Category: Energy and Power

Prime Minister Tarique Rahman has proposed forming a 10-member committee comprising lawmakers from both ruling and opposition parties to work collectively in the national interest to ?nd a ‘reasonable solution’ to the ongoing energy crisis in the country. The Prime Minister placed the proposal in the Jatiya Sangsad (JS) recently, saying that the committee will include an equal number of ?ve members each from the government and the opposition sides. Speaker Ha?z Uddin Ahmad, Bir Bikram, was in the chair.

the Prime Minister announced names of ?ve treasury bench lawmakers and called upon the opposition to provide ?ve names from their side. The Leader of the House said that the proposed committee would be headed by Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood. Four other treasury bench lawmakers are: State Minister for Power, Energy and Mineral Resources Aninda Islam Amit, ABM Ashraf Uddin Nizan (Laxmipur-4), Moinul Islam Khan Shanto (Manikganj-2) and Miah Nuruddin Ahmad Apu (Shariatpur-3).

Germany will give Bangladesh greater prominence in future cooperation on nature conservation, a German parliamentary delegation head said here after concluding a weeklong visit focusing on climate and environmental challenges.

the delegation from the German Bundestag Committee on the Environment, Nature Conservation, Nuclear Safety and Consumer Protection visited Bangladesh from April 7 to 12, according to a press release issued by the German Embassy in Dhaka.

the delegation was led by Deputy Chairman Michael Thews and included members of parliament from different political parties.

Canadian High Commissioner to Bangladesh Ajit Singh recently reiterated Canada’s commitment to supporting Bangladesh in expanding reliable, affordable and clean energy to strengthen economic growth and energy security. During a meeting with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood, the High Commissioner said Canada values its partnership with Bangladesh and is keen to deepen cooperation in the energy sector. Senior Trade Commissioner Debra Boyce and Trade Commissioner Gulam Farhad Quazi were also present at the meeting, where both sides discussed issues of mutual interest.

the discussions centered on strengthening bilateral energy cooperation, with an emphasis on expanding trade and investment. Bilateral trade between the two countries surpassed $4 billion in 2025, re?ecting growing economic ties. Canada highlighted its expertise in renewable energy, advanced technologies and capacity building, expressing interest in supporting Bangladesh’s transition toward a cleaner energy mix through partnerships and technical collaboration.

The European Union’s top energy of?cial has warned that the ongoing con?ict involving the United States and Israel with Iran could drive energy prices higher for months-or even years- posing a major challenge for Europe.

eU Energy Commissioner Dan Jørgensen said recently that the current crisis is not a short-term shock but a prolonged and severe disruption. ‘This is not a small, temporary increase in prices,’ he said, adding that the situation could rival the scale of both the 1973 oil crisis and the 2022 energy crisis combined. Jørgensen noted that the war is costing Europe approximately pound 500 million (about $600 million) per day, warning of ‘very dif?cult months, or maybe even years’ ahead

G iven the current state of energy supply, people may have to brace for a dif?cult summer.

if temperatures rise sharply or weather conditions turn unfavorable, loadshedding is likely to continue.

the earlier three-year roadmap to gradually reduce subsidies in the power sector was a sensible step. But the decision to pause tariff adjustments for a prolonged period has made the situation harder to manage. Now, the gap between the cost of producing electricity and the price consumers pay has widened signi?cantly.

unless prices are gradually aligned with actual costs, unpaid bills will keep piling up, and the government will struggle to fund both energy imports and development priorities.

at the same time, ensuring a steady power supply will depend heavily on securing enough fuel. Coal-?red plants, which are designed to provide stable baseload power, must be kept running at full capacity, and that requires reliable coal imports.

increasing gas supply would certainly help, but domestic production is limited, and LNG import capacity remains constrained.

in this situation, while some load-shedding may be unavoidable, reliance on expensive oil-based power should be kept to a minimum to avoid adding further ?nancial pressure on an already strained system.

energy and environmental expert and former BUET dean Professor Dr.

ijaz Hossain said this in a conversation with Energy and Power Editor Mollah Amzad Hossain. The current arrears in the power sector stand at Tk 56,000 crore.

if this liability is not resolved, ensuring fuel supply for power generation will be dif?cult. What should be done? Look, the current production cost per unit of electricity is Tk 12.10, while it is being sold at the wholesale level for Tk 7.04.

this means BPDB is incurring a loss of Tk 5.06 per unit.

as a result, the organization’s annual loss exceeds Tk 52,000 crore. The government has allocated Tk 37,000 crore in subsidies for the power sector this year, but there will still be a signi?cant de?cit.

therefore, there is no alternative to adjusting tariffs.

the previous Awami League government had taken steps to gradually align prices with production costs over three years, but the interim government canceled that initiative and did not adjust electricity and fuel prices for 18 months.

