SANEM Energy Outlook: Volume 2, Issue 1 | July 2025
The theme of the July 2025 issue is “Power and Energy Sector in the National Budget for FY 2025-26.” The first page offers brief highlights of three articles featured inside the bulletin. The second, third, fourth, and fifth pages provide detailed discussions of these articles. The first article, titled “Can Bangladesh Reconcile Energy Security Needs with Energy Transition Ambitions?” addresses the conflict between Bangladesh’s goals of ensuring energy security and transitioning to green energy, noting that ambitious renewable energy targets appear unrealistic due to a continued reliance on fossil fuels and policy inconsistencies. The article highlights that while some positive steps, such as modernising the power grid, are being taken, the cancellation of renewable energy projects and a lack of a consistent, long-term vision are hindering progress toward a sustainable energy future. The second article, “The Risks of Heavy Reliance on Energy Subsidies in Bangladesh,” highlights that Bangladesh’s heavy reliance on energy subsidies, driven by fossil fuel imports, poses a significant threat to its fiscal health and macroeconomic stability. The authors of the article call for urgent reforms, including phasing out blanket subsidies, diversifying the energy mix with a focus on renewables and local gas exploration, and improving institutional governance to build a more resilient and sustainable energy system. The third article, “An Analysis of Power and Energy Budget in the National Budget,” analyses the FY 2025-26 budget for the power and energy sector by highlighting its main allocations, priorities, and challenges. The analysis concludes that while there are positive steps, the slow growth in renewable energy and continued high investment in fossil fuels indicate that Bangladesh is making only incremental progress and needs deeper structural reforms to truly modernise its energy sector. Overall, the article provides a clear picture of both the planned improvements and remaining obstacles in the sector’s budget for FY2025-26. Finally, the sixth page presents eight figures illustrating the current state of the power and energy sector in Bangladesh.