Category: Energy and Power

China has unveiled an ambitious renewable energy development plan targeting 3.5 terawatts (TW) of installed renewable power capacity and around 6,000 terawatt-hours (TWh) of annual renewable electricity generation by 2030 as part of its 15th FiveYear Plan for Renewable Energy Development (2026- 2030).

Released by the National Energy Administration (NEA), the plan aims to raise renewable energy consumption to 1.8 billion tonnes of coal equivalent (about 1,260 Mtoe) by 2030, reinforcing China’s longterm transition towards a low-carbon energy system.

Under the roadmap, combined installed wind and solar capacity is expected to exceed 2.8TW, producing more than 4,000 TWh of electricity annually.

China also plans to add over 300 GW of renewable-based peak-shaving capacity to improve grid fl exibility and launch around 100GW of new offshore wind projects during the fi ve-year period.

Bangladesh’s prolonged gas crisis has entered a more critical phase after the shutdown of one of its two fl oating LNG terminals exposed the country’s growing dependence on imported liquefi ed natural gas (LNG) and the lack of adequate import infrastructure.

For nearly fi ve years, the country’s gas defi cit has continued to widen as production from domestic gas fi elds declines by around 150 million cubic feet per day (MMCFD) annually.

Meanwhile, Bangladesh’s LNG regasifi cation capacity has remained capped at about 1,100 MMCFD, with no new import infrastructure added despite rapidly increasing demand.

Although expanding LNG imports has become the only viable short-term option to offset declining domestic production, progress in developing new import facilities has been slow.

The government has recently granted inprinciple approval to begin negotiations for the country’s third Floating Storage and Regasifi cation Unit (FSRU), but construction and commissioning will still take several years.

The vulnerability of the existing system became evident after a fi re and technical failure forced the shutdown of Excelerate Energy’s FSRU at Moheshkhali on July 21, cutting gas supply to the national grid by about 450 MMCFD.

As a result, total gas supply has fallen to below 2,200 MMCFD, against an estimated national demand of around 4,200 MMCFD, leaving a supply gap of nearly 1,800-2,000 MMCFD.

The shortage has deepened across all major consuming sectors.

Gas allocation to industries has fallen to nearly half of demand, while supplies to gas-fi red power plants have been reduced by another 150-200 MMCFD.

The outage of a single LNG terminal has demonstrated how vulnerable Bangladesh’s energy system has become as dependence on imported LNG continues to increase Industry Bears the Biggest Blow The manufacturing sector, particularly the textile and ready-made garment (RMG) industry, has been hit hardest.

According to Petrobangla, industries account for nearly 39 percent of national gas demand, requiring around 1,560 MMCFD for captive power generation and industrial processes.

Under normal conditions, industries receive around 950 MMCFD, but current supply has fallen to nearly 800 MMCFD.

Textile mills, spinning, weaving, knitting, dyeing and washing factories are operating well below capacity as inadequate gas pressure prevents boilers from functioning effi ciently.

Industrialists estimate that production capacity has declined by 25-30 percent, forcing many export-oriented factories to shift production to late-night hours while raising concerns over timely delivery of export orders.

BGMEA President Mahmud Hasan Khan said the gas crisis has persisted for almost fi ve years despite repeated tariff increases.

‘The government raised industrial gas prices from Tk16 to Tk40 per cubic meter with the promise of ensuring adequate supply.

However, the supply situation has not improved.

Production continues to suffer, and if this continues, many garment factories will become fi nancially unviable and eventually shut down,’ he said.

BTMA President Shawkat Aziz Russell told Energy and Power that many textile mills have already ceased operations, with inadequate gas supply being one of the principal reasons.

‘There is no alternative to urgent government intervention if the textile industry is to survive,’ he said.

Recognizing the seriousness of the situation, leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Textile Mills Association (BTMA) recently met Prime Minister Tarique Rahman, warning that continued gas shortages could severely undermine Bangladesh’s largest export sector.

The Prime Minister assured industry leaders that the government would take immediate measures to minimize disruptions to industrial production and instructed the relevant ministries and agencies to expedite actions to restore stable gas supplies.

Urban Residents Face Severe Hardship The crisis has also become a daily struggle for millions of urban households.

Residents in Dhaka, Narayanganj, Gazipur and Chattogram report receiving little or no cooking gas for extended periods.

In many neighbourhoods, gas pressure remains too low to cook throughout most of the day, with some households receiving supply for only one or two hours.

Many families have been forced to switch to electric cookers, LPG cylinders or purchase prepared meals, signifi cantly increasing household expenses.

