Category: Energy and Power

The Bangladesh Cold Storage Association (BCSA) has urged the government to provide a 20% rebate on electricity bills and raise the potato export incentive to 30% from the existing 10% to help the sector overcome a severe crisis caused by falling potato prices.

At a press briefi ng, BCSA President Mostafa Azad Babu also called for keeping the existing cold storage charge at Tk 6.75 per kg, warning that any increase would further burden farmers and storage operators.

The association said commercial electricity tariffs for cold storage facilities increased by 18% from June 1, 2026, while labour, ammonia gas, lubricants, spare parts and maintenance costs have also risen signifi cantly.

It urged the government to recognize cold storage as an agro-based industry and establish a Tk 60-80 billion refi nancing or business support fund through Bangladesh Bank.

The fund would allow operators to access loans at 4-5% interest.

The BCSA also proposed converting quarterly loan repayments into annual instalments to refl ect the seasonal nature of the business and called for potato growers to be included in the government’s Farmers Card program.

The government has appointed Md.

Ziaul Haque, currently an Additional Secretary of the Energy and Mineral Resources Division (EMRD), as the new Secretary of the division following his promotion.

The Ministry of Public Administration issued a notifi cation to this effect recently.

Md.

Ziaul Haque will succeed Mohammad Saiful Islam, who has served as Secretary of the Energy and Mineral Resources Division since October 7, 2024.

In a separate notifi cation, the government transferred Mohammad Saiful Islam to the Ministry of Disaster Management and Relief, where he will take up his new assignment.

F ailure to ensure a reliable, uninterrupted energy supply will deter both domestic and foreign investment in Bangladesh’s industrial sector.

Existing industries could also become increasingly vulnerable and eventually shut down, resulting in job losses rather than new employment opportunities.

Energy uncertainty has already severely undermined buyers’ confi dence.

As a result, export orders for the next season in the textile and apparel sector have fallen by nearly one-third, creating fresh concerns among entrepreneurs.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), made these observations in an interview with Mollah Amzad Hossain, Editor, Energy and Power.

The full interview follows: How would you assess the current situation of Bangladesh’s textile and readymade garment sector amid uncertainty, shortages and high prices of electricity and energy? As an entrepreneur, what alternatives are you considering to overcome the crisis? We have always faced electricity and energy shortages.

But in my 40 years in the industry, I have never witnessed such a severe crisis.

The recent incident involving the fi re at an FSRU also needs to be investigated thoroughly.

It is important to determine whether it was simply an accident or whether there was any geopolitical sabotage, and the fi ndings should be made public.

The gas crisis has continued for nearly four weeks, severely disrupting production.

Some factories have been forced to suspend production altogether.

This has created three major problems.

First, industries are struggling to pay workers’ salaries and repay bank loans.

Second, production disruptions are making it diffi cult to meet shipment deadlines, creating pressure for air freight.

In some cases, air freight could cost as much as 50 percent of the total value of the products.

Even if air shipments can be avoided, buyers are likely to demand discounts of at least 25-30 percent.

The most serious long-term problem, however, is the loss of buyers’ confi dence.

Because of the energy crisis, export orders for the next season have already fallen by up to one-third.

The government must formulate policies to help industries overcome the crisis.

If suffi cient gas cannot be supplied, industries should be allowed to consider alternative fuels, including coal, LPG, waste and other available energy sources.

The current government has completed six months in offi ce.

One of its election pledges was to create 10 million new jobs within fi ve years.

New industrialization will be essential to achieve that goal.

How optimistic are you about new investment under the current circumstances? New investment and employment generation will not be possible without ensuring a reliable supply of energy.

A review of the trend over the past several years shows that successive governments have taken various positive measures to attract investment, but those initiatives have not produced the expected results.

The main reason is the lack of energy security.

Without reliable energy supplies, foreign investment will not come.

Existing domestic investments will also be exposed to risks, while new investment will be discouraged.

Therefore, if we want to create employment through industrialization, ensuring reliable electricity and energy supplies must be the fi rst priority.

