Bangladesh's Energy Market Shifts Towards Affordable Fuel Amid Gas Shortages

Bangladesh's energy market is shifting from building power plants to securing affordable fuel and improving the utilization of existing generation assets.

The country already has nearly 30 GW of grid-connected power capacity, but gas shortages, expensive fuel imports, and foreign-exchange pressures prevent many plants from operating efficiently.

Bangladesh's generation fleet includes approximately 12.47 GW of gas-fired capacity, 8.42 GW of coal, 5.64 GW of heavy fuel oil, 797 MW of solar, 230 MW of hydropower, and 62 MW of wind power.

The country spent $3.8 billion on LNG in 2025, with the resulting import bill being approximately $3.8 billion, equivalent to around BDT403 billion, before regasification and terminal charges.