Moshahida Sultana, a researcher in the electricity and energy sector, has urged authorities to adopt well-planned measures in the upcoming budget.
The associate professor of accounting at Dhaka University highlighted the country’s reliance on imported fuel, underutilised domestic gas, and the need for greater investment in solar and wind energy.
In an interview with Taufiq Hossain Mobin of TIMES of Bangladesh, she emphasised the importance of incentives, institutional capacity, and phased policies to ensure energy security, cost efficiency, and sustainable development ahead of the national budget.
What are your expectations from the budget to address the current major crises in the energy sector?
The biggest challenge in Bangladesh is our import-dependent energy system. Each year, the government must allocate a significant portion of the budget to electricity and fuel, placing a heavy burden on public finances.
The rise in LNG and oil prices, coupled with persistent uncertainty, has not yet fully eased. Consequently, the government’s immediate options depend on evolving circumstances.
It is crucial to assess whether adequate investment is being made in domestic gas fields. Existing onshore and offshore reserves have not yet been fully tapped.
The government states that work has already begun on land-based fields and that new tenders are being requested from foreign companies for offshore PSC contracts.
However, there is uncertainty about how much gas Bangladesh will actually secure under such agreements. If the country must purchase its own gas at higher prices, costs will remain elevated.
Bangladesh should therefore assign responsibility for domestic gas extraction to BAPEX. Offshore extraction can be undertaken by the government itself, with foreign companies hired only for consultancy or infrastructure support.
This approach ensures full national control of gas resources, whereas PSC contracts would require buying our own gas from foreign companies, leaving the budgetary burden largely unchanged.
Secondly, funds should not be spent on constructing new LNG terminals, as this would further deepen dependence on imported LNG and potentially exacerbate future energy crises.
Thirdly, rapid, large-scale investment in solar or wind energy is not immediately feasible; the transition must proceed gradually, in a planned and phased manner.
What steps in the budget could help develop the solar and wind energy sector?
Equipment for solar power that must be imported should be exempted from taxes. This will reduce the high costs associated with solar power generation.
Where exactly should this tax exemption be applied?
Since the utility scale project already enjoys tax exemptions, the focus should be on areas where it will directly lower production costs.
To reduce electricity costs in Bangladesh, rooftop solar prices must be lowered. Given the country’s limited land, rooftop solar should be prioritised.
The Power Development Board (PDB) should purchase this electricity, with the government providing guarantees. Without assured electricity sales, entrepreneurs cannot secure loans. Improving loan accessibility is another measure the government could adopt.
Over the past decade, an import-dependent energy system has developed. Does the new government have an opportunity to change this trend?
The government is attempting to increase land-based gas extraction. Meanwhile, the Bhola gas field has untapped potential, which cannot be used due to pipeline limitations. The government has also stated it will invest in pipelines to supply Bhola gas to industrial areas in southern Khulna. I would add that pipelines must also be extended to Dhaka—by any means necessary—to fully utilise Bhola gas.
Previously, I have suggested that budget allocations should strengthen BAPEX’s capacity and support domestic investment.
A huge amount of money has been spent on subsidies for imported LNG and capacity charges for power plants over the past few years—around Tk6,000 crore and Tk42,000 crore respectively. Where does this subsidy money come from? Does it mean there is no funding left for investment? That assumption is incorrect.
If the new government considers major reforms, should it focus on electricity pricing, subsidies, gas exploration, or overall energy planning?
This is a difficult question—no single reform can rescue the electricity system from crisis. I would advise: avoid investing in new LNG terminals, prioritise solar power generation, and design policies so that incentives work not just on paper but in practice.
Reforms should not rely solely on economic incentives; legal and institutional capacity must also be strengthened to ensure that incentives function effectively.
If you could directly advise the energy or finance ministry, what would be the most important recommendation?
First, greater focus must be given to untapped land-based and offshore gas fields, prioritising domestic initiatives rather than foreign investment.
Second, a solar energy revolution is possible. This can be turned into a social revolution. If people from various professions, including new entrants to this sector, are motivated, the full potential of solar power in the country can be realised.