initially, they cleared some dues in the power and energy sector, but before leaving of?ce, they left about $5.0 billion in arrears for the new government.

as a result, the current government-only two months into its tenure-has fallen into a major crisis.

this crisis has been further exacerbated by the U.S.-Israel-Iran con?ict, which has forced the government to spend an additional Tk 36,000 crore in the energy sector.

therefore, it will not be easy to quickly clear these arrears and move toward full power generation to meet demand.

at the same time, continuing high subsidies in the power sector will hinder the government’s ability to ?nance development activities. So, there is no alternative but to adjust prices and reduce the subsidy burden. BPDB has proposed increasing the wholesale tariff by Tk 1.20 per unit.

it is said that a Tk 1.0 increase per unit would reduce annual losses by Tk 10,000 crore. At the consumer level, an increase of Tk 1.80 per unit has been proposed for higher-end users.

a committee led by the ?nance minister has been formed to review this. What is your view? There was no need to form a committee to justify tariff increases.

the ?nancial condition of the power sector has reached a point where there is no alternative but to raise prices.

i believe the government should increase electricity prices within the ?rst year to reduce losses by 50%. The remaining 50% should be reduced through stopping corruption, improving management, ensuring ef?cient use of fuel, and better operational practices.

in the current global context, the standard cost of producing one unit of electricity is about 1 US cent (roughly Tk 12), and Bangladesh is close to that level.

it should be remembered that depreciation of the taka against the US dollar has a direct impact on the power and energy sector and plays a major role in increasing costs. Over the past ?ve years, the taka has depreciated by more than 40% against the dollar.

this factor cannot be ignored in tariff adjustment discussions, especially since around 60% of our energy and power supply depends on imports.

to keep load-shedding as low as possible during summer while minimizing oilbased generation, what preparations should the government take? This is very dif?cult.

once demand exceeds 16,000 MW, at least 10% or more electricity has to be generated from furnace oil.

although our gasbased generation capacity exceeds 12,000 MW, the gas supply is less than half of what is required.

this supply may decrease further in the future.

therefore, coal supply must be ensured so that coal-based baseload power plants can operate at around 85% load. At the same time, steps must be taken to ensure a full supply of imported electricity from India.

to guarantee this, payments for coal and electricity imports must be made regularly.

in addition, to ensure gas-based baseload plants can operate during peak demand, a third FSRU (Floating Storage and Regasi?cation Unit) should be installed within one year, and a fourth within two years.

even if these FSRUs are used only during peak demand periods, Bangladesh will bene?t ?nancially.

the physical startup of the Rooppur Nuclear Power Plant has started.

it is being said that electricity supply to the grid will begin from next August. What is your view? This is a major achievement. However, the current government must be extremely careful with this power plant to ensure that electricity can be supplied to the grid by August.

efforts must also continue so that the full 2,400 MW capacity of Rooppur can be connected to the grid by 2028.

this will reduce pressure on the primary fuel supply for power generation and help decrease the use of oil. Some initiatives are underway to increase domestic gas exploration and production. What should be done in the medium term to boost local supply? Look, over the past 20 years, we have not achieved any signi?cant success in oil and gas exploration.

about half of the 50-well drilling program has been completed, but without any major discoveries.

another 100-well drilling program is waiting to begin.

it is dif?cult to say how successful that will be. However, the government must start working with a clear goal of achieving success in domestic oil and gas exploration within the next two years. For this, alongside domestic investment, the rapid attraction of foreign investment must be ensured.

exploration should begin simultaneously onshore and offshore. Final Draft Production Sharing Contracts (PSCs) for both land and offshore areas are already prepared.

these should be approved by the cabinet, and initiatives must be taken quickly to attract international oil companies (IOCs). However, our tendering process is very lengthy.

therefore, alternative approaches should be explored to bring IOC investments under PSCs more ef?ciently.

it is important to determine the extent of domestic gas resources before ?nalizing plans to expand LNG import infrastructure. Otherwise, a gas-dependent economy could face serious challenges.

amid the energy crisis, prices of petrol, diesel, and octane have increased. How do you see it? Price increases were inevitable. Not long ago, global crude oil prices were around $70 per barrel; now they are about $110.

the rise in crude oil prices has also increased the price of re?ned fuels in the global market. For example, diesel prices exceeded $200 per barrel at one point, although they have now declined somewhat.

as a result, the country has to import both crude and re?ned fuels at higher prices. Diesel, in particular, has the highest demand in the market, and only about 15% of it is supplied from domestic sources- the rest must be imported.

therefore, even after increasing prices, subsidies are still required for diesel sales. However, supply must now be increased to reduce queues at fuel stations, which have already started to decrease. Bangladesh’s dependence on imported power and energy is now around 60%. What should the government do to reduce this dependency? As I mentioned earlier, effective initiatives for gas exploration must be taken. Alongside domestic efforts, the government must urgently develop strategies to ensure foreign investment in this sector.

