Category: Energy and Power

The Advisers Council Committee on Government Purchase recently approved several fuel oil and crude oil import proposals to meet the country’s growing energy demand during 2026. The approval came from the 1st meeting of the Advisers Council Committee on Government Purchase in this year held recently at the Cabinet Division Conference Room at Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair.

under the government-togovernment arrangements, re?ned fuel oil will be imported from seven companies of different countries at an estimated cost of Taka 10,826.11 crore during the January-June period of 2026.

the suppliers include PetroChina, China, ENOC, UAE, IOCL, India, OQT, Thailand, PTLCL, Malaysia, BSP, Indonesia, and UNIPEC, China

The Bangladesh Power Development Board (BPDB) has warned that electricity supply could face immediate disruption, raising the risk of load-shedding, if generation from SS Power I Limited is suspended due to unpaid bills exceeding Tk4,000 crore. BPDB of?cials acknowledged that even a partial shutdown of the coal-?red power plant, which supplies over 1,100 megawatts to the national grid, would create an instant supply gap, despite lower electricity demand during the winter season.

the warning comes after SS Power informed BPDB that persistent payment delays have severely strained its operations, limiting its ability to procure coal, spare parts and other essentials. In a letter, the company said it would be forced to shut down at least one unit unless overdue payments are settled by 15 January. BPDB of?cials stressed that the loss of reliable baseload generation at this stage would signi?cantly heighten the risk of load-shedding, particularly as alternative sources are already stretched

The 16th International Renewable Energy Agency (IRENA) Assembly convened from 10-12 January 2026 in Abu Dhabi, marking the ?rst international energy meeting of the year. Under the theme ‘Powering Humanity: Renewable Energy for Shared Prosperity’, the global gathering brought together 1,500 ministers and highlevel delegates from IRENA’s 171 Member States, CEOs, investors, international organizations and youth to build a shared agenda and international cooperation priorities for a better energy future the international community can rally in 2026. Key discussions focused on regional energy transitions, critical enablers like grids, energy planning, digital innovation and Arti?cial Intelligence (AI), mobilizing ?nance including sustainable aviation fuels as well as the question of how renewables can boost agri-foods systems and green industrialization

Bangladesh has taken a major step towards its ?rst National Climate Finance Strategy, aiming to bridge the gap between ambitious climate commitments and the ?nancing needed to protect vulnerable communities.

through a series of nationwide consultations, from November to December 2025, convened by the Finance Division, with UNDP providing technical assistance and ?nancing from Agence Française de Développement (AFD) under the Inclusive Budgeting and Financing for Climate Resilience (IBFCR II) project, the country is laying the foundation for a comprehensive roadmap to mobilize and manage climate ?nance at scale. Climate ?nance is increasingly woven into Bangladesh’s public ?nancial management systems, and these dialogues will further deepen that integration and unlock new investment streams for resilience.

The state-run BCIC has sought Payment Crisis Deepens an uninterrupted supply of at least 197 million cubic feet of gas per day (MMCFD) to keep four urea fertilizer factories operational for 11 consecutive months.

the Bangladesh Chemical Industries Corporation (BCIC) recently made a proposal to the Ministry of Industries (MoI) for taking its necessary steps to this effect in line with the recommendations of a committee formed by the Energy and Mineral Resources Division.

the corporation has also requested the authorities to amend Clause 10.3 of BERC (Bangladesh Energy Regulatory Commission) Order No. 2023/20 in order to raise the guaranteed daily gas supply to 197 MMCFD from 140 MMCFD for the sake of uninterrupted fertilizer production.

the BCIC, operating under the industries ministry, runs seven fertilizer factories. Urea fertilizer alone accounts for nearly 80 per cent of BCIC’s overall output, sources said, adding that the corporation currently runs ?ve urea fertilizer plants, all of them heavily dependent on natural gas as their primary raw material. Due to a severe gas crisis in the country, an uninterrupted gas supply to most urea factories remained largely unavailable since 2007-08. Gas supply remains suspended between April and November each year, forcing the BCIC fertilizer plants to shut their production for extended periods routinely, it was learnt

