Category: Energy and Power

Creating 15 million jobs within the next 18 months is the government’s top priority.

to achieve this, it must ensure reliable infrastructure support, especially quality electricity and gas supply, for both the service and manufacturing sectors. However, the country is not currently in that position. Strengthening the fragile power and energy sector to meet this demand is therefore one of the government’s biggest challenges. While the task is not easy, coordinated and timely action is essential.

these remarks were made by Humayun Rashid, President of the BangladeshPhilippines Chamber of Commerce and Industry and CEO of Energypac, in a conversation with Energy and Power Editor Mollah Amzad Hossain.

the new BNP government has begun its journey with a fragile power and energy sector.

there is installed power generation capacity, but the fuel supply is insuf?cient. Meanwhile, the Bangladesh Power Development Board (BPDB) is struggling to pay massive outstanding dues to power producers, and the sector is facing huge de?cits. What urgent steps should the new government take? Restoring the health of the power and energy sector means restoring its ?nancial viability. But before taking corrective measures, it is necessary to analyze how the current situation emerged.

in my view, ?awed policies, mismanagement, lack of transparency, and inef?ciency in project selection and implementation have led to today’s crisis. For example, under special legal provisions, many power plants were installed bypassing competitive processes, but fuel supply for those plants was not ensured.

as a result, plants remained idle while capacity charges had to be paid, increasing ?nancial liabilities and raising generation costs.

the sector must quickly move away from excess generation capacity while ensuring fuel supply for ef?cient plants.

at present, generation and fuel supply costs are high, yet there is no guarantee of quality and uninterrupted electricity supply.

in recent years, industries have experienced 25-35 percent production losses due to inadequate gas supply.

on one hand, unreliable supply has disrupted industrial output; on the other, higher production costs have increased subsidies.

even after repeated tariff hikes, subsidies remain necessary.

there is no immediate alternative.

the government must therefore ensure ef?ciency at every level of the power and energy sector and reduce production and supply costs through sound management.

a one-year action plan should be introduced to ensure an uninterrupted quality electricity supply.

a separate three-year plan may be adopted to guarantee adequate fuel, especially gas, supply. However, these programs must be implemented competitively, transparently, and free from corruption.

outstanding dues in the power and energy sector now stand at Tk 56,000 crore.

around $2 billion per month is needed to cover fuel imports and debt servicing.

the government, however, does not want to raise prices. How can ?nancial discipline be restored? The energy minister has said that electricity and fuel prices will not be increased in the coming years, which is commendable. However, a clear roadmap is needed to achieve this. BPDB and Petrobangla lack the capacity to clear outstanding dues at once. Yet without settling arrears, uninterrupted supply cannot be ensured.

a negotiated roadmap should be ?nalized with all stakeholders to clear dues within six months, while simultaneously maintaining supply stability.

at the same time, steps must be taken to prevent the accumulationof new arrears by gradually reducing generation and supply costs, promoting ef?cient energy use, and ensuring conservation.

if necessary, rationing may be introduced in non-industrial sectors. Losses and wastage at all levels must be eliminated. Gas shortages currently range between 1,300-1,400 MMCFD. Domestic production is declining, and LNG imports cannot signi?cantly increase over the next three years. Yet industrialization requires gas. What should be done? We cannot rely solely on gas. Domestic production is declining by around 150 MMCFD per year. Petrobangla’s ongoing efforts have yet to deliver major success. While optimism has been expressed for the next three years, I remain cautious. Domestic exploration must be intensi?ed alongside attracting foreign investment to boost reserves through 2035. We have learned of signi?cant reserves in Bhola, so pipeline infrastructure should be installed without delay to connect Bhola to the national grid. Nevertheless, LNG imports remain unavoidable. New infrastructure, including land-based terminals, must be developed. Cross-border gas import opportunities should also be assessed and utilized if feasible. However, it is unlikely that the government will quickly be able to meet total gas demand in full. Gas should no longer bear the sole burden as the country’s primary energy source.

to reduce overdependence on gas, work must begin on the exploration, extraction, and utilization of domestic coal resources.

