United News of Bangladesh

Egypt is seeking to build its renewable energy industry by manufacturing wind turbines domestically, a strategy that could offer lessons to other African countries trying to expand clean-energy production. Egypt has signed an agreement with Chinese company SANY Renewable Energy to develop a 2,000-megawatt wind power project in the Gulf of Suez, along with the country's first wind turbine manufacturing plant. The wind project is expected to be connected to Egypt's national grid within 23 months after the final agreements are signed. The factory is expected to supply turbines for the Egyptian market and potentially export equipment to other countries in Africa and the Middle East. Although the project is still in its early stages, energy experts say its focus on large-scale production, local manufacturing and technology transfer could provide useful lessons for African countries that have struggled to turn renewable energy plans into working infrastructure. Nigeria's experience shows the challenge. A 10-megawatt wind farm there took nearly two decades to begin generating electricity. The contrast highlights a wider problem for Africa: moving beyond imported equipment and project announcements to developing the financing, industrial capacity and stable policies needed to deliver renewable energy projects. “The contrasts are stark,” said Fadhel Kaboub, an associate professor of economics at Ohio's Denison University. “We have a project in Nigeria that took two decades to come online, whereas we have this one project in Egypt that looks like it's going to really take off.” Egypt's plan brings opportunities and risksKaboub cautioned that Egypt's project has not yet proved successful. However, he said its large scale, manufacturing component and partnership with a Chinese technology company could improve its chances of attracting investment and being completed quickly. “For manufacturing anything to be profitable, efficient and successful, you need economies of scale,” he said. “The problem with every African country is that our internal markets are too small. We don't have the economies of scale to industrialize one country at a time.” Egypt's plan is part of a wider effort to develop renewable energy technology locally, increase domestic production and use the country's trade connections to export equipment. The government has said the factory will reduce dependence on imported equipment while creating an industrial base around renewable energy. However, the plan also carries risks. Kaboub said Egypt must ensure that its partnership with SANY includes genuine technology transfer rather than creating another form of dependence on foreign manufacturers. “If the Chinese partner fully retains control over the technology and there's really no transfer of technology, then we're looking at another cycle of dependence,” he said. Nigeria's experience shows importance of project designNigeria's experience demonstrates that how a renewable energy project is structured can be as important as the technology used. The 10-megawatt Lambar Rimi wind farm in Katsina state was awarded to French turbine maker Vergnet in 2010, with completion planned for 2012. Funded by the Japan International Cooperation Agency, the project was designed to use 37 turbines, each capable of producing 275 kilowatts. The project remained stalled for years before the Katsina state government took it over. It was finally commissioned in September 2025 after the state added 10 megawatts of solar power capacity. Dr Dola Oluteye, founder of the PATNA Initiative and a senior fellow in energy and transport policy at University College London's Bartlett School of Environment, Energy and Resources, said the comparison should not simply be presented as a failure by Nigeria and a success by Egypt. “The useful question is what Egypt has built into its project structure that Nigeria left unresolved for years,” Oluteye said. “The cost of capital is the binding constraint, not the resource.” The International Energy Agency says the cost of capital for utility-scale clean-energy projects in Africa is at least two to three times higher than in advanced economies and China. Africa receives about 2% of global clean-energy investment despite being home to roughly one-fifth of the world's population. Oluteye said Egypt's decision to structure the new wind project in local currency is particularly important because it can reduce the currency mismatch that affects African power projects financed in US dollars but generating revenue in local currencies. Africa could use its market to secure better termsThe manufacturing component could also affect the economics and future negotiations surrounding renewable energy projects. “While Nigeria purchased 37 turbines, Egypt is attempting to buy the capability to make them,” Oluteye said. African countries could combine their markets to negotiate better conditions with technology providers, including agreements on local manufacturing and technology transfer. “If we form a negotiating bloc with a joint industrial policy, we can probably get better terms for technology transfer and joint ventures that could transform the continent at scale,” Kaboub said. For Nigeria, the challenge is not simply finding more wind resources. “If something is new, especially in Africa, you want to pilot it first,” Kaboub said, stressing the need for stronger feasibility studies, affordable financing, clear project ownership and consistent policies. “The implementation of policy is what is critical, not the fact that you have 50 policies on your website or in your government documents,” he said.

