Category: Energy and Power

The US-Israeli war on Iran has set off a panic buying of fuel in Bangladesh, nearly 4,000 kilometers away from the eye of the storm.

it has hardly been surprising. Bangladesh depends heavily on the imports of fuel oil and gas from the Gulf countries, which are now at the center of the con?icts.

iran’s retaliatory missile attacks have shut down oil facilities in many of the Gulf nations, including Qatar, Kuwait, and the UAE. The war entered its second week on March 10, and until that day, the prices of fuel oil jumped over 100 dollars a barrel.

the concerns have been manifold: disruptions in production, transportation, and shipping lines.

the new BNP government, which took of?ce just three weeks ago, winning a massive public mandate, has taken some prompt actions.

in emergency measures, the government has set caps on the supply of fuel -diesel, petrol, and octane – to vehicles and closed down ?ve of the six major urea fertilizer factories to conserve the use of natural gas. Besides urging austerity and patience, the authorities have repeatedly assured that there is no scarcity in the supply of fuel.

there are stocks in the depot and fuel-loaded ships travelling to Bangladesh. Con?dent about the stocks, the government has decided not to raise the fuel prices for now. Yet panic purchase has gripped the country’s 4000 fuel stations, especially the 80 located in the capital city. Motorists have formed long lines before the petrol pumps, pushing up demand amid disrupted supply. Many are buying more than they need amid a tendency to hoard.

irrational buyers are paying little heed to government assurances. The unusual spike in demand amid reduced supply is drying up the petrol pumps, forcing the closure of sales. Tensions have thus gripped the ?lling stations. Scuf?es and altercations have been reported in some places.

in order to boost imports of fuel, Bangladesh has turned to its neighbor, India.

in response to Dhaka’s request, India has started pumping diesel into the 131-kilometre Bangladesh-India Friendship Pipeline that brings the fuel from Numaligarh re?nery in Assam to Parbatipur oil depot in Bangladesh’s Dinajpur district.

this has been a welcome move as Dhaka and New Delhi are resetting their relations, overcoming the bad feelings caused by the downfall of Sheikh Hasina’s government on August 5, 2024.

up to 5,000 metric tonnes of diesel were expected to ?ow through the pipeline by March 11. Bangladesh is to receive 180,000 metric tonnes of diesel annually through this pipeline, which was inaugurated in March 2023.

it has a capacity to supply 200,000 metric tonnes of diesel a year. Meanwhile, Chattogram Port Authority (CPA) has geared up the unloading of fuel on a priority basis.

as ships carrying LPG and LNG from Qatar, Oman, and the United Arab Emirates are arriving at the outer anchorage, berthing the ships at the port is being given emergency treatment. Vessels carrying diesel and furnace oil from Malaysia and Singapore are there to further ease the supply issue.

these imports have been done both under the private and public sectors. So the bottom line here is that there should not be any fear about the supply. Panic buying is what has been causing the chaos at the ?lling stations since the start of the Middle East war.

the current comfortable supply situation should not lead to relaxing vigilance, as the situation in the Middle East still remains volatile and unpredictable.

though President Trump says the war will be over ‘very soon,’ few can trust him.

iran’s new leadership has warned that if the war ends, it will be on their term not on the choices of Israel and the US. So, the Bangladesh government must continue with emergency measures to avert worsening the situation

Bangladesh’s power sector is haemorrhaging billions of dollars each year not because of a single policy failure, but due to a toxic combination of excess capacity, onesided contracts, heavy import dependence, weak governance and a sharp depreciation of the taka, sector insiders and analysts say.

the National Review Committee (NRC) recently estimated annual losses in the power sector at around $1.5 billion, largely attributing the damage to unfavorable power purchase agreements. But many energy experts argue that this headline ?gure oversimpli?es a much deeper, long-running structural crisis.

those closely tracking the sector say the losses do not fully re?ect historical realities and cannot be understood without examining how policy priorities shifted after 2015.

until around 2015, Bangladesh struggled with frequent power outages and inadequate generation. Since then, the problem has ?ipped.

Military Institute of Science and Technology (MIST), in collaboration with the Bangladesh Energy and Power Research Council (BEPRC), recently organized a symposium on ‘Sustainable Technologies for Bangladesh’s Clean Energy Transition’. BEPRC Chairman (Senior Secretary) Mohammad Wahid Hossain was present as the chief guest at the program while MIST Commandant Major General Md Nasim Parvez attended here as the chief patron and BEPRC Member (Additional Secretary) Dr Md Ra?qul Islam was present as special guest.

the event brought together policymakers, academics, industry leaders, and students to explore innovative pathways toward a sustainable and secure energy future, said a release of the Inter Services Public Relations (ISPR) Directorate.

