The government has begun work on achieving five key milestones to secure Bangladesh's energy future, with a strong push toward renewable energy and reducing dependence on imports, said Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir on Sunday.
Speaking at a dialogue titled "Renewable Energy in the Upcoming Budget: Expectations and Reality" organised by think tank Centre for Policy Dialogue (CPD) at a city hotel, Titumir said the country's energy sector had long been surrendered to oligarchs under import-dependent policies that left Bangladesh economically vulnerable.
"The entire energy sector was handed over to oligarchs and made import-reliant. Instead of driving industrialisation, energy policies pursued in the past made Bangladesh economically dependent on others," he said.
The adviser outlined five priority milestones guiding the government's energy roadmap:
First, the upcoming budget will allocate greater resources toward renewable energy which he described as the sector's top priority.
Second, energy pricing will be aligned with consumers' income levels.
"There are two categories of consumers: general consumers and industrialists who are investors. Among general consumers, there are three tiers: upper, middle and lower income groups. Prices will be set in accordance with each group's income, with due regard for the decisions of the regulatory commission." the adviser said.
Third, a new policy framework will be developed to encourage the uptake of renewable energy, with a view to moving from import dependence toward self-sufficiency.
Fourth, domestic gas exploration will resume. "Bangladesh will restart gas field exploration. Only relying on foreign agencies will not be allowed. Steps have already been taken to strengthen state-owned BAPEX to build domestic capacity," the adviser said.
Fifth, minimum fuel reserves will be maintained across all energy sources. "There was never any concept of strategic reserves in this sector. The government is now paying serious attention to that," Titumir said.
Titumir criticised the existing structure of the power sector, saying a large gap between installed capacity and actual utilisation was draining public resources. "Excessive capacity was retained knowing it would never be used, turning capacity charges into a serious burden."
He also questioned the legal basis of several power sector contracts, saying they were not in line with the country's energy security interests. "The structural upgrades needed to transition away from fossil fuels toward a liveable, environmentally safe framework were never made, which is a grave failing of Bangladesh's power sector."
On the recent rise in fuel prices, Titumir said price adjustments remained modest compared to the level of subsidies provided. "This modest adjustment alone pushed up inflation. Had diesel prices been raised earlier, it would have adversely affected agricultural production."
He pushed back against calls for fully market-aligned pricing, saying a government accountable to the people cannot simply raise prices at will, particularly amid the ongoing Middle East crisis.
Titumir said the current government aims to chart a new energy policy in the national interest, one that reduces foreign dependence and builds a stronger, more self-reliant energy sector for Bangladesh.