Category: Energy and Power

Energy security is what Bangladesh has long been striving to achieve for its steady and sustainable economic growth. For this the country needs to transition from dependence on imported fossil fuels to the renewables.

thanks to a special thrust Bangladesh has now an installed capacity to generate nearly 29,000 MW of electricity, almost double the amount it actually produces.

it’s an irony that the country has the luxury of keeping a substantial capacity idle while the factories, households, irrigation pumps and transports suffer frequent power setbacks.

the shortage does not tell the entire story. Bangladesh has long been paying a handsome amount in the US dollars in the form of capacity payments to independent power producers and quick rental plants which use imported and costly fossil fuels.

the government pays a huge amount of subsidies to the power sector and much of its goes to the idle power plants.

in the national budget for FY2026-27 the new government of Prime Minister Tarique Rahman has proposed to raise the electricity subsidies to Tk37,000 crore, up from Tk3600 crore the previous year. The subsidy will primarily cover the capacity payments to fossil fuel-based quick rental power plants. Paying for the entities without any productive use is a luxury Bangladesh can no longer afford. Green energy can offer a solution to the problem.

the budget has offered incentives in the form of duty and tax cuts to promote production and use of solar energy in particular in the bid to ease dependence on imported fossil fuels in a global energy market of uncertainty and volatility. Currently, renewable energy makes up around 6.3% of the country’s total installed power generation capacity of 28,919 MW. Solar energy leads the mix with over 83%, followed by over 12% contributed by hydro power and 3.4% coming from wind.

the government has a plan to raise the contribution of renewable energy to at least 20% by 2030 and up to 40% by 2041 to reduce reliance on imported fuels such as gas, oil, petrol, diesel and octane. Has the proposed national budget provided enough funds to the renewables? Not enough, experts have found.

the budget has an allocation of Tk17,345 crore to the power, energy and mineral resources ministry. Unfortunately, only 2% of it has been set aside for the renewables – mainly solar -, while 98% of it goes for fossil fuels. The total allocation for the sector also sees a 23% reduction compared to the previous year.

there are, however, some positive aspects.

the budget proposals include zero income tax on commercial solar use and zero import duties on import of key solar equipment.

the budget has provision for tax and duty exemptions.

import duties, regulatory duties and advance tax on essential solar power components have been made 0% and this will remain effective until 2030.

additionally, commercial solar energy is likely to get 0% income tax bene?ts.

also, imports of raw materials used for manufacturing lillium-ion, sodium-ion and associated battery packs are under consideration for such duty and tax incentives until 2030.

these are welcome steps. But much more needs to be done.

the incentives, according to some experts, bene?t a small group of producers and companies.

the incentives should be extended to encourage farmers to transition from fuel-run irrigation pumps to solar-powered pumps.

the country has an estimated 12 lakh dieselpowered irrigation pumps.

experts want the government to take steps to free the farmers from the heavy reliance on diesel, which is again an imported fuel. The use of solar energy in the operation of irrigation pump can save dollars now being spent on import of fossil fuels.

it can prove a great relief for the farmers.

another recommendation from energy experts has been the establishment of a dedicated fund of Tk25,000 crore to help bridge the gaps in ?nancing the green energy transition.

France added 1,495 MW of new solar capacity in the ?rst quarter of 2026, bringing its cumulative installed solar capacity to 33 GW, according to the French statistics agency SDES. Although slightly lower than the 1,571 MW added during the same period in 2025, solar deployment remained robust. Solar power generation reached 6.6 TWh in metropolitan France during the quarter, up from 5.9 TWh a year earlier.

excluding self-consumption, solar electricity accounted for 4.6% of national electricity demand, an increase of 0.7 percentage points yearon-year. Self-consumption continued to expand, with 62% of photovoltaic installations generating electricity for full or partial on-site use. A total of 481 GWh of solar electricity was self-consumed during the quarter, representing 7% of total solar output. Meanwhile, France’s solar project pipeline stood at 36.1 GW, despite a slight decline from the previous quarter.

