Category: Energy and Power

Bangladesh’s energy crisis did not begin with the Iran-US-Israel war. The country was already struggling with a severe shortage of primary fuel, while the challenge of managing rising summer electricity demand had become increasingly dif?cult. The BNP-led alliance government was expected to come prepared with a clear strategy.

instead, it appeared the new administration underestimated both the scale and complexity of the crisis, which was further intensi?ed by the damaging con?ict in the Arab and Gulf regions.

as fuel prices surged in the volatile global market and the Strait of Hormuz disruption threatened supply chains, Bangladesh’s ability to procure fuel came under serious pressure.

the government should have taken carefully planned contingency measures in consultation with all relevant stakeholders.

instead, acting largely on bureaucratic advice, it imposed fuel rationing that sent the wrong signals to consumers.

this triggered panic buying, disrupted the normal fuel supply chain from depots to pumps, and encouraged illegal hoarding by pro?teering syndicates.

the damage was already done before the government realized its mistake and withdrew the rationing policy. Long queues of anxious buyers are still visible at fuel stations. Restricted fuel supply affected transport, disrupting the movement of essential commodities. Farmers suffered from inadequate diesel and electricity for irrigation, ?shermen were unable to take their trawlers to sea, and fertilizer factories shut down due to gas shortages.

even then, nearly 50% of gas-based power generation capacity remained idle during peak summer demand.

this resulted in severe nationwide loadshedding during intense heat waves.

energy and electricity prices, which should have been adjusted gradually by the Bangladesh Energy Regulatory Commission (BERC), were delayed until the government reached a point of no return.

eventually, the new government conceded to opposition demands and agreed to form a parliamentary committee to assess the situation and recommend an appropriate response to confront the crisis. Present Situation Bangladesh’s power and energy sector management remains almost entirely under bureaucratic control.

energy analysts observe that poor management and weak sectoral governance are largely responsible for the failure to anticipate the depth of the crisis. Successive governments neglected the exploration and development of domestic fuel resources such as gas and coal. While policymakers frequently discussed renewable energy, little meaningful action was taken to increase the contribution of solar, wind, and biomass in the energy mix. Signi?cant reserves of high-quality coal remain untapped despite being located at mineable depths.

experts also point to strong potential for unexplored petroleum resources both onshore and offshore.

even the discovered gas reserves of Bhola Island remain largely unused.

instead of developing domestic resources, governments-often in?uenced by opportunistic energy syndicates-opted for increasing dependence on imported fuel and electricity.

the risks of relying too heavily on imports were ignored, despite repeated warnings from analysts and experts.

they consistently cautioned that the volatility of the global fuel market would create major challenges for Bangladesh’s fragile economy and that regional or global con?icts could disrupt supply chains, exactly as is happening now. Bangladesh currently has an installed grid power generation capacity of over 29,000 MW. Previous governments spent billions expanding power transmission and distribution networks across the country.

unfortunately, they failed to ensure sustainable fuel supply.

as a result, the power system has been unable to consistently generate even 16,000 MW, leaving nearly 45% of installed capacity idle.

at the same time, the government continues to bear the heavy burden of capacity payments. Massive subsidies have been paid to both the power and energy sectors. BPDB and Petrobangla have almost become ?nancially crippled while trying to meet payment obligations to fuel suppliers and electricity producers.

experts had long warned about the need to prepare for the summer peak demand of 2026. BPDB projected a peak demand of 18,500 MW. Gas supply constraints were already well known. For this reason, experts recommended maximizing the use of the country’s 7,000 MW coal-?red power generation capacity.

there were also repeated suggestions to import coal on time. However, due to shortages in coal availability, it is currently impossible to generate more than 4,000 MW from coal during peak demand. Petrobangla, through gas rationing for fertilizer plants and staggered supply to industries, can manage only 950-1,000 MMCFD of gas supply to the power sector.

this allows a maximum generation of around 6,500-7,000 MW. Power imports from the Adani plant may also face disruption because the government owes substantial unpaid bills to the Adani Group.

a similar problem exists with private sector liquid fuel-based peaking plants.

as a result, it is now dif?cult to consistently generate even 15,000 MW. Power de?cits of 2,500-3,000 MW have already created severe suffering across the country.

austerity and ef?cient use can provide only limited relief.