Bangladesh’s EGCB is inviting construction and consulting ?rms interested in working on the 220 MW Sonagazi solar project to contact the company for further details.

a closing date has not been published.

the 220 MW Sonagazi plant, approved earlier this month, will be built in southeast Bangladesh near an existing 75 MW facility.

once completed, it will be the country’s largest solar power project to date.

the procurement notice says the project comprises both the construction of the solar power plant and consultancy services, including design review, supervision, and monitoring. Construction works cover the design, supply, installation, testing, and commissioning under an engineering, procurement and construction (EPC) contract.

the project will be jointly ?nanced by the government of Bangladesh, EGCB, and the Islamic Development Bank, which has committed $143.28 million.

eligible ?rms interested in providing goods, works, or consulting services should contact EGCB; no closing date has been set.

Continued strategic dominance of and heavy reliance on fossil fuels remain the primary obstacles to the expansion of renewable energy-based power generation, according to a new research report. Governance de?cits, policy neglect, and collusion by vested interest groups are exacerbating longterm environmental and economic risks in the renewable energy sector, it said. This alarming picture has emerged from the report titled ‘Generating Power from Renewable Energy in Bangladesh: Governance Challenges and Way Forward’, unveiled by Transparency International Bangladesh (TIB) at a press conference at its Dhanmondi of?ce recently.

tIB Executive Director Dr Iftekharuzzaman, Adviser and Executive Management Prof Dr Sumaiya Khair, and Director of the Research and Policy Division Muhammad Bodiuzzaman were present at the event.

Global coal demand is forecast to edge down through the end of this decade as competition intensi?es with other power sources – including renewables, natural gas and nuclear – according to the 2025 edition of the IEA’s annual market report. Coal 2025, out recently, explores current market dynamics and provides forecasts through 2030 for demand, supply and trade at the global and regional level. It also examines key trends in investment, costs and pricing.

the report ?nds that global coal demand is on course to rise by 0.5% in 2025, reaching a record 8.85 billion tonnes.

in several major markets, consumption patterns diverged from their recent trends. In India, an early and intense monsoon season resulted in a decline in annual coal use for only the third time in ?ve decades.

in the United States, higher natural gas prices and policy measures that slowed coal plant retirements lifted coal consumption, which had been on a downward trajectory for the previous 15 years.

The Bangladesh Independent Power Producers Association (BIPPA) has expressed profound grief and sorrow at the death of Begum Khaleda Zia, former three-time Prime Minister of Bangladesh and the country’s ?rst female Prime Minister.

in a condolence message, the President of BIPPA prayed for the forgiveness of the departed soul and conveyed deep sympathy to the bereaved family members.

on behalf of all members and the Board of Directors of BIPPA, prayers have been offered for eternal peace of the departed soul.

Wh ile the global fashion demands sustainability, the embassy of Sweden has launched ‘InSPIRE’ – a green transition initiative, to support Bangladesh’s RMG sector pivot to clean energy- turning climate challenges into competitive advantage. Bangladesh’s ready-made garment (RMG) sector-the lifeblood of its economy-stands at a crossroads.

as the country’s economic backbone, generating nearly 80% of export earnings and employing millions, the RMG industry must rapidly transition to cleaner, more energyef?cient production to remain competitive amid tightening global sustainability requirements.

the global brands of fast fashion are tightening sustainability standards while climate risks loom large; the industry faces a stark choice: adapt or fall out of the game. With 15.4% of the country’s greenhouse gas emissions contributed by the RMG industry, the stakes could not be higher. Yet, amid this challenge, a bold initiative is rewriting the script for industrial energy transition. InSPIRE-the Initiative to Stimulate Private Investment for Resource Ef?ciency- implemented by Swisscontact, has a transformative mission: accelerate the adoption of energy ef?ciency and renewable energy solutions in Bangladesh’s garment factories. By blending catalytic ?nancing with technical assistance, InSPIRE is de-risking and incentivising small and mediumsized factories to adopt green technology, while enabling energyservice companies (ESCOs) to scale innovative models.

inSPIRE mobilizes support in the form of a challenge fund modality, where a robust, transparent, and highly competitive selection process for ‘green projects’ is solicited.