Bangladesh should prioritise distributed renewable energy, including rooftop solar and battery storage, to reduce dependence on imported fuels and strengthen energy security, Coordinator of the Distributed Renewable Energy Platform (DREP) Khondaker Golam Moazzem said on Sunday. “Distributed renewable energy should be viewed as a distinct component of the country’s renewable energy strategy rather than being grouped with conventional utility solar and wind projects,” he said while speaking at a seminar titled “Distributed Renewable Energy: The Future Solar Solution for Bangladesh” organised by the Economic Reporters’ Forum (ERF) at its auditorium in collaboration with the DREP. Prime Minister’s Adviser for Finance and Planning Rashed Al Mahmud Titumir attended the seminar as the chief guest. Moazzem, also the Centre for Policy Dialogue (CPD) research director, said renewable energy discussions in Bangladesh generally focus on large-scale solar, wind or hydropower projects, but distributed renewable energy offers a different approach by generating electricity close to where it is consumed. “Unlike utility-scale power plants that require vast tracts of land and extensive transmission infrastructure, distributed renewable energy systems can be installed on residential and industrial rooftops, agricultural land and other small sites,” he said. Moazeem mentioned that electricity generated from these systems can either be consumed directly or supplied to the national grid through distribution networks. He said such systems include rooftop solar installations under net metering, industrial rooftop solar, agrivoltaics, battery-backed renewable energy systems, solar home systems and solar-powered irrigation. The DREP coordinator noted that one of the biggest advantages of distributed renewable energy is that it does not require large areas of land, addressing one of the common criticisms of utility-scale renewable energy projects. Presenting data on the sector’s current capacity, he said Bangladesh now has around 213 megawatts (MW) of rooftop solar connected through net metering, while another 94 MW comes from rooftop solar systems outside the net metering scheme. Solar home systems contribute around 263 MW, solar irrigation pumps 60 MW, while solar charging stations, drinking water systems and solar street lighting account for about 17 MW. Mini grids add another six MW. Altogether, Bangladesh has around 655 MW of distributed renewable energy capacity, Moazzem said. He said the sector has significant growth potential as industries increasingly turn to rooftop solar because of gas shortages and rising energy costs. “The country’s energy crisis is unlikely to disappear soon, while reliance on imported fuel will become increasingly expensive. Therefore, Bangladesh must expand the use of domestic energy resources, including renewable energy and rooftop solar,” he said. The CPD research director said energy-efficient technologies, battery storage and rooftop solar will play a growing role across industries, agriculture, transport, households and healthcare facilities. Electric vehicles, battery systems, solar irrigation, mini grids and electric cooking appliances are also expected to become more widespread in the coming years, he added. Moazzem also announced that the Distributed Renewable Energy Platform, launched in July 2025, will work on policy research, legal and regulatory reforms, technology development, financing mechanisms and community-level expansion of distributed renewable energy across the country. The platform currently comprises five member organisations: ActionAid Bangladesh, Bangladesh Solar & Renewable Energy Association (BSREA), CPD, Coastal Livelihood and Environmental Action Network (CLEAN) and SOLshare. The platform will also engage with the government, private sector and development partners while drawing lessons from countries such as China and Vietnam to accelerate the adoption of distributed renewable energy in Bangladesh.  

The government has taken a move to strengthen energy audits across major industries as part of a broader strategy to curb energy waste, reduce dependence on imported fuels and build a more efficient and financially sustainable power sector. The initiative, outlined in the national budget document, seeks to promote the use of energy-efficient equipment and encourage designated industrial consumers to optimise electricity consumption at a time when rising fuel costs and growing demand continue to put pressure on the country’s energy system. The move comes as Bangladesh grapples with mounting electricity generation costs driven by dwindling domestic gas reserves and increasing reliance on imported liquefied natural gas (LNG). More than 40 percent of the country’s electricity generation capacity is gas-based, making the sector particularly vulnerable to fluctuations in global fuel prices. Shift towards renewable energy To address these challenges, the government plans to reduce dependence on imported fossil fuels by expanding renewable energy and making better use of indigenous energy resources. The budget document says investors will receive incentives to manufacture renewable energy equipment locally, including solar panels, wind turbine components and battery storage systems. Bangladesh has set an ambitious target of meeting 20 percent of its electricity demand from renewable sources by 2030, with the share expected to rise to between 30 and 50 percent by 2050. To achieve these goals, authorities have outlined a series of initiatives including expanding rooftop solar programmes, conducting wind resource assessments in coastal regions, implementing utility-scale solar projects and piloting waste-to-energy generation. The government also plans to formulate a National Energy Storage Roadmap and improve grid flexibility to accommodate a larger share of renewable electricity. Expanding generation and transmission The government aims to raise the country’s electricity generation capacity to 35,000 megawatts by 2030 while expanding the transmission