Bangladesh Power Crisis Worsens as Fuel Shortages Bite

Bangladesh's power crisis is reaching a boiling point as the country struggles to meet its energy demands. The crisis has been exacerbated by strained relations between Bangladesh and India, which has led to a shortage of fuel imports.

Despite having an installed capacity of roughly 29,000 megawatts, Bangladesh's electricity generation is being disrupted due to technical failures, financial stress, and gas shortages. More than 43% of the country's electricity comes from gas-fired plants, but domestic gas production is declining.

The crisis has severe consequences for various industries, including the garment industry, which relies heavily on electricity. The Bangladesh Knitwear Manufacturers and Exporters Association reported that factories are operating at only 50-60% capacity in April, with production costs up by at least 20%. Load-shedding has also forced manufacturers to use diesel generators.

Bangladesh is pursuing several responses to address the crisis, including increasing domestic gas exploration, using renewable energy sources, improving transmission and distribution systems, and importing more fuel. However, these measures have limitations, such as high costs, technical challenges, and dependence on foreign supply chains.