Category: Energy and Power

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.

the allegation that the Bangladesh Energy Regulatory Commission (BERC) does not place adequate importance on consumer interests is incorrect. Consumer welfare was given due consideration in the latest electricity tariff adjustment.

that is why only a small portion of the gap between the Bangladesh Power Development Board’s (BPDB) production cost and selling price has been adjusted. Several directives have been issued to reduce electricity generation costs, including lowering capacity charges and improving management ef?ciency. BERC Chairman Jalal Ahmed made these remarks in an interview with Mollah Amzad Hossain, Editor, Energy and Power. After a 28-month gap, the Bangladesh Energy Regulatory Commission increased electricity tariffs on June 3. However, the Consumers Association of Bangladesh and several civil society groups have questioned its justi?cation. Some have alleged that despite recommendations made during the public hearing to reduce the de?cit without raising prices, the Commission did not accept those proposals. What is your response? A public hearing is not an isolated event; it is part of a comprehensive process. The licensed utility companies ?rst submit their revenue demand or tariff adjustment proposals.

these proposals are then analyzed by a technical committee and presented to the Commission.

only after that is a public hearing held, where both supporting and opposing views are heard. We analyze all available data, cost structures, and the ?nancial conditions of the utilities before reaching a balanced decision, so that consumers are not subjected to excessive pressure while ensuring that the utilities remain ?nancially viable.

this time, the electricity sector requires subsidies of around Tk 56,000 crore. Through the wholesale tariff adjustment, it has been possible to reduce a portion of that de?cit. We estimate that BPDB’s subsidy requirement will decrease by approximately Tk 12,000 crore. However, a substantial de?cit remains, which the government will have to cover through subsidies. Consumer rights groups, business associations, and others have questioned the rationale behind the tariff increase. What would you say to them? It would not be appropriate to view this simply as a price increase.

electricity tariffs have been adjusted many times over the past 15 years.

international fuel prices, exchange rate ?uctuations, and in?ation have all increased electricity generation costs. We increased the wholesale tariff by an average of Tk 1.39 per unit.

according to BPDB’s proposal, a much larger increase was necessary to reduce the de?cit. However, considering the burden on consumers, we adopted a middle-ground approach.

even then, an estimated de?cit of around Tk 41,000 crore will remain, which the government will have to bear as subsidies. Wholesale electricity tariffs have been increased by Tk 1.39 per unit, which will raise BPDB’s annual revenue by Tk 14,000 crore. Yet, a de?cit of Tk 41,000 crore will remain. Did the Commission recommend that the government increase subsidies to bridge this gap? BPDB’s proposal estimated an annual de?cit of Tk 56,000 crore. However, it is not possible to transfer the entire burden onto consumers.

therefore, the wholesale tariff was increased by Tk 1.39 per unit, which is expected to generate an additional Tk 12,000 crore in annual revenue.

alongside subsidies, BPDB must reduce electricity generation costs. Necessary directives have already been issued for that purpose. Has the Commission held any discussions with the government regarding subsidies? There has been no separate policylevel discussion with the government. However, the utility companies’ proposals clearly identi?ed a substantial subsidy requirement.

our tariff adjustment will reduce some of that burden, allowing the government to allocate resources to other productive and development sectors. Since the government has continuously provided subsidies to the power sector, it is expected to continue doing so to address the remaining de?cit. At the retail level, electricity tariffs were initially increased from Tk 9.11 to Tk 10.63 per unit. However, following requests from the utilities, theincreased rates for lifeline consumers using up to 50 units and consumers using up to 75 units were withdrawn the next day.

as a result, the average retail tariff became Tk 10.40 per unit. How will the Commission address the resulting de?cit for the distribution companies? The ?rst order increased retail tariffs in line with wholesale tariff adjustments and applied the increase to all categories of consumers. However, following discussions with the utilities and considering their requests, tariffs for lifeline consumers and consumers using up to 75 units were kept unchanged.

this will increase the ?nancial de?cit of the Rural Electri?cation Board (REB).

therefore, the Commission has asked BPDB to support REB by offering discounts on wholesale electricity prices to compensate for the shortfall.

it is well known that whenever electricity tariffs are increased, the Commission also issues directives to the utilities. BPDB’s average generation cost is now over Tk 13 per unit. Many believe that the entire burden cannot be shifted onto consumers and that waste, irregularities, and corruption must be reduced. What kind of directives has the Commission given to BPDB? Alongside the tariff order, we have issued directives to BPDB and other utilities specifying the actions they must undertake and requiring them to report their progress to the Commission.

although capacity charges are an internationally recognized concept, in our case, they have become a major burden due to excessive installed capacity.

to reduce this burden, utilities have been instructed not to renew power plants once their operational terms expire. We have also instructed them to improve plant availability, heat rates, operational ef?ciency, fuel mix, and management practices to reduce overall costs. Regular monthly and quarterly reports on these matters will be submitted to the Commission. Furthermore, directives have been issued to reassess power plants that have become obsolete or ineffective and to gradually retire them. Protecting consumer interests is one of BERC’s major responsibilities. However, there is a perception that the Commission has not taken effective initiatives in this regard since its establishment. How do you respond, and what is the current Commission doing? The allegation is not accurate. We are working with the highest priority given to consumer interests, and the extent of the recent tariff increase itself demonstrates that.

there have been complaints regarding prepaid electricity meters.