network to 25,000 circuit kilometres. Construction of the 2,400MW Rooppur Nuclear Power Plant is progressing rapidly, according to the document. Fuel rods have already been loaded into one reactor, with around 300MW expected to be connected to the national grid by August 2026. The first unit is projected to supply 1,200MW by January 2027. The government says its long-term objective is to establish a modern, affordable, uninterrupted and environmentally sustainable electricity system. Addressing structural weaknesses Electricity generation costs have risen sharply due to what it describes as years of unplanned power and energy policies, corruption, rent-seeking, mismanagement and irregularities, according to the document. It alleged that capacity charge mechanisms enabled widespread financial misappropriation and capital flight, while several large-scale power projects undertaken during the previous administration included controversial contractual provisions that imposed heavy financial obligations through expensive power purchases and imports. Heavy reliance on fossil fuels has further increased production costs, the document said. As a result of the widening gap between electricity generation costs and retail tariffs, government subsidies for the power sector are expected to exceed Tk 40,000 crore in the current fiscal year. Although Bangladesh’s installed electricity generation capacity now stands at 28,919MW including imported electricity and grid-connected renewable power, ensuring uninterrupted and high-quality supply remains a challenge. Reform agenda The government says it has prioritised reforms in electricity generation, transmission and distribution through short-, medium- and long-term plans. Among the key measures are strengthening transparency and accountability, identifying those involved in corruption and tightening monitoring across the sector. It has  planned to retire inefficient power plants, modernise facilities where necessary and adopt a least-cost generation strategy. The budget outlines plans to review capacity charges and power purchase agreements to improve financial accountability, while modernising transmission and distribution systems through smart grid technologies aimed at reducing system losses. Special emphasis has also been placed on expanding electricity access in remote and island areas. To keep electricity tariffs affordable, future power plants will be developed through competitive bidding, the document says. In metropolitan areas, underground distribution lines and substations will be introduced as part of broader grid modernisation efforts. The government has also prepared a draft Power Sector Strategy Paper (2026–2050), which proposes a least-cost generation plan, a balanced energy mix and the integration of advanced technologies such as SCADA, Geographic Information Systems (GIS) and Advanced Metering Infrastructure (AMI). Besides, the entire process of obtaining new electricity connections and paying bills has been automated to improve customer services. With industrial energy audits, renewable energy expansion and governance reforms forming the backbone of the strategy, the government hopes to make Bangladesh’s power sector more efficient, resilient and financially sustainable while meeting the country’s growing electricity demand.

Bangladesh’s fiscal structure heavily favours fossil fuels over renewable energy, artificially suppressing the competitiveness of clean energy technologies and undermining the country's energy transition goals, the Centre for Policy Dialogue (CPD) said on Sunday. Presenting the findings of a new study at a media briefing at the CPD's Dhanmondi office, its Research Director Dr Khondaker Golam Moazzem said the country's tax and tariff regime imposes far lower burdens on fossil fuel imports than on technologies critical for integrating renewable energy into the national grid. “LNG imports face a total tax incidence of only 9.5 percent, with zero VAT and only 2 percent advance income tax while lithium-ion batteries face 61.8 percent and electric vehicles face up to 93.16 percent,” he said. “This is not a neutral tax structure. It is discriminatory, and it is costing Bangladesh its energy future.” The briefing, titled “Fiscal Discrimination between Fossil Fuel and Renewable Energy: Alternate Solutions to Address the Energy Crisis,” was presented by the CPD Power and Energy Study Team. The study examined 50 energy-sector products across seven technology categories: solar, wind, energy storage, electric vehicles, grid and transmission infrastructure, fossil fuels, and fossil-fuel-based power generation equipment, and calculated the Total Tax Incidence (TTI) for each using National Board of Revenue’s tariff for FY2025-26. It found that while solar and wind power generation equipment face TTIs of around 28-31 percent, broadly comparable to fossil fuel power generation machinery, the enabling technologies indispensable for renewable integration face dramatically higher fiscal burdens. Grid transformers are taxed at 61.8 to 93.16 percent, energy storage systems at 61.8 to 93.2 percent, and three-wheeled electric vehicles at 93.16 percent. “Renewable generation equipment alone is not the primary challenge,” the study noted. “The enabling technologies are.” Advance tax at 7.5 percent and high Customs Duty of up to 25 percent are the principal drivers of the elevated burden on clean energy technologies. In contrast, LNG products such as propane, butane, and natural gas in liquefied form carry zero VAT and only 2 percent Advance Income Tax, making them among the most fiscally privileged imports in the entire energy sector. Through a revenue foregone analysis, CPD estimated that the preferential fiscal treatment of LNG is causing NBR to forego at least Tk 1,059 crore to Tk 1,293 crore annually compared to what would be collected if wind or solar-equivalent tax rates were applied. For coal, the foregone revenue ranges between Tk 241 crore and Tk 664 crore. A separate fiscal incentive analysis found that LNG