AmCham calls for unified strategy, policy overhaul to ensure energy security

Bangladesh needs a coordinated and forward-looking approach to safeguard its energy security, as the American Chamber of Commerce in Bangladesh called for a unified strategy and comprehensive policy overhaul to address rising demand, supply constraints and structural inefficiencies in the sector, industry leaders said at a high-level dialogue.

The American Chamber of Commerce in Bangladesh (AmCham) yesterday (8 April) convened a meeting of its Energy & Power Subcommittee at a hotel in Banani.

The focus group discussion highlighted mounting concerns over energy security, rising costs and the need for a comprehensive long-term strategy.

AmCham President Syed Ershad Ahmed emphasised that addressing the country's energy challenges requires a coordinated approach across different time horizons.

He said the chamber is working on short-term, medium-term, and long-term strategies and will submit recommendations to relevant ministries.

Stressing a consultative process, he noted that stakeholder feedback would be prioritised over unilateral decision-making.

Eric Walker, Vice President of AmCham, said demand could double or even triple within the next 15 to 20 years.

He underscored the need for renewed drilling and government support for exploration, alongside a diversified energy mix that includes additional LNG terminals, expanded onshore and offshore exploration, and increased investment in solar energy.

Concerns were also raised about the country's growing reliance on high-priced spot LNG. Habib Bhuyian warned that prolonged dependence on spot LNG could have severe multidimensional economic consequences.

He urged industry players to consolidate their challenges, risks and recommendations to present a unified voice to policymakers.

He also suggested demand-side management measures, including standardisation of e-rickshaws, introduction of solar-charged interchangeable battery systems, staggered office and school timings, and incentives for energy-efficient appliances.

Energy expert M Tamim stressed the importance of increasing reliance on domestic energy sources. He noted that boosting output from existing gas fields could take two to five years, while new exploration would require even longer.

He also highlighted the limitations of relying solely on BAPEX and recommended engaging international reservoir management firms to optimise production.

Tamim further called for a clear policy decision on domestic coal development and said renewable energy remains the quickest solution, with potential to add around 3,000 MW of solar capacity by 2030, along with another 2,000 MW through rooftop systems.

From the renewable energy perspective, Sebastian Groh, Managing Director of SOLshare, pointed out policy distortions that favour diesel generators and lead-acid batteries over cleaner technologies.

He recommended rationalising duties on solar and storage equipment and ensuring equal benefits for energy service companies to enable scalable rooftop solar models.

He also stressed the need for effective disbursement of green finance and formal regulation of electric three-wheelers, which could eventually serve as distributed energy storage systems to support grid stability.

Experts at the discussion emphasised the need for a holistic energy strategy covering fuel supply, generation, transmission and distribution.

They called for scaling up renewable energy, particularly rooftop solar, reforming financing schemes, modernising the national grid to enable net metering, and expanding LNG and LPG infrastructure through private sector participation.

They also highlighted the importance of diversifying energy sources, strengthening transmission systems, promoting regional energy cooperation, and improving governance.

Participants noted that while Bangladesh faces significant challenges, timely policy reforms, improved financing mechanisms and stronger collaboration between the government and private sector could help the country navigate its energy transition and ensure long-term energy security.