Complaints from residents unable to cook have fl ooded social media, while working families have been among the worst affected.

Long Queues at CNG Stations The transport sector has also experienced major disruptions.

Long queues stretching several hundred meters have become common at CNG fi lling stations across the country.

Many stations are operating with limited supply hours, while others have temporarily suspended operations altogether.

Although CNG station owners have withdrawn their planned strike after discussions with the government, motorists continue to wait six to eight hours to refuel.

The prolonged delays have reduced the number of CNGpowered three-wheelers, ride-sharing vehicles and buses operating in Dhaka, creating additional pressure on the city’s already strained public transport system.

Power Generation and Fertilizer Production Under Pressure The gas shortage has forced authorities to further reduce supplies to gas-fi red power plants and fertilizer factories.

Although the power sector requires around 2,400 MMCFD, Petrobangla normally allocates between 900 and 1,000 MMCFD.

Following the FSRU outage, supply has dropped to around 700-800 MMCFD.

Gas allocation to fertilizer factories has also been sharply reduced from the required 316 MMCFD to only about 114 MMCFD, affecting urea production.

To maintain electricity supply, the government has increased reliance on coal-fi red and liquid-fuel power plants, a move that signifi cantly raises generation costs and increases subsidy requirements.

Government Accelerates Emergency Response The government has mobilized international technical experts to restore the damaged FSRU as quickly as possible.

Energy offi cials expect partial operations to resume in the coming weeks, with full restoration depending on the arrival and installation of replacement equipment.

At the same time, authorities are accelerating plans to strengthen Bangladesh’s LNG infrastructure.

The Cabinet Committee on Government Purchase has granted in-principle approval to negotiate with China National Energy Engineering and Construction Co.

(CNEE) for the development of the country’s third FSRU at Kutubjom in Moheshkhali.

The proposed terminal is expected to add 550-600 MMCFD of regasifi cation capacity.

The government is also moving ahead with plans to develop a land-based LNG terminal at Matarbari, which is expected to provide greater long-term supply security than fl oating terminals.

A Wake-Up Call for Energy Policy Energy analysts say the current crisis extends far beyond a temporary technical failure.

It has highlighted Bangladesh’s growing dependence on imported LNG while domestic gas production continues to decline.

With only two operational FSRUs, the outage of a single terminal has been suffi cient to disrupt industrial production, electricity generation, fertilizer manufacturing, urban life and public transportation nationwide.

The incident underscores the urgent need to accelerate domestic gas exploration, diversify energy sources, expand LNG infrastructure, strengthen transmission pipelines and increase investment in renewable energy.

Without a comprehensive long-term strategy, experts warn that similar crises are likely to become more frequent as Bangladesh’s dependence on imported LNG continues to grow.

When will the Damaged FSRU Resume Operations? Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud has said that the damaged fl oating storage and regasifi cation unit (FSRU) is being repaired under the supervision of international specialists, while critical replacement components are being imported from overseas.

He expressed optimism that the terminal would gradually resume operations during the fi rst half of August.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit said the FSRU is expected to restore 280-300 MMCFD of gas supply in the initial phase.

Once fully repaired and commissioned, the terminal is expected to return to its full regasifi cation capacity of around 500 MMCFD, signifi cantly easing the ongoing gas shortage.

Government Pursues Multiple Measures Even as it deals with the immediate crisis, the government has accelerated both short-term and long-term initiatives to strengthen Bangladesh’s energy security.

Alongside expanding LNG import infrastructure, efforts to increase domestic gas production are also continuing.

Bangladesh has already launched an international bidding round for offshore oil and gas exploration in the Bay of Bengal, with bid submissions scheduled to close in November.

Energy Minister Iqbal Hassan Mahmud has also indicated that the government is considering inviting international investors to participate in onshore oil and gas exploration to accelerate domestic resource development.

To strengthen LNG import capacity, the Cabinet Committee on Government Economic Affairs recently granted inprinciple approval to begin negotiations with China National Energy Engineering and Construction Co.

(CNEEC) for the installation of Bangladesh’s third FSRU at Kutubjom in Moheshkhali.

The proposed facility is expected to add 550-600 MMCFD of regasifi cation capacity to the national gas grid.

Offi cials said the government is simultaneously advancing plans for a fourth FSRU and a land-based LNG terminal at Matarbari, Cox’s Bazar, aimed at improving long-term supply security.

As an alternative supply option, the government is also evaluating the feasibility of importing LNG from Malaysia using ISO tank containers, particularly for supplying gas to industrial consumers.

A Malaysian delegation recently visited Dhaka and held discussions with Petrobangla and representatives of Bangladesh’s ready-made garment (RMG) industry to explore the proposal.

