Category: Energy and Power

V i e t n a m e s e Minister of Industry and Trade Nguy?n H?ng Diên and S i n g a p o r e a n Minister-inCharge of Energy, and Science and Technology in the Ministry of Trade and Industry Tan See Leng have agreed to continue close coordination in implementing key areas of cooperation, particularly in energy, industry, trade, and science and technology.

The two ministers held talks in Hà N?i on October 10 as part of Tan’s trip to attend the 19th Vi?t Nam-Singapore Connectivity Ministerial Meeting.

They noted that bilateral economic and trade relations have continued to develop substantively and comprehensively, forming a key pillar of the Vi?t Nam-Singapore bilateral relationship.

A major focus of the meeting was the proposed renewable energy export project from Vietnam to Singapore.

Both sides discussed options for direct transmission between the two countries as well as indirect connections through a third country. Diên underlined the project’s strategic significance, not only for the bilateral ties but also for the formation of an integrated ASEAN power grid.

Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan recently said the price of liquefied petroleum gas (LPG) must be kept under control to tackle the country’s short-term energy crisis, stressing that consumers will not benefit properly unless the price of a 12kg LPG cylinder comes down below Tk 1,000.

Speaking at a policy conclave titled ‘LPG in Bangladesh: Economy, Environment and Safety’ held at a city hotel, the adviser said the current market price of a 12kg cylinder – over Tk 1,200 – is depriving both industrial and household users of fair benefits.

Expressing frustration, he said, ‘Traders are selling LPG cylinders worth Tk 1,200 at Tk 1,400 – they must take responsibility for this. Reckless business practices cannot continue.’ He warned that mobile courts would be deployed to curb overpricing in the LPG market.

The adviser accused a section of politicians and their business allies of deliberately creating an artificial energy crisis.

Summit Power reported a whopping 88 per cent yearon-year decline in profit to Tk 0.41 billion in FY25 due to the shutdown of nearly half of its plants and an impairment loss of Tk 1.52 billion shown in its financial statements.

As the government has shifted its power policy towards renewable energy and has become increasingly cautious about purchasing electricity from private producers to cut costs, companies like Summit Power are taking a major hit.

Around 77 per cent of Summit’s plants run on heavy fuel oil (HFO), making them vulnerable to falling demand from the government.

Summit Power’s earnings plunged to Tk 0.38 per share in FY25 from Tk 3.13 per share the year before.

The scheduled trial run of Rooppur Nuclear Power Plant’s first unit in December 2025 is now unlikely, while it is also uncertain whether the second unit can begin production as planned in December 2026, according to the Implementation Monitoring and Evaluation Division (IMED). Despite the revised schedule, neither unit is expected to begin electricity generation within the planned timeline, according to the IMED’s report based on its findings from the project office.

The report also notes that the project office could not provide any information on when electricity generation for the units might actually begin.

They also failed to provide a list of unfinished tasks.

The IMED has advised the project director to prepare a time-bound action plan in coordination with the Russian contractor, Atomstroyexport, covering manpower deployment and procurement schedules.

According to the LevelTen Energy Q3 2025 North America PPA Price Index Report, P25 solar PPA prices increased by 4% quarter over quarter, driven largely by President Trump’s ‘One Big Beautiful Bill’ Act and Treasury guidance on tax credit qualification. Prices are also being driven up by tariffs that have taken effect on metals such as steel, copper and aluminum.

In the report, LevelTen states that in response to these policy shifts, developers ‘are working hard to safe harbor as many projects as possible – helping bolster tax-credit-eligible project supply for buyers’.

In terms of wind, a similar trend is visible. P25 wind prices rose by nearly 5% in Q3, and show a 14% rise year over year.

Again, LevelTen highlights the impact of policy headwinds, such as shifts in federal review and approval processes and the revoking of project approvals granted under the previous administration. Prices are going up and wind developers require prospective buyers to be open to risk-sharing.

Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan has said that all government agencies must transition to renewable energy within the next two to three years to set an example for the nation. ‘Mitigation is not just about how much we produce – it is also about how responsibly we consume,’ she said, calling for sustainable practices to be adopted across all sectors. Rizwana, also the adviser to the ministry of Water Resources, was speaking as the Chief Guest at the opening plenary session of an international conference titled ‘Road to COP30: How Can National Interests Be Aligned with Global Climate Goals?’ held recently at BRAC Centre Inn in Dhaka.

The theme of the conference is ‘A World Beyond Crisis: Climate Solutions That Work’, according to a press release issued by the ministry.

Highlighting the country’s progress in environmental governance, she said the Department of Environment (DoE), with support from the World Bank, is constructing green office complexes in various regions and developing a model for eco-friendly buildings in collaboration with architects and engineers to promote energy efficiency.

Daily life in 12 upazilas of Sunamganj has been thrown into disarray as residents endure up to 18 hours of loadshedding each day due to an acute power shortage. Consumers, particularly students appearing for the final examination, are the worst sufferers as the district has been left without electricity at night. During the day, elderly people struggle to cope with extreme heat without electricity, with small and medium business people facing financial losses.

