Bangladesh's Power Crisis: A Decade of Policy Failures

Bangladesh's power crisis is not due to a lack of energy, but rather three decades of policy failures and costly contracts. The country spent $17.6 billion importing liquefied natural gas (LNG) between 2018 and 2025, yet its own onshore discovery at Bhola North sat stranded for lack of a single pipeline.

The government's deal with Adani Godda in 2023 resulted in Bangladesh paying Tk14.02 per unit for power imported from Jharkhand, while the same power was available on India's power exchange that year for Tk7.83, a 79% premium. This arrangement raised the country's national average tariff by 7.69%.

The National Review Committee found that Bangladesh built power plants first and transmission lines second, resulting in roughly $1 billion per year in carrying costs. The committee also reported that 7,700 to 9,500 megawatts of power already paid for sits unused due to fuel or grid connection issues.