapon has stressed the need for strong political commitment and long-term policy support to accelerate the expansion of renewable energy in Bangladesh and strengthen the country’s energy security.

He made the remarks while addressing a policy dialogue organized by the Bangladesh Working Group on Ecology and Development (BWGED) at the Jatiya Sangsad Bhaban recently.

The minister said energy security is not limited to ensuring an uninterrupted electricity supply but is also closely linked to Bangladesh’s economic independence and sustainable development.

He emphasized that achieving a successful energy transition would require consistent political commitment, strategic planning and sustained investment in renewable energy.

A study presented by BWGED at the dialogue highlighted the economic benefi ts of solar energy, estimating that every kilowatt of installed solar capacity could save around Tk 30,000 annually in imported fuel costs.

Over the estimated 20-year lifespan of a solar power system, the cumulative savings could reach approximately Tk 550,000.

The University Grants Commission (UGC) has launched a major initiative to expand rooftop solar power generation across Bangladesh’s public universities, aiming to reduce electricity costs and promote clean energy through private sector investment.

According to a UGC press release, the initiative was discussed at a review meeting on rooftop solar power installations held at the Commission recently.

Under the fi rst phase of the program, around 60 MW of rooftop solar capacity is planned for 31 public universities through an Operational Expenditure (OPEX) model, under which private investors will fi nance, install, operate and maintain the solar systems.

UGC said feasibility studies have already been completed at 47 public universities and one international university

The government cannot cancel contracts signed with private power companies at will because they are backed by sovereign guarantees, making the process of termination lengthy and complex, Energy Minister Iqbal Hassan Mahmud said recently.

Responding to a supplementary question from reserved seat MP Mardia Mumtaz in the parliament, the minister said the previous ‘fascist government’ had handed over several power plants to private companies.

‘In those agreements, sovereign guarantees were given, meaning the state itself guaranteed the contracts.

Canceling such guarantees is a lengthy process.

We are trying to negotiate with them on several issues, particularly late payment fees, which we are refusing to pay.

Hopefully, these discussions will be fruitful,’ he said.

He added that once a power plant enters production, the system cannot be patched or run through ad hoc negotiations.

Governments worldwide are projected to spend US$1.1 trillion supporting the fossil fuel industry this year, with the fi gure potentially rising to US$1.43 trillion if global oil prices climb to US$110 per barrel, according to a new report by the United Nations Development Program (UNDP).

The fi ndings were released as climate campaign group 350.org, Fuel Poverty Action and other coalition partners staged a demonstration outside the UK Department for Energy Security and Net Zero, protesting rising energy costs and calling for stronger measures to accelerate the transition to clean energy.

The UNDP report, Military Escalation in the Middle East: Cushioning the Global Shock, says governments have responded to conflictdriven increases in oil prices by expanding fossil fuel subsidies, introducing fuel price caps and offering tax rebates to cushion consumers from rising energy costs.

While these measures provide short-term relief, the report warns they are placing a growing strain on public fi nances and diverting resources from long-term investments in education, healthcare, renewable energy and climate resilience.