Th e global power sector is undergoing a clear structural transition as natural gas steadily loses share in electricity generation for the ?fth consecutive year.

according to analysis from the energy think tank Ember, gas generation has continued to grow slightly in absolute terms. Still, its share of the global electricity mix has declined from 23.9% in 2020 to 21.8% in 2025.

this shift is being driven primarily by the rapid expansion of solar and wind power, which are increasingly meeting new electricity demand at lower cost and with faster deployment timelines than fossil fuel-based generation. The data indicates that 61 out of 124 gas-dependent electricity markets have already passed their peak gas generation, including major advanced economies such as the UK, Germany, Italy, and Japan. Key drivers include post-crisis energy security concerns, particularly following geopolitical shocks in 2022 and 2026, improving renewable economics, and the ability of emerging economies to expand electricity access without heavy reliance on gas infrastructure. Declining Role of Gas in the Global Power Mix Natural gas is losing momentum in the electricity sector despite continued demand growth. Gas share in global electricity has declined every year since 2020 Growth in gas generation (2021- 2025) is roughly half the pace of 2016-2020 In 2025, gas added only 38 TWh, contributing just 5% of new global electricity demand growth While gas is still expanding in some regions, its role as the default ‘bridge fuel’ is increasingly weakening. Solar Power Leads Global Electricity Expansion Solar energy has emerged as the dominant driver of new electricity supply, signi?cantly outpacing gas.

in 2025: Solar generation increased by 636 TWh Gas increased by only 38 TWh Solar grew about 17 times faster than gas Solar contributed roughly threequarters of new electricity demand growth, while gas contributed only about 5% This marks a fundamental shift in which renewable energy is no longer supplementary but the main engine of global electricity expansion. Geopolitical and Economic Forces Reshaping Energy Systems The decline of gas is being reinforced by structural economic and geopolitical changes.

energy security shocks, particularly the 2022 Russia-Ukraine con?ict and the 2026 Middle East disruptions, exposed vulnerabilities in LNGdependent systems and triggered renewed investment in domestic renewable energy capacity.

at the same time, declining costs of solar and wind have strengthened their competitiveness.

in many regions, domestically produced clean electricity is now seen as more stable, faster to deploy, and less exposed to global price volatility than gas. Regional Trends and Market Divergence G7 Economies: Transition Past Peak Gas Several advanced economies have already passed structural peaks in gas generation. Four G7 members- the UK, Germany, Italy, and Japan- are among the countries that have reached this milestone.

in 2025: G7 gas generation fell by 50 TWh Renewable generation increased by 123 TWh Clean electricity now exceeds fossil-based generation across the G7 United States: A Global Outlier The United States remains the largest single driver of global gas generation, accounting for around 26% of global output in 2025, and has contributed signi?cantly to global gas growth over the past decade.

emerging Economies: Low Gas Dependence Despite rapid demand growth, several large emerging economies have limited reliance on gas: India: Gas share declined from 12.6% (2010) to 2.3% (2025) Brazil: Fell from 13.7% peak (2014) to 7.3% China: Maintains ~3% gas share despite massive demand expansion These trends re?ect a broader pattern of electri?cation driven increasingly by renewables rather than fossil gas. Conclusion Global electricity systems are approaching a decisive in?ection point in gas generation. While gas remains part of the energy mix, its strategic role is diminishing as countries prioritize affordability, energy security, and domestic generation capacity.

the evidence points to a long-term trajectory where clean electricity- particularly solar and wind- becomes the primary driver of global power system growth, gradually marginalizing gas in both developed and emerging markets.Launched in Thailand in 2019, the People’s Solar Power Campaign set an ambitious goal: generating 100 MWh from residential rooftop solar installations in its ?rst year, as part of the country’s broader target of 1,000 MWh by 2028. Yet despite strong public interest, with two-thirds of homebuyers expressing interest in the initiative, actual adoption remained extremely limited. Participating households added just 3 MWh in 2019.

affordability was an issue, but not the only barrier.

the role of behavioural factors in shaping adoption decisions also mattered. Many households had a limited understanding of rooftop solar, in?uencing how they perceived its bene?ts and risks.

as a result, even interested households did not follow through.

