The national budget for FY2025 holds critical importance for Bangladesh’s power and energy sector as it seeks to address the sector’s numerous challenges while moving towards sustainable energy and energy transition goals. This study critically examines the national budget’s reflection on key priorities in the power and energy sector, including overgeneration capacity, frequent power outages, slow progress in renewable energy, and financial vulnerabilities of public authorities. It evaluates whether the proposed budgetary measures address these issues, focusing on sustainability and energy transition readiness. Despite a significant allocation of BDT 30,317 crore to the sector, the analysis reveals that many initiatives prioritise short-term fixes over long-term energy sustainability, such as increasing generation capacity and reliance on imported fuel. There is inadequate fiscal support for renewable energy projects, and existing overgeneration capacity exacerbates financial burdens. The paper argues for a restructuring of fiscal incentives, enhanced project management, and more strategic investment in renewable energy, transmission systems, and domestic energy resources to ensure a secure and sustainable energy future for Bangladesh.
Authors: Khondaker Golam Moazzem, Helen Mashiyat Preoty, Mashfiq Ahasan Hridoy, Jebunnesa and Faisal Quiayuum
Publication Period: July 2024