During this quarter, a notable development was the approval of the ‘Policy for Enhancement of Priva te Participation in Renewable Energy-based Power Generation 2025’, which aims to increase private-sector involvement and improve transparency in the renewable energy market. Unresolved infrastructure constraints, including the delayed connection of the Bhola gas fields to the national grid, continued to prevent the utilisation of proven reserves and limit the effective expansion of domestic gas supply. No renewable power plants became operational, and the number of delayed projects increased to five, although one new renewable energy project was approved , marking the first approval after three consecutive quarters of inactivity. Seasonality is reflected in the generation of electricity during this quarter. As winter came, all kinds of fuel use have declined, and the power generation demand-supply gap narrowed from 3,238 MW to zero. Global oil prices fell significantly in 2025, but per-unit electricity costs from furnace oil remained largely unchanged until this quarter. Additionally, the Bangladesh Power Development Board (BPDB) has to purchase coal from Barapukuria Coal Mining Company Ltd. at approximately 45 per cent above global benchmarks price, pushing up the cost of coal-based power generation.
Authors: Khondaker Golam Moazzem, Helen Mashiyat Preoty, Mehadi Hasan Shamim, Abrar Ahammed Bhuiyan, Sabiha Sharmin and Md. Khalid Mahmud
Publication Period: December 2025
