The MoPEMR’sproposed budget share fell to 1.85 per cent of the national total (down from 2.15 per cent), with 98 per cent allocations in generation going to fossil fuels versus only 2 per cent for renewables, and 11 renewable energy projects left unfunded. Even as the budget introduced its most comprehensive renewable fiscal package to date, incentives are undermined by continued fossil-fuel subsidies of BDR 37,000 crore. LNG supply commitment reduced as QatarEnergy lowered its 2026 cargo commitment by half following damage to its Ras Laffan facility, forcing Bangladesh to pursue short-term deals with nine alternative suppliers. Energy prices increased significantly, with a 16.68 per cent rise in the weighted average electricity tariff in June 2026, alongside regular revision of LPG and petroleum fuel prices. Fuel loading at the RNPP Unit 1 has been done during this quarter. Load shedding surged sharply amid summer demand, rising from just 386 MW last quarter to 23,239 MW in April 2026, dipping in May, then climbing again to 27,589 MW in June 2026, driven by lack of fuel available to import fuels, plant maintenance, and a severe heatwave. Bangladesh Bank’s recent refinancing package includes BDT 1,000 crore dedicated to green industries, signaling a renewed policy emphasis on mobilising concessional finance for low-carbon industrial investment. 

Authors: Khondaker Golam Moazzem, Sabiha Sharmin, Mehadi Hasan Shamim, Atikuzzaman Shazeed, Md. Khalid Mahmud, Noor Yana Jannat
Publication Period: July 2026