Category: Energy and Power

A ?re broke out on an oil tanker anchored at the outer anchorage of Chattogram on 28 May.

the ?re reportedly started on the vessel named MT Meghna Trader.

after receiving the news, multiple units of the Bangladesh Coast Guard began operations to bring the blaze under control.

according to Coast Guard sources, the vessels Shyamol Bangla and BCGT Promotto joined the ?re?ghting efforts.

in addition, two ?re?ghting teams equipped with high-speed boats from BCG Base Chattogram and BCG Outpost Patenga were deployed to the scene.

the Coast Guard Eastern Zone Media Control Room con?rmed the incident. However, the cause of the ?re and the extent of the damage could not be immediately determined. Coast Guard personnel are continuing efforts to contain the blaze.

The power sector forms the backbone of any developing economy, and the transmission grid is the bridge connecting electricity generators to end consumers. However, in South Asia, state-owned power transmission companies face severe operational and institutional crises.

a primary example of this distress is Power Grid Bangladesh PLC (PGCB), established in 1997.

it is a state-owned enterprise that has incurred recurring operating losses over several ?scal years.

the company’s accumulated losses have surpassed Tk 1,500 crore, while its total debt burden has grown to nearly Tk 60,000 crore, as of May 2026.

this huge debt accrual is driven by the execution of several large infrastructure initiatives worth Tk 74,000 crore. PGCB has formally stated its inability to repay loans obtained from international ?nancial institutions. The crisis is deteriorating due to rising administrative expenses, massive interest on loans, and substantial foreign exchange conversion losses (over Tk 3,000 crore) resulting from the devaluation of the local currency.

the primary cause behind this structural failure is the severe gap between planned electricity transmission and actual grid utilization. PGCB expanded its network infrastructure to a total transmission capacity of 30,000MW. However, a major portion of this capacity remains unutilized due to lower generation volumes.

it forces the company to spend massive sums on maintaining idle infrastructure and a large workforce. This mismatch is further intensi?ed by generation de?ciencies within the stateowned power system. Publicly owned gas and coal-?red plants fail to maintain regular generation.

often, it is forced to bring in electrical power from far-?ung private power producers. Such long distances heavily increase transmission system losses (3.31% in May 2026) and create signi?cant voltage instability.

to survive, the company has submitted a proposal to the national regulatory body to increase its wheeling charges (ie, cost of using and maintaining the electric grid/transmission and distribution lines to the consumer) by over 50% across various voltage levels (for 230 kV: tariff Tk 0.3057 to Tk 0.4831/kWh, for 132 kV: tariff Tk 0.3086 to Tk 0.4877/kWh, for 33 kV: tariff Tk 0.3144 to TK 0.4969/kWh). However, the experts warn that addressing these losses by raising transmission tariffs will ultimately increase the total generation cost of electricity, causing in?ation and additional ?nancial stress for retail consumers. Case Study 1: Pakistan, National Grid Company (NGC) A similar pattern of ?nancial distress and structural vulnerability can be observed in Pakistan, which directlythreatens national development. Here, the NGC Limited of Pakistan (former National Transmission and Dispatch Company- NTDC) handles primary electricity transmission for managing the bulk high-voltages (220 kV, 500 kV, and above).

the core problem in Pakistan is circular debt, which paralyzes the entire energy supply chain. NGC struggles with poor revenue collection and fails to meet the targets for transmission and distribution losses.

the distribution entity defaults on payments to the central power purchasing agency. Therefore, the transmission utility faces a severe cash crunch, leaving it without the necessary capital to upgrade its outdated network.

on a standalone basis, NGC’s tariff structure is designed for full cost recovery, and it manages to pull a net pro?t after tax, reporting a revenue of PKR (Pakistan Rupee) 53,076 million for 9 months in FY (?scal year) 2025. However, the company faces an acute liquidity and structural loss crisis due to severe technical constraints, aging infrastructure, and South-North transmission bottlenecks.

