Call for Tk10,000cr Renewables Fund to Minimize Banks’ Risk

Like the Covid recovery fund, the Bangladesh Bank should form a renewable energy fund of at least Tk10,000 crore with support from the national budget to reduce lenders’ risks, speakers said at a roundtable on 23 August.

They stressed that the central bank alone cannot shoulder the burden of promoting sustainable financing in the country.

The government must step in with fiscal support, such as funds and incentives, and ensure the availability of credible data to scale up green energy and sustainability-linked projects.

The roundtable, organized jointly by Oxfam and The Business Standard under the former’s fair financing initiative, underscored the urgent need for largescale financing to meet Bangladesh’s renewable energy ambitions.

Hasan Mehedi, member secretary of the Bangladesh Working Group on External Debt, pointed out that the government has recently decided to generate 3,000MW of solar power through a Rooftop Solar Program within this fiscal year.

The plan requires $2.4 billion (Tk29,280 crore) in financing in just 10 months.

Also, the revised Renewable Energy Policy 2025 targets to achieve a 20% renewable energy share by 2030 and 30% by 2040, which would need $7.2 billion (Tk87,230 crore) investment in the next five years.

Bangladesh Moving Firmly Towards Clean Transportation: Fouzul Kabir

Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan recently said Bangladesh is moving firmly towards clean transportation. ‘With World Bank support, we are introducing 450 electric buses and building EV charging infrastructure at existing petrol and gas stations.

Investors in EV charging, EV imports, and operations will receive the government’s full support,’ he said.

The adviser said this at the ‘Fourth edition of the State of Investment Climate – Bangladesh webinar’, hosted by the Bangladesh Investment Development Authority (BIDA).

The webinar was moderated by Chowdhury Ashik Mahmud Bin Harun (Ashik Chowdhury), Executive Chairman (with the rank of State Minister) of BIDA and the Bangladesh Economic Zones Authority (BEZA). Dr.

Muhammad Fouzul Kabir Khan, a distinguished economist, academic, and former Secretary of the Power Division, outlined the government’s bold steps to transform energy security, transport efficiency, and logistics competitiveness.

On the transport and logistics sector, Dr. Khan said, ‘We are developing an integrated multimodal transport plan for Bangladesh.

By linking road, rail, waterways, and riverine communication with goods movement data, we will identify infrastructure gaps, reduce costs, and ensure faster and more efficient mobility.

This is the backbone of a globally competitive economy.’ On renewable energy and sustainability, Dr. Khan announced several breakthrough measures. ‘The Renewable Energy Policy 2025 has been approved, offering long-term tax holidays and reduced duties for solar technologies.

The National Rooftop Solar Program will equip all government offices, educational institutions, and hospitals with rooftop solar units under net metering,’ he added.

StanChart Launches RE Project

Standard Chartered Bangladesh, in collaboration with the international social-purpose organization Friendship, has launched an environmental initiative to provide clean energy, water, and climate resilience to the remote Notunchar Island in Kurigram. Notunchar, a sedimentary island located at the Northeastern point of Chilmari Upazila, remains disconnected from the national grid and basic infrastructure, including electricity, gas, and clean water, according to a press release issued by Standard Chartered Bangladesh recently.

Through this initiative, the island will be connected to a 70-kilowatt solar micro-grid, supported by a water treatment facility and a large-scale afforestation drive.

The solar plant, with an estimated energy output of 263 kilowatt-hours per day, will provide reliable power to 175 households, and multiple shops, schools, and religious institutions covering 875 beneficiaries.

Also, a water treatment plant – capable of supplying 60 liters of clean water per hour – will serve both the community’s drinking water needs and the solar grid’s maintenance requirements.

Omera Petroleum to Acquire Totalgaz Bangladesh for Tk 227cr

Omera Petroleum Ltd, a subsidiary of MJL Bangladesh PLC, is going to acquire Premier LP Gas Ltd (PLPG), a leading operator in the liquefied petroleum gas (LPG) market under the brand name “Totalgaz Bangladesh”, for Tk 227 crore.

Omera will buy 99.995 percent of the shares of PLPG, and both have signed an agreement in this regard.

The acquisition is subject to regulatory approvals, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website recently.

MJL Bangladesh said the move is expected to strengthen Omera’s LPG operations by leveraging PLPG’s existing infrastructure and its 1.6 million LPG cylinders. “This is anticipated to boost revenue and improve profitability in the LPG business segment,” it said.

