CPD raises alarm over Bangladesh’s energy budget26 Jun 2025 18:42
Last item is interesting,not sure I read anything about that in the budget report?
Key Challenges Highlighted
The study, led by Dr Khondaker Golam Moazzem and his team, identified several critical issues:
Persistent Financial Losses: BPDB continues to face losses despite subsidies and tariff revisions, while profits by BPC and RPGCL often come at consumers’ expense.
Rising Fiscal Burden: Power sector subsidies now account for 41% of the national total, with LNG import subsidies rising to Tk 9,000 crore for FY26.
Overdependence on LNG: Domestic gas exploration is stagnant, and the Gas Development Fund is diverted to LNG imports.
Mismatch Between Capacity and Supply: Despite growing capacity, outages persist due to inaccurate demand forecasts and fuel import limitations.
Flawed Pricing Mechanism: The market-based fuel pricing model launched in March 2024 lacks transparency and is vulnerable to taxation and exchange rate shocks.
Slow RE Progress: BPDB has failed to attract bidders for solar projects, and the cancellation of 37 LoIs has harmed investor confidence.
Costly Debt: The government is relying on expensive short-term loans to pay dues, raising sustainability concerns.
Policy Gaps: Key policies like the Integrated Energy and Power Master Plan (IEPMP) are under review, causing alignment delays.
Deviation from Transition Goals: The budget’s emphasis on coal extraction and LNG imports signals a retreat from the Zero Emission commitment.
https://thefinancialexpress.com.bd/economy/cpd-raises-alarm-over-bangladeshs-energy-budget
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