Around 1,000 new industrial units have reportedly developed their infrastructure after receiving approval from different Petrobangla companies, but they are still waiting for gas connections.

These entrepreneurs are under considerable pressure, and bank investments are also at risk.

What do you expect from the Energy Division to resolve the situation? There is no alternative to government policy support under the circumstances.

These entrepreneurs invested after receiving government approval for access to gas.

Therefore, it is now the government’s responsibility to provide them with gas.

If gas cannot be supplied, the government should arrange alternative fuels for these industries.

At the same time, measures should be taken to protect these investors from fi nancial losses.

For example, the government could order a temporary suspension of interest payments and loan instalments for affected businesses until the energy crisis is resolved.

Do you think gas connections to industries should resume? There is simply not enough gas at present to meet even the demand of existing industries.

Therefore, the government must increase domestic gas production and boost imports to meet current demand while also providing connections to new industries.

If gas cannot be guaranteed for new investments, the government must clearly identify and facilitate alternative fuel supplies for those industries.

There is no overnight solution to the ongoing energy and power crisis, and the government has also acknowledged this.

The Prime Minister has initiated a 10-year plan to ensure the country’s energy security.

What should be the priorities of this plan in your view? In my view, the fi rst priority should be to increase production from Bangladesh’s existing domestic gas reserves.

At the same time, exploration for new gas reserves must be intensifi ed.

To address the immediate shortfall, LNG imports should also be increased.

Alongside expanding gas supplies, the government could consider developing dedicated pipeline networks for industrial zones.

This could help ensure a more reliable and quality supply of gas to industries.

At the same time, Bangladesh should intensify exploration and extraction of its domestic coal resources so that coal can be used not only for power generation but also as an energy source for industries.

Other alternative energy sources, including LPG and renewable energy, should also be expanded in a planned and effective manner.

In my view, the government’s 10-year energy plan must clearly identify reliable sources of gas and electricity as well as alternative fuels for industries.

The industrial sector should receive policy support to shift to alternative fuels, particularly where gas shortages make such a transition necessary.

All these issues should be incorporated into the 10-year plan in an integrated manner.

Bangladesh currently has two operational FSRUs for LNG imports.

Negotiations are underway to install a third, while the government has also announced plans for two more FSRUs.

At the same time, work is progressing on a land-based LNG terminal.

Is the government moving in the right direction? Yes, the initiatives to establish three more FSRUs and a land-based LNG terminal are the right steps.

There is no alternative to expanding LNG infrastructure if Bangladesh is to address the ongoing gas shortage and meet growing demand.

At the same time, domestic gas production capacity is declining every year.

Therefore, ensuring adequate gas supplies for industries in the coming years will be essential.

If the planned three additional FSRUs and the land-based terminal are not implemented, the gas crisis facing industries will become even more severe.

The government’s initiative is both timely and necessary.

Continued growth in LNG imports will inevitably increase the cost of gas supply.

Can Bangladesh’s textile and readymade garment sectors remain competitive under such circumstances? Bangladesh’s industrial sector is already facing challenges in terms of energy costs and competitiveness.

On one hand, energy prices are relatively high, while on the other, supply shortages are disrupting industrial production.

As a result, exports from sectors such as textiles and readymade garments are coming under pressure, while exports from countries such as Vietnam and India are increasing.

Any further increase in energy prices will certainly put additional pressure on these industries.

However, the government needs to consider what policy support and incentives can be provided to these sectors so that they can maintain their export competitiveness despite higher energy costs.

If we want industrialization and employment generation, there is no alternative to ensuring a reliable supply of energy-whether it comes from domestic sources or imports.

Some argue that the government should immediately take a political decision to explore, extract and use the country’s own coal resources.

Given the opposition to coal from environmental groups, they also say the government needs support from the business community on the coal issue.

What is your view? Bangladesh does not have abundant domestic energy resources.

We have natural gas, coal and renewable energy.