The Bangladesh Energy Regulatory Commission (BERC) has cut furnace oil prices for public and private power producers and industries by 18 percent, from Tk 86 to Tk 70.10 per litre.

the commission set the rate for the ?rst time, following a public hearing last month. Previously, the Bangladesh Petroleum Corporation (BPC) used to determine the price on its own. BPC sells around 8-9 lakh tonnes of furnace oil annually, mainly to public power generation companies, as well as to some private power producers and industries.

at a hearing on January 29, the Bangladesh Power Development Board (BPDB) alleged that BPC had charged up to Tk 644 crore more than the actual supply cost over the past one and a half years.

(RMG) factories in Bangladesh have received LEED (Leadership in Energy and Environmental Design) certi?cation from the US Green Building Council (USGBC).

as a result, the country now reached to 275 LEED certi?ed RMG factories thanks to the new addition.

among them, 116 are Platinum, and 140 are Gold rated.

additionally, Bangladesh now boasts 70 out of the top 100 highest rated LEED factories in the world.

one of these two factories is Fashion Floor BD Ltd, located in Sreepur of Gazipur district.

the factory obtained Gold certi?cation getting 71 Points.

another factory is MNR Sweaters Ltd under Baraiderchala area in Sreepur of Gazipur, which obtained Platinum certi?cation getting 85 points.

Technology group Wärtsilä has been selected by Gramme Storage 1 to deliver a 50 MW / 100MWh battery energy storage system in centraleastern Belgium.

through the Gramme 1 project, Wärtsilä and Gramme Storage 1 will support Belgium’s transition toward a more sustainable, ef?cient, renewable energy system. Construction is now underway and the site is expected to be completed by Q2 2027.

the order was booked in Q2 2025. ‘This project with Wärtsilä underscores our commitment to dependable, ?exible energy in Belgium’, said Guillaume Poncelet, Managing Director at Kallima Energies – the Liège based developer of the project. ‘This collaboration highlights the growing role of battery energy storage in supporting Belgium’s electricity system. By delivering essential ancillary services, the system will play a vital role in balancing the grid.’ Gramme 1 represents Wärtsilä’s ?rst energy storage project participating in Belgium’s Capacity Remuneration Mechanism (CRM).

Fr om both ?nancial and technical perspectives, Bangladesh’s power and energy sector is currently in a vulnerable state.

the most pressing challenge is the shortage of primary fuel.

at present, more than 56% of the country’s combined power and energy supply depends on imports.

the exploration and extraction of domestic gas and coal resources could signi?cantly reduce this dependence. However, such initiatives require substantial investment and long implementation periods.

in contrast, expanding renewable energy offers a faster and comparatively lower-cost solution to ease import pressure.

over the past two decades, despite extensive discussions and policy frameworks, renewable energy expansion has lacked effective implementation planning.

as a result, Bangladesh’s total renewable electricity generation capacity-both grid and off-grid-stands at around 1,700 MW, of which 1,317 MW is grid-connected.

this includes: ? Hydropower: 230 MW ? Solar: 1,025 MW ? Wind: 62 MW Current Power Generation Mix Bangladesh’s total installed power generation capacity exceeds 28,000 MW, distributed as follows: ? Gas-based: 12,000 MW ? Coal-based: 7,000 MW ? Furnace oil-based: 6,000 MW ? Electricity imports from India and Nepal: 2,500 MW In 2024, just slightly over 2% of electricity supplied came from renewable sources. Compared to last year, peak demand has increased by approximately 1,000 MW.

as a result, expensive furnace-oilbased generation may be required not only during peak hours but also during daytime to meet demand.

economic Reality: A Dollar Drain Bangladesh spends approximately US$13.2 billion annually on energy and power imports. Meanwhile, domestic natural gas production continues to decline at an average rate of 150-200 MMCFD /year.

it is projected that this year, the combined cost of energy imports and loan repayments will reachUS$24 billion annually, or nearly US$2.0 billion per month. When such a large share of foreign currency is spent on fuel imports, capital machinery imports decline, industrialization slows, and employment opportunities shrink.

in this context, renewable energy is not just an environmental alternative-it is an economic survival strategy. Why Renewable Energy Makes Economic Sense 1. Foreign Currency Savings Replacing imported oil, coal, and LNG with domestic solar and wind power will conserve valuable foreign exchange. 2.

accelerated Industrialization Saved foreign currency can be redirected toward capital machinery imports and industrial expansion. 3. Lower Long-Term Power Costs With proper planning, electricity can be generated at Tk 5-7 per unit. 4.

investment Attraction Stable policies can attract signi?cant domestic and foreign investment. 5.

employment Generation Large-scale renewable deployment can create hundreds of thousands of jobs in manufacturing, installation, operation, and maintenance. Bangladesh has already made notable progress in rural electri?cation through solar home systems. However, the time has now come for large-scale grid-connected solar and wind power development. Policy Support: What is Urgently Needed? 1. Land and Transmission Readiness The government should identify suitable land-especially khas land or acquisition-ready land near grid substations-for solar and wind projects. Pre-arranged transmissioninfrastructure will signi?cantly accelerate implementation.

