Bangladesh Needs $30b in Climate Funds, But Struggles to Get $1-$2b from IMF: Advise

Bangladesh needs $30 billion annually to tackle climate change impact, but bringing just $1-$2 billion from the IMF feels like an exhausting struggle, said Finance Adviser Dr Salehuddin Ahmed recently. Negotiations with the International Monetary Fund (IMF) forsecuring $5 billion will begin soon, he added when speaking at the inauguration of a training session titled ‘Navigating Climate Finance: Media Reporting’ held at PKSF auditoriuminAgargaon,Dhaka.

The Economic Relations Division and Palli Karma-Sahayak Foundation (PKSF) jointly organized the event.

The adviser said Bangladesh is among the countries most vulnerable to climate change due to its geography, frequent natural disasters, and large populations living on the margins in areas like Patuakhali and Shyamnagar.

Most of the crises here are man-made, he noted, adding that globally ‘we talk endlessly about climate change, but act too little.’ Against this omnipresent lethargy, Bangladesh stands as a crucial exampleofresilience and community-driven response, Salehuddin said.

Ghorashal Thermal Power Plant Shut for 2.5 Months

Power generation at the 1,105-megawatt (MW) Ghorashal Thermal Power Plant in Narsingdi has remained suspended for around two and a half months due to multiple factors, including an ongoing gas crisis, according to its Chief Engineer Enamul Haque. Citing theprolongedshortage,he said production stopped at three major units this June — Unit-5 (210 MW) on June 9, Unit-4 (360 MW) on June 13, and Unit-7(360MW)onJune14.

The government has diverted gassupply tofertilizerfactories, prompting the Ministry of Power, Energy and Mineral Resourcestorequestalternative supplyarrangementsforpower generation.

Enamul Haque said that Units 4, 5 and 7 are mechanically sound and could resume operation immediately once gas becomes available.

Earlierin June,Unit-3 (360MW) went offline afteritsturbine rotor blades were damaged.

Repair work is now in the final stage and the unit will also resume generation once gas supply is ensured.

Indian State Awards Adani, Torrent Power Contracts for 2,400 MW Coal Plants

Adani Power and Torrent Power have bagged orders to cumulatively set up 2,400 megawatt (MW) coal power plants from the Indian central state of Madhya Pradesh, the two companies said in separate statements.

MP Power Management Company has awarded a contract to Torrent Power to supply 1,600 MW from a new coal-based power plant that would require an investment of 220 billion rupees ($2.51 billion), according to a statement by the company.

Adani Power would supply power in the central Indian state from a new 800 MW thermal power plant with an investment of 105 billion rupees ($1.20 billion), its fourth major power supply order in the last 12 months, the company said in a separate statement. PrimeMinisterNarendraModi’s government aims to lift coalbased power capacity by 80 GW to more than 290 GW by 2032, an increase of over onethird, to ensure a reliable, round-the-clock supply.

EverllenceCO2Compression Technology forUKFlagshipCCSProject

Everllence has been commissioned to supply the CO2 compression systems for Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) – two flagship projects within the UK’s government-backed East Coast Cluster decarbonization initiative in northeast England. NZT Power is poised to be the UK’s first commercialscale gas-fired power plant with integrated carbon capture and storage (CCS). NEP will provide the transportation and storage backbone of the East Coast Cluster, gathering CO2 from NZT Power and other industrial sources and permanently storing it in offshore geological formations beneath the North Sea – helping to decarbonize local power generation and industry on Teesside. Developed as a joint venture between bp and Equinor, NZT Power will generate more than 740 megawatts of dispatchable low-carbon electricity, equivalent to the average annual consumption of more than one million UK homes, while capturing up to 2 million tonnes of CO2 per year.

TVA Signs Nuclear Deal aimed at Deploying 6 GW of Small Modular Reactors

The partners claim this collaboration could provide enough energy to power the equivalent of approximately 60 new data centers as artificial intelligence (AI) drives unprecedented growth in electricity demand.

The Tennessee Valley Authority (TVA) has signed an agreement with ENTRA1 Energy (ENTRA1), which plans to develop up to six gigawatts (GW) of nuclear power generation in TVA’s seven-state service territory.

ENTRA1 is a strategic partner of NuScale Power, a small modular reactor (SMR) developer.