Bangladesh Seeks Malaysia’s Support The government is also expanding international energy cooperation to strengthen long-term energy security.

During a recent bilateral meeting, Prime Minister Tarique Rahman requested support from Malaysian Prime Minister Anwar Ibrahim in enhancing Bangladesh’s energy security through increased LNG supplies, investment and broader cooperation in the energy sector.

The two leaders reportedly discussed opportunities for long-term collaboration in LNG trade, energy infrastructure development and strategic investment to help Bangladesh address its growing dependence on imported natural gas.

Is the Crisis Merely Temporary? Energy experts argue that the current shortage is not simply the result of a technical failure at one LNG terminal.

Rather, it exposes the structural weaknesses of Bangladesh’s energy system.

Domestic gas production has been declining steadily for years, while dependence on imported LNG continues to grow.

Consequently, the shutdown of a single FSRU has been enough to disrupt gas supplies nationwide, affecting industries, power generation, fertilizer production, urban households and the transport sector.

The situation has also highlighted Bangladesh’s growing exposure to volatile global LNG prices, increasing import costs and the government’s subsidy burden.

Experts believe that installing additional FSRUs alone will not provide a lasting solution.

They stress the need for an integrated long-term strategy that includes accelerated domestic gas exploration, expansion of transmission pipeline infrastructure, development of strategic gas storage, greater investment in renewable energy, and diversifi cation of the country’s energy mix.

According to analysts, the current gas crisis should serve as a wake-up call.

Without sustained investment and comprehensive reforms to strengthen energy security, Bangladesh could face increasingly frequent and more severe supply disruptions in the years ahead.

Prime Minister Tarique Rahman has directed the relevant authorities to take immediate steps to remove the obstacles hindering the growth of Bangladesh’s ready-made garment (RMG) industry, reaffi rming the government’s commitment to strengthening the country’s largest export sector.

The directive came during a meeting with a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the Prime Minister’s Cabinet Division offi ce in the Bangladesh Secretariat recently, according to Deputy Press Secretary Hasan Shipul.

The BGMEA delegation, led by its President Mahmud Hasan Khan, briefed the Prime Minister on the industry’s key challenges, particularly the need for an uninterrupted supply of electricity and natural gas.

The business leaders also presented a set of short- and long-term recommendations aimed at improving the sector’s competitiveness and sustaining its growth

A ruling party lawmaker has said persistent power shortages in rural areas are leaving them in an awkward position, as they are increasingly confronted by angry residents over the electricity crisis during visits to their constituencies.

Speaking during a supplementary question in Parliament on 8 July, Mostafi zur Rahman Babul, member of parliament from Jamalpur-3, said electricity had become one of the biggest concerns in rural Bangladesh.

‘Power shortages have become a major issue in villages.

Whenever we visit our constituencies, people raise the issue with us.

It puts us in an embarrassing and uncomfortable situation,’ he said.

The remarks came during the 21st sitting of the second – and fi rst budget – session of the 13th Parliament, presided over by Speaker Hafi z Uddin Ahmed.

State-owned Sylhet Gas Fields Limited (SGFL) has taken an initiative to drill three new gas and oil wells as part of efforts to ease the country’s gas shortage and reduce dependence on costly imports of liquefi ed natural gas (LNG).

The wells – Rashidpur-13, Dupitila-1 and Kailashtila-9 – are expected to add 3 crore cubic feet of gas per day to the national grid once drilling is completed, offi cials said.

At present, SGFL supplies around 14.20 crore cubic feet of gas daily to the national grid from its 17 functioning wells.

SGFL Managing Director Engr Md Faruque Hossain said, ‘SGFL is currently supplying 14.2 crore cubic feet of gas to the national grid every day.

Once drilling of the three wells is completed, an additional 3 crore cubic feet of gas can be added to the grid,’ he said.

Energy experts stressed the need to intensify domestic gas and oil exploration instead of relying heavily on LNG imports, which require substantial foreign currency expenditure each year

At a time of mounting energy insecurity, exploiting Bangladesh’s discovered coal resources using state-of-the-art, environmentally responsible mining technologies should become a top national priority.

Domestic natural gas reserves are rapidly depleting, while the country is struggling to import LNG, liquid fuels, and coal from an increasingly volatile global energy market.

Developing new onshore and offshore gas resources will take years, while expanding renewable energy (RE) faces signifi cant technical, fi nancial, and institutional constraints.

Moreover, renewable energy alone cannot meet Bangladesh’s growing energy demand.

