Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed has said the expected expansion of renewable energy will help reduce the overall cost of power generation, support the country’s environmental commitments, and strengthen the country’s ability to achieve its export objectives in the European Union market.
“At this moment, we do not require any new power plants based on traditional energy sources. Instead, the immediate priority should be to achieve the 10,000 MW renewable energy target, primarily from solar power, announced by the Prime Minister,” he told UNB.
Sharing ten steps that are required to achieve the renewable energy target, the BERC Chairman said he understands that the Ministry of Power and Energy is already taking rapid steps toward achieving this objective.
Jalal Ahmed laid emphasised on formulating a time-bound roadmap to achieve the renewable energy target.
He suggested establishing a dedicated task force within the Power Division to monitor implementation and progress.
The BERC Chairman highlighted the importance of ensuring the effective implementation of the policy incentives provided under the Finance Act 2026, including duty-free imports of renewable energy equipment and storage batteries.
Jalal Ahmed talked about developing multiple commercially viable rooftop solar business models for privately owned buildings through expert consultation, and encouraging all apartment buildings in Dhaka to adopt them.
He laid emphasis on learning from the experiences of India and Pakistan in grid management and renewable energy integration; strengthening SREDA’s (Sustainable and Renewable Energy Development Authority) institutional capacity to enable it to effectively fulfill its responsibilities.
Other steps that he mentioned include allowing merchant power plants to operate under the existing tariff structure; protecting merchant power plants from compensation liabilities by applying only standard distribution charges; and enabling merchant power plants to supply electricity directly to consumers, either through the transmission network or via distribution companies.
“In the case of rooftop solar installations on privately owned buildings, allow consumers to make their own decisions,” said Jalal Ahmed.
Although Bangladesh possesses limited economically recoverable coal reserves, he said natural gas has remained its principal primary energy source.
The country’s natural gas industry began with the discovery of the Haripur Gas Field in the 1950s, followed by the Titas Gas Field in the 1960s.
Daily natural gas production has declined to 1,711 million cubic feet per day in 2025-26, from 31 million cubic feet per day in 1971-72 and 2,671 million cubic feet per day in 2016-17.
“As domestic production continues to decline, Bangladesh has been importing liquefied natural gas (LNG) since 2018-19 and currently imports approximately 1,000 million cubic feet of gas in the form of LNG every day,” he said.
Although some progress has been made under Petrobangla’s (Bangladesh Oil, Gas & Mineral Corporation) plan to drill 150 wells to increase domestic natural gas production, the results have not been encouraging, Jalal Ahmed said.
“Urgent and decisive initiatives are required to make offshore bidding successful. At the same time, aggressive onshore exploration activities must be accelerated,” he said.
The liquid fuel sector has given us a number of bad experiences over the past eight months.
Especially since November 2025, the country has witnessed instability in the liquefied petroleum gas (LPG) market, uncertainty over the Strait of Hormuz shipping route due to the US-Iran war, soaring shipping and insurance costs, expensive spot purchases resulting from disruptions in LNG supply chains, and market instability caused by reduced fuel oil reserves.
“Although the Strait of Hormuz was reopened for a period, it has once again been blocked. During this time, efforts were made to procure energy from alternative sources, but these alternatives remain limited,” Jalal Ahmed said.
He, however, said LPG imports from the United States have increased significantly.
“To strengthen energy security, Bangladesh must rapidly expand its storage capacity, implement the second refinery project, and increase the government’s participation in the LPG market,” said the BERC Chairman.
“We currently have excess generation capacity in the power sector. Unfortunately, this surplus has become a burden rather than an asset. Including captive generation, the country’s installed capacity is approximately 34,000 MW, which is nearly 100% higher than peak demand, although demand could have been met with only a 20% additional reserve capacity,” he mentioned.
The capacity payments associated with this excess generation have imposed a substantial financial burden on both the government and consumers.
In addition, 2,400 MW will be added from the Rooppur Nuclear Power Plant, along with the future renewable energy capacity announced by the government.
“Bangladesh must now carefully plan the phased decommissioning of high-cost thermal power plants. The country’s future integrated power mix should consist of natural gas, coal, renewable energy, and imported electricity,” Jalal Ahmed said.
With careful planning, existing Power Purchase Agreements (PPAs) for liquid fuel-fired power plants should be renegotiated to enable a timely transition away from these costly facilities, he said.
The biggest game changer at this moment is the Budget 2026-27, Jalal Ahmed said, noting that just as Finance Minister Amir Khosru Mahmud Chowdhury emphasised the current government’s commitment to renewable energy in the budget speech, the Finance Act 2026 has provided policy support for the renewable energy sector beyond expectations.
“I firmly believe that the decision to exempt all key components of solar power generation from import duty and taxes until June 2031 will significantly accelerate the growth of the sector. Considering the breadth of these policy measures, the budget can rightly be described as a green budget,” he said.