importers are receiving financial benefits worth approximately Tk 1,672 crore solely from full VAT exemption, a privilege not extended to solar or wind businesses. The study’s producer subsidy analysis, based on Bangladesh Power Development Board plant-wise electricity purchase data for FY2024-25, revealed that the average subsidy for oil-based power generation stands at Tk 20.18 per kilowatt-hour, the highest among all fuel types, while the average subsidy across all fossil fuel plants is Tk 7.48 per kWh. Renewable energy plants receive an average subsidy of Tk 8.93 per kWh. Oil-based plants receive both capacity payments and high fuel cost support, with some plants such as United-Anowara (300MW) receiving a per-unit subsidy gap of Tk 39 per kWh. Renewable energy plants, by contrast, receive no capacity payments and carry high upfront capital costs, partly driven by elevated import taxes on solar equipment and batteries. The discriminatory fiscal stance is mirrored in public spending. CPD found that fossil fuel-based projects account for 87 percent of the total power and energy sector project budget and 79 percent of the revised FY2026 ADP allocation. Renewable energy projects, by contrast, receive only 3 percent of the total PE project budget and 4.6 percent of the revised allocation. The FY2025-26 budget provided no new incentives for solar or other renewable energy technologies and omitted the Tk 100 crore allocation for renewables that had been included the previous year. “From FY16 through RFY26, fossil fuel-based projects have consistently absorbed more than 90 percent of the power and energy development allocation,” the study noted. “This structural bias has persisted despite repeated clean energy pledges.” CPD Recommendations CPD put forward a series of fiscal reforms, urging the government to act in the upcoming budget cycle: The think tank called for immediate removal of the 7.5 percent Advance Tax on solar and wind equipment, reduction of Customs Duty on lithium-ion batteries from 25 percent to 5 percent, and elimination of the 20 percent Supplementary Duty on energy storage batteries. It also recommended reducing Customs Duty on grid infrastructure components, including transformers, conductors, and transmission towers from 25 percent to 5 percent, and eliminating the Supplementary Duty on medium-sized transformers and low-voltage conductors. On fossil fuels, CPD called for the full withdrawal of VAT exemption on LNG imports, restoring the standard 15 percent rate, and an end to capacity payments for fossil fuel-based power plants. It also urged the government to introduce dedicated green subsidies and grants for energy transition in the FY2026-27 budget, increase ADP allocations for renewable energy and grid modernisation, and pursue climate-responsive budgeting across the Ministry of Finance and Ministry of Power, Energy and Mineral Resources. “The current fiscal framework creates a disconnect between Bangladesh's renewable energy ambitions and the incentives embedded in the tax system,” Moazzem said. “Strategic reforms targeting advance tax, regulatory duty, and selected customs duties could reduce transition costs while improving policy coherence.”

Young climate activists have welcomed the government’s target to generate 10,000 MW of solar power by 2030, calling for a clear and time-bound roadmap to achieve the goal, along with a greater share of renewable energy in the Energy and Power Sector Master Plan (EPSMP) and a gradual phase-out of fossil fuel dependence. The call was made during a global climate strike held in front of the Jatiya Press Club in the capital on Friday, according to a media statement. YouthNet Global and Youth for NDCs organised the programme. Over 200 youths gathered with banners, placards and slogans highlighting the economic and environmental costs of importing oil, gas and coal. Sohanur Rahman, executive coordinator of YouthNet Global, said Bangladesh cannot achieve climate justice while remaining dependent on fossil fuels. “Every new LNG import deal increases pressure on ordinary people and deepens our vulnerability to global instability,” he said, adding that young people are demanding a just transition powered by renewable energy where energy is affordable, locally generated and sustainable. “The upcoming EPSMP must include a clear roadmap for at least 10,000 MW of solar power by 2030 and a significantly higher share of renewables in the national energy mix,” Sohanur added. Youths warned that continued dependence on fossil fuels is undermining both economic stability, energy security and climate resilience. Founder and Executive Director of Youth4NDC Amanullah Porag said the country needs more affordable energy and an immediate shift towards renewable energy. The demonstration took place amid escalating global energy market disruptions triggered by geopolitical tensions, which have destabilised fuel supply chains and driven up global energy costs. Referring to Bangladesh’s international commitments, the activists stressed that reducing carbon emissions is not optional. “As a signatory to global climate agreements, Bangladesh must accelerate its transition to renewable energy.” Expressing solidarity with the youth movement, Shafiqul Alam, Lead Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), said renewable energy is essential to building a livable planet. In Bangladesh’s case, its importance is even greater because the country remains heavily dependent on fossil fuels, he said. Waterkeepers Bangladesh’s Coordinator Sharif Jamil said, “Transitioning away from fossil fuels is no longer merely a demand to respond to the planetary emergency due to the catastrophic impacts of climate change. Ensuring energy security through the development of renewables has become an issue of our independence. We must expand solar and wind as quickly as possible.” Organisers said similar climate strike programmes were held simultaneously in 50 districts across the country, drawing participation from school, college and university students.