although the BNP initiated efforts to extract local coal during its previous term, those initiatives were not successful.

this time, however, it is essential to begin work from the outset.

above all, a clear and speci?c policy framework must be ?nalized to eliminate inef?cient gas use across all sectors. Currently, more than 56 percent of the country’s power and energy supply depends on imports.

as a result, fuel supply costs are tied to volatile global market prices.

there is no alternative to reducing import dependence. What steps should the government take regarding domestic gas and coal exploration? Signi?cant success in this sector cannot be achieved within the government’s 180-day program. However, the action plan during this period must include a coordinated strategy to reduce import dependence by accelerating domestic gas and coal exploration and utilization.

at the same time, urgent measures must be taken to expand renewable energy development. We must remember that our domestic energy resources are not unlimited, so imports will remain necessary. However, by prioritizing the maximum use of local resources, we can at least slow the growth of import dependence. Countries such as India, Pakistan, and Vietnam have achieved notable success by expanding renewable energy. Bangladesh has yet to achieve the desired expansion. What should the new government do? Over the past several years, Bangladesh has not achieved signi?cant success in renewable energy. Reaching 20 percent renewable electricity capacity by 2030 will therefore be challenging.

although there was an opportunity to advance renewable projects over the past 18 months, the interim government did not make progress.

instead, it canceled 37 Letters of Intent (LOIs), which undermined investor con?dence.

the new government must restore investor con?dence in this sector. Land scarcity is a major challenge for renewable expansion.

therefore, both rooftop and grid-scale projects must move forward simultaneously.

a yearround implementation plan should be adopted, along with appropriate strategies to attract both domestic and foreign investment. Furthermore, the government should take initiatives to secure carbon credits from renewable energy projects.

the BNP’s election manifesto promises to create 15 million jobs within 18 months.

industrialization is essential for that, and a reliable energy supply is critical. What should the government do? Job creation is one of the greatest challenges for any country. While the government plays a role, the private sector is the largest contributor to employment generation. However, in Bangladesh, the cost of doing business remains high. Policy complexities and infrastructure weaknesses create barriers for investors.

the BNP’s job creation program is commendable. Now that it has formed the government with a strong mandate, it must ?rst restore investor con?dence. Policies and strategies must be developed to attract investment in both the service and manufacturing sectors.

the cost of doing business must be reduced. Most importantly, like other competitive economies, Bangladesh must ensure an uninterrupted electricity and fuel supply at competitive prices. Long-term policies for pricing and supply stability are essential.

there are widespread allegations of irregularities and corruption in the power and energy sector. What should be done to build a people-oriented and transparent sector? Whenever a new government takes of?ce, allegations of corruption against the previous administration surface, often leading to political debate. However, impartial investigations are rarely conducted, and accountability is seldom ensured.

after the fall of the Awami League government, numerous allegations of corruption and irregularities emerged in the power and energy sector.

although the interim government discussed these issues over the past 18 months, it did not clearly de?ne the allegations or determine accountability.

it is now the responsibility of the current government to address these matters.

to build a corruption-free and peoplefriendly power and energy sector, each allegation must be investigated impartially. Responsibility must be clearly established, and those found guilty must be brought to justice.

Saudi Arabia will help Turkey build solar plants capable of powering more than two million homes, under a deal the two countries signed recently that aims to deepen energy cooperation between the key regional players.

the signing ceremony at an Ottoman-era palace by the waters of the Bosphorus Strait in Istanbul followed a $2-billion intergovernmental energy agreement between the two countries during a landmark visit by Turkish president Recep Tayyip Erdogan to Riyadh on February 3.

turkey is preparing to host the United Nations’ COP31 climate summit on its Mediterranean coast later this year, with Australia leading the negotiations.

ties between Turkey and Saudi Arabia have steadily improved in recent years after collapsing in the wake of the killing of journalist Jamal Khashoggi by Saudi agents inside the kingdom’s consulate in Istanbul in October 2018.

