Widespread power cuts have returned across Bangladesh as soaring temperatures drive up electricity demand, exposing deep structural and financial strains in the country’s energy sector.
Amid stifling heat and humidity, rural areas are bearing the brunt with outages lasting an average of four to five hours a day.
Officials warn the situation could deteriorate further if global fuel supply uncertainties persist, particularly as the peak summer and irrigation season approaches — traditionally the most demanding period for electricity consumption.
Demand Surges, Supply Falls Short
According to data from the state-owned Bangladesh Power Development Board (BPDB), daily electricity demand has risen sharply in recent days to between 13,500 megawatts and 15,000 megawatts, up from an average of around 12,000 megawatts in March. The shortfall has led to load-shedding of up to 1,000 megawatts.
Despite having an installed generation capacity of nearly 29,000 megawatts, Bangladesh is unable to fully utilise its power plants due to fuel shortages, particularly gas and coal has been compounded by disruptions linked to the ongoing Middle East conflict, which has affected global energy supply chains.
A partial shutdown at a power plant operated by India’s Adani Group has further reduced supply, with output dropping to around 755–760 megawatts from a potential 1,400 megawatts when both units are operational.
Mounting Financial Strain
The crisis is being intensified by soaring fuel import costs. A sharp rise in liquefied natural gas (LNG) and oil prices has created a significant fiscal burden, increasing subsidy requirements and putting pressure on Bangladesh’s foreign exchange reserves.
Officials say the country incurred a deficit of roughly Tk 4,500 crore from LNG imports in a single month. The Ministry of Finance is now considering energy price hikes to manage subsidy pressures, as import costs have effectively doubled in recent months.
At the same time, the power sector is grappling with mounting unpaid bills. Outstanding dues owed by the Bangladesh Power Development Board (BPDB) to domestic and foreign companies have reached about Tk 43,000 crore, including Tk 15,000 crore owed to private power producers and about Tk 2,500 crore in unpaid import-based electricity bills.
Risk of Escalation
Energy experts warn that without stabilising fuel supplies, the situation could worsen significantly as temperatures climb further. Gas-fired plants are operating well below capacity due to limited supply, while coal-fired stations are also struggling with delayed shipments.
A senior BPDB official said several coal plants, including the Matarbari Power Plant, are currently affected by fuel delivery delays, though shipments are expected within the next week.
Emergency Measures
The government has introduced a series of measures to curb demand, including early closure of shops and shopping centres after evening peak hours, reduced office timings, and restrictions on air conditioning use. Officials estimate these steps could save up to 1,500 megawatts of electricity.
Authorities are also prioritising gas supply during evening peak hours to boost generation, with plans to increase output by up to 2,000 megawatts in the coming weeks.
Private Producers Sound Alarm
Private power producers have warned of an impending crisis if fuel supplies are not restored. The Bangladesh Independent Power Producers Association said furnace oil stocks could run out by around 20 April, threatening up to 4,000 megawatts of generation capacity.
Operators say prolonged payment delays have prevented them from opening letters of credit to import fuel, while rising global prices have further strained operations.
“We will require 8,000–10,000 metric tonnes of fuel per day to generate around 4,000MW of electricity from liquid fuel-based plants. If we can operate at only 80% capacity, most private power plants may be forced to shut down after 20 April 2026,” said BIPPA President David Hasnat.
He added that his plants have yet to receive around Tk 600 crore in overdue payments for liquid fuel-based generation over the past seven months, along with another Tk 400 crore for gas-fired plants.
“Under normal circumstances, it takes 35–40 days to import fuel for power plants. However, due to the ongoing conflict, delays could be longer. Without funds, we cannot even begin negotiations to import fuel,” he said.
Expressing frustration, he added: “It is unclear who is misguiding the government. We do not believe these arrears are the fault of the current administration alone; there are also responsibilities from the interim period.”
He also noted that several plants have already reduced generation due to fuel supply shortages.