Published: 12:25 AM, 25 August 2026
Cancel discriminatory energy deals, build on domestic resources: Experts
Economists, lawmakers, energy experts and security analysts on Sunday called for the cancellation of discriminatory energy agreements and a stronger reliance on Bangladesh's own resources to overcome the country's mounting energy crisis.
The call came at a policy roundtable titled Navigating the Energy Transition: Foreign Policy Alignment and Geopolitical Resilience, organised by the Institute of Policy, Governance and Advocacy for Development at Hotel InterContinental in Dhaka. The discussion was moderated by IPGAD Executive Director Mostafa Hossain.
Speakers said Bangladesh must address both the immediate shortage of energy and the long term structural weaknesses created by costly contracts, excessive capacity payments and heavy dependence on imported fossil fuels.
They also stressed the need to expand renewable energy and strengthen the country's energy sovereignty.
Professor Mushtaq Khan of SOAS University of London said the country's power sector has been distorted by contracts that benefited vested interests rather than the public.
He said power generation capacity had increased several times on paper during the previous government, while production costs and capacity charges rose at a much faster pace. According to him, many power plants were approved despite lacking reliable fuel supply systems, creating a financial burden on the nation.
Professor Khan argued that Bangladesh should pursue an international legal strategy by proving corruption and irregularities in the signing of long term sovereign agreements. He said contracts found to be tainted by corruption could be challenged under the legal principle of void ab initio, meaning they may be declared invalid from the outset. He added that internationally recognised legal experts believe Bangladesh has a strong chance of success if supported by credible investigations.
Calling the crisis a national battle, he urged the Prime Minister to take direct responsibility for overseeing the legal and policy response.
Member of Parliament Mansura Alam said Bangladesh has reached a critical stage in its energy transition where affordability and sustainability must become the central priorities.
He noted that the government aims to generate 20 percent of electricity from renewable sources by 2030 and 30 percent by 2040, but current renewable generation remains close to 5 percent. He called for reducing duties and taxes on solar panels and other renewable energy equipment to encourage private sector investment and accelerate clean energy development.
National Citizen Party joint member secretary Faridul Haque said frequent gas shortages and electricity outages have become part of everyday life for millions of people.
He alleged that discriminatory foreign power agreements had undermined Bangladesh's energy security and described overpriced electricity deals as a threat to national interests. He also demanded a transparent investigation into the fire at the Maheshkhali LNG terminal and called for stronger public oversight of the energy sector.
BIISS Research Fellow Lam Ya Mostaque said global energy markets have become increasingly vulnerable since the Russia Ukraine war, making fuel a strategic asset rather than simply an economic commodity.
She warned that Bangladesh's heavy dependence on fuel imports through the Strait of Hormuz exposes the country to serious geopolitical risks. He said Bangladesh should follow the example of countries that are expanding renewable energy while also building domestic manufacturing capacity for clean energy technologies instead of relying solely on imports.
The roundtable concluded with a strong consensus that Bangladesh should review and repeal discriminatory energy agreements, reduce dependence on imported fuel and prioritise renewable energy and domestic production to build a resilient and sovereign energy future.
