Dhaka: The government of Bangladesh has unveiled a comprehensive plan to fortify its energy sector through enhanced energy audits and a shift towards renewable resources. This initiative aims to curb energy wastage, lessen reliance on imported fuels, and construct a more efficient and economically viable power sector.
According to United News of Bangladesh, this strategy, detailed in the national budget document, encourages the adoption of energy-efficient technologies and urges industrial consumers to optimize their electricity usage. This comes at a crucial time as the country faces rising fuel costs and increasing energy demands, compounded by diminishing domestic gas reserves and heightened dependency on imported liquefied natural gas (LNG).
With over 40 percent of Bangladesh’s electricity generation relying on gas, fluctuations in global fuel prices pose a significant threat to the sector. In response, the government is seeking to reduce its dependency on imported fossil fuels by expanding its renewable energy capacity and leveraging local energy resources.
The national budget outlines incentives for investors to produce renewable energy equipment domestically, such as solar panels, wind turbines, and battery storage systems. Bangladesh has set a target to satisfy 20 percent of its electricity demand with renewable energy by 2030, aiming to increase this share to between 30 and 50 percent by 2050. Initiatives include expanding rooftop solar programs, assessing wind resources in coastal areas, implementing utility-scale solar projects, and piloting waste-to-energy generation.
Additionally, the government plans to develop a National Energy Storage Roadmap and enhance grid flexibility to integrate a higher share of renewable electricity. The country’s electricity generation capacity is expected to reach 35,000 megawatts by 2030, with the transmission network expanding to 25,000 circuit kilometers. Progress is also being made on the 2,400MW Rooppur Nuclear Power Plant, which is projected to contribute 1,200MW to the national grid by January 2027.
The government acknowledges that past unplanned power policies, corruption, and mismanagement have led to soaring electricity generation costs. Criticisms are directed at capacity charge mechanisms that facilitated financial misappropriation, with several large-scale power projects from previous administrations imposing heavy financial burdens.
To address these structural weaknesses, the government has initiated reforms aimed at enhancing transparency, accountability, and monitoring within the sector. Plans include retiring inefficient power plants, modernizing facilities, reviewing capacity charges, and implementing smart grid technologies to reduce system losses. Emphasis is also placed on expanding electricity access to remote areas and introducing underground distribution lines in metropolitan regions.
A draft Power Sector Strategy Paper (2026-2050) has been prepared, proposing a balanced energy mix and the integration of advanced technologies. The government has automated processes for obtaining new electricity connections and bill payments to improve customer service.
Through industrial energy audits, renewable energy expansion, and governance reforms, Bangladesh aims to create a more efficient, resilient, and financially sustainable power sector capable of meeting the nation’s growing electricity demands.