ENTRA1 would drive the deployment, financing, investment, development, execution and management of ‘ENTRA1 Energy Plants’ that have NuScale’s SMRs inside.

ENTRA1 aims to develop and own six ENTRA1 energy plants and sell the output to TVA under power purchase agreements (PPAs).

The partners claim this collaboration could provide enough energy to power the equivalent of approximately 60 new data centers at a time when artificial intelligence (AI) and other e n e r g y – i n t e n s i v e technologies are driving unprecedented growth in electricity demand.

Gas Explosion in Narayanganj Burns 5 of a Family

Five members of a family, including three children, suffered burn injuries in a fire caused by an explosion of accumulated gas that had leaked from a cylinder at a building in Narayanganj’s Sonargaon upazila recently.

The victims are Manab Chowdhury, 40; his wife Bacha Chowdhury, 38; and their three daughters – Munni, 14, Tinni, 12, and Mouri, 6.

The injured are currently undergoing treatment at the National Institute of Burn and Plastic Surgery, said Shawon Bin Rahman, a resident surgeon of the institute.

He added that Manab suffered 70 percent burns on his body while his wife had 45 percent burns.

Munni had burns on 28 percent of her body, while Tinni sustained burns on 22 percent and Mouri 36 percent.

The incident occurred in a ground-floor room of the threestorey building at Kanchpur BSCIC industrial area.

Palli Bidyut Staff Go on Indefinite Sit-in over Dismissals

Officials and employees of 80 Palli Bidyut Samities (PBS) across the country have announced an indefinite sit-in protest, demanding withdrawal of dismissal orders and an end to what they described as harassment by the Rural Electrification Board (REB).

The announcement was made at a press conference at the Crime Reporters Association auditorium in Dhaka recently, where Deputy General Manager Mahfuzur Rahman read out a written statement.

Rahman alleged that the REB has failed to fulfil promises on structural reforms and resolution of professional issues.

Instead, the board has continued punitive actions, including dismissals, attachments, and harassment of staff.

On 17, 27, and 28 August alone, 30 officials and employees faced dismissal or disciplinary orders.

Employees also instructed staff to ensure an uninterrupted electricity supply and maintain customer services during the protest.

Experts Urge Bangladesh’s Proper Transition to RE

Energy experts at an energy talk in the capital on 23 August urged Bangladesh to phase out fossil fuels and ensure a just transition to renewable energy.

A group of nine green platforms organized the energy talk at the Liberation War Museum. “Renewable energy is cheaper and makes sense to be used for development for its sustainability,” said Khondaker Golam Moazzem,research director, Centre for Policy Dialogue, a non-government think-tank.

Over the years, Bangladesh pursued a flawed economic forecast and energy policy, ending up in overwhelming reliance on fossil fuel use, he said.

The result proved to be devastating, with a massive amount of money spent on paying capacity charges to idle power plants, requiring the payment of huge energy subsidies, he said.

Excessive expenditures, however, failed to reduce the country’s energy crisis, with frequent power outages occurring, affecting life and business, the energy expert said.

The energy talk was attended by over 200 students.

LNG Re-Gasification Nears Saturation Level

Ba n g l a d e s h ‘ s liquefied natural gas (LNG) regasification has reached almost the saturation level to around 1,053 million cubic feet per day (mmcfd) with the country’s two operational floating-storage and regasification units (FSRUs) running at 95.72-per cent capacity. With the present infrastructure the country has the capacity to re-gasify around 1,100 mmcfd in maximum, provided that both the FSRUs run in full capacity, a senior Petropangla official said. Currently, the FSRU, owned by US’s Excelerate Energy, has the capacity to re-gasify around 600 mmcfd of LNG and Summit Group’s FSRU has a capacity of 500 mmcfd.

To utilize both the FSRUs in full swing, Bangladesh will need to import 115 LNG cargoes in a year, said the official.

The state-run Petrobangla is importing a total of 108 LNG cargoes this year (2025), the highest number in a single year.

It has planned to import seven additional LNG cargoes to reach the saturation level for supplying natural gas to gasstarved state-run fertilizer factories.

Crisis Looms Over Rural Power Supply

The old proverb ‘a stitch in time saves nine’ seems highly relevant to the ongoing conflict between the Bangladesh Rural Electrification Board (REB) and the Palli Bidyut Samities (PBSs) over rural electricity supply.