these issues resulted in a massive national system loss of PKR 60.39 billion (US$ 216 million) during FY 2023-24 alone, as cheaper power had to be curtailed in favor of expensive local generation. The legacy of Pakistan’s energy circular debt heavily penalizes the grid, and up until recently.

the National Electric Power Regulatory Authority (NEPRA) had withheld PKR 41.44 billion in dues from NGC’s system charges over economic merit order violations.

this heavily impairs its working capital and delays vital grid infrastructure projects. Pakistan’s transmission infrastructure consists of tens of thousands of kilometers of lines. Yet, it suffers from massive system losses and frequent blackouts. Because the government historically sets consumer tariffs well below the actual cost of supply, the entire network relies on heavy state subsidies. Delays in releasing these subsidies trigger a chain reaction of payment defaults affecting fuel suppliers, private generators, and transmission agencies alike. Furthermore, the mismatch between generation planning and transmission capability is highly visible. Sub-optimal capacity utilization and a heavy reliance on expensive imported fuel oil have caused generation costs to skyrocket.

this operational inef?ciency costs Pakistan’s economy an estimated 2% of its gross domestic product (GDP) annually. Due to inadequate investment and bureaucratic delays in upgrading transmission corridors, the grid cannot reliably handle peak loads, forcing industries to set up expensive private backup generators. The state transmission entity, i.e., NGC, remains ?nancially crippled, dependent on periodic government bailouts.

it is unable to achieve ?nancial sustainability because its revenue model is broken by systemwide collection failures. Case Study 2: Sri Lanka, Ceylon Electricity Board (CEB) In Sri Lanka, the transmission system is managed by the CEB, a vertically integrated state utility that faces comparable systemic failures.

under the newly enacted Sri Lanka Electricity Act, it is being unbundled into separate stateowned entities, with its high-voltage transmission and system operations remaining under state control. Sri Lanka’s geographical isolation as an island means its electrical grid cannot import or export power from the wider South Asian subcontinent. Therefore, ensuring grid stability and infrastructure utilization is incredibly sensitive. Historically, CEB has suffered from massive ?nancial de?cits caused by bad political management and rigid pricing frameworks. Still, it remains under severe ?scal strain, despite aggressive electricity tariff revisions implemented throughout 2024-25 to align with actual generation costs. High generation costs driven by an expensive reliance on thermal power during dry quarters have offset tariff revenue.

according to the Central Bank of Sri Lanka’s Annual Economic Review, the CEB recorded a total ?nancial loss of LKR (Sri Lanka Rupee) 38.7 billion (US$ 128 million) for the year 2025. Consequently, its short-term liabilities rose to LKR 206.2 billion. The Sri Lankan grid relies on a combination of cheaper domestic hydropower and expensive thermal generation run by imported petroleum products.

the grid is forced to rely entirely on high-cost thermal power during droughts.

it causes the utility’s operational costs to shoot up dramatically. CEB has struggled with capacity shortfalls and overstretched medium-voltage transmission and distribution lines. The country succeeded in reducing itsoverall transmission and distribution losses from much higher levels down to around 14%. Still, the ?nancial model of the utility remains deeply broken. CEB has consistently failed to cover its supply costs through electricity tariffs due to state-enforced consumer subsidies.

this lack of ?nancial independence has limited the board’s capacity to execute long-term generation and transmission expansion plans.

the utility remains heavily dependent on foreign development assistance and state guarantees to fund its substation augmentations and network expansions. Like Bangladesh, Sri Lanka’s power utility faces a severe ?nancial squeeze due to high operational costs and a reliance on imported fuel. Because it cannot independently adjust tariffs, it has accumulated massive debts that place a major ?scal burden on the state. Case Study 3: India, Power Grid Corporation (POWERGRID) India presents a slightly different but highly relevant case study through its central transmission utility, named POWERGRID India Ltd.

as a Maharatna Public Sector Enterprise under the Ministry of Power, it transmits about 50% of the total electricity generated in India.

unlike its neighbors, the Indian central transmission utility underwent signi?cant structural reforms.

