The Centre for Policy Dialogue (CPD) identified four critical Acts and policies that need to be revised to ensure competition, efficiency, transparency, and accountability in the country's power and energy sector.
"These are the Quick Enhancement of Electricity and Energy Supply Act, Bangladesh Energy Regulatory Commission Act, Renewable Energy Policy, and the Integrated Energy and Power Master Plan," Khondaker Golam Moazzem, research director has said.
During a media briefing titled "Power and Energy Sector Reform Agenda for the Interim Government", Moazzem outlined a comprehensive strategy aimed at reforming Bangladesh's energy sector at its office.
"There was no transparency in the information available in this sector. Companies provided different information to different authorities, and all details were kept top secret during the Awami League-led government. All deal documents should be made public," he added.
He criticised the current prepaid meter system, which has led to complaints of high and inaccurate electricity bills.
Moazzem highlighted that the interim government, which assumed office on August 8, faces high public expectations for economic reforms, particularly in the energy and electricity sectors.
Notably, the interim government recently appointed Fouzul Kabir Khan as an adviser for power and energy.
"With significant figures in the government leading global initiatives for zero carbon emissions and renewable energy, expectations are high for expanding renewable energy in Bangladesh," Moazzem said.
CPD urged the government to review all procurement and bidding processes of power plants, phase out inefficient and quick rental power plants, and prioritize the identification and assessment of renewable energy resources.
It also recommended forming a probe body to identify anomalies in pre-paid meters and restructuring the power, energy and mineral resources ministry to empower the Sustainable and Renewable Energy Development Authority (SREDA) as the sole authority for implementing upcoming energy transition issues.
Khondaker Golam Moazzem, presented the keynote paper, saying, "These acts and policies were initiated to benefit vested interest groups in the sector. Under the quick enhancement act, the government awarded public works to conglomerates without issuing any tender notices. No public procurement rules were followed under this act."
Moazzem also called for an international audit of all companies under the Ministry of Power, Energy, and Mineral Resources to uncover anomalies and corruption from the past government.
CPD emphasised the need for all government activities to be conducted under the Public Procurement Act 2006 and Public Procurement Rules 2008.
In the final phase, spanning 12 to 36 months, CPD suggested the government prioritise investment in advanced grid technologies, modernise grid infrastructure, and shift focus from LNG imports to domestic gas exploration.
CPD also proposed a three-step pathway for energy transition under the interim government.
It also proposed pathway includes an initial 100-day plan where the interim government would announce key priorities, followed by significant reforms over the next six months.
These reforms would include abolishing certain acts, implementing new policies such as energy audits, and centralising databases on pricing and investment.
Moazzem proposed transforming the Bangladesh Energy Regulatory Commission (BERC) into a more effective institution, revising the Energy Policy of 1996, and strengthening Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) for onshore and offshore operations.
He suggested shutting down the Renewable Energy Wing of BPDB and establishing a Renewable Energy Laboratory, citing the success of energy-efficient infrastructure in countries like Japan and Germany.
He recommended an investigation into these billing issues and called for a "no electricity, no payment" system for power plant contracts to reduce subsidy pressure.
Addressing broader issues, Moazzem urged the government to reconsider LNG-based infrastructure projects and to increase investment in renewable energy. He also emphasised the need for regional and international energy cooperation, including with the United States, European Union, Russia, and neighbouring countries.
