The BNP alliance government, led by Tarique Rahman, has already encountered signifi cant challenges during its fi rst four months in offi ce.
Beyond a fragile economy and complex geopolitical pressures, one of its greatest tests is achieving sustainable energy security-an essential prerequisite for long-term economic growth and development.
Bangladesh faces a critical challenge in securing a sustainable supply of primary energy.
Proven domestic natural gas reserves are rapidly depleting, while discovering and developing new resources in the short term is extremely diffi cult.
At the same time, the country lacks suffi cient infrastructure to increase LNG imports substantially.
The shortage of foreign currency has further complicated LNG procurement from a global market made increasingly volatile by wars and geopolitical conflicts.
For the new government, deciding on mining the country’s discovered coal reserves is politically diffi cult without a broad national consensus.
The administration has rightly placed greater emphasis on expanding clean energy, particularly renewable and nuclear power.
However, these sectors also face considerable technical, fi nancial, and institutional challenges.
Nevertheless, energy experts agree that the sector deserves the government’s highest priority if Bangladesh is to restore economic stability.
The ongoing energy crisis has severely disrupted electricity generation and industrial production.
Many small industries have shut down, while numerous large export-oriented factories have become fi nancially distressed.
Job losses have mounted, and both domestic and foreign investment continue to decline.
Because of fuel shortages, the power system struggles to generate even 15,000MW despite having more than 29,000MW of grid-connected installed capacity.
The gas situation is even more alarming.
Between July 6 and 7, 2026, total gas supply stood at only 2,537 MMCFD against a coincident peak demand of around 4,000 MMCFD Around 900 MMCFD comes from imported RLNG through two floating storage and regasifi cation units (FSRUs) anchored off the coast.
During the monsoon season, rough seas frequently disrupt LNG carrier operations and reduce the reliability of gas supply.
The present government inherited these challenges from the previous administration and is making determined efforts to stabilize the situation.
Petrobangla and BAPEX are intensifying exploration and development drilling to increase domestic gas production.
However, the supply defi cit is so large that these efforts alone are unlikely to be suffi cient.
The Bibiyana gas fi eld, which contributes nearly 40% of Bangladesh’s domestic gas production, is declining rapidly.
Unless signifi cant new gas reserves are discovered and developed within the next three to four years, Bangladesh could face a severe gas shortage by 2030.
At the same time, the government must make an early decision on exploiting domestic coal resources.
It should also undertake long-overdue regulatory reforms to accelerate renewable energy development.
Although the government has outlined ambitious plans, successful implementation will require competent institutions and capable leadership.
Power Supply Chain The previous Awami League government deserves credit for rescuing Bangladesh’s power sector from the severe electricity shortages of 2008-09, when daily load-shedding often lasted 10 to 12 hours.
Its private-sector power generation policy signifi cantly expanded installed generation capacity.
However, the overall development of the power supply chain remained unbalanced.
Generation capacity increased rapidly, but corresponding investments in primary fuel supply, transmission infrastructure, and distribution network modernization lagged far behind.
Many power purchase agreements included capacity payment provisions, leaving the state-owned Bangladesh Power Development Board (BPDB) responsible for substantial fi nancial obligations even when plants remained underutilized.
The previous government also failed to prioritize exploration and development of domestic energy resources, opting instead to increase dependence on imported fuels and electricity without fully assessing the risks associated with volatile international energy markets.
As a result, despite having more than 29,000MW of installed generation capacity, Bangladesh struggles to produce even 15,000MW consistently.
During peak summer demand, generation shortfalls of 2,500-3,000MW continue to cause widespread load-shedding.
Another major weakness is the lack of coordination between BPDB and Petrobangla.
Several gas-fi red power plants were constructed in areas where adequate gas transmission infrastructure was unavailable.
Consequently, around 4,500- 5,000MW of generation capacity remains idle because of insuffi cient gas supply Maximum Demand Served: 17,208 MW during evening peak hours of 20/05/2026 Bangladesh, therefore, has surplus installed generation capacity.
The real constraints lie in fuel shortages, transmission bottlenecks, distribution limitations, and seasonal demand fluctuations.
The country’s fuel mix clearly demonstrates these structural weaknesses.
Another strategic mistake was abandoning the highly successful Solar Home System program while expanding the national grid across the country.
This approach placed July 16, 2026 ? 23 enormous fi nancial pressure on the Rural Electrifi cation Board (REB) and the Palli Bidyut Samities (PBSs).
Given Bangladesh’s geography, distributed generation, mini-grids, and microgrids could have provided a more effi cient solution for rural and remote communities Under current conditions, domestic natural gas can supply only about 1,050 MMCFD, enough to generate roughly 7,000- 7,500 MW, even if BPDB dispatches plants strictly according to the merit order.
Except for the three units at Barapukuria, all coal-fi red power plants depend on imported coal, and import disruptions frequently limit coal generation to less than 5,000 MW.
Bangladesh also imports around 2,000 MW of electricity, although supply is occasionally affected by operational issues involving Adani Power.
