Dhaka: Finance Adviser Dr. Salehuddin Ahmed today unveiled the national budget, proposing an allocation of Tk. 22,520 crore with the aim of ensuring energy security, modernizing the distribution system, and generating 3,400 MW of electricity from clean sources by 2028.
According to Bangladesh Sangbad Sangstha, the budget includes a proposed allocation of Tk. 20,342 crore for the power division and Tk. 2,178 crore for the energy division in the fiscal year 2025-26 (FY26). This allocation is intended to ensure transparency, accountability, and modernization of the distribution system, alongside various development works for mineral resources. Dr. Ahmed emphasized the final stages of formulating a new policy by updating the Renewable Energy Policy 2008, with a decision that 30 percent of the country’s total electricity will be generated from renewable sources by 2040.
An Integrated Power Sector Master Plan was prepared, under which a target was set to generate 3,400 MW of electricity from clean sources by 2028. As part of these efforts, a project has been initiated to establish Eastern Refinery Limited, Unit-2, which will have the capacity to refine 3 million metric tons of crude oil annually, meeting the growing demand for refined oil.
The state-run BAPEX has outlined plans to conduct a 270 km geological survey, a 700 km 2-D seismic survey, and a 700 square km 3-D seismic survey between FY2025-26 and FY2027-28. Additionally, BAPEX plans to drill 69 wells and complete the workover of 31 wells using its own rigs. Efforts are also underway to develop cost-effective and sustainable infrastructure to control energy prices in the medium term.
The government has repealed the ‘Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010’ and formed a separate committee to review tariff structures of purchase agreements, renegotiate them, and make recommendations. Furthermore, an agreement signed on October 3, 2024, under sub-regional cooperation, will allow the import of 40 MW of hydropower from Nepal at an affordable price during summer.
The construction of the 2,400 MW Rooppur Nuclear Power Plant is progressing rapidly, with expectations to supply electricity to the national grid by December of this year. The government has also taken initiatives to enhance oil and gas exploration and production, ensuring energy security through its efforts.
In addition, about US$570 million in arrears for imports was paid to ensure a steady supply of fuel oil. To enhance transparency and safety in the fuel transportation system, Vehicle Tracking System devices using SFDMS technology were installed in 2,465 fuel oil tank lorries across the country, reducing the risk of theft or adulteration during fuel transportation.