United News of Bangladesh

The government has taken a move to strengthen energy audits across major industries as part of a broader strategy to curb energy waste, reduce dependence on imported fuels and build a more efficient and financially sustainable power sector. The initiative, outlined in the national budget document, seeks to promote the use of energy-efficient equipment and encourage designated industrial consumers to optimise electricity consumption at a time when rising fuel costs and growing demand continue to put pressure on the country’s energy system. The move comes as Bangladesh grapples with mounting electricity generation costs driven by dwindling domestic gas reserves and increasing reliance on imported liquefied natural gas (LNG). More than 40 percent of the country’s electricity generation capacity is gas-based, making the sector particularly vulnerable to fluctuations in global fuel prices. Shift towards renewable energy To address these challenges, the government plans to reduce dependence on imported fossil fuels by expanding renewable energy and making better use of indigenous energy resources. The budget document says investors will receive incentives to manufacture renewable energy equipment locally, including solar panels, wind turbine components and battery storage systems. Bangladesh has set an ambitious target of meeting 20 percent of its electricity demand from renewable sources by 2030, with the share expected to rise to between 30 and 50 percent by 2050. To achieve these goals, authorities have outlined a series of initiatives including expanding rooftop solar programmes, conducting wind resource assessments in coastal regions, implementing utility-scale solar projects and piloting waste-to-energy generation. The government also plans to formulate a National Energy Storage Roadmap and improve grid flexibility to accommodate a larger share of renewable electricity. Expanding generation and transmission The government aims to raise the country’s electricity generation capacity to 35,000 megawatts by 2030 while expanding the transmission network to 25,000 circuit kilometres. Construction of the 2,400MW Rooppur Nuclear Power Plant is progressing rapidly, according to the document. Fuel rods have already been loaded into one reactor, with around 300MW expected to be connected to the national grid by August 2026. The first unit is projected to supply 1,200MW by January 2027. The government says its long-term objective is to establish a modern, affordable, uninterrupted and environmentally sustainable electricity system. Addressing structural weaknesses Electricity generation costs have risen sharply due to what it describes as years of unplanned power and energy policies, corruption, rent-seeking, mismanagement and irregularities, according to the document. It alleged that capacity charge mechanisms enabled widespread financial misappropriation and capital flight, while several large-scale power projects undertaken during the previous administration included controversial contractual provisions that imposed heavy financial obligations through expensive power purchases and imports. Heavy reliance on fossil fuels has further increased production costs, the document said. As a result of the widening gap between electricity generation costs and retail tariffs, government subsidies for the power sector are expected to exceed Tk 40,000 crore in the current fiscal year. Although Bangladesh’s installed electricity generation capacity now stands at 28,919MW including imported electricity and grid-connected renewable power, ensuring uninterrupted and high-quality supply remains a challenge. Reform agenda The government says it has prioritised reforms in electricity generation, transmission and distribution through short-, medium- and long-term plans. Among the key measures are strengthening transparency and accountability, identifying those involved in corruption and tightening monitoring across the sector. It has  planned to retire inefficient power plants, modernise facilities where necessary and adopt a least-cost generation strategy. The budget outlines plans to review capacity charges and power purchase agreements to improve financial accountability, while modernising transmission and distribution systems through smart grid technologies aimed at reducing system losses. Special emphasis has also been placed on expanding electricity access in remote and island areas. To keep electricity tariffs affordable, future power plants will be developed through competitive bidding, the document says. In metropolitan areas, underground distribution lines and substations will be introduced as part of broader grid modernisation efforts. The government has also prepared a draft Power Sector Strategy Paper (2026–2050), which proposes a least-cost generation plan, a balanced energy mix and the integration of advanced technologies such as SCADA, Geographic Information Systems (GIS) and Advanced Metering Infrastructure (AMI). Besides, the entire process of obtaining new electricity connections and paying bills has been automated to improve customer services. With industrial energy audits, renewable energy expansion and governance reforms forming the backbone of the strategy, the government hopes to make Bangladesh’s power sector more efficient, resilient and financially sustainable while meeting the country’s growing electricity demand.

Artificial intelligence (AI) can be used to accelerate a more equitable energy transition and build trust for the technology throughout the industry, according to a new report of the World Economic Forum (WEF). As the impacts of climate change become more visible worldwide, governments and industries face the urgent challenge of transitioning to a low-carbon global energy system. Digital technologies – particularly AI – are key enablers for this transition and have the potential to deliver the energy sector's climate goals more rapidly and at a lower cost. Written in collaboration with BloombergNEF and Deutsche Energie-Agentur (dena) – the German Energy Agency – the new report "Harnessing Artificial Intelligence to Accelerate the Energy Transition" finds that AI has the potential to create substantial value for the global energy transition. Based on BNEF's net-zero scenario modelling, every 1% of additional efficiency in demand creates $1.3 trillion in value between 2020 and 2050 due to reduced investment needs. AI could achieve this by enabling greater energy efficiency and flexing demand. "AI is already making its mark on many parts of society and the economy. In energy, we are only seeing the beginning of what AI can do to speed up the transition to the low-emissions, ultra-efficient and interconnected energy systems we need tomorrow. This report shows the potential and what it will take to unlock it – guided by principles that span how to govern, design and enable responsible use of AI in energy. Governments and companies can collectively create a real tipping point in using AI for a faster energy transition," said Roberto Bocca, head of energy at the WEF. "As dena, we have been focusing on digital technologies for years. Especially with our 'Future Energy Lab' we are boosting AI projects. AI is an essential technology for the energy transition since it will provide the glue to connect the different sectors (power, heat, mobility and industry) and serve as digital technology to effectively monitor systems and processes. To efficiently control the energy system of the future, which will be very volatile due to renewable energies, such agent-based control will play an overarching role," said Andreas Kuhlmann, chief executive officer of dena. High priority applications for how AI can accelerate the transition to a low-carbon energy future include identifying patterns and insights in data to increase efficiency and savings. According to BNEF's net-zero scenarios, fully decarbonising the global energy system will require between $92 trillion and $173 trillion of investments in energy infrastructure between 2020 and 2050. Even single-digit percentage gains in flexibility, efficiency, or capacity in clean energy and low-carbon infrastructure systems can therefore lead to trillions of dollars in value and savings. Also, as electricity supplies more sectors and applications, the power sector is becoming the core pillar of the global energy supply. Ramping up renewable energy deployment to decarbonise the globally expanding power sector will mean more power is supplied by intermittent sources (such as solar and wind), creating a need for better forecasting, greater coordination, and more flexible consumption to ensure that power grids can be operated safely and reliably, according to the WEF. In addition, the transition to low-carbon energy systems is driving the rapid growth of distributed power generation, distributed storage, and advanced demand response capabilities, which will need to be orchestrated and integrated into much more networked, transactional power grids. Navigating these opportunities presents huge strategic and operational challenges for energy-intensive sectors and energy systems themselves, just as they are undergoing once-in-a-lifetime digital transformations. AI can act as an intelligent layer across many applications and can identify patterns and insights in data, "learn" lessons accurately and improve system performance over time, and predict and model possible outcomes for complex, multivariate situations, according to the WEF.