adoption was further held back by limited visibility, with many preferring to ‘wait and see’ until solar installations became more common in their communities. How behavioural insights improve policy uptake Thailand’s experience highlights that well-designed energy transition policies can still fall short of the goals if they do not duly consider how people make decisions.

insights from behavioral science, including nudges, help bridge this gap by focusing on cognitive and psychological aspects. ‘Default settings’ can strongly in?uence behaviour. People often stick with the easiest or pre-selected option, especially when decisions are complex or unfamiliar.

in Switzerland, setting renewable energy as the default option led more than 80% of 200,000 households to remain on green electricity, despite higher costs.

the example illustrates how choice architecture can encourage greener decisions without restricting consumer choice. ‘Framing’ shapes how people perceive costs and responsibilities associated with transition-related policies.

in India, surrendering LPG subsidies was presented as an act of national solidarity, prompting around one million households to voluntarily give up the subsidies. Similarly, in Thailand, linking fuel taxes to visible climate impacts such as ?oods and droughts helped reduce fuel consumption by 5% among personal car drivers. ‘Social norms’ can be equally powerful. In the Republic of Korea, public buses in Seoul carried the message ‘Energy we save together, one nuclear power plantwe reduce together’ as part of its One Less Nuclear Power Plant initiative. By emphasising collective responsibility, the initiative contributed to a 4% reduction in electricity consumption between 2011 and 2014. ‘Simpli?cation’ can help translate interest into action.

even when households are motivated to act, complex procedures and uncertainty can prevent follow-through.

in Uganda, when households received clear, practical guidance on purchasing reliable solar systems and support to set savings goals, they were 31 percentage points more likely to take the ?rst step. In Malaysia, the introduction of a clear, principle-based climate taxonomy reduced ambiguity and encouraged more climate-aligned bank lending. Together, these experiences show that even small adjustments in policy design and communication can signi?cantly in?uence public uptake of transitionrelated policies. Recognising this potential, governments are increasingly seeking ways to apply these approaches more systematically.

institutionalising behavioural insights For policymakers, behavioural interventions can deliver signi?cant impact at relatively low cost.

one study in the United States found that sending households simple energy reports comparing their electricity use to that of their neighbours generated energy savings of 27.3 kWh for every dollar spent. Governments are therefore increasingly formalising the use of behavioural tools. By 2023, more than 50 behavioral insight units were operating worldwide (Figure 1). Dedicated teams can test policy designs, identify decisionmaking barriers early, and re?ne reforms before scaling them nationally. Importantly, this does not necessarily require creating entirely new institutions; behavioural approaches can be integrated progressively within existing government structures. Figure 1. Number of new government-af?liated BIUs established each year, 2009-2023 Source: Data are derived from the OECD Observatory of Public Sector Innovation (OPSI) BIU database and include supplementary government BIUs identi?ed through additional desk research. Note: Coverage re?ects voluntary disclosure and is not exhaustive. Results should be interpreted as indicative. Governments can start small and build capacity over time.

the United Kingdom’s Behavioural Insights Team began as a small unit within the Cabinet Of?ce before expanding globally, while Canada progressively integrated behavioural science functions across government through Impact Canada. Institutionalising behavioural insights allows governments to move beyond one-off experiments towards more systematic policy implementation.

in Asia and the Paci?c, however, the institutionalisation of behavioral science remains uneven. Most dedicated units are concentrated in higher-income economies such as Australia, New Zealand, Japan, and Singapore. By contrast, in countries such as China, Indonesia, Thailand, and Viet Nam, the application of behavioural science remains limited to pilot initiatives or research partnerships, rather than being systematically embedded in policymaking processes.

as countries accelerate energy transition reforms, people-centred approaches can help close the gap between policy ambition and real-world adoption.

the Economic and Social Survey of Asia and the Paci?c 2026 goes beyond identifying which transition policies should be adopted and explores how insights from political economy and behavioural science can be leveraged to support their implementation.

ultimately, successful energy transitions will depend not only on sound economics and strong institutions, but also on policies designed around how people actually make decisions

