Power Puzzle

Bangladesh's power and energy sector has expanded rapidly over the past two decades, achieving nationwide electricity access and significant generation capacity.

- Mollah Amzad Hossain

However, the expansion has been undermined by chronic fuel shortages, rising import dependence, and financial imbalances. Domestic gas production has declined, coal development remains stalled, and renewable energy contributes only a small share. As a result, electricity generation costs have surged while state utilities face mounting debts. The new government must prioritize restoring financial discipline, boosting domestic energy exploration, expanding LNG infrastructure, and accelerating renewable energy development within its 180-day action plan.

Bangladesh now boasts one of the most extensive power and energy infrastructures in its history, with nearly 100 percent of the population connected to the national grid and large-scale load shedding largely avoided. Yet, beneath this impressive expansion lies a deep structural crisis. Chronic fuel shortages, over-reliance on imports, and inefficient generation systems have left the sector vulnerable, driving costs sky-high and leaving industries struggling for reliable power.

The newly elected government faces a formidable challenge: restoring financial discipline, reducing import dependence, and reviving domestic energy production—all within an ambitious 180-day timeframe. Immediate action is essential not only to stabilize the sector but also to lay the groundwork for sustainable growth in the years ahead.

However, despite the massive expansion of infrastructure over the past 17 years, the goal of providing a planned, reliable, and quality electricity supply has not been fully achieved. As a result, demand for grid electricity in the industrial sector has not increased significantly. Compared with other countries, Bangladesh uses the largest share of electricity in the residential sector, about 57 percent.