Category: Energy and Power

A sharp surge in fuel demand following the Eid holidays has disrupted supply across Bangladesh, with petrol stations running out of daily stocks within just a few hours, according to Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood. Speaking to reporters at the Secretariat in Dhaka recently, the ?rst working day after Eid, the minister said fuel pumps that previously held enough stock for an entire day are now exhausting supplies within three hours due to a sudden spike in demand. ‘Demand has risen so sharply that the usual supply cycle has broken down,’ he said, adding that the daily volume of fuel supply remains unchanged but the number of consumers has increased signi?cantly.

the surge in demand, partly linked to concerns over the ongoing con?ict involving Iran, has led to long queues at petrol stations across the capital.

Following months of anticipation, the Union Cabinet has approved the country’s new Nationally Determined Contribution (NDC) for the period 2031-2035, committing to enhanced climate ambition under the United Nations Framework Convention on Climate Change and the Paris Agreement. Building on previous NDC targets, the latest NDC goals commit the following: ? Reduce emissions intensity: Target 47 percent reduction in emissions intensity of GDP by 2035 compared to 2005 levels ? Expand non-fossil power capacity: Achieve 60 percent of cumulative installed electricity capacity from non-fossil sources by 2035 ? Enhance carbon sink: Create 3.5-4 billion tonnes of CO2 equivalent carbon sink through forest and tree cover by 2035 from 2005 level The new NDC (2031-2035) enhances the climate pledges set in India’s ?rst NDC (2015), which were further revised and updated in 2021-2022.

The Minister of Environment, Forest and Climate Change, Abdul Awal Mintoo, has announced that the government will plant 250 million trees across the country over the next ?ve years as part of a national environmental initiative. Speaking as the chief guest at a discussion marking World Wildlife Day 2026 at the Forest Building in Agargaon, Dhaka, on March 11, the minister said that Prime Minister Tarique Rahman has introduced a ?ve-point programme called the ‘National Green Mission’ to protect forests, wildlife, and biodiversity.

the tree plantation program will be implemented nationwide on a priority basis under this mission.

the event’s theme this year was ‘Conservation of Medicinal and Aromatic Plants: Improving Health, Heritage, and Livelihoods.’ The minister also stated that, according to the government’s election manifesto, around 20,000 kilometers of rivers and canals will be excavated and re-excavated across the country to help protect aquatic biodiversity and maintain ecological balance

The failure of the interim government over the past 18 months has deepened the crisis in Bangladesh’s power and energy sector, leaving the newly installed government to confront immediate and complex challenges. Managing rising electricity demand amid severe fuel supply constraints and limited ?nancial resources will be its ?rst major test.

the irrigation season has begun alongside Ramadan in March, while temperatures are steadily rising. As a result, electricity demand is increasing with each passing day.

the government’s most pressing challenge will be to manage demand from March through October.

this summer may not be as mild as in 2025, with forecasts indicating possible heatwaves across the country in 2026. Power demand could climb to as high as 18,000 MW.

although installed capacity on paper suggests no shortage, the real challenge lies in fuel supply shortages, gas constraints, and foreign currency limitations for importing coal, LNG, and liquid fuels.

under current conditions, the system cannot ensure even 16,500 MW of reliable generation. Gas supply, combining domestic production and imported LNG, stands at about 2,600 MMCFD against demand of 4,000 MMCFD.

there is no quick ?x, and the new government has a daunting task ahead. Past 18 Months in Retrospect The interim government took some positive steps, including scrapping the non-transparent Speedy Supply of Power and Energy (Special Provision) Act and restoring the authority of the Bangladesh Energy Regulatory Commission (BERC) in determining fuel and electricity prices. However, beyond these measures, it failed to implement meaningful reforms in the power and energy sector.

the sector remains largely controlled by an underperforming bureaucracy, with entrenched interests continuing to hinder progress.

the recent nationwide LPG supply crisis is a clear example of systemic weaknesses.

although the government initially made progress in clearing large outstanding payments to power and fuel suppliers, arrears have since accumulated again.

over the past 18 months, little progress has been made in improving fuel supply. Domestic gas production has declined further, while there has been no meaningful advancement in coal utilization or engagement with international oil companies for onshore and offshore exploration. Key infrastructure projects, including a third ?oating storage and regasi?cation unit (FSRU) and a land-based LNG terminal, have seen frustrating delays. Policy decisions have also had unintended consequences. Changes in the Rooppur Nuclear Power Plant project have signi?cantly delayed its completion, while the cancellation of Summit Group’s third FSRU project has reduced the prospects of adding 500 MMCFD of regasi?ed LNG supply by 2027.