the real burden will continue to come from poor management of the power and energy sector. Why Has the Rooppur Nuclear Power Plant Been Delayed? Experts are raising legitimate questions about why the commissioning of the 2×1,200 MW Rooppur Nuclear Power Plant has been delayed. Was the interim government truly committed to expediting the completion of the remaining plant work and associated evacuation facilities on time? What exactly happened during the ?re at the cargo village of Hazrat Shahjalal International Airport, where some critical equipment for the Rooppur project was reportedly destroyed? Was it simply an accident, or an act of sabotage? Even the availability of just 1,200 MW of nuclear electricity would have signi?cantly helped manage the current power crisis.

it is believed that fuel loading will proceed as planned and the plant may be ready for commissioning by the end of 2026. However, there must be no unnecessary haste. Nuclear power must be synchronized with the national grid with the highest level of caution and technical discipline. Why Is Renewable Energy Development Not Gaining Momentum? The government must professionally examine why renewable energy development has failed to gain the expected momentum.

the caretaker government canceled several concluded contracts and negotiations for solar power projects without properly assessing the consequences. During its 18 months in of?ce, very little progress was made in advancing energy transition.

experts believe the government must create strong incentives for private sector investment in renewable energy. Import duties and taxes on solar equipment should be waived for at least ?ve years. SREDA should be made the single-point contact for investors.

a dedicated government agency should be assigned to ensure quality control of solar panels, inverters, and batteries.

the private sector should also be encouraged to establish solar equipment manufacturing plants in Bangladesh. Local banks should offer soft loans to investors.

the government should develop land and lease it to investors for solar projects while also investing in power evacuation facilities. Fiscal and ?nancial incentives should be extended to rooftop solar installations as well.

even if Bangladesh cannot achieve 10,000 MW of solar generation, it should realistically be able to add at least 5,000- 6,000 MW by 2030.

there was also an initiative for offshore wind development involving a Danish agency and Summit International, which was later canceled by the caretaker government.

that initiative deserves immediate review.

at the same time, Bangladesh must carefully plan for grid integration of variable renewable energy (VRE). Where feasible, renewable energy should be used through distributed generation systems such as mini-grids and microgrids for local supply. Managing Summer Demand in 2026 The immediate challenge is to manage the crisis from now until October. Petrobangla must ensure a consistent supply of 1,000 MMCFD of gas to the power sector to support at least 7,000 MW of gas-based generation. Yet current gas-based generation remains around only 5,200-5,500 MW. More fuel-ef?cient power plants must be prioritized strictly on merit.

the government must ensure that all coal-?red plants maintain suf?cient buffer stock so they can operate at full capacity throughout the summer.

at least 6,000 MW of coal-based generation should remain consistently available. Payment disputes with power exporters, including the Adani Group, must be resolved quickly to secure at least 2,000 MW of imported electricity.

together, these steps could ensure a minimum of 15,000 MW of power supply during peak summer demand.

additionally, 2,000 MW of liquid fuelbased peaking plants should remain ready for peak shaving purposes. Payments to private sector power producers must be made regularly to ensure uninterrupted operation.

at the same time, all efforts should be made to bring at least 600 MW of nuclear electricity online by the end of 2026. Power and energy professionals within BPDB, Petrobangla, and BPC must be allowed to work with proper authority and operational freedom. BERC must be allowed to function independently according to its legal mandate.

the Power Division and the Energy and Mineral Resources Division (EMRD) should focus on policymaking and administrative support, rather than interfering in operational management. Only then can Bangladesh begin to move from crisis management to genuine energy security

The government’s ongoing nationwide drive against illegal fuel stockpiling has recovered a total of 576,993 liters of petroleum products in 49 days up to April 21, according to the Energy Division Bangladesh.

an of?cial statement said 11,197 mobile courts, led by executive magistrates, have been conducting operations across the country since March 3 to stabilize the fuel supply system amid the ongoing energy crisis linked to Middle East tensions. During the operation, authorities recovered 390,209 litres of diesel, 40,846 liters of octane, 97,438 liters of petrol, and 48,500 liters of furnace oil.

the drive also resulted in 4,053 cases being ?led, with 54 individuals receiving sentences for illegal stockpiling of petroleum products.

additionally, the mobile courts collected ?nes amounting to Tk 1,80,96,115 during the period.