In contrast, Bangladesh’s fi ve discovered coalfi elds in the greater Dinajpur and Rangpur regions contain an estimated energy equivalent of about 65 trillion cubic feet (Tcf) of natural gas.

These reserves consist of high-calorifi c-value coal with low sulfur and low ash content.

Energy experts believe that coal from the Barapukuria and Phulbari fi elds alone could support the generation of up to 10,000 MW of electricity for at least 50 years.

The Scheme of Development (SOD) for the Phulbari coal project, prepared following extensive feasibility studies, concluded that modern water management systems and progressive agricultural land rehabilitation could minimize environmental impacts.

Bangladesh also has no binding international obligation to reduce greenhouse gas emissions.

Meanwhile, coal-fi red power plants at Payra, Rampal, Matarbari, and Barapukuria have demonstrated that emissions can remain within internationally accepted standards when modern technologies are employed.

The present BNP alliance government, after completing its ongoing technical assessment, should make a political decision on coal mining within 2026.

If mining operations and minemouth power plants are developed simultaneously beginning in 2027, Bangladesh could have at least 5,000 MW of domestically fueled coal-fi red generation by 2031.

For more than two decades, opposition from often poorly informed and sometimes politically motivated activists has delayed the development of what many describe as Bangladesh’s ‘black gold.’ Meanwhile, confl icts in the Arabian Gulf and Persian Gulf have intensifi ed energy insecurity across fuel-importing nations.

Under these circumstances, Bangladesh should seriously consider utilizing its domestic coal resources.

Admittedly, such a decision is not straightforward.

The coalfi elds lie beneath fertile agricultural land and complex aquifer systems.

However, internationally proven mine water management technologies already exist and were comprehensively evaluated in the Phulbari feasibility studies.

The SOD also includes phased plans for restoring agricultural land and rehabilitating affected communities after mining.

Before approving any mining project, the government may appoint an internationally accredited mining consultant to independently audit the technical, environmental, and social aspects of the proposed development.

Present fuel supply scenario Bangladesh’s energy system has historically depended on natural gas.

At its peak, domestic production reached approximately 2,750 MMCFD, supplying gas for electricity generation, urea fertilizer production, industries, and household cooking.

Benefi ting from relatively cheap gas and electricity, energy-intensive industries expanded rapidly, outpacing investment in petroleum exploration and development.

Unfortunately, successive governments since 2000 failed to adequately explore and develop new onshore and offshore gas resources.

At the same time, discovered coal reserves remained untapped because of the absence of political consensus.

As existing gas fi elds matured, domestic production gradually declined from around 2,750 MMCFD to roughly 1,700 MMCFD today.

To offset the shortfall, Bangladesh began importing LNG in 2018 after commissioning two Floating Storage and Regasifi cation Units (FSRUs) off the coast of Moheshkhali.

Petrobangla currently supplies approximately 2,700 MMCFD of gas, including 900-950 MMCFD of regasifi ed LNG (RLNG).

However, peak national demand has already reached around 4,000 MMCFD.

Because of the resulting supply defi cit of 1,200-1,300 MMCFD, nearly 3,500-4,000 MW of gas-fi red generation capacity remains idle.

The two existing FSRUs can regasify a combined maximum of around 1,100 MMCFD.

The caretaker government led by Professor Muhammad Yunus canceled the contract for a third FSRU and discontinued negotiations with Excelerate Energy regarding a proposed deepwater fl oating LNG terminal off Kuakata.

These decisions have further delayed Bangladesh’s ability to expand LNG import capacity.

Meanwhile, Bangladesh has developed several large imported coal-fi red power plants in partnership with foreign investors.

When coal supplies arrive on schedule, these plants can collectively generate around 7,000 MW of electricity.

As a result, Bangladesh has transformed from a country largely dependent on indigenous energy resources into a major energy importer.

Recent geopolitical tensions have driven fuel prices sharply higher while disrupting global supply chains, creating severe energy security challenges for Bangladesh and other fuel-importing countries.

Bangladesh has taken some encouraging steps to accelerate petroleum exploration.

BAPEX is implementing its 50-well and 100-well drilling programs, while Petrobangla is preparing new productionsharing contract (PSC) bidding rounds for both onshore and offshore exploration.

However, meaningful results from these initiatives are unlikely within the next eight to ten years.

There is no guarantee that commercially viable gas discoveries will be made.

Even if signifi cant offshore discoveries occur, commercial production would likely require another eight to ten years.

By then, production from existing gas fi elds may have declined much further.

Bangladesh simply cannot afford to become an economy entirely dependent on imported LNG.