Ambassador and Head of Delegation of the European Union to Bangladesh Michael Miller has said energy security is a defining issue, which is why the European Union (EU) and Bangladesh are accelerating efforts to deploy renewable energy as a strategic priority. "What we see today is our shared determination to ensure energy security and investability for Bangladesh," said the Ambassador while speaking at a high-level event in Dhaka titled “Boosting Renewable Energy in Bangladesh – From Design to Implementation.” He said the Bangladesh Renewable EnergyFacility is a flagship initiative of the EU’s Global Gateway, which promotes the development of secure, sustainable and trusted networks and links with our partners around the globe. The event hosted by the European Union bank, the European Investment Bank (EIB), in partnership with the European Union Delegation and the Power Division of the Ministry of Power, Energy & Mineral Resources (MoPEMR) on Monday brought together senior representatives from the Government of Bangladesh, the European Union, the European Investment Bank (EIB), Team Europe, other international partners, financial institutions, regulators, and the private sector. It was organised under the Bangladesh Renewable Energy Facility (BREF), an EU Global Gateway flagship in the energy sector that is accelerating large-scale renewable energy investments to advance Bangladesh’s energy security, climate targets and green transition, said the EU Embassy in Dhaka on Tuesday. The EU financial contribution for the public sector amounts to €395 million, combining a €350 million sovereign EU-guaranteed EIB loan with an EU blending grant of €45 million, including €6 million to ensure the bankability and de-risking of a major pipeline of projects. Additional financing is being provided by Germany (€50 million plus €1.5 million TA grant). BREF will leverage around €700 million in total investments in wind and solar energy. It will deliver up to 750 MWp of new renewable capacity, improve grid resilience and decentralisation, and promote innovation in areas such as dual land use (energy and agriculture) and battery energy storage systems. Michal Krejza, Head of Cooperation, EU Delegation to Bangladesh delivered welcome remarks at the event. Nur Ahmed, Additional Secretary (Planning), Power Division, highlighted that thecollaboration between the government, the European Union, the European Investment Bank, and Team Europe reflects a shared commitment to delivering a clean, secure, and resilient energy future. "Such cooperation is essential to mobilise the scale of investment, expertise, and technical support required." Michael Steidl, Head of Regional Representation to South Asia, EIB, said the EIB is proud to be supporting Bangladesh’s journey to a low-carbon energy future. "The Bangladesh Renewable Energy Facility is a cornerstone for the country’s green energy transition, bringing together significant European investment and partnership. The Technical Assistance component is especially crucial; it ensures that projects are well-prepared, bankable, and meet the highest technical, environmental, and social standard.” Dr. Rüdiger Lotz, Ambassador of Germany to Bangladesh, said the BangladeshRenewable Energy Facility (BREF) represents a landmark collaboration in the energy sector between the Government of Bangladesh, the European Union (EU), and its member states - and of course for Germany. "I therefore wholeheartedly encourage you to move forward boldly and harness the power of solar, wind, and other renewable energy sources.” The event featured a presentation on the Bangladesh Renewable Energy Facility (BREF) and its Technical Assistance (BREF-TA), which is designed to accelerate large-scale renewable energy investments and support Bangladesh’s climate commitments. Dr. Andreas Wiese, Managing Director of GOPA Tech and lead partner of the BREF-TAConsultant Consortium, said as the lead partner of the Consortium delivering Technical Assistance for the Bangladesh Renewable Energy Facility, GOPA Tech is proud to support Bangladesh’s ambitious journey toward a sustainable energy future. "Through BREF-TA, we are committed to providing hands-on expertise and practical solutions that help projects reach bankability, foster innovation, and strengthen institutional capacity."

