Bangladesh's Energy Crisis Worsened by Interim Administrations' Reckless Decisions

The current energy crisis in Bangladesh is a legacy of successive governments, not an overnight development. The country's power sector liabilities were laid out during 15 years of authoritarian rule under Awami League regimes, but the cancellation of renewable projects and long-term gas contracts by interim administrations worsened the situation.

The special act for the power and energy sector was repealed by the former interim government, leading to the cancellation of 31 renewable energy projects that were expected to add at least 1,000 megawatts to the grid in 2026. The scrapped projects also included a floating liquefied natural gas terminal and long-term gas supply contracts.

Energy experts argue that these hasty reform decisions by interim administrations deepened the turmoil in the energy sector. Instead of renegotiating terms to preserve foreign investment, gas supplies, and renewable capacity, the administration opted for total cancellation, leaving the resulting supply deficit for the current government to resolve.