Wth a commanding mandate from the 2026 election, the BNP-led government faces immediate pressure to stabilize Bangladesh’s fragile power and energy sector. While its Vision 2026 outlines ambitious structural reforms, the ?rst 180 days will be critical in restoring fuel security, improving governance, and rebuilding investor con?dence in a sector long burdened by inef?ciencies and policy missteps.

the cabinet, led by Prime Minister Tarique Rahman, has entrusted the Ministry of Power, Energy and Mineral Resources to Iqbal Hasan Mahmood and appointed young Member of Parliament Anindo Islam Amit as State Minister.

in its pre-election pledge, the BNP outlined a broad vision for reforming the power and energy sector.

immediately after assuming of?ce, the Energy and Mineral Resources Division (EMRD) presented the new minister with a comprehensive brie?ng on the sector’s current status, challenges, and plans.

in its presentation, EMRD expressed readiness to implement the ruling party’s energy vision.

this article assesses that vision, the proposed 180-day action plan, and the key challenges ahead.

inherited Challenges The prevailing challenges in Bangladesh’s power and energy sector are well known. Despite maintaining a substantial reserve margin in installed generation capacity, the supply chain continues to suffer from chronic fuel shortages.

over the years, generation capacity expanded irrationally and without adequate planning for fuel supply, a rational fuel mix, or the ?nancial impact on stateowned enterprises required to absorb imported fuel price volatility.

the Speedy Power and Energy Supply (Special Provisions) Act, 2010-initiallyintended as a temporary measure for two to three years to address acute power shortages-remained in force throughout the three terms of the Awami League government. Meanwhile, exploration and development of domestic primary fuel resources were largely neglected.

the government increasingly relied on imported fuel without fully assessing price implications or the infrastructure challenges required to sustain such imports. Despite having 29,545 MW of gridconnected installed capacity, the system has struggled to generate and supply even 16,000 MW consistently to meet peak demand.

the energy sector’s heavy dependence on natural gas has compounded the crisis, as proven reserves have depleted rapidly. Successive governments avoided politically sensitive decisions on exploiting discovered coal resources. Failure to implement the Renewable Energy Policy effectively has further aggravated the situation.

the Bangladesh Power Development Board (BPDB), as the sole buyer of electricity, has borne the ?nancial burden of capacity payments under Power Purchase Agreements (PPAs).

according to a recent press release from the Bangladesh Independent Power Producers Association (BIPPA), BPDB owes approximately BDT 14,000 crore to private power producers alone. BPDB, the Bangladesh Petroleum Corporation (BPC), and Petrobangla also carry substantial outstanding payments to fuel and power suppliers. BNP Election Vision 2026 A.

transparency in Contracts Vision: No secret contracts or agreements will be executed.

all relevant details will be made public. Contracts with foreign companies will be renegotiated where necessary to safeguard national interests, ensure technology transfer, and maintain reasonable state control.

eMRD Plan and Actions: Following the repeal of the Special Act, there is no scope for awarding projects based on unsolicited offers alone.

eMRD plans to rely on three procurement methods: government-to-government (G2G), public-private partnership (PPP), and open tender method (OTM).

it has assured alignment with the ruling party’s commitment to transparency.

observation: Energy contracts require a careful balance between risk and reward to ensure win-win outcomes. Globally, Production Sharing Contracts (PSCs) for high-risk investments often involve negotiated terms, including unsolicited proposals.

if negotiations are transparent and equitable, such approaches can be appropriate. For Bangladesh, contracts for offshore exploration, land-based LNG terminals, ?oating storage and regasi?cation units (FSRUs), or re?neries may not always ?t neatly into G2G, PPP, or OTM frameworks.

eMRD must strengthen its negotiation capacity and institutional skills to secure transparent and commercially viable agreements. Major investors are often discouraged by prolonged bureaucratic processes and a lack of clarity. B. Coastal Crude Oil Re?nery Vision: Establish, in phases, a 5 milliontonne capacity crude oil re?nery in Chattogram and coastal areas.

eMRD Plan and Actions: EMRD cited a national annual demand of around 7.0 million tonnes of re?ned petroleum products. Currently, the country relies on the 1.5 million-tonne capacity Eastern Re?nery Limited (ERL).

