The government has initiated another 10 fuel-based costly power projects, mostly in the private sector, to generate 847 megawatts (MW) of electricity in the next two years. The new oil-run power projects are likely to intensify the subsidy burden in the power sector. These costly projects may force the government to hike power tariff further. According to BPDB, the government has so far operated 43 oil-fired power plants having capacity to generate 3,463MW of electricity.The power sponsors prefer oil-fired plants as they get double benefits from fuel-based projects, officials concerned said. The sponsors get higher profits from power tariff and also enjoy 9 percent service charges benefit on fuel import for fuel-based plants. The BPDB also encourages fuel-based plants and requested Bangladesh Petroleum Corporation (BPC) to allow fuel import by the private sector. The government has been discouraging gas-fired power plants due to the supply crisis of the fossil fuel. The country produces 29.16 percent of its total electricity generation from fuel-fired plants. The government’s latest move to initiate another 10 oil-fired plants will take the ratio to 31 percent. These new oil-fired power plants may lead to further hike in power tariff, which would also stagnant development activities. The government should focus on power projects based on local coal to strengthen the country’s energy security. There are two major coal-fired projects at Rampal and Matarbari are not making any visible progress. The government has already taken 22 coal-fired power projects in public, private and state-level joint ventures, but the progress is not up to the mark. But the progress in two mega coal-fired power projects in Rampal and Matarbari.