the government also failed to decide on evacuating gas from Bhola Island to the national grid. Despite repeated discussions on energy transition and renewable development, tangible progress has been minimal. Allegations of corruption in the sector, highlighted in a governmentcommissioned white paper, have not been substantiated through concrete actions. Claims regarding irregularities in the Rooppur project also remain unproven, while policy shifts have strained relations with international partners and disrupted project execution.

additional setbacks, such as the ?re at Hazrat Shahjalal International Airport that damaged critical equipment, have further delayed progress. Challenges of the Incumbent Government The new government faces an immediate and demanding situation. Power demand in early March is expected to hover between 15,000 and 15,500 MW, rising to between 16,000 and 18,000 MW from mid-April to midOctober.

under current conditions, the system may face a de?cit of 1,500-2,000 MW on average. While the Bangladesh Power Development Board (BPDB) has plans in place, success will depend heavily on fuel availability. Petrobangla must ensure a steady gas supply of around 1,200 MMCFD to support 8,500-9,000 MW of gas-based generation during peak demand.

ef?cient plants such as Meghnaghat and Sirajganj should be prioritized, while older facilities at Ashuganj, Ghorashal, and Bibiyana should remain operational for grid stability.

all imported coal-?red plants must operate at full capacity, particularly in the southern and southeastern regions, ensuring a base load of 14,000-15,000 MW. During peak periods, around 3,000 MW from liquid fuel-based plants should be available. Power imports could contribute 2,000-2,500 MW.

the timely commissioning of the ?rst unit of the Rooppur Nuclear Power Plant would have signi?cantly eased pressure on the system. However, real-world operations are unlikely to be smooth. Mechanical faults, fuel supply disruptions, and ?nancial constraints will complicate system management. Load-shedding and demand-side management measures, including conservation and ef?cient use of electricity, will be necessary.

although Ramadan will end before peak summer, efforts to reduce non-essential consumption, such as excessive lighting, should continue. Recommendation Given the importance of the sector, the government should appoint a senior full-time minister for power and energy, supported by two state ministers.

this would allow for more focused and effective decision-making.

a comprehensive contingency plan is essential.

the government should prioritize commissioning the ?rst unit of the Rooppur Nuclear Power Plant (1,200 MW) by June 2026 and the second unit by March 2027.

at the same time, incentives should be introduced to ensure at least 2,000 MW of rooftop solar capacity by the end of 2026. Domestic gas exploration must be accelerated.

the BAPEX 50-well project should be completed by 2026, with plans to expand to 100 wells by 2028.

the stalled third FSRU project should be reviewed and, if feasible, revived.

extensive 2D and 3D seismic surveys should be conducted across the country to identify new resources, followed by sustained exploration efforts involving both BAPEX and international companies.

updated production-sharing contracts (PSCs) for onshore and offshore exploration must be approved, with new bidding rounds launched by mid-2026. The government should also fast-track the construction of the Bhola-Barishal- Khulna gas transmission pipeline.

the draft Integrated Gas and Power System Master Plan should be re?ned with expert input to better re?ect Bangladesh’s needs and implemented accordingly. While pursuing renewable energy, Bangladesh should adopt a pragmatic approach to energy transition, focusing on energy security and affordability.

expanding electric vehicle adoption could help reduce dependence on imported fuels.

ultimately, achieving sustainable energy security-ensuring reliable and affordable power for all-must be the central objective.

the sector must operate with transparency, accountability, and professional management, free from undue in?uence. BERC should function independently as the primary regulatory authority, ensuring compliance with policies and regulations.

the government should present clear short, medium-, and long-term plans for the power and energy sector within its ?rst 180 days. Finally, Bangladesh must reconsider the development of its domestic coal resources using modern, environmentally responsible technologies, as leaving these resources untapped is increasingly dif?cult to justify in the face of a growing energy crisis

No decision has been taken on rising fuel prices, Information and Broadcasting Minister Zahir Uddin Swapan has said. While brie?ng the media on the activities of the government on 25 March, he added, ‘There is no shortage of fuel in the country, nor do we think we will face a shortage.’ Swapan spoke with the media after a special meeting, chaired by Prime Minister Tarique Rahman, on measures to address the fuel situation in the country. The meeting was held at the Prime Minister’s Cabinet Division of?ce in the Secretariat recently. Swapan the minister and state minister for power, energy and mineral resources, on the direction of the prime minister, are handling the situation and have not given any directive to raise prices.

even the prices in Bangladesh are lower than in neighbouring countries, he added.