that allowed POWERGRID to achieve commercial success and operational ef?ciency, serving as a valuable lesson for struggling regional utilities. POWERGRID operates under an ef?cient, regulated return-oninvestment model and does not incur ?nancial losses. For the third quarter of the FY 2025-26, the company earns revenue of INR (India Rupee) 12,857.70 crore (US$ 1.54 billion) and a net pro?t of INR 4,184.96 crore (US$ 500 million), maintaining a net pro?t margin of over 32%. Years ago, the Indian power sector faced similar issues to those in Bangladesh, including massive transmission and distribution losses, widespread political interference, and severe ?nancial losses among staterun distribution companies.

the central government intervened by unbundling the vertically integrated boards andlisting the central transmission entity on the stock exchanges, though the state retained majority ownership.

this reform introduced corporate discipline, rigorous project management, and a transparent regulatory framework for tariff determination.

today, POWERGRID manages an extensive network spanning hundreds of kilometers and maintains low transmission system losses of 3-4%.

the company’s ?nancial strength allows easy raising of capital from international and domestic markets without relying on subsidies. However, the Indian transmission network still faces indirect vulnerabilities due to the ?nancial weakness of state-level distribution companies.

these state-level utilities often fail to pay transmission charges on time because of low billingWay Forward for PGCB The critical lessons those PGCB must learn from these regional peers are that structural unbundling, operational autonomy and disciplined planning are the paths to escape systemic ?nancial failure.

the cautionary tales of Pakistan and Sri Lanka demonstrate that relying on state subsidies, allowing a gap between generation and transmission planning and absorbing massive currency risks without hedging mechanisms will inevitably lead to insolvency and unutilized infrastructure capacity. Conversely, the success of India reveals that listing the corporation on public markets, establishing good governance, and implementing legal binding tripartite payment mechanism can insulate the transmission company from wider inef?ciency.

to move forwardef?ciency, populist subsidies, and pilferage.

to protect POWERGRID from these ?nancial risks, it established strict tripartite payment security mechanisms involving the central bank, state governments, and the central grid operator. Such a system allows the central utility to automatically deduct outstanding dues from a state’s federal revenue share (if it defaults).

this regulatory protection demonstrates structural independence, commercial autonomy, and strict payment security to escape losses and heavy debt that currently cripples PGCB. Summary Comparison Table of Stateowned Power Grid Companies Based on the information provided above, the following is a comprehensive summary comparison among Bangladesh, India, Sri Lanka, and Pakistan.

and transform into an ef?cient and pro?table enterprise, PGCB must align its future capital expenditure projects with actual, active generation capacities to eliminate idle infrastructure overheads. It must move towards an independent, data-driven tariff model (re?ecting operational and debt-servicing costs) without disruptive and ad-hoc wheeling charge spikes. PGCB should also actively hedge its foreign currency debts to protect against local currency devaluation. Furthermore, it should aggressively implement advanced smart-grid technologies to minimize transmission losses, which ultimately secures a stable revenue stream, relieving its massive ?scal burden

Trkiye and Australia have set out a joint vision for COP31, describing the upcoming UN climate summit as an ‘Implementation COP’ focused on turning global climate commitments into measurable action.

in a joint letter, COP31 President-designate Murat Kurum of Trkiye and COP31 President of Negotiations Chris Bowen of Australia pledged to strengthen international cooperation and accelerate delivery of the Paris Agreement goals, particularly by advancing Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). The COP31 Presidency said the summit will prioritize climate action across mitigation, adaptation and ?nance, with additional focus on just transition, agriculture, transparency, clean energy transition and resilient infrastructure. Both leaders stressed the need to translate existing climate pledges into concrete, trackable progress while strengthening global coordination on climate ?nance and investment ?ows.

