Dhaka: Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood today announced the government's intention to privatise electricity distribution at the consumer level as a measure to enhance accountability, improve service quality, and ensure efficient bill collection. The minister explained that while the government will continue to manage electricity generation and wholesale, the privatisation of the distribution system is expected to bring significant improvements in these areas.
According to Bangladesh Sangbad Sangstha, the minister made these remarks during the "Energy Security and Transformation of Bangladesh" conclave, organised by Bangla Daily Banik Barta at the Pan Pacific Sonargaon in Dhaka. He emphasized that inviting private sector participation in electricity distribution would lead to greater transparency, better services, and a reduced financial burden on the state.
The event was moderated by Banik Barta Editor Dewan Hanif Mahmud and attended by several distinguished guests, including State Minister for Planning Md. Zonayed Abdur Rahim Saki, Bangladesh Energy Regulatory Commission Chairman Jalal Ahmed, East Coast Group Chairman Azam J Chowdhury, and others.
Highlighting the country's energy challenges, Minister Mahmood underscored the importance of increased domestic gas exploration and production, along with strengthening LNG import infrastructure, to achieve long-term energy security. Additionally, he shared plans to implement cluster-based solar power projects to alleviate pressure on the national distribution system, with tenders expected by September. Chinese companies have already expressed interest in investing in this sector, he noted.
The minister expressed optimism about the potential to generate up to 10,000 MW of renewable energy in Bangladesh with adequate stakeholder cooperation. To encourage rooftop solar installations, the government is offering tax rebates and reduced holding taxes to property owners.
Criticizing previous administrations, Mahmood pointed out their failure in undertaking effective gas exploration despite expanding the country's electricity generation capacity. He highlighted that while 28,000 MW of power generation capacity has been created, no substantial initiatives were taken to explore the necessary gas resources.
Referring to a recent fire incident at one of the country's floating storage and regasification units (FSRUs), the minister noted the disruption of LNG supply, which adversely affected gas pressure in households, industries, and CNG stations across the country. He also criticised the establishment of a gas-fired power plant in Khulna without adequate gas supply arrangements, resulting in the project's underutilization due to the absence of a proposed Bhola-Barishal-Khulna gas pipeline.
Minister Mahmood described the global energy security landscape as increasingly complex, citing geopolitical tensions, including the Iran-US-Israeli conflict, which have led to rising LNG prices and compelled Bangladesh to purchase gas at higher costs from the spot market. In response, the government has announced a new renewable energy policy and plans to promote cluster-based solar power projects, aiming to issue tenders by September, with interest already expressed by several Chinese companies.