Crisis Looms Over Rural Power Supply

The old proverb ‘a stitch in time saves nine’ seems highly relevant to the ongoing conflict between the Bangladesh Rural Electrification Board (REB) and the Palli Bidyut Samities (PBSs) over rural electricity supply.

This is not the first time such disputes have surfaced in Bangladesh.

Too often, problems are allowed to linger instead of being resolved.

Bureaucrats and political actors have long been accused of deliberately turning issues into crises to benefit from ‘crisis management.’ Likewise, the growing conflict between REB and PBS has now reached a stalemate.

Both sides REB as regulator and coordinator, and PBS officials are blaming each other. PBS officials argue that while they are responsible for delivering electricity to rural areas, most of the risky fieldwork is handled by contract staff. Permanent employees, they claim, face rank discrimination.

Their biggest grievance, however, is that procurement authority rests with REB.

According to PBS, REB overspends on low-quality products, which often cause system failures yet PBS is blamed when things go wrong.

REB rejects these allegations.

It insists that all purchases are made through competitive bidding in line with technical standards.

It also maintains that PBS staff were hired under a defined structure that cannot now be altered.

Instead, REB accuses PBS officers and staff of committing a grave offense cutting off electricity supply during their protests over the past year.

To stop this, REB argues, it had no choice but to pursue legal action.

The question arises: Was this crisis unknown to the Power Division?

Certainly not.

Every detail was known. Yet the division has not taken concrete action to resolve it.

Many observers note that since two consecutive Power Division secretaries were promoted to principal secretary, and because the Prime Minister herself has held the power portfolio, a kind of dual governance has persisted.

As a result, when PBS officials first demanded in January 2024 that their positions be given parity with REB staff, the issue was left to committee formation and not pursued further.

After the fall of the Awami League government amid mass protests, PBS officers and staff launched fresh demonstrations.

They faced harsh criticism for power cuts, were charged with sedition, dismissed, and subjected to mass transfers.

This has put PBS at odds with both REB and the Power Division.

Most recently, PBS declared a mass leave program, but withdrew it following a warning from the energy adviser, who urged patience and assured that the government was working sincerely to resolve the dispute.

US Model of Rural Electrification in Bangladesh Article 16 of Bangladesh’s Constitution guarantees citizens the right to electricity and energy.

But in the mid1970s, electricity was still considered a luxury even in urban life, with less than 15% of the population having access.

At that time, the U.S.

Government offered support to expand access to rural areas. With USAID assistance, the US-based National Rural Electric Cooperative Association (NRECA) began discussions in 1976 to replicate the American cooperative model in Bangladesh.

Until then, rural electrification was managed by the Rural Electrification Wing of the Bangladesh Power Development Board (BPDB).

In 1977, through a Presidential Order, this wing was dissolved, and the Bangladesh Rural Electrification Board (BREB) was created.

The order directed the new board to supply electricity to rural areas through cooperatives modeled after NRECA.

In 1978, 13 PBSs were formed, including what is now Dhaka PBS-1.

On June 2, 1980, electricity was first supplied to Kamalpur village in Dhamrai Upazila, Manikganj.

At the time, BPDB still handled distribution, but revenue collection and system losses were major challenges losses were as high as 70% in some areas.

From the start, PBSs focused on revenue collection and loss reduction.

Managed by consumer-elected committees, PBSs operated outside the conventional utility framework in Bangladesh.

All PBS assets are owned by their members the consumers themselves.

Today, the number of PBSs has grown to 80.

Of these, 12 are profitable, while the others rely on cross-subsidies. Currently, PBSs supply more than 60% of all electricity in Bangladesh, enabling 100% rural electrification. With rising rural living standards, demand has surged.

As of April, peak demand in PBS distribution areas reached 10,541 MW.

The REB-PBS Crisis By law, REB staff are government employees, while PBS staff work under cooperative rules.

REB employees follow the government pay scale, while PBS salaries are higher. PBS officials from Assistant General Manager (AGM) upward are transferable, but lower-level staff are not a rule that has not been applied consistently.

Moreover, ranks from AGM to GM are technically transferable, but their equivalence with REB positions is unclear.

As a result, many senior PBS officials must work under REB juniors.