at the same time, power generation capacity from renewable sources must be increased.

there is no alternative to adopting realistic and implementable plans for this.

on the other hand, efforts to improve energy ef?ciency and conservation must be strengthened.

in fact, due to the Middle East con?ict, there has been a positive start in energy conservation. This momentum must be maintained. Above all, long-term planning and implementation strategies must be ?nalized to ensure ef?cient energy use.

the government has announced a plan to add 10,000 MW of renewable energy capacity by 2030. How do you view this? Look, I do not believe in ?xed numbers or targets-they are often set for political milestones. However, the government’s initiative is commendable.

to achieve it, necessary policies, investment plans, and strategies must be ?nalized.

even if the exact target is not met, progress can certainly be achieved.

the interim government canceled 37 Letters of Intent (LOIs) for renewable energy projects with a total capacity of 5,800 MW, which created a lack of con?dence among investors.

the current government has initiated a review. What do you think? This is a good initiative.

these projects should be properly reviewed.

if they had continued, Bangladesh could have made signi?cant progress in renewable energy capacity.

the cancellation caused ?nancial losses for many entrepreneurs and undermined investor con?dence.

even if the review process moves forward with viable projects, I am uncertain how much con?dence can be restored-but the initiative itself is positive. Bangladesh has large coal reserves, but extraction has not been possible due to political controversy. What should the current government do? There are technical options to extract domestic coal while minimizing environmental, ecological, and social damage. However, coal has now become a political football.

if the current government wants energy self-suf?ciency, it must engage all political parties and reach a consensus on coal extraction.

extracting and using domestic coal for power generation would indeed make a signi?cant contribution to ensuring the country’s energy security

Ambassador and Head of Delegation of the European Union to Bangladesh Michael Miller has said energy security is a de?ning issue, which is why the European Union (EU) and Bangladesh are accelerating efforts to deploy renewable energy as a strategic priority. ‘What we see today is our shared determination to ensure energy security and invest ability for Bangladesh,’ said the Ambassador while speaking at a high-level event in Dhaka titled ‘Boosting Renewable Energy in Bangladesh – From Design to Implementation.’ He said the Bangladesh Renewable Energy Facility is a ?agship initiative of the EU’s Global Gateway, which promotes the development of secure, sustainable and trusted networks and links with our partners around the globe. The event hosted by the European Union bank, the European Investment Bank (EIB), in partnership with the European Union Delegation and the Power Division of the Ministry of Power, Energy and Mineral Resources (MoPEMR) recently brought together senior representatives from the Government of Bangladesh, the European Union, the European Investment Bank (EIB), Team Europe, other international partners, ?nancial institutions, regulators, and the private sector.

Air pollution in Dhaka continues to rise, placing the mega city among the most polluted urban centers globally.

according to data from IQAir, as of 8:30 am on April 19, Dhaka ranked fourth on the list of the world’s most polluted cities, with an Air Quality Index (AQI) score of 157- classi?ed as ‘unhealthy.’ India’s Delhi topped the list with a hazardous AQI score of 408, posing serious health risks to residents. Another Indian city, Kolkata, ranked 18th with a score of 102, considered unhealthy for sensitive groups, while Mumbai stood at 23rd with a score of 91, indicating moderate air quality.

among the top 10 most polluted cities, four are located in China. Chengdu ranked ?fth with an AQI of 156, followed by Shenzhen in seventh place (152). Hangzhou and Guangzhou ranked ninth and tenth respectively, each recording an AQI of 124.

have begun at the Titas-31 deep exploratory well in Brahmanbaria, as part of efforts to increase domestic gas supply.

of?cials expect the well to add around 15 million cubic feet of gas per day to the national grid if exploration proves successful.

of?cials from Petrobangla and Bangladesh Gas Fields Company Limited (BGFCL) inaugurated the spud-in at Nandanpur in Sadar upazila recently.

aKM Mizanur Rahman, director (?nance) of Petrobangla, and Md Abdul Jalil Pramanik, managing director of BGFCL, formally launched the drilling work.

the Titas-31 well is being drilled under a project that includes two deep exploratory wells in the Titas and Bakhrabad gas ?elds. The project is estimated to cost Tk 594.25 crore and is expected to be completed within 210 days.

The American Chamber of Commerce in Bangladesh (AmCham Bangladesh) has expressed deep sorrow at the passing of Dr. Forrest E. Cookson, former President of the chamber, who died recently while undergoing treatment at United Hospital. Born on April 26, 1934, in the United States, Dr. Cookson ?rst arrived in Bangladesh in the mid-1980s to contribute to ?nancial sector reforms. He served as a consultant to Bangladesh Bank and played a key role in the country’s Financial Sector Reform Program during the 1990s. Over time, he developed a deep connection with Bangladesh and dedicated much of his professional life to its economic development. During his tenure as AmCham President from 1996 to 2001, he helped strengthen the organization and advance U.S.-Bangladesh business relations.