RE can help, but not replace conventional fuels Many stakeholders advocate accelerating the country’s energy transition by rapidly expanding renewable energy and other clean energy sources.

The 2,400 MW Rooppur Nuclear Power Plant will certainly improve energy security once fully operational.

However, Bangladesh continues to face major technical, commercial, institutional, and geographical constraints in developing large-scale solar and wind energy.

Even under optimistic scenarios, renewable energy is unlikely to contribute more than around 10,000 MW in the foreseeable future, and achieving that target will require overcoming substantial policy, fi nancial, and infrastructure barriers.

Nevertheless, renewable energy development should continue aggressively.

The government’s target of achieving a 10 percent renewable energy share by 2030 is both appropriate and achievable if existing barriers are systematically addressed.

Coal remains an untapped strategic asset Among Bangladesh’s fi ve discovered coalfi elds, only Barapukuria is currently under production using the underground longwall top caving method.

Coal extracted from the mine supplies the adjacent power plant.

However, this mining method has proven technically challenging and expensive.

The cost of producing coal at Barapukuria now exceeds the cost of importing coal.

Many experts believe that Barapukuria would be better suited to open-pit mining.

A high-level government committee under the previous Awami League administration also recommended adopting this approach.

The government has already acquired large areas of land around Barapukuria at substantial cost, while extensive land subsidence has created large water bodies.

Yet no fi nal decision has been taken regarding conversion to open-pit mining.

Unless an alternative mining strategy is adopted, underground mining at Barapukuria may cease after 2027, leaving the adjoining 525 MW minemouth power plant without fuel.

During the BNP government of 1991- 96, Bangladesh signed an exploration agreement with BHP Minerals Australia for coal exploration at Phulbari, leading to the discovery of substantial coal reserves.

Later, during the Awami League government of 1996-2001, an agreement was signed for mine development after the project rights were transferred to Asia Energy Corporation, a subsidiary of GCM Resources.

Following extensive feasibility studies involving internationally recognized mining consultants, Asia Energy submitted its comprehensive Scheme of Development in 2005.

Over the subsequent two decades, successive governments neither canceled the agreement nor approved the mining project.

The Phulbari SOD incorporates internationally accepted technologies for agricultural land restoration, groundwater and surface water management, and phased rehabilitation of mine-affected communities.

Available studies indicate that Phulbari alone could support between 5,000 MW and 7,000 MW of mine-mouth coalfi red generation for approximately 50 years using modern open-pit mining methods.

Treated mine water could be reused for irrigation and community water supply, while mined land could be progressively restored and returned to local landowners for agricultural use.

The government has also completed preliminary studies at Khalashpir and Dighipara, while feasibility studies for coal bed methane (CBM) extraction have been undertaken at the deep Jamalganj coalfi eld.

Regional and international mining experts frequently cite successful coal mining operations in India, Germany, Poland, and China as evidence that modern mining technologies can effectively address environmental and social concerns.

Although Bangladesh is among the countries most vulnerable to climate change, it currently has no mandatory international commitment requiring reductions in greenhouse gas emissions.

Commercially proven technologies are available to mitigate many of the environmental concerns raised by civil society regarding coal mining.

For Bangladesh, responsibly utilizing its coal resources may represent the most practical and economically viable pathway toward medium- and longterm energy security.

The government should therefore make a policy decision on coal mining during 2026.

Otherwise, by 2030, declining domestic gas production could leave Bangladesh overwhelmingly dependent on imported LNG, coal, and liquid fuels.

The resulting import bill would place immense pressure on the economy, industries would face higher production costs, and economic growth could slow signifi cantly.

The most realistic path forward is to begin coal mining by 2027 while establishing a high-level independent expert committee to oversee environmental management, operational safety, and regulatory compliance.

Harnessing Bangladesh’s own coal resources for electricity generation could become a transformative step toward strengthening national energy security.

With the global transition away from fossil fuels accelerating, Bangladesh also faces the risk that its discovered coal reserves could remain permanently underground unless a political decision is made soon

Stephen Rodriques has joined the United Nations Development Programme (UNDP) in Bangladesh as its new Resident Representative, succeeding Stefan Liller.

In his new role, Rodriques will lead UNDP’s work in Bangladesh and oversee its support to national development priorities.

He will work closely with the Government of Bangladesh, development partners, civil society, the private sector and communities to advance inclusive development, strengthen resilience and accelerate progress towards the Sustainable Development Goals, said an UNDP press release.

‘It is a privilege to join UNDP Bangladesh and contribute to the country’s development journey,’ said Stephen Rodriques.

A Jamaican national, Stephen brings more than three decades of experience in international development and publicsector leadership.