Developed countries have exceeded the UN climate ?nance target of $100 billion per year for the third year in a row, according to the latest data released by the OECD.

the report shows that climate ?nance provided and mobilized for developing countries reached $132.8 billion in 2023 and $136.7 billion in 2024, following $115.9 billion in 2022. Despite the overall increase, the OECD found that most funding continued to ?ow to middle-income countries, while support for low-income nations remained below its 2022 peak of $11.1 billion. Mitigation projects accounted for nearly two-thirds of total climate ?nance, while adaptation ?nance rose more slowly, making up about onequarter of ?ows in 2023 and 2024. Private ?nance also increased signi?cantly, reaching $30.5 billion in 2024-its largest annual rise in nearly a decade-driven mainly by multilateral development banks and private investment instruments.

The Cabinet Committee on Government Purchase (CCGP) has approved four proposals to import re?ned petroleum products worth approximately Tk 17,033.42 crore to meet the country’s fuel demand during the June-August 2026 period.

the approvals were granted at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury, following proposals submitted by the Energy and Mineral Resources Division under international competitive tendering.

the largest contract, valued at Tk 7,672.66 crore, was awarded to Unipec Singapore Pte Ltd for the supply of low-sulphur gas oil and Jet A-1 aviation fuel.

another package for the import of gas oil and Jet A-1 fuel, worth Tk 6,711.75 crore, was awarded to Vitol Asia Pte Ltd, which emerged as the lowest responsive bidder.

the committee also approved the import of Furnace Oil 180 CST at a cost of Tk 1,900.05 crore, with Tra?gura Pte Ltd selected as the supplier.

in addition, Vitol Asia Pte Ltd secured a contract worth Tk 748.96 crore to supply Gasoline 95 Unleaded.

As a result of falling costs and greater ?exibility needs, battery storage is playing a growing role in power systems worldwide, acting as a ‘multitool’ that can provide a range of critical system services at once.

according to the latest data, the deployment of batteries expanded strongly in 2025 and broadened across markets with rapid growth in countries such as Australia and Saudi Arabia, where storage is increasingly being used to support the integration of rising shares of variable renewables.

in regions that have been at the forefront of renewable integration and battery deployment, batteries now play an essential role in continuously balancing electricity demand and supply. Comparatively short construction and development timelines are further supporting the rapid deployment of utilityscale batteries in particular: in many markets, projects typically take around two years to develop and commission, giving them an important advantage in systems that seek ?exible capacity quickly. Looking ahead, battery storage deployment is on track to continue accelerating. However, tackling notable barriers, such as regulatory uncertainty and delays in grid connection and permitting, will be key to setting the pace of growth. Growth in battery storage capacity broke records again in 2025, with new markets growing fast Global battery storage deployment expanded strongly last year. Total capacity additions reached 108 gigawatts (GW), up around 40% from 2024. Annual growth of this scale exceeds the historical peak for gas-?red power capacity additions, which was around 107 GW in 2002. Utility-scale battery storage accounted for around 87 GW of global battery capacity additions in 2025, around four-?fths of the total. Behind-the-meter battery storage deployment also accelerated, particularly in markets with high retail electricity prices and supportive regulatory and policy frameworks.

around 24 GW of utilityscale battery storage additions in 2025 were co-located directly with renewables, on par with the previous year.

this meant the share of capacity co-located with renewables fell just below 30%, as market reforms in China in early 2025 removed broad co-location mandates. Meanwhile, the rollout of battery storage accelerated across several markets in 2025, pointing to a broadening of global deployment.

australia stood out, with additions surging to nearly 8 GW, almost nine times higher than the previous year. Utility-scale installations in the country rose from under 1 GW in 2024 to around 4.2 GW in 2025, while behind-the-meter additions increased from roughly 0.2 GW to about 3.4 GW, supported by state- and federal-level incentives.

in the Middle East, additions topped 3 GW in 2025, more than three times their 2024 level. This was driven almost entirely by Saudi Arabia, where battery storage has become a key source of system ?exibility amid a rapidly expanding pipeline of large-scale projects.

in Chile, additions approached 1 GW as utility-scale batteries are deployed to absorb surplus solar generation and meet peak demand. Battery storage now accounts for around 18% of installed dispatchable capacity in Australia, compared with 7% in China, 5% in the United States, and 4% in Europeunderlining how rapidly batteries are becoming an important part of the electricity systems in some regions.