Investigations show that the status of a PBS General Manager (GM) is undefined.

REB informally claims that a GM is equivalent to a company director, but this is not backed by any official circular. PBS officials argue instead that a Senior GM should equal an Additional Chief Engineer in other power companies; a GM, a Superintendent Engineer; a DGM, an Executive Engineer; and an AGM, an Assistant Engineer. Despite years of petitions, REB has shown little interest in resolving the issue.

REB-PBS Operational Relationship REB controls about 80% of infrastructure procurement, funded mainly by donor loans.

The government borrows from donors at 0.75% interest, lends to REB at 2%, and REB, in turn, lends to PBS at 3% after procurement. PBS directly manages the remaining 20% of procurement with its own funds, often by pooling resources with two or three PBSs.

Allegations of corruption are widespread in REB’s large-scale procurement. PBS claims that REB often procures substandard equipment and forces it on them.

Another flashpoint is cross-subsidies. Profitable PBSs send funds to REB, which then redistributes them to lossmaking PBSs after deducting loan repayments. PBS officials argue that profitable societies should directly subsidize weaker ones to avoid irregularities.

Movement Ongoing, Program Suspended PBS’s movement has stretched nearly 19 months, beginning in January 2024 with a memorandum. During the interim government, they escalated to work stoppages, even cutting electricity supply in some areas a move widely condemned.

REB retaliated by charging 33 people with sedition, dismissing staff, and enforcing mass transfers. What began as one demand eventually grew to seven. Last year, PBS staged a sit-in at Shaheed Minar for nearly two weeks. Negotiations led to agreements to withdraw cases, reinstate dismissed staff, return transferred employees, and form two committees to consider whether PBS should merge with REB or be corporatized.

Following this, the protests paused.

In January and April this year, the rural electrification association submitted memorandums, signed by 28,307 employees, to the energy adviser demanding withdrawal of cases, reinstatement of dismissed workers, resignation of the REB chairman, a uniform service regulation through merger or restructuring, and regularization of contract staff.

They alleged that REB sought to rearrest those already out on bail, prompting renewed protests, including a mass leave program. Power supply was disrupted in some areas.

But after warnings and assurances from the adviser, the association suspended the strike and asked staff to return to work. Protester’s Charter of Demands The protesters have continued to press seven demands, the central one being the merger of PBS with REB: 1.

Removal of the REB chairman, accused of destabilizing PBS through repressive measures. 2.

Merger of REB and PBS under a uniform service regulation, or restructuring in line with other power distribution entities. 3.

Regularization of meter readers, line workers, and dependent employees. 4. Withdrawal of ‘false’ cases and reinstatement of dismissed staff. 5. Cancellation of punitive transfers and restoration of affected workers. 6.

Implementation of fixed working hours and urgent recruitment to fill staff shortages. 7.

Formation of an interim board to oversee PBS operations until reforms are completed. Press Conference by the Energy Adviser On September 11, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan urged protesting officials to return to work or face legal action.

He warned, ‘Those who refuse to return despite the government’s call will face strict measures.

If necessary, alternatives will be arranged to keep rural electricity running.

Thousands are willing to step in.’ He acknowledged that some demands were reasonable but suggested that ‘anti-election elements’ might be exploiting the movement.

He stressed the government’s willingness to discuss solutions but insisted that protests disrupting service were unacceptable.

The adviser said that, according to committee findings, 3,029 transfers had taken place, some routine.

Already, 803 staff had been reinstated.

He added that while many employees wanted to return to work, some were being obstructed. Legal measures were underway, including three General Diaries filed.

He also confirmed that the government was considering turning PBS into companies, though this required legal and regulatory reforms.

Meanwhile, a seven-member committee was investigating procurement corruption. Conclusion Resentment in the rural electrification system is reaching a breaking point.

Both REB and PBS remain entrenched. CAB’s energy adviser, Professor Shamsul Alam, believes the scope for negotiation has narrowed due to the Power Division’s inaction.

He warns that forming regional companies under which PBS would operate would only worsen the crisis by reducing staff and pressuring tariffs upward.

He arguesinstead for a merger of REB and PBS. CAB has even filed a case in court.

Analysts, however, believe time is needed.

They recommend resolving the issue within a defined period by withdrawing cases and reviewing grievances, whileREBandPBSwork towarda compromise.

Everyone agreesthe current impasse is unsustainable.