Gas supply from the LNG terminal at Moheshkhali has resumed after a recent sixhour disruption caused by a technical fault, offering relief to consumers already facing low pressure amid a broader energy squeeze.

of?cials said the ?oating storage and regasi?cation unit (FSRU), operated by Excelerate Energy, went of?ine, halting regasi?ed LNG (RLNG) supply to the national grid.

the fault was repaired later, allowing gas supply to resume, according to a statement from Petrobangla.

the temporary shutdown had led to a drop of roughly 400 million cubic feet per day (mmcfd) in gas supply, worsening pressure in areas under Titas Gas Transmission and Distribution Company Limited, including parts of Dhaka and key industrial belts.

State Minister for Foreign Affairs Shama Obaed Islam has called for enhanced Japanese investment in key sectors including renewable energy, ICT, infrastructure, pharmaceuticals, agro-processing and manufacturing. The State Minister held a bilateral meeting with Japanese Vice Minister of Foreign Affairs Onishi Yohei on the sidelines of the ‘Dakar International Forum on Peace and Security in Africa’ held in Dakar, Senegal on April 20, said the Ministry of Foreign Affairs. They discussed expanding cooperation in trade, investment, connectivity, technology, skills development and peopleto-people exchanges.

the State Minister expressed appreciation for Japan’s continued support in addressing the Rohingya crisis and sought further assistance to facilitate their early and sustainable repatriation to Myanmar.

Bangladesh is advancing efforts to transform its construction sector through the development of a national Green Building Certi?cation Framework, known as DESH, aimed at promoting sustainable, climate-resilient, and resource-ef?cient buildings. The framework is being developed by the Housing and Building Research Institute (HBRI) with support from the United Nations Of?ce for Project Services (UNOPS), under the leadership of the Ministry of Housing and Public Works. DESH is part of a broader initiative titled ‘Transforming the Built Environment through Sustainable Materials in Bangladesh,’ re?ecting the country’s growing focus on sustainable development in the construction sector.

a recent stakeholder consultation marked a key milestone in the framework’s development.

the session brought together representatives from government, academia, and industry to validate technical aspects and contribute to the co-development of the certi?cation system.

The government has decided to introduce experimental load-shedding in the capital, Dhaka, to ensure uninterrupted electricity supply for irrigation in rural areas and reduce the urbanrural disparity in power distribution. State Minister for Power, Energy and Mineral Resources Anindya Islam Amit made the announcement in Parliament recently during a session chaired by Speaker Ha?z Uddin Ahmed. He said the initiative aims to ensure that farmers receive adequate electricity during the peak irrigation season so that agricultural production is not disrupted.

the minister acknowledged that public con?dence in government statements has weakened over time, but emphasized that the current administration remains committed to transparency and accountability. He attributed the ongoing power crisis to accumulated mismanagement in previous years, noting a gap between installed capacity and actual generation.

Bangladesh has secured a notable diplomatic achievement at the United Nations Economic and Social Commission for Asia and the Paci?c, with a landmark resolution on sustainable bioeconomy adopted unanimously at its 82nd session in Bangkok.

the resolution, titled ‘Supporting the Transition towards a Sustainable Bioeconomy in Asia and the Paci?c,’ was initiated and led by Bangladesh under the guidance of Faqir Mahbub Anam, Minister of Posts, Telecommunications and Information Technology and Science and Technology.

of?cials described the adoption as a signi?cant step that reinforces Bangladesh’s growing role in shaping regional development priorities.

the resolution aligns with Bangladesh’s national development goals, emphasizing sustainable, innovation-driven, and inclusive economic growth.

it highlights the importance of circular economy practices, ef?cient resource utilization, and the application of science and technology to drive transformation.

In a major step toward addressing the multifaceted crises faced by women in Bangladesh’s coastal belt due to climate change and rising salinity, a set of integrated livelihood plans and guidelines has been ?nalized. These strategic tools were presented recently at a validation workshop titled ‘Resilient Futures: GenderResponsive Livelihood Materials and Climate Pathways,’ held at a hotel in Dhaka.

the Department of Women Affairs (DWA) under the Ministry of Women and Children Affairs, in collaboration with the Department of Public Health Engineering (DPHE), is currently implementing a specialized project across ?ve upazilas in Khulna and Satkhira.

titled ‘Gender-responsive Coastal Adaptation (GCA),’ the project aims to enhance the adaptive capacities of coastal communities, particularly women, to cope with climate changeinduced salinity.

