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Fuel shortage, rising costs strain Bangladesh power sector, experts urge affordable solutions

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Photo: IEB

Despite significant expansion in electricity generation capacity over the past decade, Bangladesh is struggling to fully utilize its power infrastructure due to persistent fuel shortages, rising production costs, and growing dependence on imported energy, speakers said at a seminar on Wednesday.

They stressed the need for long-term planning, diversification of energy sources, and greater investment in renewable energy to ensure affordable and sustainable electricity supply.

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The observations came at a seminar titled “Power Sector Constraints & Affordable Solutions”, organized by the Electrical Engineering Division of the Institution of Engineers, Bangladesh (IEB) at its headquarters in Ramna, Dhaka.

experts urge affordable solutions for Bangladesh Power Sector
Photo: IEB

Speaking as the chief guest, State Minister for Land and Chittagong Hill Tracts Affairs Mir Mohammad Helal Uddin, MP, said Bangladesh must accelerate its transition toward renewable energy to strengthen energy security and reduce environmental impacts.

“Our government has to move further toward renewable energy,” he said, emphasizing the expansion of rooftop solar systems, solar installations on agricultural land, government khas land, and other unused land.

Helal Uddin said work is already underway to generate 5,000 megawatts of electricity from renewable energy sources, adding that private sector participation would be crucial to achieving the target.

“Renewable energy adoption can be expanded through joint public-private initiatives,” he said.
The state minister also highlighted plans to promote electric vehicles (EVs) to reduce fuel consumption and environmental pollution.

“In particular, there are plans to gradually convert vehicles used in educational institutions into electric vehicles, which will contribute to both energy savings and an environmentally friendly transport system,” he added.

Bangladesh Energy Regulatory Commission (BERC) Chairman Mohammad Wahid Hossain, NDC, who attended as a special guest, identified fuel scarcity as the country’s primary energy challenge.

“The main problem in our energy sector is fuel shortage. At the same time, Bangladesh is still lagging behind in the use of renewable energy,” he said.

To address the crisis, Wahid Hossain stressed the importance of long-term planning, increased research and innovation, and effective international negotiations for energy imports and tariff structures to lower procurement costs.

He also suggested that loss-making and unnecessary energy institutions should be gradually restructured or phased out to reduce financial burdens on the state.

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Dr Monzur Hossain, Member (Secretary) of the General Economics Division (GED) under the Planning Commission, said Bangladesh possesses power generation capacity but is unable to operate many plants at full scale due to inadequate fuel supply.

“Although we have generation capacity, we are unable to produce electricity at the required level because of fuel shortages,” he said.

He noted that several power plants remain underutilized despite having the technical capacity to generate electricity, making the ongoing power crisis difficult to manage.

Dr Monzur emphasized the need to invest in solar, wind, and other environmentally sustainable energy sources to reduce import dependency and strengthen long-term energy security.

In his welcome remarks, IEB Honorary Secretary General Professor Dr Engineer Md Sabbir Mostafa Khan reflected on the government’s reliance on quick rental power plants to tackle electricity shortages in previous years.

“While these plants helped address power shortages, the government is now paying huge subsidies to operate them. In the long run, this could become a major economic burden,” he said.

He also pointed to the potential of gas-based technologies to reduce power generation costs but acknowledged the challenge of scaling up solar power in a densely populated country like Bangladesh due to land scarcity.

Referring to nuclear energy, Sabbir Mostafa Khan said many countries are increasingly turning toward nuclear power, and Bangladesh has already established nuclear generation facilities. However, he warned of potential risks related to dependence on foreign suppliers for technology and raw materials.

Presenting the keynote paper, Engineer AKM Mohiuddin Azmi, Director of the Bangladesh Power Development Board (BPDB), said Bangladesh’s power sector continues to face mounting pressure from rising fuel demand, import dependency, high production costs, and infrastructural weaknesses.

He noted that the country remains heavily reliant on imported LNG, coal, and oil, leaving the sector vulnerable to price fluctuations in the global energy market.

Azmi proposed several cost-effective solutions, including the expansion of rooftop solar systems, solar parks, solar panel installations on agricultural land, and the use of government-owned khas land for solar energy generation.

“These measures can reduce import dependency and lower electricity generation costs in the long term while improving energy security,” he said.

The seminar was chaired by Engineer Motahar Hossain, Chairman of the Electrical Engineering Division of IEB. It was moderated by Engineer Umashah Umayun Moni Chowdhury, Secretary of the division, while Engineer Mohammad Monirul Mawla, Vice-Chairman, delivered the vote of thanks.

Senior IEB leaders, central council members, engineering chapter representatives, and professionals from various engineering organizations attended the event.

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