Officials of Sunamganj Rural Electricity Cooperative said the district has 375,000 consumers under its coverage.

The demand for the electricity in the district is 70-75 MW but only 35-40 MW is supplied daily due to a national shortfall in electricity production, resulting in 50- 60 percent load shedding, according to them.

Millions of people worldwide now live with the adverse consequences of climate change on every single day, and Bangladesh is one of the nations most vulnerable.

Almost every year, Bangladesh experiences floods, cyclones, riverbank erosion, salinity intrusion, and erratic rainfall due to its low-lying terrain, dense population, and reliance on agriculture and rivers.

Bangladesh produces less than 0.5% of the world’s greenhouse gas emissions, which is a very small contribution. Despite this, the nation is committed to contributing to global climate action while simultaneously looking for assistance to safeguard its citizens and economy.

In this regard, Article 6 of the Paris Agreement becomes an essential instrument for Bangladesh, providing a framework that enables nations to collaborate, pool resources, and develop creative solutions to cut emissions and prepare for climate change.

Bangladesh’s climate vulnerability may be turned into a chance for resilient development and sustainable progress if Article 6 is understood and used appropriately.

The distinctive feature of Article 6 is that it establishes pathways for global cooperation via both market-based and non-market-based mechanisms.

By trading emission reductions across national borders, market mechanisms like carbon trading allow nations to fulfill a portion of their Nationally Determined Contributions (NDCs). Conversely, non-market methods may not depend on financial transactions and instead emphasize collaborative ventures, information exchange, and capacity building.

These measures are useful avenues for Bangladesh to raise funds, gain access to new technologies, and expand climate-resilient projects that benefit millions of people in vulnerable regions; they are not just theoretical regulations.

The climatic profile of Bangladesh emphasizes how urgent this collaboration is.

The Global Climate Risk Index 2024 ranks Bangladesh among the top ten countries most affected by extreme weather events. Cyclone Amphan in 2020, for example, caused massive destruction along the coastal belt, displacing hundreds of thousands of people, damaging crops, and affecting livelihoods.

Similarly, riverbank erosion annually threatens thousands of families, forcing them to relocate and lose their land and homes. Forecasts indicate that if global warming persists uncontrolled, climate-related damages might cost Bangladesh up to 9% of its GDP by 2050.

Bangladesh’s updated Nationally Determined Contributions (NDCs) seek to cut emissions by 6.73% unconditionally and up to 21.85% conditionally by 2030 in light of this.

Article 6 is a strategic weapon in the nation’s climate toolbox since achieving these goals calls for both home and foreign assistance.

Article 6.2, one of the main elements of Article 6, permits nations to implement Internationally Transferred Mitigation Outcomes (ITMOs) in partnerships.

In short, ITMOs allow nations to receive credits for confirmed reductions in emissions that can be applied to their climate goals.

This system can generate genuine prospects for Bangladesh. For example, switching from conventional brick kilns to greener technologies like zigzag kilns, tunnel kilns, or hybrid Hoffman kilns can drastically cut carbon emissions.

These reductions can generate income for Bangladesh that can be used to fund more climate adaptation initiatives if they are validated and traded globally.

Similarly, ITMOs can be produced by growing solar energy projects, biogas facilities, and energy-efficient industrial systems, transforming regional climate action into international collaboration.

In addition to providing financial resources, these chances hasten the adoption of contemporary technology and sustainable practices, which are essential for a nation trying to strike a balance between environmental preservation and economic growth.

The Kyoto Protocol’s Clean Development Mechanism (CDM) is thought to have been replaced by the mitigation and sustainable development mechanism established in Article 6.4. Countries are able to carry out project-based emission reduction programs that produce internationally recognized credits thanks to this system.

Bangladesh stands to gain a great deal from this structure. Under this method, waste-to-energy programs, renewable energy projects, and natural solutions like Sundarbans mangrove restoration can all be eligible.

In addition to lowering emissions, these initiatives improve neighborhood resilience. Restoring mangroves along the shore, for instance, fortifies natural defenses against storm surges and cyclones, safeguarding agriculture, fisheries, and communities. Crucially, Article 6.4 highlights that mitigation strategies must support sustainable development, guaranteeing that initiatives offer co-benefits to the environment, society, and economy.

This can result in the creation of jobs for rural communities in Bangladesh, the improvement of soil and water quality, and the encouragement of inclusive growth in tandem with climate action.

A developing nation like Bangladesh may find Article 6.8’s emphasis on non-market strategies extremely beneficial. Without the need for cash transfers or carbon credits, non-market strategies promote global cooperation in fields including research, technological transfer, and capacity building.

Article 6.8 collaborations, for example, might assist Bangladesh in implementing climate-smart agriculture practices, enhancing community-based adaptation initiatives, and fortifying its early warning and climate data gathering systems. While strengthening national planning and governance capabilities, such collaboration can guarantee that adaptation initiatives reach the most vulnerable groups, including smallholder farmers, fishermen, and coastal communities.