Our industrial sector cannot remain sustainable if it has to depend entirely on imported fuels and bear the risks associated with volatile internationa energy prices.

New investment will also be discouraged under such circumstances.

Therefore, alongside expanding domestic gas exploration, the government should take a decision on extracting the country’s coal reserves.

At the same time, the environmental, agricultural and resettlement risks associated with coal mining must be addressed with the highest priority.

Any decision on coal extraction should be taken after consultations with all stakeholders and on the basis of national consensus.

We cannot simply avoid extracting our own coal resources on environmental grounds.

How sincere do you think publicsector power and energy utilities are in providing services to consumers? What needs to be done to make these utilities more consumer-friendly? Public-sector utilities are not providing adequate services to consumers.

Instead, they often dominate consumers and shift the blame for various problems onto them.

There are also allegations of involvement by employees of these utilities in system losses and illegal energy use, and such practices must be stopped.

Above all, accountability and transparency must be ensured at every level of the power and energy sector.

Only then can these institutions become genuinely consumer-oriented.

Many believe that, like LPG, LNG imports and marketing should also be opened up to the private sector.

What is your view? The import and marketing of primary fuels such as LNG should be opened to the private sector.

This would allow consumers to access energy at more competitive prices.

At the same time, greater private-sector investment would help increase the overall supply of primary energy.

To continue exporting to the European market, the industry is expected to achieve a target of using 20 percent renewable energy by 2030.

Is the industry prepared for this? The industry cannot achieve this target on its own.

The government needs to provide access to low-cost fi nancing.

For this, the policy governing Bangladesh Bank’s green funds should be revised to make such fi nancing more accessible to industries.

The government must also provide policy support to expand renewable energy capacity and ensure effective implementation of those policies.

Without appropriate fi nancial and policy support, it will be diffi cult for the industry to meet the renewable energy target.

Prime Minister Tarique Rahman has said his government is pursuing both immediate and long-term measures to overcome Bangladesh’s ongoing gas and electricity crisis, acknowledging the hardships facing households and industries due to fuel shortages.

Speaking at a discussion in Dhaka recently, the Prime Minister said the government is fully aware of the country’s energy challenges and is working to restore stability in the sector.

‘We are not trying to make excuses.

The problems exist, and we are working continuously to resolve them through both shortterm and long-term initiatives,’ he said.

Tarique Rahman said the government has initiated discussions with Myanmar on importing natural gas and is also negotiating with Malaysia’s state-owned energy company, Petronas, to secure LNG supplies through a container-based transportation system.

Bangladesh needs urgent and coordinated measures to address its worsening energy crisis, with greater emphasis on domestic gas exploration, renewable energy, energy effi ciency, sector reforms and private investment, experts said at a seminar in Dhaka recently.

They also called for reducing dependence on imported fuels, developing neglected gas fi elds and creating a predictable regulatory and investment environment for privatesector participation.

The observations came at a seminar titled ‘Energy Sector Crisis: Prospects and Way Forward’, organized by the Forum for Energy Reporters Bangladesh (FERB) at Dhaka Club.

In his keynote paper, former Dean of Engineering at Bangladesh University of Engineering and Technology (BUET) Prof Ijaz Hossain said Bangladesh must accelerate gas exploration to assess its remaining reserves and reduce its growing dependence on imported LNG.

Domestic gas production has fallen to around 1,700 million cubic feet per day (MMFCD) from a peak of 2,786 MMCFD in 2017, he said.

Maintaining even 2,000 MMCFD of domestic production would require drilling at least 10 wells annually, according to his presentation.

Bangladesh has already consumed around 15 trillion cubic feet (TCF) of gas, while only around 2 TCF has been added since the discovery of Bibiyana in 1997.

The country now has less than 8 TCF in remaining reserves, he said.

Without accelerated exploration, these reserves could be nearly exhausted by 2030, Prof Ijaz warned.

He called for the rapid development of Bhola’s gas resources, deepwater offshore exploration and the revival of idle fi elds such as Kutubdia.