India’s climate technology sector has attracted around $12.8 billion in cumulative funding across 1,583 companies, driven by rising energy security concerns, policy support and private capital, according to a Tracxn report.

annual investment in the sector has grown sharply from about $315 million in 2020 to $2.6 billion in 2025, re?ecting increasing alignment between climate goals and India’s push for energy independence. Renewable energy remains the largest segment, drawing about $1.5 billion in cumulative funding, followed by waste management, energy ef?ciency, air pollution control and water treatment technologies.

the report notes that investment is increasingly concentrated in fewer but larger late-stage deals, signaling a maturing ecosystem focused on scale and deployment. Key government initiatives such as EV adoption programmes, carbon trading mechanisms and rare earth supply chain support are also strengthening investor con?dence in the sector

The Bangladesh government and the Japan International Cooperation Agency (JICA) signed a loan agreement for the ‘Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply’ recently, marking a signi?cant step toward strengthening the country’s economic stability and energy security amid evolving global and regional challenges.

under the agreement, JICA will provide a Development Policy Loan of JPY 50 billion (approximately Tk 3,800 crore) to support Bangladesh in building its economic and energy resilience in the face of evolving regional and international challenges, said a press release.

the program is the ?rst Of?cial Development Assistance (ODA) loan initiative under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), an initiative introduced by the Japan government to address energy supply vulnerabilities and supplychain disruptions across the region.

How far away is the looming natural catastrophe? The concentration of carbon dioxide in the atmosphere reached 427.35 parts per million (ppm) in 2025. Scientists had already considered crossing the 400 ppm threshold to be extremely alarming, and that limit was exceeded as early as 2015.

it should also be noted that, besides carbon dioxide, there are other greenhouse gases.

altogether, carbon dioxide accounts for about 80 percent of the total greenhouse gases in the atmosphere.

therefore, the actual situation is even more alarming.

the Earth is becoming progressively warmer, and as a result, human civilization and the planet’s biodiversity are already facing an existential crisis. Moreover, global greenhouse gas emissions continue to rise, along with global temperatures.

in other words, climate change is advancing rapidly along a worsening trajectory.

its impacts are now intensifying across the world.

irregular rainfall, ?oods, cyclones, droughts, storm surges, river erosion, and internal displacement of people are increasing globally. However, climate-vulnerable countries such as Bangladesh are being affected disproportionately and are suffering extensive losses and damages. Meanwhile, the United States has not only withdrawn from the Paris Agreement, but the government and its followers generally continue to deny the reality of climate change and encourage the use of fossil fuels.

the 30th COP (COP30) in 2025 also failed to present any hopeful commitment regarding the rapid and drastic reduction of greenhouse gas emissions necessary to keep the planet habitable in the future.

adaptation, assessment, and mitigation of loss and damage, climate ?nance, capacity building, and technology transfer are, of course, extremely important. However, the need for these measures has arisen because of climate change, and the root cause of climate change is the continuous warming of the Earth, driven primarily by increasing greenhouse gas emissions. Therefore, the highest priority must be placed on rapidly reducing global greenhouse gas emissions.

at the same time, due importance must also be given to other related issues. But unless strong measures are taken against the root cause in accordance with scienti?c imperatives-that is, unless emissions are reduced rapidly and at the necessary scale-the situation may reach a point where adaptation and other measures become exceedingly dif?cult, even impossible in speci?c cases, to implement effectively.

if the current trajectory of climate change continues, Bangladesh will become extremely vulnerable.

our task must be to make planned and effective use of the resources and capacities available to us, and, together with likeminded countries, exert pressure on the global community so that effective initiatives are undertaken to reduce greenhouse gas emissions rapidly in line with scienti?c requirements.

US energy giant Chevron has submitted a proposal to join Argentina ‘sLarge Investment Incentive Regime (RIGI) for a $13.8 billion unconventional oil development at the El Trapial-Este block in the Vaca Muerta shale formation.

the project aims to increase production from around 7,000 barrels per day (b/d) to approximately 30,000 b/d, subject to government approval and the availability of infrastructure. The application marks one of the largest single investment proposals under Argentina’s RIGI program and Chevron’s biggest planned investment in the country since it entered the market in 1999.

the ?ling does not represent a ?nal investment decision and remains subject to regulatory approval.