The heads of the International Energy Agency, International Monetary Fund, and World Bank recently said they will form a coordination group to maximize their response to the signi?cant economic and energy impacts of the war in the Middle East.

in a joint statement, the three global bodies noted that the war had caused major disruptions in the region and triggered one of the largest supply shortages in global energy market history. ‘At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis,’ the heads of the IMF, IEA and World Bank said.

the new coordination group will assess the severity of impacts across countries, coordinate a response mechanism, and mobilize stakeholders to deliver support to countries in need, the international bodies said.

Bangladesh’s energy challenge is no longer a distant policy concern. It is now a daily reality. From factories struggling to stay open to power plants running below capacity, the strain of gas shortages is being felt across the economy. Behind this lies a deeper structural issue: the country’s growing inability to secure a stable and affordable supply of natural gas, the very fuel that underpins its industrial growth and energy system.

the government’s foremost concern in achieving sustainable energy security is ensuring a smooth and reliable supply of primary fuel, particularly natural gas.

according to Petrobangla, current demand stands at around 4,000 MMCFD, while supply is limited to approximately 2,600 MMCFD, including about 900 MMCFD of imported regasi?ed LNG (RLNG). Domestic gas production has declined to around 1,700 MMCFD and continues to fall steadily.

the Bibiyana gas ?eld, operated by Chevron, alone contributes nearly 950 MMCFD, but it too is gradually depleting. Bangladesh cannot afford to remain heavily dependent on a single ?eld inde?nitely.

at the current rate of depletion, the country’s proven gas reserves could be exhausted by 2031.

in response, Petrobangla has undertaken two major drilling initiatives-the 50-well and 100-well programs. While these have yielded some incremental gains, the results have not been transformative. Meanwhile, two ?oating storage and regasi?cation units (FSRUs) at Maheshkhali supply between 900 and 950 MMCFD of RLNG. However, ongoing geopolitical tensions and con?icts in the Middle East have disrupted LNG supply chains and driven prices to record highs, limiting Bangladesh’s ability to rely on the spot market.

the consequences of gas shortages are already severe. Nearly 5,000 MW of gas-based power generation capacity remains idle due to inadequate fuel supply. Most fertilizer factories havebeen forced to suspend operations, affecting agricultural productivity. Many gas-dependent industries have shut down entirely, while others are struggling to survive under mounting operational costs.

this has created a ripple effect across the economy, impacting employment, exports, and overall industrial output. From both technical and economic perspectives, natural gas-both domestic and imported-will remain the dominant fuel in Bangladesh’s energy mix until at least 2040. Despite growing interest in renewable energy and clean technologies, Bangladesh cannot rapidly scale up these alternatives due to infrastructure limitations, high costs, and grid integration challenges. Natural gas, therefore, must continue to serve as the country’s primary transition fuel. This makes it imperative to develop and implement a comprehensive and realistic roadmap for gas exploration, production, and supply chain development.

it is important to recognize that Bangladesh is neither exceptionally rich in hydrocarbons nor entirely depleted of resources. Signi?cant untapped potential remains both onshore and offshore. However, unlocking this potential requires disciplined, technology-driven execution of welldesigned exploration programs. Unfortunately, successive governments have not prioritized systematic reservoir studies or updated assessments of resource potential.

although institutions such as the US Geological Survey (USGS), the Norwegian Petroleum Directorate, and international service companies have conducted studies in the past, follow-up actions have been limited and fragmented.

one of the most glaring examples of underutilized resources is the gas reserve in Bhola. Despite having proven reserves, the lack of pipeline infrastructure has prevented this gas from being integrated into the national grid. Similarly, exploration in the Chattogram Hill Tracts – particularly in promising structures such as Patiya, Jaldi, Sitapahar, and Kashalong – has been delayed due to policy indecision and geopolitical sensitivities.

offshore exploration, which holds signi?cant long-term potential, has remained largely stagnant for over a decade.

the government must now take decisive action by launching an aggressive but professionally managed and integrated exploration campaign. Petrobangla and BAPEX already possess extensive seismic data collected over decades.