He previously served as UNDP Resident Representative in Afghanistan, Liberia, Rwanda, and Deputy Country Director in Indonesia.

He has also held several other leadership positions within UNDP.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud has called on non-governmental o r g a n i z a t i o n s (NGOs) to invest in Bangladesh’s renewable energy sector, emphasizing that greater private participation can help reduce fuel imports, strengthen energy security, and promote sustainable rural development.

Speaking as the chief guest at the ‘Voice of Development’ national workshop, organized by the National Development Program (NDP) at the Bangladesh-China Friendship Conference Center in Dhaka recently, the minister said NGOs have signifi cant opportunities to expand solar power projects, particularly in rural areas.

He noted that increasing the country’s renewable energy capacity would reduce dependence on imported fuels, enabling the government to redirect savings toward national development initiatives

Bangladesh’s transition to electric mobility has moved beyond environmental ambition to become a strategic economic imperative.

As the country grapples with rising fuel import costs, persistent energy insecurity, and growing urban pollution, electric vehicles (EVs) are emerging as a viable pathway toward cleaner transportation, lower operating costs, and reduced dependence on imported fossil fuels.

Yet the road ahead is far from straightforward.

While the government has unveiled ambitious targets, generous fi scal incentives, and plans to electrify public transport, Bangladesh must still overcome major obstacles-including limited charging infrastructure, high vehicle costs, weak domestic manufacturing capacity, and an underdeveloped regulatory framework.

Whether the country can build a sustainable EV ecosystem over the next decade will depend not only on policy commitments but also on coordinated investment, technological innovation, and long-term planning.

Although the country’s EV market remains in its infancy, experts believe that strong government initiatives, growing private-sector investment, and increasing interest from international development partners could transform Bangladesh into a signifi cant EV market over the next decade.

A Transport System Dependent on Imported Fuels Bangladesh’s transport sector relies heavily on imported fossil fuels.

Of the approximately six million tonnes of petroleum products consumed annually-including diesel, octane, and petrol-around 70 percent is used by the transport sector.

In addition to petroleum fuels, compressed natural gas (CNG) and liquefi ed petroleum gas (LPG) are widely used for vehicles.

However, persistent natural gas shortages have placed CNGpowered vehicles under increasing pressure.

Drivers often spend hours waiting to refuel, reducing productivity and increasing operating costs.

Meanwhile, rising international oil prices have signifi cantly increased transportation costs.

Although domestic diesel prices have been adjusted upward, the government continues to provide substantial subsidies to shield consumers from the full impact of higher global energy prices.

Bangladesh has also witnessed the rapid and largely unregulated expansion of lead-acid battery-powered electric rickshaws.

Because many operate without offi cial registration, reliable statistics on their actual numbers remain unavailable.

Experts warn that the improper use and disposal of lead-acid batteries pose serious risks to soil and water quality.

The absence of regulated charging facilities has also resulted in widespread electricity losses and unsafe power connections.

Moreover, the rapid growth of unregulated batterypowered rickshaws has contributed to traffi c congestion and road safety concerns, particularly in Dhaka.

Experts therefore argue that these three-wheelers should be incorporated into the formal EV framework through mandatory registration, standardized safety regulations, and the gradual replacement of environmentally hazardous lead-acid batteries with cleaner and more sustainable technologies.

Government Policy Priorities Promoting green transportation has become one of the government’s key policy priorities.

It aims to ensure that 30 percent of all vehicles on Bangladesh’s roads are electric by 2030.

As part of the government’s election commitments, Prime Minister Tarique Rahman has emphasized the development of a modern, environmentally friendly, and carbonneutral transport system.

Under his directive, the government has initiated the procurement of electric buses for the Bangladesh Road Transport Corporation (BRTC), along with electric minibuses dedicated to improving safe transportation for women.

The government has also decided to gradually electrify its own vehicle fl eet.

Recently, the Finance Division approved a Tk 4 billion loan for BRTC to procure 100 electric buses.

In addition, all ministries, government departments, autonomous organizations, and state-owned enterprises have been instructed to purchase only fully electric vehicles for new acquisitions under both development and operating budgets.

Another initiative is underway to procure 100 electric minibuses through BRTC to provide safer transportation for women.

Fiscal Incentives and Investment Promotion To encourage investment in the EV industry, the government has introduced a series of fi scal incentives designed to attract both domestic and foreign investors.

These include: Duty and tax exemptions on the import of electric buses and trucks through 2030.

Elimination of taxes on EV charging equipment, reducing the rate from 39.75 percent to zero.

