Bangladesh has retired more than 1,300 megawatts (MW) of electricity generation capacity since August 2024 as part of a sweeping overhaul of its power sector, according to official data from the Bangladesh Power Development Board (BPDB).
A list of decommissioned plants published by BPDB shows that 24 generating units — with a combined installed capacity of 1,308MW — have been taken out of service between 5 August 2024 and 9 February 2026. Of that total, around 911MW had been in effective (derated) capacity prior to retirement.
The bulk of the retired capacity came from furnace oil–based plants, which accounted for 961MW, reflecting a shift away from costly liquid fuel generation. Gas-fired units made up 327MW of the retired capacity, while 20MW came from high-speed diesel (HSD) plants.
Among the plants decommissioned were older gas turbine facilities such as Haripur GT Power Plant, originally commissioned in 1987, and Bheramara GT Unit 3, which began operations in 1980.
Several short-term rental power plants — including multiple 100MW furnace oil facilities renewal extention in April 2024 under two-year emergency arrangements — were also retired in August 2024.
The retirements come as Bangladesh grapples with high generation costs, mounting subsidy pressures and foreign currency constraints linked to fuel imports.
Liquid fuel–based plants, introduced over the past decade to address acute electricity shortages, have been criticised for their high operating costs compared with domestic gas.
Energy analysts say the move signals a consolidation phase in Bangladesh’s power sector, with authorities seeking to reduce reliance on expensive stop-gap plants and improve overall efficiency.
The government has in recent years prioritised large baseload projects, including coal and LNG-linked generation, while also pledging to expand renewable energy capacity as part of its longer-term energy transition strategy.BPDB did not immediately comment on whether additional plants are scheduled for retirement