T he International Energy Agency (IEA) has set out a range of demandside actions that governments, businesses and households can take to alleviate the economic impacts on consumers of the disruptions to oil markets stemming from the war in the Middle East.

the con?ict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20% of global oil consumption, reduced to a trickle. Around 20 million barrels per day of crude oil and oil products typically transit the Strait.

the loss of these ?ows has tightened markets signi?cantly, pushing crude oil prices above $100 per barrel and driving even sharper increases in re?ned products such as diesel, jet fuel and lique?ed petroleum gas (LPG). Restoring transit through the Strait of Hormuz remains essential to stabilizing global energy markets.

in the meantime, countries are acting on both supply and demand.

on 11 March, IEA Member countries agreed to release 400 million barrels of oil from emergency reserves – the largest stock draw in the Agency’s history. However, supply-side measures alone cannot fully offset the scale of the disruption.

addressing demand is a critical and immediate tool to reduce pressure on consumers by improving affordability and supporting energy security.

the new IEA report identi?es 10 measures that can be implemented quickly by governments, businesses and households.

these actions focus primarily on road transport, which accounts for around 45% of global oil demand, but also cover aviation, cooking and industry. Widespread adoption, where possible, would amplify their global impact and help cushion the shock. ‘The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market.

in the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe,’ said IEA Executive Director Fatih Birol. In road transport, a combination of behavioral and policy measures can deliver rapid savings. Many of these measures have been implemented in the past and are again being considered in several countries. Working from home, where possible, reduces fuel demand for commuting, while lowering highway speed limits by at least 10 kilometers per hour cuts fuel use across both passenger vehicles and freight. Encouraging a shift from private cars to public transport, alongside measures such as alternating private vehicle access in large cities, can further reduce congestion and fuel consumption.

additional gains can be achieved through car sharing and more ef?cient driving practices, as well as improved ef?ciency in freight and delivery operations. Beyond road transport, targeted actions can ease pressure on fuels that are particularly constrained.

a reduction in air travel, where alternatives exist, can signi?cantly lower demand for jet fuel. Measures to shift LPG use away from transport and towards essential applications, such as cooking, can help protect vulnerable households.

at the same time, encouraging the uptake of alternative clean cooking solutions where feasible can reduce reliance on LPG and avoid a return to more polluting fuels that harm people’s health.

industry also has an important role to play.

in countries where LPG supplies are under pressure, facilities may be able to switch from LPG to alternative feedstocks such as naphtha. This can free up LPG supply for urgent uses – and can be complemented by short-term ef?ciency and maintenance measures that can deliver additional reductions in oil consumption. Governments can lead by example through public sector measures, regulatory action and targeted incentives while ensuring that support for consumers is timed appropriately and focused on those most in need. Experience from previous crises shows that well-targeted support mechanisms are more effective and ?scally sustainable than broad-based subsidies. While the demand-side measures highlighted in the report cannot match the scale of disrupted supply, they can play a meaningful role in lowering costs for consumers, reducing market strains and preserving fuels for essential uses until normal ?ows resume.

the IEA also published an overview of all demand-related policy measures that have been announced by governments since the start of the crisis.

this shows many countries are already acting to protect consumers through conservation and ?nancial measures similar to those discussed in the report.

immediate actions to reduce demand: 1. Work from home where possible Displaces oil use from commuting, particularly where jobs are suitable for remote work. 2. Reduce highway speed limits by at least 10 km/h Lower speeds reduce fuel use for passenger cars, vans and trucks. 3.

encourage public transport A shift from private cars to buses and trains can quickly reduce oil demand. 4.

alternate private car access to roads in large cities on different days Number-plate rotation schemes can reduce congestion and fuelintensive driving. 5.

increase car sharing and adopt ef?cient driving practices Higher car occupancy and eco-driving can lower fuel consumption quickly. 6.

ef?cient driving for road commercial vehicles and delivery of goods Better driving practices, vehicle maintenance and load optimization can cut diesel use. 7. Divert LPG use from transport Shifting bi-fuel and converted vehicles from LPG to gasoline can preserve LPG for cooking and other essential needs. 8.

avoid air travel where alternative options exist Reducing business ?ights can quickly ease pressure on jet fuel markets. 9. Where possible, switch to other modern cooking solutions Encouraging electric cooking and other modern options can reduce reliance on LPG. 10. Leverage ?exibility with petrochemical feedstocks and implement short-term ef?ciency and maintenance measures Industry can help free up LPG for essential uses while reducing oil consumption through quick operational improvements.