A 10-year corporate income tax holiday for companies establishing EV charging stations.

Policy support to encourage local assembly and manufacturing instead of importing fully built vehicles.

Bangladesh Bank has also expanded its green fi nance program to support environmentally friendly technologies and renewable energy projects, creating opportunities to fi nance EV manufacturing and related industries.

Potential for Electric Public Transport The greatest transformation from EV adoption is expected in Bangladesh’s public transportation system.

BRTC currently operates a fl eet of more than 1,000 buses and plans to gradually replace conventional buses with electric models.

Signifi cant opportunities also exist for electric buses in city corporations, metro rail feeder services, and intercity transportation.

Experts believe that introducing route-based electric bus services in Dhaka and other major cities could substantially reduce fuel consumption while signifi cantly improving urban air quality.

Since Bangladesh’s public transport system is largely operated by private companies, experts recommend developing a clear national roadmap that establishes timelines for the gradual transition from fossil fuelpowered buses to electric fl eets.

They also stress the need for nationwide charging infrastructure and easier access to low-interest fi nancing for private operators investing in electric mobility.

The Private Passenger Vehicle Market Electric vehicles still account for only a small share of Bangladesh’s private car market.

Although overall car ownership remains relatively low compared with many countries, several barriers continue to discourage consumers from switching from gasoline- or CNGpowered vehicles.

The principal challenges include: High purchase prices Limited charging infrastructure Inadequate after-sales service Concerns about battery life An underdeveloped resale market Nevertheless, alongside established global manufacturers, Chinese brands such as BYD, MG, Changan, Geely, Neta, and Dongfeng are steadily expanding their presence in Bangladesh.

Industry observers expect EV prices to become more affordable once local assembly begins.

Experts argue that imported EVs remain beyond the reach of most Bangladeshi consumers.

Expanding domestic assembly and manufacturing would reduce costs while strengthening the country’s industrial base.

Access to affordable fi nancing also remains a major obstacle.

They therefore recommend governmentbacked fi nancing programs and lowerinterest loans to accelerate EV adoption.

Lower Operating Costs, Higher Effi ciency A recent seminar organized by the Dhaka Chamber of Commerce and Industry (DCCI) highlighted the signifi cant economic advantages of electric vehicles over conventional internal combustion engine vehicles.

According to presentations at the seminar, operating an EV costs only Tk 2.80-3.80 per kilometer, compared with Tk 11-14 per kilometer for petrol-, diesel-, or CNG-powered vehicles.

Maintenance costs are also estimated to be 30-50 percent lower because EVs have fewer moving mechanical parts and no internal combustion engine.

In addition, EVs achieve energy effi ciency of 75-90 percent, substantially outperforming conventional vehicles and making them a more economical and environmentally sustainable transportation option over the long term.

EV Investment Landscape According to the Bangladesh Economic Zones Authority (BEZA), Bangladesh Auto Industries Ltd.

has become the country’s fi rst EV manufacturer.

The company has invested nearly Tk 10 billion in an EV manufacturing facility on a 100-acre site at the National Special Economic Zone in Chattogram.

Managing Director Mir Masud said an additional Tk 5-6 billion in investments is planned.

Nasir Group plans to invest Tk 5 billion in EV manufacturing and charging infrastructure, while Akij Group has announced a similar investment.

Runner Group, which currently imports and markets BYD vehicles, is also moving into domestic manufacturing.

According to Managing Director Amid Sakif Khan, Runner plans to invest Tk 3.5-4.0 billion in an EV manufacturing facility, in addition to the Tk 2 billion already invested at its Bhaluka factory.

RANCON Group has announced plans to invest Tk 2.0-2.5 billion in EV manufacturing and charging infrastructure.

Walton and PRAN-RFL Group are each planning investments of around Tk 2 billion, primarily in electric scooter production.

According to the Bangladesh Investment Development Authority (BIDA), investment proposals worth approximately Tk 2.45 billion have been received from 14 local and foreign companies covering EV assembly, lithium-ion battery manufacturing, spare parts production, and IoTenabled charging networks.

Market Outlook Several international brands-including BYD, BMW, Mercedes-Benz, and Audi- are now selling EVs in Bangladesh.

Combined annual sales are estimated at 200-300 vehicles.

According to Faisal Ahmed, Head of Sales at Mercedes-Benz Bangladesh, a conventional vehicle typically requires Tk 15,000-20,000 per month in fuel expenses, whereas an EV covering the same distance incurs electricity costs of only Tk 2,000-3,000.

Electric buses offer similar operating cost advantages.

