Category: Energy and Power

The vast Barind region is facing increasingly unpredictable droughts due to inadequate and uneven rainfall, affecting the timing of monsoon onset and withdrawal, experts said. Sharing his observations, Prof Niamul Bari of the Department of Civil Engineering at Rajshahi University of Engineering and Technology (RUET) said the Barind region is among the worst drought-hit areas of the country, with the number of consecutive dry days and temperature steadily rising over the last three decades. He said drought episodes have become more erratic due to climate change, a trend that is likely to intensify in the coming years, creating severe challenges for vulnerable communities. During prolonged dry spells, most surface water sources dry up, leaving people without suf?cient water for drinking, sanitation and agriculture, he added.

the human cost of drought includes increased disease incidence, particularly among children, malnutrition caused by crop failure, rising poverty and hindered socioeconomic development, Prof Bari noted. Prof Chowdhury Sarwar Jahan of the Department of Geology and Mining at Rajshahi University said the Barind region receives an average annual rainfall of about 1,400 millimeters, signi?cantly lower than the national average of around 2,300 millimeters.

As Bangladesh moves toward LDC graduation amid rising domestic demand and an increasingly competitive global manufacturing landscape, foreign direct investment (FDI) has become more critical than ever. Large infrastructure projects, capital-intensive industries, and oil and gas exploration all depend on steady in?ows of long-term capital, technology transfer, and institutional expertise. Yet despite steady economic growth, Bangladesh continues to lag behind regional peers in attracting meaningful volumes of FDI.

in the most recent ?scal year, Bangladesh received less than USD 2.0 billion in net FDI in?ows. By contrast, Vietnam attracted more than USD 18 billion, while Indonesia exceeded USD 20 billion, despite Bangladesh’s comparable laborcost advantages and market potential. The gap highlights a deeper issue: investors today prioritize regulatory certainty over promotional narratives. Investors increasingly compare regulatory environments rather than marketing slogans. Vietnam has sustained strong FDI in?ows for more than two decades, largely because investors understand the rules of engagement and can rely on stable and predictable labor and ?scal regimes. Malaysia and Indonesia have followed a similar path. Bangladesh, meanwhile, has a large and youthful labor force, a strong RMG and textile export legacy, and a strategic geographic position between South and Southeast Asia. Yet foreign investors consistently raise concerns about policy ambiguity, particularly regarding labor compliance obligations for wholly foreign-owned companies.

a prominent example is the Workers’ Pro?t Participation Fund (WPPF) under Section 232 of the Bangladesh Labor Act, 2006. The WPPF was designed to ensure that a portion of corporate pro?ts is shared with workers, a reasonable principle in a labor-intensive economy. Recognizing thedistinct nature of fully foreign exchange- investing companies, the Labor Act was amended in 2013 to allow a tailored mechanism ‘instead of WPPF.’ However, more than a decade later, the speci?c rules envisaged under Section 232 have yet to be issued.

the result is a persistent legal and regulatory vacuum.

the impact of this uncertainty is tangible.

investors frequently cite ambiguity around labor obligations and the risk that regulatory interpretations may change after investment decisions are made.

a multinational energy or technology company may already offer above-market salaries, global bene?ts, private health insurance, international training, and performance-based compensation. From their perspective, unde?ned WPPF obligations represent overlapping labor costs and poorly de?ned compliance risks, especially if enforcement varies across agencies or evolves. Few international investors are willing to commit capital for 20 years without clarity on how regulations will be applied ?ve years down the line.

this issue extends well beyond a single sector. Capital-intensive industries such as energy, pharmaceuticals, petrochemicals, ports, technology parks, and even RMG backward linkages all depend on long-term investment backed by international balance sheets. Yet foreign investment across Bangladesh’s broader manufacturing and industrial ecosystem remains modest compared with Vietnam, Cambodia, or China’s extended manufacturing belt.

the most recent offshore bidding round illustrates the problem. While geological complexity, global energy prices, and contract terms played important roles, industry feedback suggests that unresolved regulatory issues, including uncertainty surrounding labor obligations such as WPPF treatment for fully foreign exchange-investing companies, also factored into investors’ risk assessments.

in high-stakes sectors like offshore energy, even secondary uncertainties can tilt investment decisions elsewhere. For the government, clarifying Section 232 is not about weakening worker protections.

on the contrary, it offers an opportunity to strengthen them. One practical approach would be to mirror the existing framework for 100 percent export-oriented enterprises, where ?rms make a clear, ?xed annual contribution to a national workers’ welfare fund instead of ?rm-level WPPF distributions. Such a model would enhance predictability for investors while expanding welfare coverage to a broader group of workers. Policymakers now have a chance to convert ambiguity into assurance.

a time-bound, tripartite process involving government agencies, worker representatives, and foreign exchange-investing companies could ?nalize a transparent, durable, and enforceable rule.

this would signal that Bangladesh is serious about regulatory reform that balances investor con?dence with labor welfare.

as global capital becomes more cautious and competition for investment intensi?es, Bangladesh cannot afford to lose opportunities due to avoidable uncertainty. Clarifying Section 232 is not merely a technical labor-law adjustment – it is a strategic signal that Bangladesh intends to compete credibly and sustainably for the next generation of global investment.