A national workshop on renewable energy held in the capital has underscored persistent financing, policy and implementation challenges hindering the expansion of sustainable energy in Bangladesh’s most climate-vulnerable regions. Titled “Bridging Macroeconomic Barriers and Field Implementation under the NABAPALLAB Project,” the workshop brought together experts, policymakers, private sector leaders, financial institutions and development partners on Sunday. It was jointly organised by CARE Bangladesh and iDE Bangladesh. The event focused on identifying scalable and financially viable renewable energy solutions for ecologically critical areas, including the Sundarbans and Hakaluki Haor. Organised under the Adaptation in Ecologically Critical Areas in Bangladesh (AECAB)/NABAPALLAB project funded by the UK government, the initiative is implemented by a CARE-led consortium comprising CNRS, Cordaid, C3ER at BRAC University, DSK, Friendship, Humanity and Inclusion (HI), iDE and Practical Action. As part of the consortium, iDE Bangladesh is working to strengthen market systems by engaging private sector actors in nature-based solutions and enhancing the capacity of local institutions. Through this approach, the NABAPALLAB project is implementing integrated livelihood development and ecosystem restoration models, while piloting renewable energy technologies such as solar irrigation systems, solar-powered livelihood solutions and biodigesters to reduce energy poverty and generate income. Speaking at the inaugural session, Sameer Karki, country director of iDE Bangladesh, said the project is helping identify effective solutions and existing gaps at the field level. “As energy demand continues to grow, renewable energy will be critical for building a resilient and sustainable future. However, translating policy into practice remains a major challenge, particularly in vulnerable areas,” he said, stressing the need for coordinated efforts among government, private sector and communities. Nathaniel Smith, team leader for climate and environment at the British High Commission in Dhaka, said Bangladesh’s energy transition is both an environmental priority and a pathway to long-term economic resilience amid global energy volatility. “Through initiatives like NABAPALLAB, the UK is supporting community-driven solutions while fostering partnerships and financing mechanisms that can scale,” he added. Drawing on field experience from the Sundarbans Ecologically Critical Area, the workshop highlighted a significant gap between national renewable energy targets and ground realities. Participants said adoption of innovative technologies remains limited due to financing constraints, high upfront costs, supply chain gaps, policy implementation challenges, weak market systems and a lack of incentives for private sector participation. Representatives from renewable energy firms and financial institutions also pointed to difficulties in accessing working capital, managing risks and sustaining operations in underserved rural markets. Delivering the keynote address, economist Dr Hossain Zillur Rahman said the country’s renewable energy transition is constrained more by structural and political economy challenges than by technological limitations, emphasising the need for inclusive financing and stronger local markets.    

The Centre for Policy Dialogue (CPD) on Saturday urged the government to halt new fossil fuel-based power projects, revise what it called inflated demand projections and bolster parliamentary oversight to put Bangladesh’s power and energy sector on a fiscally sustainable and climate-aligned path CPD said Bangladesh’s power and energy sector is at risk of fiscal stress, stranded assets and stalled renewable energy transition due to overestimated demand projections, fossil fuel lock-in and weak regulatory transparency. Presenting a research paper titled 'New Government’s Priorities in Addressing Socio-economic Challenges: Introducing Knowledge-based Decision Making in the Executive and Legislative Process' at CPD’s Dhanmondi office, CPD Research Director Khondaker Golam Moazzem outlined a series of structural weaknesses in the sector and recommended urgent reforms within the first 180 days of the new government. The study identified 'Power and Energy: Reviving for Energy Transition' as the seventh priority sector and found that procedural transparency, accountability, and implementation efficiency remain the weakest pillars of decision-making in this sector. CPD noted that existing master plans project electricity demand to reach 40-50 gigawatts (GW) by 2040, while independent estimates suggest a more realistic requirement of around 30 GW. The study warned that inflated GDP-demand linkages, rather than actual industrial consumption data, have been used to justify aggressive expansion targets. This could lead to massive surplus capacity that would be 'difficult to undo', increasing fiscal burdens through long-term contractual obligations. Spatial planning mismatch was also highlighted, with Dhaka receiving disproportionately high projections compared to emerging industrial hubs such as Chattogram and Sylhet. CPD recommended that Bangladesh Power Development Board (BPDB) and Power Cell adopt rigorous econometric forecasting methods and subject revised projections to independent validation and parliamentary review. The report underscored the structural burden of capacity payments to independent power producers (IPPs), even for idle plants. Despite recent tariff hikes reaching Tk 8.95 per unit in 2024 — fiscal stress persists. According to the study, plant-by-plant payment details and the rationale behind tariff adjustments lack transparency, while public hearings by the Bangladesh Energy Regulatory Commission (BERC) have