Although the latest national budget reduced taxes on standard EVs, it increased duties on luxury EVs while lowering import duties on plug-in hybrid vehicles.

Industry representatives say the lack of charging facilities remains the biggest obstacle.

Importers have therefore begun fi nancing a limited number of private charging stations, but large-scale public investment will be essential for widespread EV adoption.

According to the Bangladesh Road Transport Authority (BRTA), 830 EVs had been registered by June this year.

Registrations increased from just four vehicles in 2021 to 478 during the fi rst half of 2026 alone, indicating that the market is beginning to gain momentum.

Charging Infrastructure Remains the Biggest Challenge Experts agree that a reliable nationwide charging network is the single most important prerequisite for large-scale EV adoption.

Although a handful of private companies have established charging stations, Bangladesh will require an extensive network of fast chargers along highways, in major cities, shopping centers, residential areas, and government facilities.

Experts also recommend that electricity distribution companies develop smart grids, introduce time-of-use electricity tariffs, and integrate renewable energy into EV charging systems.

Solar-powered charging stations equipped with battery storage could further reduce pressure on the national grid while creating new green jobs.

Role of Development Partners International development partners are actively supporting Bangladesh’s transition toward electric mobility.

Organizations including the World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), GIZ, UNDP, UNEP, and the International Finance Corporation (IFC) are providing policy support, technical assistance, and climate fi nance for sustainable transportation initiatives.

Bangladesh could also benefi t from international climate funds to fi nance low-carbon transport and EV infrastructure in the years ahead.

Expert Perspectives Dr.

Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), argues that importing EVs alone will not be suffi cient.

Bangladesh must simultaneously develop domestic manufacturing, charging infrastructure, battery management systems, and fi nancing mechanisms.

Without consistent longterm policies, he says, the industry cannot achieve sustainable growth.

Dr.

Rashed Al Mahmud Titumir, Adviser to the Prime Minister on Finance and Planning, recently emphasized that the energy transition is not merely an environmental necessity but also an economic strategy.

He called for greater investment in domestic manufacturing of batteries, solar technologies, and related components.

Engr.

Shafi qul Alam, Lead Energy Analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis (IEEFA), believes the incentives announced in the current budget will accelerate sectoral growth.

According to him, the measures support not only EV imports and charging stations but also domestic assembly, helping reduce dependence on diesel and CNG.

He also suggested that the government’s goal of making 30 percent of all vehicles electric by 2030 should be even more ambitious.

Global Momentum The global EV market continues to expand rapidly.

According to the International Energy Agency (IEA), nearly one in every four new cars sold worldwide in 2025 was electric.

China remains the world’s largest EV market, while Europe and the United States continue investing heavily in charging infrastructure and battery manufacturing.

Countries including China, Norway, the Netherlands, Sweden, and the United Kingdom have announced plans to phase out new gasoline and diesel vehicle sales.

At the same time, falling battery costs and technological advances continue to make EVs more affordable worldwide.

Key Challenges Ahead To ensure sustainable growth of Bangladesh’s EV industry, experts recommend prioritizing: Finalization of the National Electric Vehicle Policy.

Development of a nationwide fastcharging network.

Promotion of local manufacturing of batteries, motors, and charging equipment.

Building a skilled workforce for EV maintenance and servicing.

Establishing a comprehensive battery recycling system.

Integrating EV charging with renewable energy.

Conclusion The expansion of electric vehicles in Bangladesh is no longer simply an environmental initiative.

It has become a strategic pillar of the country’s energy security, import substitution, industrialization, employment generation, and climate ambitions.

Recent policy reforms, tax incentives, and government plans to electrify public transportation have sent encouraging signals to investors.

Yet the long-term success of Bangladesh’s EV transition will ultimately depend on coherent policies, robust charging infrastructure, sustained private-sector investment, stronger domestic manufacturing, and growing consumer confi dence.

If these challenges are addressed through coordinated action, Bangladesh has the opportunity to emerge as one of South Asia’s leading examples of sustainable, low-carbon transportation over the coming decade

Britain’s new Prime Minister Andy Burnham recently announced the removal of value added tax (VAT) on UK domestic electricity bills from October, his fi rst measure to ease the cost of living for millions of Britons.

‘We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope,’ he said in a statement one day after he entered Downing Street.

The measure is a saving of about £45 ($61) a year on the average household bill, the Labour government said.

The measure’s start date is due to coincide with an expected rise in the UK energy regulator’s price cap on electricity and gas prices.

‘Government is tackling rising bills with a tax cut to remove VAT from domestic electricity bills from October 1 in time to impact the next Ofgem price cap,’ yesterday’s statement said.