a district-based coordination mechanism involving Deputy Commissioners (DC), Additional Deputy Commissioners (Land), Assistant Commissioners (Land), and Executive Engineers of substations could ensure effective planning. 2. Full Duty Exemption on Equipment Complete duty exemption on solar panels, inverters, Battery Energy Storage Systems (BESS), wind turbines, and related equipment will reduce generation costs and boost investment. 3. Low-Interest Green Financing Banks should provide long-term ?nancing at concessional rates.

the central bank can expand green ?nance schemes to support renewable projects. 4.

tax Holidays A 5-10 year tax holiday will strengthen investor con?dence. 5.

integration of BESS in the Grid Adding Battery Energy Storage Systems (BESS) to grid substations is essential to ensure a stable supply, manage peak loads, and address intermittency challenges.

integrated River-Centric Development Model As a riverine country, Bangladesh can adopt an integrated development approach along major riverbanks, combining: ? River dredging ? Riverbank protection ? Road construction ? Solar power projects Potential Bene?ts: 1.

improved navigability through dredging 2. Riverbank protection and infrastructure development 3.

expansion of cultivable land 4. Sustainable development of char (river island) regions 5. Reduced transportation costs via waterways 6. Strengthened rural economies 7. Creation of over 2 million jobs across construction, operations, logistics, and support sectors A 1-3 Year Renewable Acceleration Plan If the new government prioritizes rooftop and utility-scale solar under a structured 1-, 2-, and 3-year action plan, Bangladesh could add at least 3,000 MW of renewable capacity by 2026-2028.

to achieve this, renewable energy expansion must be placed at the center of the government’s 180-day priority program. Conclusion: A Strategic Choice for Bangladesh Bangladesh now stands at a strategic crossroads. Will we continue to spend billions annually on imports, increasing economic pressure? Or will we move toward a self-reliant, employmentdriven, and sustainable energy future? With the right policy support, land preparation, ?nancial incentives, and grid modernization, renewable energy can become: A tool for foreign currency savings A driver of industrial growth A foundation for rural development A source of millions of jobs A pathway to a sustainable and secure Bangladesh The time for bold decisions has arrived.

a large-scale transition to renewable energy must now become a national priority.

Turboden, part of Mitsubishi Heavy Industries, has energized what it calls the world’s largest steam-producing heat pump, delivering 12 MWth of superheated steam using lowgrade waste heat and CO2-free electricity with a coef?cient of performance 10% above its guaranteed value of 2.

turboden, an Italian manufacturer of organic rankine cycle (ORC) systems, has announced the startup of what it de?ned as the world’s largest steamproducing heat pump.

the company, part of Japan’s Mitsubishi Heavy Industries, said the project consists of a large heat pump (LHP) coupled with mechanical vapor recompression (MVR).

TotalEnergies faces cutting back oil and gas production if NGOs prevail in a trial that began recently over accusations the French energy giant failed to properly consider environmental risks.

the case, brought by several NGOs and the city of Paris, is based upon a 2017 law that imposed a ‘duty of vigilance’ on large companies.

the law seeks to counter companies of?oading responsibility onto subcontractors by requiring them to identify and prevent any risks toward human rights as well as the environment throughout their production chain, including overseas.

totalEnergies and the plaintiffs are at odds over the reach of the de?nition of the environment – whether it means risks on a local scale such as a polluted river or more broadly global warming.

the energy ?rm’s lawyers argued global warming is beyond the scope of the law. But a lawyer representing four NGOs including nonpro?t Sherpa told the court that ‘selling hydrocarbons to be burned creates an environmental risk’. ‘Is there really no link between global warming and the preservation of biodiversity or the prevention of air pollution?’ the lawyer stated.

Global energy leaders have renewed their commitment to accelerating renewable energy development at the two-day 2026 Ministerial Meeting of the International Energy Agency (IEA) in Paris, France.

the conference brought together senior of?cials from a record 54 countries, including around 40 energy ministers, alongside executives from 55 major energy companies worth $14 trillion collectively, and leaders from key intergovernmental organizations, according to a recent press release from the agency.

amid rising global energy demand and climate pressures, ministers emphasized advancing the transition to net-zero emissions, in line with COP28 outcomes. Dutch Deputy Prime Minister and Climate Minister Sophie Hermans, who chaired the meeting, highlighted the need for ‘secure, affordable, and sustainable energy-and resilient systems that can endure in an uncertain world.’ IEA Executive Director Fatih Birol described the event as the largest in the agency’s history, stressing that the IEA’s data and analysis remain crucial for guiding countries through evolving energy challenges.

the meeting approved expanded cooperation with Brazil, Colombia, India, and Vietnam, increasing the IEA’s coverage to more than 80% of global energy use.