the response from industry has been nothing short of remarkable. When InSPIRE opened its ?rst call for proposals in 2025, the program drew 94 applications, signalling a surge of interest in sustainable solutions. From this wave of ideas, the ?rst cohort of nine projects have been marking the kick-start of many more collaborations. On the energy ef?ciency front, factories are retro?tting servo motors, highef?ciency boilers, LED lighting, BLDC fans, advanced HVAC systems, and thermal energy recovery solutions like condensate recovery and G-traps. Renewable energy proposals include large-scale solar PV installations, hybrid systems combining battery storage, and biomass briquette setups-some even introducing pay-as-you-go solar models that could democratize clean energy access. Meanwhile, resource ef?ciency ideas such as low-liquor ratio dyeing machines, zeroliquid discharge ef?uent treatment plants (ZLD-ETP), and rainwater harvesting systems are designed to cut energy use by resource ef?ciency.

together, these projects signal a shift from incremental upgrades to transformative, scalable solutions that can rede?ne sustainability in the RMG sector. What makes this movement compelling is its projected impact.

the ?rst cohort of green projects alone is expected to deliver 14,269 MWh of annual energy savings and renewable generation- enough to power thousands of homes. Of this, 10,208 MWh will come from renewable sources, while 4,061 MWh will be saved through ef?ciency upgrades. The climate dividend? A reduction of 11,883 metric tons of CO2 equivalent every year, comparable to taking 2,500 cars off the road.

these numbers tell a powerful story: sustainability is no longer a cost centre; it’s a competitive advantage.

the sectoral footprint of these projects is just as revealing.

they cut across the very fabric of Bangladesh’s garment ecosystem, with the lion’s share anchored in woven and textile units- responsible for an impressive 10,928 metric tons of CO2e reductions annually. This is followed by washing facilities at 613 metric tons, sweater factories at 183, and accessory units at 159 metric tons of annual CO2e reductions.

it’s clear: sustainability is touching every corner of the garment industry. Behind the scenes, InSPIRE is doing more than funding projects.

through industry engagement events, the initiative is building bridges between garment factories, energy service providers, ?nancial institutions, and energy thought leaders-connections that make technology adoption easier and ?nancing more accessible.

this convening role is critical, especially for smaller factories that often struggle to navigate the complex terrain of green investment. By fostering these linkages, InSPIRE is laying the groundwork for systemic change. While blended ?nance is not a new concept in green transition in Bangladesh, what truly sets InSPIRE apart is the scale of private sector commitment-RMG factories are driving the transition, contributing most of the project investment.

in its ?rst cohort, InSPIRE mobilized 74% of investment from the private sector RMG factories, with the remaining 26% contributing from its challenge fund.

this blended approach not only reduces risk but alsosignals con?dence in the commercial viability of sustainable solutions.

it’s a template that could be replicated across other sectors, amplifying the impact of climate ?nance. Looking ahead, the vision is ambitious, yet achievable.

inSPIRE aims to scale its pipeline, targeting medium and small factories that have historically been left behind in the green transition. By experimenting with consortium-based models-bringing together brands, ?nanciers, and technology providers- the initiative hopes to unlock even greater impact.

the message is clear: sustainability is not a niche; it’s the future of industrial competitiveness.

this transformation is unfolding against the backdrop of a broader partnership between Sweden and Bangladesh, rooted in shared commitments to climate action and sustainable growth. Sweden has long championed renewable energy and resource ef?ciency, and through initiatives like InSPIRE, it is helping Bangladesh’s RMG sector align with global net-zero goals.

the Embassy of Sweden also partners with Swisscontact on PROGRESS-a project that helps garment factories set sustainability goals, craft climate action roadmaps, and build green skills for the future.

the collaboration underscores a powerful truth: climate action and industrial growth are not mutually exclusive-they can, and must, go hand in hand.

as Bangladesh positions itself in the global green economy, the garment industry’s pivot to clean energy is more than an environmental imperative; it’s a strategic move to safeguard jobs, exports, and reputation.

inSPIRE is proving that with the right mix of innovation, alternative ?nance, and collaboration, the sector can turn climate challenges into opportunities. The race toward sustainability has begun- and Bangladesh’s apparel industry is determined to lead