The government has begun work on achieving five key milestones to secure Bangladesh’s energy future, with a strong focus on renewable energy and reducing import dependence, Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir said on Sunday.
Speaking at a dialogue titled “Renewable Energy in the Upcoming Budget: Expectations and Reality”, organised by the think tank Centre for Policy Dialogue (CPD) at a city hotel, Titumir said the country’s energy sector had long been handed over to oligarchs under import-dependent policies, leaving Bangladesh economically vulnerable.
“The entire energy sector was handed over to oligarchs and made import-reliant. Instead of driving industrialisation, past energy policies made Bangladesh economically dependent on others,” he said.
Titumir outlined five priority milestones guiding the government’s energy roadmap:
First, the upcoming budget will allocate greater resources to renewable energy, 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 according to each group’s income, with due regard for regulatory commission decisions,” he said.
Third, a new policy framework will encourage the uptake of renewable energy to move the country toward self-sufficiency and away from import dependence.
Fourth, domestic gas exploration will resume. “Bangladesh will restart gas field exploration. Reliance solely on foreign agencies will not be allowed. Steps have already been taken to strengthen state-owned BAPEX and 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 added.
Titumir criticised the existing power sector structure, highlighting a large gap between installed capacity and actual utilisation, which drained public resources. “Excessive capacity was retained knowing it would never be used, turning capacity charges into a serious burden,” he said.
He also questioned the legal basis of several power sector contracts, saying they were not aligned with Bangladesh’s energy security interests. “Structural upgrades needed to transition from fossil fuels to a liveable, environmentally safe framework were never made, which is a grave failing of the power sector,” he added.
On the recent rise in fuel prices, Titumir said price adjustments remained modest compared with subsidies provided. “This modest adjustment alone pushed up inflation. Had diesel prices been raised earlier, it would have adversely affected agricultural production.”
He rejected 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, reducing foreign dependence and building a stronger, self-reliant energy sector for Bangladesh.