often been bypassed. CPD recommended introducing a 'No Electricity, No Pay' clause in future Power Purchase Agreements (PPAs) to eliminate unconditional capacity charges. It also called for renegotiation of rigid 'take-or-pay' contracts, though acknowledging the legal complexity involved. The think tank warned of growing dependence on imported LNG and coal, raising concerns about stranded assets and fiscal instability. It said long-term price volatility impacts are systematically downplayed and that insufficient assessment has been conducted regarding risks associated with new LNG terminals and coal-based infrastructure. CPD proposed adopting a clear 'No New Fossil Fuel-Based Power Generation' policy and urged reassessment of planned coal projects, including Matarbari Phase 2, through parliamentary debate to ensure fiscal and climate accountability. The study also called for scaling up regional power trading with Nepal and Bhutan to import hydropower and balance solar intermittency. While the interim government approved the Renewable Energy Policy 2025, CPD observed that grid absorption capacity for variable renewable energy (VRE) remains capped at 20%, and smart grid implementation has been deferred to 2040-2050. Private renewable energy developers face bureaucratic hurdles in securing grid interconnection approvals, the report said. CPD recommended that Power Grid Bangladesh (PGB) conduct a technical grid stress test to determine upgrades required to absorb at least 30% renewable energy by 2030. It also proposed establishing an Independent System Operator (ISO) to separate grid management from BPDB and ensure institutional neutrality. A 'Resource-to-Grid Data Hub' integrating real-time renewable energy potential mapping across districts should be developed under parliamentary monitoring, the study added. In the primary energy segment, CPD highlighted a persistent daily gas shortage of around 1,200 million cubic feet per day (mmcfd), with total demand at 3,800 mmcfd against supply of just over 2,600 mmcfd, including LNG imports. The report argued that increasing LNG imports alone would deepen financial burdens and recommended prioritising domestic gas exploration instead. It stressed that overemphasis on new LNG infrastructure and domestic coal exploration reflects weaknesses in evidence-based analysis and stakeholder engagement. A central theme of the CPD study is embedding knowledge-based decision-making in both executive and legislative processes. The report called on the Parliamentary Standing Committee on Power and Energy to review all major generation, fuel mix and procurement decisions to ensure statutory compliance and transparency. It noted that suspension of the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 by the interim government is a positive step toward restoring competitive procurement and judicial oversight. CPD, however, warned that without institutional restructuring, real-time data transparency and structured parliamentary scrutiny, reform efforts may remain partial. Immediate and Long-term Priorities For the next 180 days, CPD recommended: 1. No approval of new fossil fuel-based power plants 2. Independent validation of revised demand projections 3. Introduction of “No Electricity, No Pay” clauses in future contracts 4. Engagement with export-oriented industries in designing a National Solar Rooftop Programme 5. Institutionalising parliamentary review of all major sectoral decisions Beyond 180 days, the study proposed grid modernisation, establishment of an Independent System Operator, zonal energy audits, smart grid pilots, and legislative-backed accountability frameworks. Moazzem said the success of the new government would depend on its ability to align fiscal prudence, climate commitments and energy security through transparent, evidence-driven policymaking. “Without structural reforms and parliamentary oversight, the sector risks repeating past mistakes of overcapacity, high tariffs and fiscal stress,” Moazzem added.

In a major push toward clean energy, the government has taken up a plan to ramp up renewable power generation and reduce reliance on coal and fuel-based electricity that contributes to environmental degradation. The project titled “Construction of Sonagazi 220 MW Solar Power Plant,” will be implemented by the Electricity Generation Company of Bangladesh Ltd (EGCB) under the Power Division. Once completed, it will stand as one of the largest utility-scale solar installations in the country. A Major Step Toward a Greener Power Mix The proposed plant will be set up in Sonagazi upazila of Feni district, marking a substantial stride in Bangladesh’s efforts to diversify energy sources and align with long-term climate and clean energy commitments. According to the project proposal, the solar plant will require an estimated investment of Tk 1,888.10 crore. Read more: BRAC Bank, IDCOL fund 64.55 MW solar project Of this, Tk 147.56 crore will come from the government, Tk 1,623.63 crore from foreign financing, and Tk 116.91 crore from EGCB’s own resources. The project is expected to run from July 2025 to June 2028. Officials said the move corresponds with national plans to boost renewable energy’s share in the power mix and reduce dependence on fossil fuels.  