a second unit with a 3.0 million-tonne capacity has reportedly been approved, with a ?ve-year completion timeline.

a proposal has been submitted for allocating 1,200 acres at Maheshkhali/ Matarbari for a petrochemical complex, including a new re?nery of at least 5 million tonnes.

eMRD has also received a private proposal for a re?nery of similar capacity, which is under review.

observation: Discussion of a second re?nery has persisted for more than a decade.

even the refurbishment and expansion of ERL have faced repeated delays.

the BNP government must ensure the timely implementation of ongoing projects.

eMRD should also ensure the prompt appointment of an operator for the Single Point Mooring (SPM) project and the smooth operation of the Chattogram-Dhaka petroleum pipeline. C. Gas Exploration and Strengthening BAPEX Vision: Accelerate onshore and offshore exploration and strengthen BAPEX through advanced geological surveys and enhanced technical and managerial capabilities.

eMRD Plan and Activities: EMRD outlined short-, mid-, and long-term plans for 2D and 3D seismic surveys.

it proposed purchasing two new drilling rigs and refurbishing ?ve existing rigs.

a 50-well and 100-well drilling program is underway.

an updated Model PSC for onshore and offshore exploration has been prepared.

observation: EMRD should have clearly articulated a manpower development strategy.

accelerated drilling using modern rigs requires skilled, certi?ed crews.

at present, there are not even three fully competent drilling teams capable of operating three exploration rigs simultaneously. Capacity building within Petrobangla is equally critical to negotiate PSCs effectively and oversee IOC operations.

eMRD should specify the challenges facing drilling projects and present a time-bound PSC bidding program. D. Reforming Gas Distribution and Pricing Vision: Scrutinize gas distribution infrastructure and pricing to ensure equitable, sustainable, and affordable supply.

eMRD Plan and Activities: EMRD proposes updating the Bangladesh Gas Act 2010 with a new Gas Act 2026.

initiatives include installing electronic volume corrector (EVC) meters for industrial consumers, central server monitoring, replacing aging pipelines with modern leak-detection systems, installing prepaid/smart meters, adding 38 custody transfer meters at transmission-distribution interfaces, and introducing SCADA monitoring.

observation: These delayed butcommendable initiatives should improve ef?ciency and reduce losses and pilferage. However, given supply constraints, EMRD must promote economic gas utilization. Pipeline gas use for cooking and CNG should gradually be phased out and replaced with LPG and autogas.

e. Cross-Border Energy Security Vision: Enhance energy security through cross-border gas pipelines.

eMRD Plan and Activities: EMRD intends to initiate negotiations with neighboring countries for cross-border gas, liquid fuel, and RLNG pipelines.

observation: This recalls the proposed Myanmar-Bangladesh-India tri-nation pipeline negotiated in 2005, which, if implemented, could have been operational by 2008. Such regional energy cooperation could have been transformative.

opportunities still exist for resource sharing through transnational pipelines, offering both economic and geopolitical bene?ts. Conclusion: Priorities for the First 180 Days BNP’s Vision 2026 outlines medium- to long-term reforms. However, to reassure citizens in the immediate term, the following priorities are recommended for the ?rst 180 days: ? Launch extensive 2D seismic surveys followed by 3D surveys in frontier onshore areas. ? Expedite the 50- and 100-well drilling programs and evacuate stranded gas from Bhola Island to the national grid. ? Initiate a special drilling project in Chattak and accelerate exploration in the Chittagong Hill Tracts. ? Launch fresh PSC bidding rounds for onshore and offshore blocks by June 2026, supported by proactive petroleum diplomacy to attract major IOCs. ? Fast-track the fourth FSRU and a land-based LNG terminal; review the canceled third FSRU contract and suspended RLNG import negotiations. ? Review gas utilization strategy and prioritize supply for value-added sectors such as ef?cient power plants, fertilizer, and industry. ? Finalize decisions on domestic coal exploration and utilization. ? Reform the administrative structure of Petrobangla companies, integrate exploration, drilling, and production into a single entity, and restructure large distribution companies such as TGTDCL. ? Review salary and compensation structures in the gas sector and introduce performance-based incentives. Finally, clarity is needed regarding any interim trade agreement with the United States. Before con?rmation, the BNP government should present the details in Parliament. Such agreements must not compromise Bangladesh’s sovereign rights over its petroleum resources or its freedom to negotiate and import energy from any country in the national interest

