Pragmatic Approach Needed for Bangladesh's Energy Security

Ensuring energy security is crucial for Bangladesh's economic growth, particularly as its population approaches 200 million and per-capita income reaches $2,800. To achieve this, the country needs to adopt a pragmatic approach to harnessing efficient fuel sources.

Taxation on energy and multilayered subsidies make it difficult to determine the true cost of power generation in Bangladesh. This can lead to circular effects where taxation affects the financial capacity of authorities purchasing power and energy, potentially disrupting supply.

A diversified power generation portfolio is essential for Bangladesh's energy security, including gas, coal, HFO, imports, renewables, nuclear, and others. However, frictions created by energy taxation and multilayered subsidies can hinder fluid decision-making.

Renewables currently remain relatively insignificant in Bangladesh's overall power and energy portfolio, but they cannot be ignored as the country looks to the future. Strengthening LNG infrastructure is also crucial, particularly given the decline of its own natural gas supply, which is expected to be exhausted by 2040.