The government has withdrawn the rationing system for fuel sales, allowing ?lling stations across the country to resume normal operations. State Minister for Power, Energy and Mineral Resources Aninda Islam Amit announced the decision at a press conference at the Secretariat recently. However, he warned that strict action will be taken against anyone attempting to stockpile fuel taking advantage of the situation. The state minister said the government had earlier taken several measures, including introducing rationing in fuel distribution, to address supply disruptions caused by the Middle East con?ict. ‘Several imported oil-carrying vessels have already reached Chattogram Port,’ he said.

Syntax Mart, a sister concern of Syntax Group, has achieved the prestigious Leadership in Energy and Environmental Design (LEED) Platinum certification, scoring an impressive 90 points. LEED is a green building certi?cation program used worldwide.

the certi?cation recognizes the company’s commitment to sustainable development, ef?cient use of electricity, gas and water, and the creation of environmentally friendly working conditions. The certi?cate was formally presented at a ceremony held at Syntax Group’s corporate of?ce. Reaz-ul Islam Sharear, managing director of Syntax Group, received the certi?cate on behalf of the organization. Speaking at the event, he said the achievement goes beyond a certi?cation and strengthens the company’s sustainability vision

Bangladesh is seeking long-term partnerships to diversify its energyimport sources and plans to establish a landbased lique?ed natural gas (LNG) terminal to strengthen supply security, as geopolitical tensions threaten key global shipping routes.

energy, Power and Mineral Resources Minister Iqbal Hassan Mahmood Tuku said disruptions in LNG shipments through the Strait of Hormuz have exposed vulnerabilities in Bangladesh’s energy supply chain, prompting the government to accelerate efforts to secure alternative sources and attract fresh investment in the sector. ‘We are seeking long-term partnerships for diversi?ed sources to ensure a stable energy supply arrangement,’ he was quoted as saying at the inaugural Indo-Paci?c Energy Security Ministerial and Business Forum in Tokyo on Sunday. ‘A large share of Bangladesh’s lique?ed natural gas (LNG) imports passes through the Strait of Hormuz,’ the minister said, adding that current disruptions along this route pose a major threat to Bangladesh’s energy security

Paramount Textile, a listed company, is set to install a 9.81-megawatt rooftop solar power plant at its factory premises to ensure sustainable business operations.

the decision was taken at a meeting of the board of directors recently as part of efforts to support manufacturing with renewable energy amid global fuel supply disruptions triggered by the escalating Iran-Israel war.

the company will sign a Power Purchase Agreement (PPA) with Paramount Solar for the development of the solar facility at the company’s factory premises at Sreepur in Gazipur, according to a stock exchange ?ling on Monday. Paramount Textile holds a 99.99 percent stake in Paramount Solar.

the board of Paramount Textile unanimously approved the proposal to sign the deal for the development, operation and management of the rooftop solar power project, the disclosure reads.

the project will be implemented under the OPEX (operational expenditure) model, under which the solar developer will design, ?nance, construct, operate and maintain the plant.

India’s cumulative installed battery energy storage system (BESS) capacity is projected to reach 346 GWh by 2033 from less than 1 GWh today, according to a white paper by the Indian Energy Storage Alliance (IESA) and Customized Energy Solutions (CES).

india’s stationary energy storage market is expanding rapidly, with 69 new BESS tenders totaling 102 GWh launched over the past year – a 35% increase over 2024 and nearly double the annual tender volume – according to a white paper released at the recent Stationary Energy Storage India (SESI) 2026 conference. Cumulative installed capacity currently stands at less than 1 GWh, with 92 GWh of projects now in the pipeline. The report, prepared by IESA in partnership with CES, projects installed stationary storage capacity will reach 346 GWh by 2033 under a base scenario, rising to 544 GWh if policy momentum continues. Pumped hydro energy storage (PHES) capacity is projected to grow from 7 GW in 2025 to 107 GW by 20