The Centre for Policy Dialogue (CPD) criticized this year's budget for failing to allocate sufficient funds for sustainable energy and energy transition in the power and energy sector.
Instead, the budget has increased subsidies for LNG at the expense of the gas sector, raising questions about potential political or group pressures behind this decision.
CPD Research Director Dr Khondaker Golam Moazzem presented these concerns during a discussion titled "Challenges and Proposals in the Power and Energy Sector" at Brac Inn Centre in Mohakhali on Sunday.
He emphasized the perplexity of reducing the gas sector budget when increased investment is needed to move away from import-dependent energy.
"We need to enhance our gas sector to reduce import dependency. Reducing the gas sector budget at this time is not understandable," Moazzem said.
He also highlighted the lack of significant investment in renewable energy.
Moazzem criticized the government's plan to produce 60,000 megawatts of electricity by 2041 as overly ambitious, pointing out that even with a 25% reserve, 35,000 megawatts would suffice.
Overcapacity, along with distribution and transmission constraints, leads to loadshedding and increased capacity charges, worsening Bangladesh Power Development Board (BPDB)'s financial losses and driving up consumer electricity prices.
The IMF warned that the current subsidy management approach cannot cover these losses, which are projected to increase by 196% to Tk18,000 crore by 2025.
Hamim Group Managing Director AK Azad, a special guest at the event, said: “Loadshedding persists despite higher electricity prices, forcing industries to use costly alternatives like diesel and gas. This situation raises production costs, reduces profits, deters investment, and leads to factory closures.”
Azad stressed that uninterrupted electricity is crucial for increasing production and employment.
Professor M Tamim criticized the lack of a modern primary fuel policy, attributing the failure of master plans to this deficiency.
He also called for the cancellation of special provisions in the power sector.
Power Cell Director General Mohammad Hossain acknowledged the absence of a primary energy policy but highlighted ongoing efforts to update renewable energy, generation, and net metering policies. He mentioned that separate guidelines for e-vehicles are being prepared.
CAB Energy Advisor Professor Dr M Shamsul Alam criticized the government's use of the special power law to purchase electricity without competition and raise electricity fuel prices by executive order without public hearings, calling it absurd.