He also stressed the need for improved reservoir management and timely workovers.

According to Prof Ijaz, LNG imports and additional terminals are necessary to address the immediate crisis but cannot provide a sustainable long-term solution.

He projected that gas demand could reach around 4,600 MMCFD by 2030, requiring domestic production of about 2,000 MMCFD and LNG imports of around 2,600 MMCFD.

This would require existing LNG terminals to operate at full capacity and two additional FSRUs to be added.

However, he cautioned that LNG imports would depend heavily on the availability of foreign currency.

‘Without the ability to purchase LNG, regasifi cation capacity will be useless,’ he said.

Prof Ijaz proposed an eight-point approach to energy security, including greater use of coal, energy conservation and effi ciency, and increased use of renewable technologies in cooking and transportation.

Former BUET professor and Vice Chancellor of Independent University, Bangladesh, M Tamim said there was no single solution to the country’s energy crisis.

Bangladesh needs to increase domestic gas production, import fuel where necessary, maximize coal-fi red power generation and rapidly add 2,0003,000MW of solar power, he said.

He also called for reconsidering the country’s dependence on BAPEX for exploration and suggested bringing international companies into the sector to address gaps in technology, expertise and investment.

M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, called for a ‘revolutionary change’ in the power and energy sector.

He identifi ed irrational pricing as one of the major challenges and urged the government to establish clear benchmark prices and predictable investment conditions for power generation.

Power and Energy Minister Iqbal Hassan Mahmood Tuku said the government was taking steps to expand rooftop solar generation, with a target of 10,000MW.

The government plans to encourage private investment in cluster-based rooftop solar projects under an OPEX model, with incentives including a fi ve-year tax holiday.

Under the model, third-party developers would fi nance, install, own and maintain solar systems on consumers’ rooftops.

Regarding private-sector participation in fuel imports and marketing, the minister said the proposed policy would allow companies to compete on an equal footing rather than favoring any particular business.

He said the government hopes to cooperate with Malaysia’s stateowned Petronas in developing Bhola’s gas resources and plans to invite international companies to participate in offshore exploration.

A Bangladeshi delegation has already discussed the issue with Petronas offi cials in Malaysia, while the minister plans to visit Houston to hold discussions with major international oil and gas companies on offshore exploration.

The minister acknowledged that inadequate gas pressure was severely affecting businesses, disrupting cash fl ow and increasing the risk of loan defaults.

‘I don’t want any businessman’s name to appear in the banks’ red ledger because of us,’ he said, adding that the government would arrange a meeting involving the Prime Minister, industrialists and experts to discuss the industrial crisis.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit apologized to consumers for the ongoing gas crisis and said the government was working to address the situation.

Bangladesh has around 30,000MW of power generation capacity, but inadequate fuel supplies are preventing power plants from operating at full capacity, he said.

‘If we could run the gas-fi red power plants at full capacity, people would not have to suffer the current power crisis,’ Amit said.

He noted that immediately increasing LNG imports was not possible because of inadequate infrastructure, even if suffi cient funds were available.

The government is seeking to bring a third FSRU into operation within less than two years, while work is also underway on a fourth FSRU and a land-based LNG terminal, he said.

Updating the seminar on the Excelerate Energy-operated FSRU, Amit said one boiler was undergoing repairs while the other remained out of operation.

He said restarting the second boiler would require the operating boiler to be shut down for at least 72 hours, potentially causing another temporary disruption to gas supplies.

‘The biggest challenge now is deciding when people’s suffering will be the least and when we can operate this FSRU at full capacity,’ he said.

FERB Chairman M Azizur Rahman chaired the seminar.

Loss and damage must remain a central priority in Bangladesh’s climate advocacy ahead of the 31st UN Climate Change Conference (COP31), with stronger mechanisms needed to ensure climate fi nance reaches vulnerable countries and affected communities, civil society representatives said.

The call was made at a coordination and planning meeting of the Climate Justice Forum held at a city hotel on Thursday.