If unresolved, rural electricity supplywillfacemajordisruptions, undermining quality service and national goals.Yet,withelectionslooming in February, a senior Power Division official privately admitted that the interim government is unlikely to act.

Experts argue that the only path forward is dialogue addressing legitimate demands while setting aside the contentious merger issue.

But this will require flexibility from both REB and PBS, and, most importantly, leadership from the Power Division.

Beijing RejectsJapan’s Protest over Gas Field in East China Sea

China said recently it had rejected a protest lodged by Japan over the development of gas fields in disputed waters of the East China Sea.

Tokyo’s foreign ministry said it had confirmed that Beijing was setting up drilling rigs in the area — where the two countries’ exclusive economic zones (EEZ) claims overlap.

It said it had “issued a strong protest” to the Chinese embassy. China’s foreign ministry said it did “not accept Japan’s groundless accusations and has rejected Japan’s socalled protest”.

A 2008 agreement saw Japan and China agree to jointly develop undersea gas reserves in the disputed area, with a ban on independent drilling by either country.

But negotiations over how to implement the deal were suspended in 2010.

Tokyo said 21 suspected drilling rigs had been positioned on Beijing’s side of the de facto maritime border, adding it was “extremely regrettable that China is advancing unilateral development”.

Govt Advised to Delay TAPI Gas Intake amid LNG Surplus

In a significant development, Pakistan has been advised to delay any commitment to gas intake from Turkmenistan under the TurkmenistanAfghanistan-Pakistan-India (TAPI) pipeline project until at least 2031, The News reported on Friday.

The recommendation, by international energy consultancy Wood Mackenzie, comes as Pakistan is already facing a surplus of imported LNG, due to a dramatic decline in domestic gas consumption, a senior official from the Ministry of Energy told the scribe.

The advisory has sparked urgent deliberations within the Petroleum Division, where senior officials are now seriously considering either notifying Turkmenistan of a potential deferment or even withdrawing from the $13 billion TAPI gas pipeline.

The warning comes amid growing challenges in managing Pakistan’s existing LNG contracts and infrastructure.

LNG Re-Gasification Nears Saturation Level

Ba n g l a d e s h ‘ s liquefied natural gas (LNG) regasification has reached almost the saturation level to around 1,053 million cubic feet per day (mmcfd) with the country’s two operational floating-storage and regasification units (FSRUs) running at 95.72-per cent capacity. With the present infrastructure the country has the capacity to re-gasify around 1,100 mmcfd in maximum, provided that both the FSRUs run in full capacity, a senior Petropangla official said. Currently, the FSRU, owned by US’s Excelerate Energy, has the capacity to re-gasify around 600 mmcfd of LNG and Summit Group’s FSRU has a capacity of 500 mmcfd.

To utilize both the FSRUs in full swing, Bangladesh will need to import 115 LNG cargoes in a year, said the official.

The state-run Petrobangla is importing a total of 108 LNG cargoes this year (2025), the highest number in a single year.

It has planned to import seven additional LNG cargoes to reach the saturation level for supplying natural gas to gasstarved state-run fertilizer factories.

Govt in Talks with Aramco to Sign MoU

The interim government is currently in talks with Saudi oil giant Aramco to ink a memorandum of understanding (MoU) to ensure cooperation in the energy sector.

State-run Petrobangla has already prepared a draft of the MoU, which is currently being vetted by the Ministry of Law, Justice and Parliamentary Affairs. “We are eyeing to ink the MoU with Aramco to ensure cooperation in the energy sector, especially for importing liquefied natural gas (LNG), refined petroleum products, etc,” said a senior Petrobangla official.

Fire at Nuclear Plant after Russia Downs Ukrainian Drone

Afire broke out recently at a Russian nuclear power plant after the country’s military downed a Ukrainian drone, the facility said after the blaze was put out.

The “device detonated” upon impact at the Kursk Nuclear Power Plant in western Russia, sparking a blaze which the facility said “was extinguished by fire crews”.

There were no casualties from the drone smashing down at the site, where capacity was reduced. “The radiation background at the industrial site of the Kursk NPP and the surrounding area has not changed and corresponds to natural levels,” the plant wrote on Telegram.

The International Atomic Energy Agency has repeatedly warned of the dangers of fighting around nuclear plants following Russia’s military offensive on Ukraine in February 2022.