This is not the first time such disputes have surfaced in Bangladesh.

Too often, problems are allowed to linger instead of being resolved.

Bureaucrats and political actors have long been accused of deliberately turning issues into crises to benefit from ‘crisis management.’ Likewise, the growing conflict between REB and PBS has now reached a stalemate.

Both sides REB as regulator and coordinator, and PBS officials are blaming each other. PBS officials argue that while they are responsible for delivering electricity to rural areas, most of the risky fieldwork is handled by contract staff. Permanent employees, they claim, face rank discrimination.

Their biggest grievance, however, is that procurement authority rests with REB.

According to PBS, REB overspends on low-quality products, which often cause system failures yet PBS is blamed when things go wrong.

REB rejects these allegations.

It insists that all purchases are made through competitive bidding in line with technical standards.

It also maintains that PBS staff were hired under a defined structure that cannot now be altered.

Instead, REB accuses PBS officers and staff of committing a grave offense cutting off electricity supply during their protests over the past year.

To stop this, REB argues, it had no choice but to pursue legal action.

The question arises: Was this crisis unknown to the Power Division?

Certainly not.

Every detail was known. Yet the division has not taken concrete action to resolve it.

Many observers note that since two consecutive Power Division secretaries were promoted to principal secretary, and because the Prime Minister herself has held the power portfolio, a kind of dual governance has persisted.

As a result, when PBS officials first demanded in January 2024 that their positions be given parity with REB staff, the issue was left to committee formation and not pursued further.

After the fall of the Awami League government amid mass protests, PBS officers and staff launched fresh demonstrations.

They faced harsh criticism for power cuts, were charged with sedition, dismissed, and subjected to mass transfers.

This has put PBS at odds with both REB and the Power Division.

Most recently, PBS declared a mass leave program, but withdrew it following a warning from the energy adviser, who urged patience and assured that the government was working sincerely to resolve the dispute.

US Model of Rural Electrification in Bangladesh Article 16 of Bangladesh’s Constitution guarantees citizens the right to electricity and energy.

But in the mid1970s, electricity was still considered a luxury even in urban life, with less than 15% of the population having access.

At that time, the U.S.

Government offered support to expand access to rural areas. With USAID assistance, the US-based National Rural Electric Cooperative Association (NRECA) began discussions in 1976 to replicate the American cooperative model in Bangladesh.

Until then, rural electrification was managed by the Rural Electrification Wing of the Bangladesh Power Development Board (BPDB).

In 1977, through a Presidential Order, this wing was dissolved, and the Bangladesh Rural Electrification Board (BREB) was created.

The order directed the new board to supply electricity to rural areas through cooperatives modeled after NRECA.

In 1978, 13 PBSs were formed, including what is now Dhaka PBS-1.

On June 2, 1980, electricity was first supplied to Kamalpur village in Dhamrai Upazila, Manikganj.

At the time, BPDB still handled distribution, but revenue collection and system losses were major challenges losses were as high as 70% in some areas.

From the start, PBSs focused on revenue collection and loss reduction.

Managed by consumer-elected committees, PBSs operated outside the conventional utility framework in Bangladesh.

All PBS assets are owned by their members the consumers themselves.

Today, the number of PBSs has grown to 80.

Of these, 12 are profitable, while the others rely on cross-subsidies. Currently, PBSs supply more than 60% of all electricity in Bangladesh, enabling 100% rural electrification. With rising rural living standards, demand has surged.

As of April, peak demand in PBS distribution areas reached 10,541 MW.

The REB-PBS Crisis By law, REB staff are government employees, while PBS staff work under cooperative rules.

REB employees follow the government pay scale, while PBS salaries are higher. PBS officials from Assistant General Manager (AGM) upward are transferable, but lower-level staff are not a rule that has not been applied consistently.

Moreover, ranks from AGM to GM are technically transferable, but their equivalence with REB positions is unclear.

As a result, many senior PBS officials must work under REB juniors.

Investigations show that the status of a PBS General Manager (GM) is undefined.

REB informally claims that a GM is equivalent to a company director, but this is not backed by any official circular. PBS officials argue instead that a Senior GM should equal an Additional Chief Engineer in other power companies; a GM, a Superintendent Engineer; a DGM, an Executive Engineer; and an AGM, an Assistant Engineer. Despite years of petitions, REB has shown little interest in resolving the issue.