The Advisers Council Committee on Government Purchase recently approved several fuel oil and crude oil import proposals to meet the country’s growing energy demand during 2026. The approval came from the 1st meeting of the Advisers Council Committee on Government Purchase in this year held recently at the Cabinet Division Conference Room at Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair.

under the government-togovernment arrangements, re?ned fuel oil will be imported from seven companies of different countries at an estimated cost of Taka 10,826.11 crore during the January-June period of 2026.

the suppliers include PetroChina, China, ENOC, UAE, IOCL, India, OQT, Thailand, PTLCL, Malaysia, BSP, Indonesia, and UNIPEC, China

The Bangladesh Power Development Board (BPDB) has warned that electricity supply could face immediate disruption, raising the risk of load-shedding, if generation from SS Power I Limited is suspended due to unpaid bills exceeding Tk4,000 crore. BPDB of?cials acknowledged that even a partial shutdown of the coal-?red power plant, which supplies over 1,100 megawatts to the national grid, would create an instant supply gap, despite lower electricity demand during the winter season.

the warning comes after SS Power informed BPDB that persistent payment delays have severely strained its operations, limiting its ability to procure coal, spare parts and other essentials. In a letter, the company said it would be forced to shut down at least one unit unless overdue payments are settled by 15 January. BPDB of?cials stressed that the loss of reliable baseload generation at this stage would signi?cantly heighten the risk of load-shedding, particularly as alternative sources are already stretched

The 16th International Renewable Energy Agency (IRENA) Assembly convened from 10-12 January 2026 in Abu Dhabi, marking the ?rst international energy meeting of the year. Under the theme ‘Powering Humanity: Renewable Energy for Shared Prosperity’, the global gathering brought together 1,500 ministers and highlevel delegates from IRENA’s 171 Member States, CEOs, investors, international organizations and youth to build a shared agenda and international cooperation priorities for a better energy future the international community can rally in 2026. Key discussions focused on regional energy transitions, critical enablers like grids, energy planning, digital innovation and Arti?cial Intelligence (AI), mobilizing ?nance including sustainable aviation fuels as well as the question of how renewables can boost agri-foods systems and green industrialization

Bangladesh has taken a major step towards its ?rst National Climate Finance Strategy, aiming to bridge the gap between ambitious climate commitments and the ?nancing needed to protect vulnerable communities.

through a series of nationwide consultations, from November to December 2025, convened by the Finance Division, with UNDP providing technical assistance and ?nancing from Agence Française de Développement (AFD) under the Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project, the country is laying the foundation for a comprehensive roadmap to mobilize and manage climate ?nance at scale. Climate ?nance is increasingly woven into Bangladesh’s public ?nancial management systems, and these dialogues will further deepen that integration and unlock new investment streams for resilience.

The state-run BCIC has sought Payment Crisis Deepens an uninterrupted supply of at least 197 million cubic feet of gas per day (MMCFD) to keep four urea fertilizer factories operational for 11 consecutive months.

the Bangladesh Chemical Industries Corporation (BCIC) recently made a proposal to the Ministry of Industries (MoI) for taking its necessary steps to this effect in line with the recommendations of a committee formed by the Energy and Mineral Resources Division.

the corporation has also requested the authorities to amend Clause 10.3 of BERC (Bangladesh Energy Regulatory Commission) Order No. 2023/20 in order to raise the guaranteed daily gas supply to 197 MMCFD from 140 MMCFD for the sake of uninterrupted fertilizer production.

the BCIC, operating under the industries ministry, runs seven fertilizer factories. Urea fertilizer alone accounts for nearly 80 per cent of BCIC’s overall output, sources said, adding that the corporation currently runs ?ve urea fertilizer plants, all of them heavily dependent on natural gas as their primary raw material. Due to a severe gas crisis in the country, an uninterrupted gas supply to most urea factories remained largely unavailable since 2007-08. Gas supply remains suspended between April and November each year, forcing the BCIC fertilizer plants to shut their production for extended periods routinely, it was learnt

Bangladesh’s EGCB is inviting construction and consulting ?rms interested in working on the 220 MW Sonagazi solar project to contact the company for further details.

a closing date has not been published.

the 220 MW Sonagazi plant, approved earlier this month, will be built in southeast Bangladesh near an existing 75 MW facility.

once completed, it will be the country’s largest solar power project to date.

the procurement notice says the project comprises both the construction of the solar power plant and consultancy services, including design review, supervision, and monitoring. Construction works cover the design, supply, installation, testing, and commissioning under an engineering, procurement and construction (EPC) contract.

the project will be jointly ?nanced by the government of Bangladesh, EGCB, and the Islamic Development Bank, which has committed $143.28 million.

eligible ?rms interested in providing goods, works, or consulting services should contact EGCB; no closing date has been set.

Continued strategic dominance of and heavy reliance on fossil fuels remain the primary obstacles to the expansion of renewable energy-based power generation, according to a new research report. Governance de?cits, policy neglect, and collusion by vested interest groups are exacerbating longterm environmental and economic risks in the renewable energy sector, it said. This alarming picture has emerged from the report titled ‘Generating Power from Renewable Energy in Bangladesh: Governance Challenges and Way Forward’, unveiled by Transparency International Bangladesh (TIB) at a press conference at its Dhanmondi of?ce recently.

tIB Executive Director Dr Iftekharuzzaman, Adviser and Executive Management Prof Dr Sumaiya Khair, and Director of the Research and Policy Division Muhammad Bodiuzzaman were present at the event.

Global coal demand is forecast to edge down through the end of this decade as competition intensi?es with other power sources – including renewables, natural gas and nuclear – according to the 2025 edition of the IEA’s annual market report. Coal 2025, out recently, explores current market dynamics and provides forecasts through 2030 for demand, supply and trade at the global and regional level. It also examines key trends in investment, costs and pricing.

the report ?nds that global coal demand is on course to rise by 0.5% in 2025, reaching a record 8.85 billion tonnes.

in several major markets, consumption patterns diverged from their recent trends. In India, an early and intense monsoon season resulted in a decline in annual coal use for only the third time in ?ve decades.

in the United States, higher natural gas prices and policy measures that slowed coal plant retirements lifted coal consumption, which had been on a downward trajectory for the previous 15 years.