It is also designed to help achieve the target of generating 20 percent of Bangladesh’s electricity from renewable sources as highlighted in the Integrated Energy and Power Master Plan (IEPMP) 2023. Under the plan, the government aims to raise renewable capacity to 38 gigawatts by 2050. Key Infrastructure and Technical Features The plant’s construction will involve installing 469,560 solar PV modules and 26 grid-connected inverters, supported by a 240MVA electrical substation. It will also include four 230/33kV transformers, auxiliary transformers and a 13.3km second circuit of a 230kV transmission line. Read more: BSTI opens state-of-the-art solar panel testing lab A new GIS bay at the BEZA substation and an AIS bay at EGCB’s existing 75MW substation will also be developed to facilitate uninterrupted transmission. Beyond its electrical infrastructure, the project includes building 6.9km of embankments, laying CC blocks along 2.67km of the southern dyke, excavating and renovating two canals spanning 3km, constructing 10.98km of internal roads, and developing a control room and a five-storey dormitory. A Vision Rooted in Earlier Planning EGCB’s journey in developing renewable energy in Sonagazi dates back to 2017, when it acquired 999.65 acres in Purba Bardhali mouza. Of this, 285 acres were used for a 75MW solar plant already in operation. The new 220MW facility will be built on 634 acres of the remaining land. Once operational, the electricity generated will be fed into the national grid via PGCB’s Mirsarai substation, ensuring distribution across the country. Read more: Solar power projects face delays amid challenges: Adviser Fouzul Kabir The Planning Commission officials said the project would add 220MW of clean energy to the grid, reduce carbon emissions, and support improved service reliability. It also said the initiative would help develop skilled manpower in advanced solar technologies. Solar Expansion Gains Momentum Nationwide Bangladesh’s renewable energy landscape has been expanding in recent years, with several high-capacity plants already operational. These include 275MW Beximco Gaibandha Solar PV Park, Rangpur (commissioned 2021 134.30MW Mongla Solar PV Park, Khulna (2021),134.30MW Orion Khulna Solar PV Park, Khulna (2021), 73MW Mymensingh Solar PV Park (2021), 20MW Teknaf Solartech Energy Limited Plant, Cox’s Bazar (2018) Large-scale initiatives under development include 1,000MW Swarna Dwip Solar Plant, Noakhali — a Bangladesh Army Welfare Trust project, 300MW Rampal Solar Power Plant, a Saudi-Bangladesh joint venture. Other projects in the pipeline involve capacities of 300MW in Sreemangal and 200MW each in Mongla and Thakurgaon, reflecting a strategic nationwide shift toward solar-driven power generation. As Bangladesh positions itself for a renewable-focused future, the massive Sonagazi solar plant is expected to play a transformative role—cutting emissions, easing pressure on fossil fuel imports, and ensuring cleaner, more reliable energy for millions. Read more: Walton installs country’s largest floating solar power plant

Foreign Secretary Md Jashim Uddin on Tuesday invited Azerbaijan’s investment in Bangladesh, particularly in the areas of apparel, leather, light engineering, agro-food processing, petroleum, ICT, pharmaceuticals, and renewable energy. Additionally, he requested to recruit more skilled and semi-skilled workforces from Bangladesh and offer more scholarships for Bangladeshi students who aspire to pursue higher studies in Azerbaijan. Bangladesh and Azerbaijan held the second round of bilateral consultations in Dhaka and both sides agreed to sign a few memoranda of understanding covering various areas, including trade, investment, energy, air connectivity, training, and visa exemption for diplomats and government officials. The two sides also consented to establish a Joint Working Group on trade to facilitate regular dialogue and expand bilateral trade. The consultations were co-chaired by Foreign Secretary Jashim Uddin and Deputy Minister of Foreign Affairs of Azerbaijan Elnur Mammadov. During the consultations, both sides reviewed the entire spectrum of bilateral relations and expressed satisfaction with the growing momentum in political, economic, cultural and multilateral cooperation. Big Chinese business delegation  to visit Bangladesh soon Key areas of discussion included, inter alia, trade and investment, energy cooperation, education and cultural exchanges, and collaboration in regional and multilateral fora, said the Ministry of Foreign Affairs. The Foreign Secretary highlighted the Chief Adviser’s visit to Baku to attend the COP29 climate conference in November last year, and appreciated Azerbaijan’s leadership role in advancing the global climate agenda. He also mentioned theForeign Adviser’s online participation in the 7th Ministerial Council Meeting of the Conference on Interaction and Confidence Building Measures in Asia held in Baku last December.   Referring to the discussion held between the Chief Adviser and the Azerbaijani President in November 2024 in Baku, the Foreign Secretary reiterated the need for opening a diplomatic Mission of Azerbaijan in Dhaka. He requested for finding a suitable alternative to permanently resolve the ongoing visa problem for Bangladeshis who wish to travel to Azerbaijan. The Foreign Secretary further put forth the proposal of introducing new direct flights connecting Dhaka and Baku. Deputy Minister Mammadov briefed the Foreign Secretary on the ASAN and DOST service delivery models that have revolutionized public service provision in Azerbaijan. In response, the Foreign Secretary asked to explore the possibility of running a pilot project in some parts of Bangladesh under a joint venture. The Deputy Foreign Minister also called on the Chief Adviser and the Foreign Adviser, and apprised them of the outcome of the Bilateral Consultations.   An eight-member Azerbaijani delegation is on an official visit to participate in the Bilateral Consultations. The visiting delegation also took part in a roundtable discussion on investment opportunities in Bangladesh at the Bangladesh Investment Development Authority. The next round of bilateral consultations between Bangladesh and Azerbaijan will take place in Baku at a mutually convenient time.