The government has set a target of eliminating the gap between electricity demand and supply by 2030, unveiling an ambitious plan to raise generation capacity and strengthen the country’s energy security amid a recent power and fuel crisis.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit presented the roadmap at a meeting titled “Challenges and Future Roadmap for Bangladesh’s Power and Energy Sector”, chaired by Prime Minister Tarique Rahman at the Secretariat on Monday.
“By 2030, there will be no gap between demand and supply,” Amit said while presenting the government’s plans.
The government aims to raise power generation capacity to 20,500MW by 2027, 22,500MW by 2028, 26,500MW by 2029 and 31,300MW by 2030.
The announcement comes against the backdrop of a severe power and energy crunch in recent months, when shortages of gas, coal and liquid fuel, along with technical problems at several plants, contributed to widespread load-shedding.
Prime Minister Tarique Rahman said the country would return by Tuesday to the situation that prevailed before the accident at the floating storage and regasification unit (FSRU) facility in Maheshkhali.
He stressed that ensuring energy sufficiency was critical to Bangladesh’s ambition of becoming a $1 trillion economy by 2034.
Amit attributed the recent crisis primarily to the war in Iran, saying around 70% of Bangladesh’s liquefied natural gas (LNG) comes from the Middle East. The accident at the Maheshkhali FSRU facility subsequently aggravated the situation, he said.
He also blamed what he described as wrong policies, indecision and a lack of proper planning by the previous Awami League government led by Sheikh Hasina for creating structural weaknesses in the power and energy sector.
According to Amit, Bangladesh paid Tk 2,89,949 crore in capacity charges between 2009 and 2026, which he described as abnormal and unreasonable.
He also alleged that the previous government had provided special advantages to certain quarters through the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010.
Amit said the pressure on the power system had increased significantly over the past year.
Electricity demand stood at 15,570MW in September last year, compared with 18,871MW this September, he said.
Of the increased demand, around 3,000-4,000MW is consumed by battery-powered autorickshaws, according to the state minister.
In the immediate term, the government plans to raise available generation capacity to 22,000-23,000MW within the next six months.
It will also purchase electricity generated from rooftop solar systems at Tk 10.50 per unit, with a target of adding 3,000-4,000MW to the national grid within six months.
Export-oriented industries will be allowed to establish renewable energy-based power plants.
The planned generation mix by 2030 includes 6,000MW from coal-fired plants, 6,000MW from gas-fired plants, 4,000MW from liquid-fuel plants, 3,000-4,000MW from rooftop solar and 2,500MW through electricity imports.
A new 195MW gas-fired power plant is planned in Bhola.
The government has reduced tariffs for 19 power plants after reviewing their power purchase agreements (PPAs), while discussions are underway with another 51 plants.
For plants whose agreements have expired, the government plans to introduce a “no electricity, no payment” arrangement without capacity charges.
Amit said industries that have already applied for gas connections would receive those connections by 2030.
The government is also discussing the possibility of importing gas from neighbouring Myanmar, he said.
To boost domestic gas exploration, two rigs will be procured for state-owned Bangladesh Petroleum Exploration and Production Company (Bapex).
Foreign exploration companies are also being encouraged to work jointly with Bapex in exploring new gas reserves.
Amit said the government would complete construction of the third FSRU by mid-2028, which is expected to strengthen LNG import and regasification capacity.
He also defended Bangladesh’s fuel prices, saying the country still has some of the lowest fuel prices in the world. While Bangladesh increased the price of diesel by 15%, Myanmar raised it by 71.9% and Pakistan by 40%, he said.
Under the mid-term roadmap, the government plans to establish base-load power plants at Barapukuria, Payra and Matarbari, with capacities of 300MW, 1,320MW and 1,320MW respectively.
It also plans to modernise the transmission and distribution network to improve the reliability of power supply and reduce system losses.
The government intends to accelerate coal excavation and preserve the fuel to ensure the full operation of coal-fired power plants.
Amit said coal would be mined at Fulbari using modern, environmentally friendly technology after consultations with experts.
At the same time, he said there would be no coal-fired power plant in the second phase of Rampal.
The government also plans to establish large-scale solar power plants with a combined capacity of 10,000MW across the country under public-private partnership (PPP) arrangements. Potential locations include Sirajganj, Sonagazi and Rampal.
Prepaid meters will be introduced to reduce system losses and eliminate irregular or “ghost” bills, while electricity imports through regional cooperation will be expanded.
In the long term, the government aims to generate 30% of the country’s electricity from renewable sources by 2040.
It plans to maximise the use of gas-fired power plants while making the best possible use of domestic gas, and to achieve long-term energy security through environmentally sustainable coal mining.
The government also wants to reduce dependence on expensive liquid-fuel-based power plants.
Nuclear power is another component of the long-term strategy, with the government planning to explore electricity generation using small modular reactor (SMR) technology.