Chaired and moderated by Dr Kazi Maruful Islam, Chair of the Climate Justice Forum National Committee, the meeting brought together Forum members, civil society representatives, climate experts and development practitioners to review recent developments in global climate negotiations and identify priorities for Bangladesh’s civil society ahead of COP31.

Forum Member Secretary Roufa Khanum presented an overview of the Forum’s recent activities, highlighting its growing engagement at national and sub-national levels and efforts to strengthen coordination and collective advocacy on climate justice.

Md Salah Uddin, Team Lead-Knowledge Management at AOSED, delivered a keynote presentation titled ‘SB64 Highlights, Key Negotiation Outcomes and Major Areas of Disagreement among Parties Leading towards COP31.’ The presentation reviewed major developments from the SB64 climate negotiations in Bonn, areas of continuing disagreement among Parties and their potential implications for negotiations at COP31.

In addition, the Forum intends to present its climate risk architecture at relevant discussions and engagements during COP31, strengthening efforts to ensure that the concerns and priorities of vulnerable communities are refl ected in global climate decision-making.

Power generation from Unit-1 of the Rooppur Nuclear Power Plant has been delayed as the project awaits fi nal regulatory clearance from the Bangladesh Atomic Energy Regulatory Authority (BAERA).

Fuel loading and around 90 major commissioning tests have been completed under a B1 license.

However, the plant must obtain a B2 commissioning license before reaching criticality and beginning power generation.

Offi cials had earlier expected Unit-1 to supply around 300MW to the national grid by August, but the target is now unlikely to be met.

Nuclear Power Plant Company of Bangladesh Managing Director Dr Md Zahedul Hasan said the project is ready for the next stage once BAERA completes its fi nal inspection and grants the license.

He added that even after achieving criticality, another four to six weeks would be required before electricity generation begins

Environment, Forest and Climate Change Minister Abdul Awal Mintoo held a meeting with Asian Development Bank (ADB) Vice President for South, Central and West Asia Yingming Yang on Monday to discuss strengthening development cooperation, climate action and sustainable development in Bangladesh.

During the meeting at the minister’s offi ce, the two sides reviewed Bangladesh’s long-standing partnership with ADB and discussed opportunities to expand cooperation in climate adaptation and mitigation, climate fi nance, forest and biodiversity conservation, air and plastic pollution control, renewable energy and environmentally sustainable urban and infrastructure development.

They also discussed increasing ADB’s technical and fi nancial support for vulnerable communities affected by climate change and for developing climateresilient infrastructure.

ABB has formed a strategic partnership with and made a minority investment in LevelTen Energy, aiming to strengthen clean energy procurement services for industrial and commercial customers.

LevelTen, described by ABB as the world’s largest clean energy marketplace, has facilitated more than 20 GW of clean energy transactions across more than 35 markets in North America and Europe.

Its platform supports transactions including power purchase agreements (PPAs) and environmental attribute certifi cates.

The partnership will combine LevelTen’s clean energy procurement platform with ABB’s expertise in electrifi cation, digital solutions and energy management.

ABB said the collaboration will expand its energy and carbon advisory services, helping customers secure affordable, long-term renewable power while managing energy costs and emissions.

ABB said the partnership is particularly relevant as companies face growing pressure to demonstrate when and where clean electricity is generated and consumed

Bangladesh’s worsening gas and electricity shortages are severely disrupting energyintensive industries, with plastic and ceramic manufacturers reporting sharp production declines, rising costs and growing risks to exports.

Industry leaders said many factories are operating at less than half of their capacity, while some have temporarily suspended production.

The crisis has intensifi ed following a technical failure at a fl oating LNG terminal, which reduced national gas supplies by around 450 million cubic feet per day (MMCFD).

The plastic industry has been particularly affected because injection molding, blow molding and extrusion require uninterrupted power and gas.

According to the Bangladesh Plastic Goods Manufacturers and Exporters Association, around 300 plastic factories have suspended production, mostly small and mediumsized enterprises, while many others are operating at only 30-40% capacity