in absolute terms, deployment continued to be led by China, the United States, and Europe. China added just over 63 GW of battery capacity in 2025, around onethird more than in 2024.

utility-scale installations accounted for around 55 GW of this total, while behind-the-meter additions reached about 8 GW, continuing to steadily expand alongside distributed solar.

the United States added 19 GW of battery capacity in 2025, resulting in year-on-year growth of around 60%, with utility-scale batteries accounting for over 16 GW and behind-the-meter additions rising to nearly 3 GW.

in Europe, total battery additions were slightly lower than in 2024 at around 6.2 GW, but with a clear structural shift towards utility-scale systems, where additions more than doubled to about 4.6 GW.

energy shifting is becoming a key driver of battery storage growth Supported by a dramatic fall in costs, which declined by more than 90% between 2010 and 2025, driven by innovation, competition, and economies of scale, batteries are becoming a key source of short-term ?exibility in power systems with rising shares of variable renewables.

in this respect, they are highly versatile, capable of providing a diverse range of services that support grid functioning while helping to shift power loads, ensure suf?cient capacity, and manage congestion.

early battery projects were concentrated in lucrative but relatively shallow ancillary service markets, which involve the use of batteries to help balance and stabilize electricity grids. But energy shifting – or the ability to store large volumes of energy that can be deployed at a later time – has since become the dominant application: its share of new projects increased from around 40% in 2015 to more than 90% in 2025.

over the same period, the share of projects primarily targeting ancillary services fell from around 45% to about 7%, even as the absolute volume of such projects continued to grow. Batteries are therefore increasingly being used to shift larger volumes of power across the day, while still providing fast-response balancing services to electricity systems as needed.

a growing number of battery projects now combine multiple revenue streams and system services, which is re?ected in how projects are designed. As deployment pivots towards energy shifting and renewables integration, the duration of utility-scale batteries is increasing, with a rising share of projects offering four hours of storage or more.

in 2025, the average duration of projects commissioned rose to three hours from around two hours in 2023. Fast delivery times support rapid deployment Another factor supporting the deployment of battery storage is that it is modular and requires relatively limited onsite infrastructure, which allows projects, in principle, to be built in less than a year. Median construction times are around 275 days for utilityscale batteries – close to solar PV, at about 220 days, but far below gas at over two years and nuclear at more than six years.

total time to market is often determined less by construction than by permitting, ?nancing, and grid connection.

in Europe, the United States, and Japan, battery projects typically take around two to two-and-a-half years to become operational, while timelines are shorter in China and parts of the Middle East. Nevertheless, batteries can still be deployed more quickly than competing options for boosting system ?exibility, such as pumped hydro or gas-?red power plants – giving them a competitive advantage in systems that require additional ?exibility within short timeframes. Batteries are playing a bigger role in balancing electricity demand and supply As battery deployment has scaled and the duration of batteries has extended, it is changing how the technology interacts with broader electricity system operations, particularly in systems with higher solar and wind penetration. By charging during periods of surplus generation and discharging during periods when demand increases rapidly, batteries are progressively taking on a greater share of short-term ramping and balancing needs. Some of the clearest examples of this can be found in the United States.

in California, solar capacity has grown to over 55 GW.

this is greater than the state’s peak load and means that on sunny days, its net load is close to zero – and at times even below it.

at the same time, California’s battery capacity has grown from less than 1 GW in 2019 to over 17 GW today.

as a result, batteries have been able to discharge more power than ever before – at one point covering more than 40% of the state’s power load on the evening of 29 March 2026, for example.

at the same time, batteries are increasingly helping to balance power systems: in the last ?ve years, battery storage has gone from contributing less than 1% of hour-to-hour ramping needs to above 60% in the ?rst quarter of 2026.

a similar pattern has emerged in recent years in Texas; in April, batteries contributed to more than 40% of ramping in the ERCOT market.

