Contingency Planning To Confront Deep Energy Crisis

The prevailing energy crisis likely will deepen further in 2025 and 2026.

- Saleque Sufi

The power and gas consumers will continue to suffer from supply shortages. Many small to medium-capacity industries may have to close business. Many people may lose their jobs. Local and foreign investment may slow down. The economy may suffer. There is no need to reinvent the wheel. The present interim government cannot turn around in the shortest possible time. It can stabilize the situation by making pragmatic plans and creating a congenial disciplined environment for seamless growth and development of the sector. Ill-motivated flawed planning and poor governance leading to an absence of transparency and accountability have created a weak and sick energy and power sector. The previous government took pride in bringing the country under a power supply grid. They boasted of achieving over 30,000MW grid and non-grid power generation capacity. However, for various reasons, from lack of primary fuel supply to transmission and distribution constraints and cash crisis for purchasing primary fuel, the power supply chain struggles to generate and supply consistently required power (less than 50% of installed capacity). Substantial superior quality coal resources remain unexploited and significant petroleum resources onshore and offshore could not be explored. Bangladesh does not have the resources to purchase primary fuel from the volatile global market. State owned power and energy enterprises cannot meet the financial obligations to fuel and power suppliers for cash crises. The interim government has inherited all the above. The government in limited time has taken some major steps in disciplining the sector. But in a short time, it cannot increase power generation to the expected level nor can increase fuel supply to meet the actual present and emerging demand. But by planning and executing effective measures of austerity and efficiency and eliminating system loss, theft, and pilferages, the government can create comfort. For all these, the government requires bring