Bangladesh's Energy Crisis: A Result of Long-Term Policy Shortsightedness
Bangladesh is facing a severe gas and electricity crisis due to long-term policy shortsightedness and excessive import dependence.
The country's energy sector has been crippled, with gas supplies falling to less than half of demand, causing widespread industrial shutdowns and load-shedding in rural areas.
According to the Bangladesh Power Development Board (BPDB), peak electricity demand reached 16,530 megawatts on August 18, while actual generation capacity stood at 15,900 megawatts, resulting in a significant shortfall of over 630 megawatts.
The crisis has severely impacted major industries such as textiles, heavy steel, and food-oil production units, with some companies reporting losses of up to Tk 400-500 crore per day.
Experts attribute the crisis to Bangladesh's excessive reliance on offshore Floating Storage and Regasification Units (FSRUs) and coal-based power projects, which has created a massive economic burden in the form of capacity payments.