L o w – c a r b o n h y d r o g e n is rapidly emerging as a crucial solution to support a cleaner energy future.

its greatest potential lies in decarbonizing hard-toabate sectors, including iron and steel production, chemical manufacturing, and long-haul transport. With less than 1% of global hydrogen supply currently low-carbon, blue hydrogen serves as a critical transitional solution to scale production and move toward a hydrogen-based economy.

according to IDTechEx’s latest report, ‘Blue Hydrogen Production and Markets 2026-2036: Technologies, Forecasts, Players’, the global blue hydrogen market is projected to reach US$52 billion by 2036, growing at a CAGR of 22%. Blue hydrogen is produced from fossil fuels using conventional methods combined with carbon capture, utilization, and storage (CCUS) technologies. Conventional hydrogen production, also known as grey or black hydrogen, releases CO2 directly into the atmosphere.

in contrast, blue hydrogen captures most of the CO2, storing it or utilizing it for industrial use, signi?cantly reducing its carbon footprint.

Just 32 fossil fuel companies were responsible for half the global carbon dioxide emissions driving the climate crisis in 2024, down from 36 a year earlier, a report has revealed. Saudi Aramco was the biggest state-controlled polluter and ExxonMobil was the largest investorowned polluter. Critics accused the leading fossil fuel companies of ‘sabotaging climate action’ and ‘being on the wrong side of history’ but said the emissions data was increasingly being used to hold the companies accountable. State-owned fossil fuel producers made up 17 of the top 20 emitters in the Carbon Majors report, which the authors said underscored the political barriers to tackling global heating.

Valiant Freedom Fighter Iqbal Hassan Mahmood, MP, was born on 10 May 1950 in a distinguished Muslim family in Sirajganj. He is the son of Abdullah Al-Mahmud and Begum Abeda Khatun. His father was a renowned political ?gure who served as Minister for Power, Energy and Mineral Resources and Water Resources in the then Pakistan government, and was also a Member of the National Assembly of Pakistan, the Bengal Legislative Assembly, and the Indian Legislative Council. From an early age, he was deeply in?uenced by his family’s legacy of public service and leadership.

academic Excellence and Early Leadership Throughout his academic career, Iqbal Hassan Mahmood demonstrated outstanding merit and leadership qualities.

in 1975, he completed both his Bachelor’s (Honours) and Master’s degrees from the University of Dhaka. During his student life, he actively engaged in social, cultural, and political activities, shaping his future commitment to national service. His spouse, Rumana Mahmood, is a former Member of Parliament. He is the proud father of one son and one daughter. Role in National Movements and the Liberation War Iqbal Hassan Mahmood played a signi?cant role in the historic movements that shaped the nation’s destiny.

as a member of the East Pakistan Students’ Union, he actively participated in the historic ElevenPoint Movement of 1969.

in 1971, he joined the Great War of Liberation, contributing to Bangladesh’s struggle for independence with courage and patriotism. His participation in the Liberation War remains a de?ning chapter of his life and public service. Parliamentary and Political Career In the post-independence period, Mr. Mahmood continued his active engagement in national politics. He was elected as a Member of Parliament four times through direct vote, re?ecting the trust and con?dence placed in him by the people. He served as a Member of the Law Commission and made notable contributions at both organizational and policy-making levels as a Member of the National Standing Committee of the Bangladesh Nationalist Party. His political philosophy is ?rmly rooted in democracy, rule of law, institutional governance, and people-centered development. Leadership in Industry, Commerce, and Trade Alongside his distinguished political career, Iqbal Hassan Mahmood has accumulated over four decades of experience in industry and commerce. He has served as a sponsor director in numerous industrial ventures and played a pivotal role in advancing Bangladesh’s private sector development. He was a former Director of the Bangladesh Shilpa Rin Sangstha (BSRS), a leading industrial ?nancing institution of the country. He also served as President of the Dhaka Chamber of Commerce and Industry (DCCI), contributing signi?cantly to trade promotion and policy advocacy. His leadership roles in major industrial enterprises include: ? Managing Director of Apex Weaving and Finishing Mills Limited ? Former Director of Apex Tannery Limited ? Former Deputy Managing Director of Apex Foods Limited ? Former Deputy Managing Director of Apex Spinning and Knitting Mills Limited Since 1978, he has represented Bangladesh in various international forums, promoting the country’s exportoriented industries and strengthening global trade relations. Commitment to National Development The life and career of Minister Iqbal Hassan Mahmood re?ect dedication, patriotism, visionary leadership, and unwavering commitment to democratic values. His contributions to politics, industry, and national development exemplify a lifelong pursuit of progress and prosperity for Bangladesh