Environmental and consumer r i g h t s organizations have urged the government to give top priority to renewable energy in the upcoming FY2026-27 national budget, citing growing global energy market volatility, rising fossil fuel costs, and Bangladesh’s long-term energy security needs.

the demand was made at a prebudget press conference titled ‘Global Energy Crisis and Renewable Energy: Pre-Budget Dialogue for FY2026-27’, organized by the Centre for Natural Resource Studies and Advocacy (CLEAN), ISDE Bangladesh, and the Bangladesh Working Group on Ecology and Development (BWGED) in Chattogram recently.

the event was chaired by Prof. Dr. Khaled Misbahuzzaman, President of Poribesh Protibesh Forum-Chattogram and Professor at the Institute of Forestry and Environmental Sciences, University of Chittagong.

the keynote presentation was delivered by SM Nazer Hossain, Vice President of the Consumers Association of Bangladesh (CAB) and Executive Director of ISDE Bangladesh. Speakers warned that Bangladesh’s heavy dependence on imported fossil fuels has increased the country’s vulnerability to international price ?uctuations and geopolitical uncertainties. They noted that rising costs of oil, LNG and coal have increased electricity generation costs, subsidy burdens and overall living expenses.

addressing the conference, Prof. Khaled Misbahuzzaman emphasized that renewable energy is essential for ensuring both climate resilience and long-term energy security. He called for increased budgetary allocations for renewable energy research, innovation, technology development and capacity building.

A delegation from Mitsui and Co., one of Japan’s leading trading and investment companies, met Prime Minister Tarique Rahman recently to discuss investment opportunities and business expansion in Bangladesh. The meeting, held at the Prime Minister’s Of?ce, focused on potential investments in key sectors including food, agriculture, energy and information and communication technology (ICT). Prime Minister Tarique Rahman reaf?rmed the government’s commitment to maintaining an investmentfriendly environment and providing maximum support to foreign investors. He also highlighted the introduction of a onestop service system aimed at simplifying business procedures and accelerating project implementation

The incoming COP31 Presidency of Trkiye has unveiled an ambitious Global Climate Action Agenda, setting new targets on electri?cation, waste reduction, urban resilience, and green industrialization as countries prepare for the next UN climate summit.

announced during the UN June Climate Meetings (SB64) in Bonn, Germany, the agenda shifts the focus of international climate efforts from setting new goals to accelerating the implementation of existing commitments. Speaking at a press conference recently, COP31 President-Designate and Turkish Environment Minister Murat Kurum said the world has entered a critical phase in the ?ght against climate change and must move beyond promises to tangible action. Under the new agenda, the COP31 Presidency aims to increase the share of global ?nal energy consumption met by electricity from just over 20% today to 35% by 2035, accelerating the transition to cleaner energy systems.

the initiative also sets a target of halving the growth of global waste by 2035, while bringing methane reduction and circular economy practices to the center of climate action. For the buildings sector, COP31 aims to reduce global energy consumption intensity by at least 25% by 2035, helping create more resilient, ef?cient, and climate-ready cities.

the agenda further seeks to advance green industrialization by increasing theglobal circular material use rate to at least 15%, reducing pressure on natural resources and supporting sustainable production.

in addition to energy and industry, the presidency highlighted priorities including food security, climate education, public health, and youth participation. Plans include expanding climate education for young people worldwide and providing climate resilient agricultural training to young farmers.

trkiye also announced the launch of a Climate Implementation Bridge, a mechanism designed to help countries transform their Nationally Determined Contributions (NDCs) into investable projects and accelerate the ?ow of climate ?nance. ‘Our task now is to accelerate implementation,’ Kurum said, emphasizing that COP31 will focus on delivering existing commitments rather than creating new pledges.

the COP31 summit, to be hosted by Trkiye later this year, is expected to place strong emphasis on practical action, investment mobilization, and measurable outcomes as countries work to close the gap between climate ambitions and real-world progress.