REB-PBS Operational Relationship REB controls about 80% of infrastructure procurement, funded mainly by donor loans.

The government borrows from donors at 0.75% interest, lends to REB at 2%, and REB, in turn, lends to PBS at 3% after procurement. PBS directly manages the remaining 20% of procurement with its own funds, often by pooling resources with two or three PBSs.

Allegations of corruption are widespread in REB’s large-scale procurement. PBS claims that REB often procures substandard equipment and forces it on them.

Another flashpoint is cross-subsidies. Profitable PBSs send funds to REB, which then redistributes them to lossmaking PBSs after deducting loan repayments. PBS officials argue that profitable societies should directly subsidize weaker ones to avoid irregularities.

Movement Ongoing, Program Suspended PBS’s movement has stretched nearly 19 months, beginning in January 2024 with a memorandum. During the interim government, they escalated to work stoppages, even cutting electricity supply in some areas a move widely condemned.

REB retaliated by charging 33 people with sedition, dismissing staff, and enforcing mass transfers. What began as one demand eventually grew to seven. Last year, PBS staged a sit-in at Shaheed Minar for nearly two weeks. Negotiations led to agreements to withdraw cases, reinstate dismissed staff, return transferred employees, and form two committees to consider whether PBS should merge with REB or be corporatized.

Following this, the protests paused.

In January and April this year, the rural electrification association submitted memorandums, signed by 28,307 employees, to the energy adviser demanding withdrawal of cases, reinstatement of dismissed workers, resignation of the REB chairman, a uniform service regulation through merger or restructuring, and regularization of contract staff.

They alleged that REB sought to rearrest those already out on bail, prompting renewed protests, including a mass leave program. Power supply was disrupted in some areas.

But after warnings and assurances from the adviser, the association suspended the strike and asked staff to return to work. Protester’s Charter of Demands The protesters have continued to press seven demands, the central one being the merger of PBS with REB: 1.

Removal of the REB chairman, accused of destabilizing PBS through repressive measures. 2.

Merger of REB and PBS under a uniform service regulation, or restructuring in line with other power distribution entities. 3.

Regularization of meter readers, line workers, and dependent employees. 4. Withdrawal of ‘false’ cases and reinstatement of dismissed staff. 5. Cancellation of punitive transfers and restoration of affected workers. 6.

Implementation of fixed working hours and urgent recruitment to fill staff shortages. 7.

Formation of an interim board to oversee PBS operations until reforms are completed. Press Conference by the Energy Adviser On September 11, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan urged protesting officials to return to work or face legal action.

He warned, ‘Those who refuse to return despite the government’s call will face strict measures.

If necessary, alternatives will be arranged to keep rural electricity running.

Thousands are willing to step in.’ He acknowledged that some demands were reasonable but suggested that ‘anti-election elements’ might be exploiting the movement.

He stressed the government’s willingness to discuss solutions but insisted that protests disrupting service were unacceptable.

The adviser said that, according to committee findings, 3,029 transfers had taken place, some routine.

Already, 803 staff had been reinstated.

He added that while many employees wanted to return to work, some were being obstructed. Legal measures were underway, including three General Diaries filed.

He also confirmed that the government was considering turning PBS into companies, though this required legal and regulatory reforms.

Meanwhile, a seven-member committee was investigating procurement corruption. Conclusion Resentment in the rural electrification system is reaching a breaking point.

Both REB and PBS remain entrenched. CAB’s energy adviser, Professor Shamsul Alam, believes the scope for negotiation has narrowed due to the Power Division’s inaction.

He warns that forming regional companies under which PBS would operate would only worsen the crisis by reducing staff and pressuring tariffs upward.

He arguesinstead for a merger of REB and PBS. CAB has even filed a case in court.

Analysts, however, believe time is needed.

They recommend resolving the issue within a defined period by withdrawing cases and reviewing grievances, whileREBandPBSwork towarda compromise.

Everyone agreesthe current impasse is unsustainable.

If unresolved, rural electricity supplywillfacemajordisruptions, undermining quality service and national goals.Yet,withelectionslooming in February, a senior Power Division official privately admitted that the interim government is unlikely to act.

Experts argue that the only path forward is dialogue addressing legitimate demands while setting aside the contentious merger issue.

But this will require flexibility from both REB and PBS, and, most importantly, leadership from the Power Division.