The US Environmental Protection Agency (EPA) has repealed the 2009 Endangerment Finding that classi?ed greenhouse gases as a threat to public health, removing the legal basis used to regulate carbon emissions under the Clean Air Act.

the EPA issued a ?nal rule recently formally repealing the 2009 Greenhouse Gas (GHG) Endangerment Finding.

the move, announced by Administrator Lee Zeldin alongside President Donald Trump in the White House, eliminates the scienti?c and legal prerequisite used for nearly two decades to regulate carbon emissions and provide federal support for the transition to clean energy. By rescinding the ?nding, the EPA has effectively removed the statutory basis that allowed the agency to regulate carbon dioxide as a pollutant under the Clean Air Act. While the immediate focus of the announcement was the elimination of vehicle emission standards, the decision has immediate implications for the solar and energy storage sectors.

An environmental approval is paving the way for the development of a lique?ed natural gas (LNG) project in Indonesia’s Masela block, which is expected to play a signi?cant role in Asia’s energy security.

inpex Masela, a joint venture between Inpex and the Japan Organization for Metals and Energy Security (JOGMEC), has received environmental approval for the Abadi LNG project from the government of Indonesia based on the environmental and social impact assessment.

the approval for the LNG project, which is currently in the front-end engineering and design (FEED) stage, covers the core elements of the project from drilling operations to the construction and operation of production and processing facilities, as well as the natural gas liquefaction plant, marking what is perceived to be a signi?cant milestone in the development of the project.

The Department of Environment (DoE) has ?ned Bangladesh Petroleum Corporation (BPC) Tk 9.6 lakh for illegally cutting a hill in Chattogram’s Jamalkhan area.

the penalty was imposed recently following a hearing at the DoE’s Chattogram Metropolitan of?ce.

the order was issued by Sonia Sultana, director of the department.

according to DoE of?cials, an investigation team visited the site on February 22 following allegations of hill cutting at a location known as ‘Joy Pahar.’ During the inspection, of?cials found evidence that approximately 9,600 cubic feet of hill soil had been removed. Md Muktadir Hasan, assistant director of the DoE’s Chattogram Metropolitan of?ce, said BPC was constructing a rest house on the hill and had removed soil to build a retaining wall at its slope.

after the evidence was established, BPC of?cials were summoned for a hearing.

two representatives of the agency attended and admitted to the hill cutting, Muktadir added.

Google plans to deploy a 300 MW/30 GWh iron-air battery system in Minnesota under an agreement with Xcel Energy, pairing it with 1.6 GW of new wind and solar. Google has reached a de?nitive agreement with Xcel Energy to deploy a massive 300 MW/30 GWh iron-air battery system in Pine Island, Minnesota. The project, using technology from Form Energy, is set to become the largest battery system by energy capacity announced globally, providing a blueprint for how Big Tech intends to ?rm up intermittent renewables to meet the relentless power demands of the AI era.

the project is a cornerstone of the new ‘Clean Energy Accelerator’ agreement, a regulatory framework that allows Google to cover the costs of the deployment directly. Xcel Energy said the framework is designed to ensure the 100-hour longduration energy storage (LDES) system, paired with 1,400 MW of wind and 200 MW of solar, does not impact the rates of its residential customers.