in South Australia, where wind and solar penetration are among the highest in the world, batteries already provide a prominent share of ramping needs.

as one of the earliest movers in large-scale battery deployment, the region saw batteries contribute more than 30% of hourly ramping in February and March.

in Great Britain, where wind is the primary driver of changes in net load, batteries are expanding their role within an increasingly diversi?ed power mix, complementing gas-?red generation, hydropower, and increased electricity trade.

they are also playing a growing role in the region’s balancing mechanism, where speed is particularly valuable for meeting short-term ramping needs. Removing barriers could further accelerate deployment While momentum in battery storage deployment continues to build, some remaining barriers could still slow further progress. Regulatory frameworks play a central role in shaping deployment in both regulated and liberalized power systems. Grid connection and permitting remain key bottlenecks, with non-construction phases often accounting for more than half of total timelines.

at the same time, while safety risks remain low relative to the scale of deployment, maintaining public con?dence through robust safety standards, transparent communication, and active stakeholder engagement is essential.

to unlock the full potential of battery storage, policymakers and regulators need to ensure that regulatory systems recognize the full value of the services the technology offers, while enabling market access and establishing price signals that accurately re?ect its various contributions

Information and Broadcasting Minister Zahir Uddin Swapon has emphasized the vital role of ?lms in raising public awareness about climate change and environmental protection, describing cinema as a powerful medium for inspiring social change. ‘Films can play a highly effective role in creating awareness about climate change and environmental conservation,’ he said while addressing the closing session of the daylong Global Trend and Climate Change Film Festival (GTCF) 2026 at the National Library auditorium in Agargaon, Dhaka, on June 5.

the minister said the government prioritizes ?lms carrying messages of social transformation under its grant programme and assured that projects focusing on environmental and climate issues would receive serious consideration from the ministry.

Bangladesh’s LPG market is witnessing a sharp decline in demand as rising prices-driven by higher import costs and supply disruption s in the Middle East-continue to pressure consumers. The price of a 12kg cylinder has increased to Tk 1,940, prompting households to cut usage or shift to alternative cooking methods such as electric stoves.

industry operators report that LPG sales have dropped signi?cantly in both urban and rural areas.

in some cases, daily sales have fallen by nearly half as consumers struggle with rising living costs and in?ation. Dealers say repeated price hikes have reduced purchasing power, forcing many families-especially low and middle-income groups-to reduce consumption.

The United Nations has warned that the world’s oceans are facing an escalating crisis driven by climate change, pollution, over?shing and biodiversity loss, calling for urgent global cooperation to protect marine ecosystems.

the warning came with the release of the Third World Ocean Assessment on World Oceans Day, a comprehensive report prepared by nearly 600 experts from 86 countries.

according to the report, ocean temperatures and sea levels are rising at an accelerating pace, while an estimated 52 million tonnes of plastic waste enter the oceans every year. Scientists also noted that only 27.3% of the ocean ?oor has been mapped, leaving major knowledge gaps about deep-sea ecosystems.

uN Secretary-General António Guterres said the world must build a new relationship with the ocean based on science, international law and shared responsibility.

The Philippines’ Department of Trade and Industry (DTI) has proposed mandatory certi?cation rules for solar and energy storage products to strengthen safety, quality, and technical standards across the sector.

under a draft Administrative Order issued on 25 May 2026, key solar components-including PV modules, inverters, batteries, energy storage systems, and related equipment- would require certi?cation before being sold in the country. The rules apply to both locally produced and imported products.

the proposal comes amid concerns over safety incidents linked to solar systems, such as electrical ?res, battery failures, overheating panels, and installation-related hazards. It aims to ensure compliance with Philippine National Standards enforced by the Bureau of Philippine Standards (BPS).

only products carrying the PS Safety Mark and ICC certi?cation would be allowed in the market.

the draft also introduces recall procedures, requiring noncompliant products to be withdrawn within 15 days of noti?cation. Manufacturers and importers would face inspection, testing, and licensing fees, with penalties including suspension or cancellation of operating licenses.