Government Buying Power and Fuel High and Selling Low, Sector Faces Big Deficit: Minister Tuku at BUET

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku has said the government is having to buy electricity and fuel at high prices and sell them at lower prices. This has created a large financial deficit in the sector.

He made the remarks on Tuesday (27 October) at the inaugural ceremony of the three-day Renewable Energy Fest 2026 at the central playground of Bangladesh University of Engineering and Technology (BUET).

The minister said nobody wants to understand their problems, that they are still going through difficulties, and that they are buying high and selling low while the public is not willing to pay that price.

Highlighting the financial crisis in the power sector, he said there is no situation to touch the capacity charges payable for power plants. If that is touched, the banks will step forward, he said, adding that money has to be paid for plants even when they sit idle, and that neither power purchase nor fuel supply can be done properly.

Referring to the LNG import crisis, Tuku said Bangladesh had been dependent on Qatar for LNG. Qatar has stopped supply because of an attack, he said, and LNG that cost 10 to 12 dollars has been bought for 30 dollars.

He said electricity is being bought at high prices and supplied. But he would not claim, he said, that good service is being provided in the power sector, noting that the sector has a huge deficit.

Presenting the government's initiatives to expand renewable energy, the minister said although the subject had been discussed for a long time, no government had taken effective initiatives. The present government took initiatives shortly after assuming responsibility, he said, adding that the President has issued an ordinance for this purpose and a special energy law will be placed before the next parliament.

Criticising the previous government's special law, he said the previous government made such a law for the purpose of theft. He said, however, that everything related to solar power has been made duty-free to expand renewable energy.

Expressing concern over the power transmission system, Iqbal Hasan Mahmud Tuku said the country's power grid is not modern. Nuclear, fossil-fuel-based and renewable electricity will be added to this grid, he said, but the Power Grid Company of Bangladesh (PGCB) is not yet ready for it and the situation is extremely complex.

He said that with public cooperation, 10,000 megawatts of renewable electricity can be generated by 2030.

On the exploration of the country's underground energy resources, the minister said there are huge resources underground. But not a single well was drilled in the past 17 years, he said, adding that because of unplanned management during that period the country may have to suffer for another 50 to 60 years.

On public and private sector participation in power generation, he said there was a plan from 2001 to 2006 to keep 65 percent of power generation in the public sector. But that plan was changed over the past 17 years for the purpose of making money, he said, adding that about 70 percent of power generation is now in the private sector.