this data should be consolidated into a comprehensive national database, with support from accredited international experts if necessary.

at the same time, updated reservoir assessments must be conducted to provide a clearer picture of existing reserves and future potential. Modern seismic technologies have advanced signi?cantly in recent years. Bangladesh must undertake comprehensive 2D and 3D seismic surveys across its entire landmass to identify new gas-bearing structures. Given the geological characteristics of the Bengal Delta, the world’s largest riverine delta, it is highly unlikely that the country has exhausted its gas potential.

a systematic and scienti?cally driven exploration approach could yield substantial discoveries.

a well-integrated exploration roadmap is essential. BAPEX must be strengthened through the recruitment of skilled professionals, improved training, and access to modern technology. Financial resources, including the Gas Development Fund, should be fully allocated to support upstream activities.

at the same time, joint ventures between BAPEX and international exploration companies should be actively encouraged, particularly in high-potential regions such as the Chattogram Hill Tracts.

immediate priority should be given to exploration in Chhatak and Tengratila, where there is strong potential for increasing reserves and discovering new resources. However, operations in these areas must be conducted with utmost care to avoid technical or environmental risks.

infrastructure development is equally critical.

the proposed Bhola-Barishal- Khulna pipeline project must be implemented without delay.

this pipeline would enable the evacuation of gas from Bhola to the national grid, unlocking signi?cant economic opportunities in southern Bangladesh.

the project would also support industrial development in the Khulna-Jashore region and provide a reliable energy supply for emerging economic zones.

on the policy front, ?nalizing updated Production Sharing Contracts (PSCs) for both onshore and offshore exploration is essential.

the revised PSC framework includes competitive pricing mechanisms linked to Brent crude, along with provisions for cost recovery, pro?t sharing, and pipeline investment returns. However, attracting international oil companies (IOCs) will require more than competitive terms.

the government must ensure transparency, policy consistency, and a stable regulatory environment.

a dedicated team of technical, ?nancial, and legal experts should be formed to negotiate effectively with potential investors.

it is also important to acknowledge the limitations of BAPEX. While the organization has a crucial role to play, it does not currently have the capacity to address the scale of the crisis on its own. Strategic partnerships with experienced international companies are essential to accelerate exploration and production.

at the same time, BAPEX should be supported in building its capabilities through technology transfer and joint operations.

if Bangladesh can mobilize around 10 exploration rigs, operated by both BAPEX and international partners, by 2027, there is a realistic possibility of discovering between 3 and 5 trillion cubic feet (Tcf) of new gas reserves by 2030. While offshore exploration may take longer to yield results, it remains a critical component of the country’s long-term energy strategy.

in parallel, the government must strengthen LNG infrastructure to ensure supply security. Delays in projects such as additional FSRUs and landbased LNG terminals have exacerbated the current crisis.

these initiatives should be revisited and expedited. The development of a land-based LNG terminal at Matarbari and the installation of additional FSRUs should be treated as national priorities.

the concept of strategic LNG storage should also be explored.

as seen in Europe and North America, LNG can be stored in cryogenic form for extended periods, providing a buffer against market volatility.

establishing such facilities in Bangladesh would enhance the country’s ability to manage supply disruptions and price ?uctuations. While renewable energy development must continue, it is important to adopt a realistic approach.

technical limitations, grid constraints, and cost factors will limit the rapid expansion of renewable energy in the short to medium term. Therefore, natural gas will remain central to Bangladesh’s energy system for the foreseeable future. Conclusion The path to sustainable energy security requires a clear set of priorities and decisive action.

the government must immediately initiate exploration at Chhatak and Tengratila and fast-track the Bhola-Barishal-Khulna pipeline project.

updated PSCs should be approved without delay, and bidding rounds must be launched by June 2026.

at the same time, LNG infrastructure projects-including additional FSRUs and land-based terminals-must be accelerated. Bangladesh should also diversify its LNG import sources beyond the Middle East to reduce supply risks.

ultimately, a balanced strategy that combines domestic resource development, LNG expansion, institutional strengthening, and gradual adoption of renewable energy will be essential. With disciplined execution and strong political commitment, Bangladesh can navigate its current energy challenges and build a more secure and resilient energy future.