Additionally, information exchange is encouraged by non-market channels, which are crucial for a nation looking to develop its capacity in catastrophe risk reduction, resilient infrastructure, and renewable energy. While Article 6 presents numerous prospects, successful implementation is not without obstacles.

Bangladesh has to establish comprehensive institutional structures to track, document, and validate carbon trades and emission reductions.

The country is now short of trained individuals, technological capabilities, and financing to deal with complicated carbon markets. Concerns over the fairness of market mechanisms are also widespread.

The climate advantages for vulnerable nations like Bangladesh may be limited if developed nations utilize carbon trading as a means of offsetting emissions without implementing significant domestic reductions.

Therefore, it is essential to make sure that Article 6 projects actually promote climate resilience and sustainable development. For Bangladesh, this entails giving top priority to initiatives that not only lower emissions but also safeguard ecosystems, boost social resilience, and offer real advantages to nearby populations.

In order to effectively implement Article 6, Bangladesh requires a national carbon cooperation strategy.

This entails establishing a nationwide carbon credit registry, standardizing project approval procedures, and guaranteeing open reporting to prevent duplication.

Energyefficient industrial processes, clean cooking technologies, and renewable energy can all be scaled up through public-private partnerships.

Institutional capacity will be increased by providing experienced staff, digital resources, and international assistance to government organizations like the Department of Environment (DoE) and the Ministry of Environment, Forests, and Climate Change (MoEFCC).

To maximize the advantages of Article 6 mechanisms, regional cooperation via SAARC and BIMSTEC platforms can also assist Bangladesh in exchanging information, gaining access to technology, and taking part in cooperative mitigation projects.

Another crucial factor is to ensure community involvement and equity. Projects under Article 6 must take into account the requirements of the most vulnerable groups impacted by climate change.

In Bangladesh, floods, cyclones, and saline intrusion frequently disproportionately affect women, children, and rural populations. Projects covered by Article 6 can enhance local ownership, provide social co-benefits, and boost the efficacy of climate initiatives by incorporating these groups in the planning and execution stages.

In order to guarantee that the advantages of climate action go beyond carbon accounting and monetary gains, community-based strategies also promote awareness, capacity building, and sustainable behavior change.

Bangladesh has already initiated actions to comply with Article 6. With assistance from foreign partners, pilot projects on carbon price, renewable energy certification, and emission accounting are being created. While making sure that emission reduction programs are in line with sustainable development aspirations, these initiatives seek to provide the groundwork for long-term involvement in global carbon markets.

The necessity of supporting Least Developed Countries (LDCs) and Climate Vulnerable Nations in gaining access to capital, technology, and capability under Article 6 is another way that Bangladesh continues to promote justice and fairness in international climate negotiations.

Bangladesh has an exceptional opportunity to coordinate native climate action with international collaboration through Article 6 of the Paris Agreement.

It is a bridge between aspiration and action, between vulnerability and resilience, and it is more than just a collection of technical rules.

Bangladesh can mobilize resources, embrace cutting-edge technologies, and create communities that are climate resilient through market processes, project-based cooperation, and nonmarket partnerships.

In addition, careful governance, openness, and inclusivity are necessary to guarantee that these mechanisms actually help the ecosystems and people most impacted by climate change. When properly applied, Article 6 can turn Bangladesh’s climatic problems into chances for social justice, economic expansion, and sustainable development.

In order to fulfill its obligations under the Paris Agreement and the aspirations of its citizens for a climate-secure country, Bangladesh can forge ahead with a greener, safer, and more prosperous future by utilizing international cooperation, encouraging local innovation, and incorporating climate resilience into all facets of development.

Bangladesh Petroleum Institute (BPI) has signed a memorandum of understanding (MoU) with five institutions to extend cooperation in the field of research, education, training, and technological development in Bangladesh’s energy and mineral resources sector.

The agreement was signed recently at the BPI headquarters, said a press release.

The five institutions are Department of Geology and Mining, University of Rajshahi; Institute of Mining, Mineralogy and Metallurgy, BCSIR; Department of Petroleum and Mineral Resources Engineering (PMRE), BUET; Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and CodersTrust Limited.

The Dhaka Electric Supply Company (DESCO), a stateowned power distribution entity, has reported losses for three consecutive years despite multiple electricity price hikes.

According to its latest audit report, the company incurred a cumulative net loss of around Tk630 crore over the past two fiscal years.

The audited financial summary for the 2024-25 fiscal year, published recently through the Dhaka Stock Exchange (DSE), highlights the extent of DESCO’s financial struggles. For FY2024-25, the publicly listed company recorded a post-tax net loss of Tk125.23 crore, translating to a loss per share of Tk 3.15. Due to this continued loss, the company has again decided not to issue any dividends to investors, marking the second consecutive year without shareholder returns.

In the previous fiscal year (2023-24), DESCO’s net loss was significantly higher at Tk505.56 crore, or Tk12.72 per share.