to verify these concerns, BERC is conducting a study in collaboration with BUET. Based on its ?ndings, the Commission will take appropriate measures.

at the same time, to prevent unnecessary expenditures from being transferred to consumers in the future, we have issued an order requiring all licensees to obtain prior approval from the Commission before undertaking any projects. Failure to comply with this order will constitute a violation of the law, and in such cases, the costs of those projects will not be allowed to be passed on through tariffs. Moreover, the Commission has initiated ?nancial, managerial, and technical audits for all licensees. Since BERC currently lacks adequate manpower to conduct these audits internally, thirdparty services will be engaged initially.

once this process begins, it will create opportunities to identify ?nancial irregularities and management weaknesses in the energy and power sectors and take corrective action. Ultimately, consumers will bene?t from these measures.

is there any opportunity to renegotiate or buy back old power purchase agreements? The government formed two committees to examine this issue. Some reviews have already been conducted, although I am not aware of the ?nal decisions. However, if the government wishes, certain agreements can certainly be reconsidered. Decisions should be based on a comprehensive assessment of the costs and bene?ts associated with each contract. What role will the Rooppur Nuclear Power Plant play? Will it help reduce generation costs? The addition of 1,200 MW of electricity from Rooppur NPP to the national grid will provide signi?cant relief to the system.

if its production costs remain comparatively low, it will help stabilize electricity tariffs in the future.

it will also play an important role in strengthening Bangladesh’s energy security. What is BERC’s position regarding renewable energy? We attach great importance to renewable energy.

the government also has clear targets to advance this sector. Large areas of land, such as those in Moheshkhali and Matarbari, could be utilized for renewable energy projects. Utilities are also being encouraged to gradually increase their investments in renewable energy sources. Bangladesh is heavily dependent on energy imports, with import dependency currently standing at around 65 percent. Prices of gas, electricity, oil, and LPG are therefore heavily in?uenced by international markets. Since LPG and fuel oil prices are adjusted monthly under a formula, should a similar formulabased mechanism be introduced for electricity and gas? At this stage, the Commission is not considering monthly adjustments for electricity and gas prices under a formula similar to LPG and petroleum products.

this is because it is not possible to transfer the full burden of actual gas and electricity costs onto consumers. Instead, the sector must remain ?nancially sustainable through limited price increases while continuing subsidies.

at the same time, the Commission has already issued directives aimed at reducing electricity generation costs.

The government has directed ministries, divisions and ?eld administrations to prioritize virtual platforms for meetings, workshops and training programs to reduce fuel consumption amid global energy challenges. A circular issued by the Cabinet Division said district-level of?cials should join divisional programs online, while upazila-level of?cials should participate virtually in district-level events. Physical meetings may be held when necessary, subject to proper justi?cation.

the directive, which takes immediate effect, aims to conserve fuel, reduce travel costs and increase the use of digital technology in government operations.

the latest circular replaces a previous instruction issued on April 22.

United Nations climate chief Simon Stiell has called for stronger political commitment and a major increase in climate ?nancing, saying investments made over the next decade will determine whether the world can successfully transition to a low-carbon future and protect billions of people from worsening climate impacts. Speaking at a joint COP29-COP30 Presidency event during the UN June Climate Meetings in Bonn recently, Stiell said climate ?nance has become the driving force behind the global implementation phase of climate action. ‘This is an era of implementation in climate action, and ?nance will drive it forward,’ said Stiell, Executive Secretary of UN Climate Change (UNFCCC). ‘It is essential for a truly global transition, for turning plans into projects, bringing the bene?ts of climate action to billions of people, and laying the groundwork for more ambitious commitments that science demands.’ Stiell highlighted the commitment made by countries at COP29 to mobilize $1.3 trillion annually in climate ?nance by 2035 and described the Baku-to-Belém Roadmap as a critical strategy to achieve that target. He said the roadmap sends a strong signal that raising $1.3 trillion is both necessary and achievable.

although it is not a negotiated agreement, the plan re?ects an unprecedented level of engagement, incorporating hundreds of proposals and record submissions from governments, ?nancial institutions, and climate stakeholders. ‘It may not be everything that every party would want, but it is a plan we can and must rally behind,’ he said.

the UN climate chief acknowledged the signi?cant economic challenges facing many developing countries, warning that ?nancial constraints are limiting their ability to invest in climate adaptation and clean energy projects at a critical moment. He stressed that stronger political support across international forums is needed to sustain momentum and ensure the roadmap translates into concrete action. Stiell outlined several immediate priorities, including maximizing the impact of existing climate ?nance, leveraging public funds to attract signi?cantly larger volumes of private investment, and expanding access to affordable capital. He also emphasized the need to improve coordination within the fragmented climate and development ?nance landscape, address debt distress in developing countries, and reshape perceptions of investment risk that often discourage funding in vulnerable nations.

other priorities include aligning investment frameworks with global climate goals and identifying innovative sources of climate ?nance to support long-term implementation efforts. Stiell said collaboration with successive COP presidencies would be essential to maintain progress and strengthen international partnerships ahead of the second Global Stocktake at COP33. By then, he said, countries must be able to demonstrate measurable progress in scaling up climate ?nance and delivering tangible outcomes. ‘We have a plan,’ Stiell said in closing. ‘Let’s put it to work.’ Climate ?nance is increasingly viewed as a cornerstone of global efforts to limit temperature rise, strengthen resilience in vulnerable communities, and accelerate the transition toward cleaner and more sustainable economies.