Consequently, the system continues to rely heavily on expensive liquid-fuel-based power plants during periods of peak demand.
The government should gradually reduce dependence on liquid fuels by accelerating investment in solar and other renewable energy sources.
For a successful renewable energy transition, the Sustainable and Renewable Energy Development Authority (SREDA) must be strengthened institutionally, restructured as an autonomous body, and empowered to work closely with capable privatesector companies.
With proper planning, supportive policies, and appropriate fi scal incentives, Bangladesh should target increasing renewable energy’s contribution to at least 10% by 2030.
Rooftop solar, floating solar, hybrid solar systems, and utilityscale grid-connected solar projects can collectively help achieve this objective.
By 2027, the full 2,400 MW capacity of the Rooppur Nuclear Power Plant should be connected to the national grid.
The government should also begin negotiations with interested countries for a second nuclear power plant, targeting completion around 2035.
Natural Gas Scenario Years of inadequate planning prevented Bangladesh from replacing rapidly declining natural gas reserves through new onshore and offshore discoveries.
The previous government’s policy of relying almost exclusively on BAPEX for exploration during much of its tenure contributed signifi cantly to today’s gas shortage.
Its failure to engage major international oil companies (IOCs) after resolving maritime boundary disputes with neighboring countries represented a major missed opportunity.
The government also failed to establish land-based LNG terminals, which could have eased the country’s growing gas defi cit.
Addressing today’s gas crisis requires an emergency national action plan focused on accelerated exploration and development.
Energy experts believe that if BAPEX and international oil companies jointly deploy around 10 exploration rigs, Bangladesh could discover as much as 5 trillion cubic feet (TCF) of new gas reserves over the next fi ve years.
The government should also expedite the construction of at least two additional FSRUs and a land-based LNG terminal at Matarbari.
To achieve these objectives, Petrobangla must be strengthened, professionally restructured, and allowed to operate independently under the regulatory oversight of the Bangladesh Energy Regulatory Commission (BERC).
As part of this restructuring, BAPEX, BGFCL, and SGFL should be merged into a single integrated exploration and production company similar to Petronas, Pertamina, Petrobras, ONGC, or CNPC.
The new organization could also assume responsibility for production-sharing contracts, reservoir studies, and reservoir management.
The government should prioritize skill development within BAPEX and transform it into Bangladesh’s flagship upstream energy company.
All ongoing exploration and development projects should receive the highest priority.
The government should also establish a policy framework allowing private companies to partner with BAPEX in exploration activities.
Priority exploration targets should include Tengratila and Chhatak, structures in the Chittagong Hill Tracts, the Surma Basin, and northern Bangladesh.
Upskilling GTCL and Gas Distribution Companies Gas Transmission Company Limited (GTCL), as the country’s midstream gas operator, must strengthen system management.
Its SCADA system should become fully operational, with every unit of gas accurately measured through modern metering technology.
Compressor station operations should also be optimized.
As offshore gas development progresses, GTCL will eventually need to manage subsea pipeline construction and operation.
Engineers should therefore receive specialized training well in advance.
Priority should also be given to constructing the Bhola-Barishal- Khulna gas transmission pipeline and the third parallel pipeline linking Matarbari to the national gas grid.
Gas distribution companies require digital network mapping, GIS integration, telemetry systems, and modern operational controls.
The operations of Titas Gas Transmission and Distribution Company Limited (TGTDCL) should be comprehensively reviewed.
If necessary, its franchise area could be divided into three independent operating companies covering: Dhaka Metropolitan area and Manikganj; Narayanganj and Narsingdi; and Gazipur, Tangail, and Greater Mymensingh.
LNG Infrastructure Development The government should immediately engage qualifi ed developers to establish at least two additional FSRUs and a land-based LNG terminal at Matarbari.
By 2030, Bangladesh is likely to require an additional 1,000 MMCFD of LNG imports to meet growing demand.
Conclusion The government must recognize that planning, constructing, operating, and maintaining the power and energy sector are highly technical undertakings.
Success depends on qualifi ed, experienced, and motivated professionals capable of managing increasingly sophisticated technologies.
The right people must be appointed to the right positions based on competence rather than political considerations.
The entire power supply chain should operate under an integrated SCADA system, with the National Load Dispatch Centre (NLDC) coordinating all distribution companies.
Smart grids and advanced metering infrastructure should be introduced to improve monitoring, effi ciency, and reliability.
BAPEX should receive the highest priority for accelerating onshore exploration while effectively supervising IOC activities offshore.
GTCL must modernize gas grid operations using state-of-the-art technologies and develop expertise in managing future offshore pipeline infrastructure.
Gas distribution companies should similarly upgrade their capabilities in metering, monitoring, and system control.
Achieving sustainable energy security will require comprehensive planning, institutional reform, and disciplined implementation.
Bangladesh must fully utilize its domestic energy resources-including natural gas, coal, wind, and solar-to build a balanced and resilient energy mix.
Finally, the roles of BPI and BPMI should be reviewed, and consideration should be given to integrating their functions to strengthen capacity building across the country’s power and energy sector