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Energy consumption by source, Bangladesh

Energy in Bangladesh describes energy and electricity production, consumption and import in Bangladesh. Bangladesh is an emerging economy with a fast-growing energy consumption. Fossil fuels account for 98.9% of the country's energy consumption.[1][2] Dwindling natural gas production has forced the country to become increasingly reliant on imported energy, exposing it to price fluctuations in the international market. Investment into nuclear energy and renewable energy production is aiming to mitigate this.

The country is an import dependent energy market.

Overview

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Energy calculation method was changed in 2026 resulting in changing values. Energy mix of Bangladesh (in TWh):[3]

YearGasOilCoalHydroSolarWindNuclearOther renewables (including geothermal and biomass)
19713.6671258.1352911.08698980.486111070000
19723.6671259.9190181.08698630.486111070000
19735.88087511.2081051.412510.91944440000
19747.11287511.6595651.25556310.674999950000
19754.95687513.6317961.45319181.21111110000
19767.247625414.7488761.43575851.37222220000
19778.123514.5228061.49970011.21388890000
19788.61437515.4601211.45319181.40555550000
19799.86562517.1123371.0811831.63055550000
198012.29112419.2910021.44432971.61944440000
198113.61385619.892941.48477891.7361110000
198217.67484719.621321.79867261.45277770000
198319.66718717.5474951.01798551.83888880000
198422.70066317.6820530.407387262.49166660000
198525.78047419.7387660.569649042.05277780000
198629.0701521.2754860.860294341.24999990000
198734.15592620.9454861.35437151.43611110000
198840.20107720.9842621.39506511.8750000
198942.4986722.9419541.45319182.55555560000
199045.74201222.2278213.2725892.45555540000
199147.10748720.6228621.04630462.32777760000
199251.37016323.0042630.982362872.2111110000
199357.5025325.7691670.366205451.68888880000
199460.98571826.856830.342957082.35277770000
199567.4233434.8534853.73179941.03333330000
199672.3646735.6064832.04610092.05277780000
199771.1327440.8769343.75505951.99722210000
199876.8644645.0557561.08117142.40277770000
199983.8035740.183850.534770672.31388880000
200090.58189439.4877243.83643462.08055542.77778E-05000.13109374
2001101.4320947.1667374.06894162.7430943.8674E-05000.10375
2002106.7113842.8761944.2491372.0520550.000180822000.21687499
2003114.784343.8936654.06312662.04087190.002316076000.18828125
2004123.4023245.7322544.06894162.02981040.005186992000.1265
2005132.6335846.996348.3479952.01344080.009145161000.11234375
2006143.6336847.27173612.683872.00267390.0145267380.00427807500.140625
2007153.3637145.71319610.3513971.99202130.024061170.00425531900.17384374
2008163.764245.3937510.8960662.50659630.040142480.00765171500.17290625
2009187.4673942.92591513.614831.09448810.065889760.01338582700.084875
2010192.5372847.6331188.6757671.89843740.1153750.0132812500.0663125
2011195.8214960.01977512.9155432.25906730.32030830.01321243600.10925001
2012213.362868.35689510.6571142.00257730.402002540.0131443300.076937504
2013219.5278669.6395214.7604091.86286120.49692070.01299488500.11781251
2014230.222776.664839.3510471.44135740.589066150.01292875200.14125
2015258.5406292.6844630.6330132.27378850.67321520.01286329100.09315625
2016264.5094696.1104923.0358182.22269490.5525980.01276633100.07321875
2017265.92673108.2535425.1171342.57382040.728819970.012702500.13571875
2018274.29124.1939728.5688322.15276380.783539830.01263930300.09665625
2019309.3438121.8726848.064912.03735450.92581680.01257673200.1093125
2020299.15314102.77637552.3468321.73005121.13310610.01258005100.109718755
2021306.08908140.5674942.3109781.67947611.50907650.01251477800.09996875
2022286.87222166.1437555.3966261.90424221.59288540.01248402900.03653125
2023281.25888139.3692281.771861.66724562.25630240.0404452200.03653125
2024273.2437160.4659789.2187352.42390513.09360980.2370324300.036631335
2025 273.76 169.10 117.68 0.88 1.61 0.06 0 0.04

History

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Following independence in 1971, the country's energy was primarily derived from oil, gas, coal and hydropower in decreasing order of importance.[3] People in rural areas were mostly dependent on dry leaves and woods for cooking and using kerosene lamp or flashlight at night.[4] The country was energy poor with lack of energy affecting every part of the economy.[5]

As the country suffered through mismanagement, corruption, and lack of a coherent energy policy, the country continued to be dependent upon expensive imported oil.[6][7] This was somewhat alleviated as the countries abundant gas fields were surveyed, explored and drilled, which presented its own challenges.[8][9]

CO2 emissions Bangladesh

The energy demand in Bangladesh is increasing rapidly with increase in GDP.[10] However, initiatives taken to quickly raise capacity without public procurement process has led to rapid increase in both electricity cost and subsidies.[11][12][13]

Dwindling gas reserves, a slow uptake in adopting solar and wind energy, volatility in price of the fossil fuel in global market presents contemporary challenges for the energy sector of the country.[14][8][15] Slow construction, opaque contracts, and expensive initial investment is hampering new power generation projects such as Rooppur Nuclear Power Plant.[16][17]

2020s

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In 2022, following Russian invasion of Ukraine, Bangladesh entered a prolonged depression due to rising fuel import cost.[18] This rapidly inflated cost of a dollar from 89 BDT in the exchange market to 123 BDT in 2026 in several bursts, hurting Bangladesh's GDP growth after years of progress.[19][20] Electricity production fell for the first time, other than in 2020 due to covid pandemic, in the countries history.[21] In addition, he foreign reserve dwindled dramatically.[22]

In 2026, US-israel invasion of Iran, triggered another energy crisis. This time fuel was rationed and long lines formed outside of petrol pump.[23] Rolling blackout became common occurrence.[24] Gas prices for household was raised sharply. Refinery in Chattogram shut down due to lack of crude import.[25]

Electricity

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Electricity generation in Bangladesh in terawatt-hours

The electricity sector in Bangladesh operates using a single national grid, managed by the state-owned Power Grid Company of Bangladesh (PGCB), with an installed capacity of 25,700 MW as of June 2022. Bangladesh's energy sector is not up to the mark. However, per capita energy consumption in Bangladesh is considered higher than the production. Electricity was introduced to the country on 7 December 1901.

Electricity is the major source of power for most of the country's economic activities. Bangladesh's total installed electricity generation capacity (including captive power) is 27,840 MW, while the maximum production ever attained was 16,477 MW. It was 15,351 megawatts (MW) as of January 2017 and 20,000 megawatts in 2018.

The largest energy consumers in Bangladesh are industries and the residential sector, followed by the commercial and agricultural sectors.

Bangladesh will need an estimated 34,000 MW of power by 2030 to sustain its economic growth of over 7 percent.

Problems in Bangladesh's electric power sector include high system losses, delays in completion of new plants, low plant efficiency, erratic power supply, electricity theft, blackouts, and shortages of funds for power plant maintenance. Overall, the country's generation plants have been unable to meet system demand over the past decade.

On the 2nd of November, 2014, electricity was restored after a day-long nationwide blackout. A transmission line from India had failed, which "led to a cascade of failures throughout the national power grid," and criticism of "old grid infrastructure and poor management." However, in a recent root-cause analysis report the investigating team has clarified that the fault was actually due to internal lack of coordination and poor health of transmission and distribution infrastructure that caused the blackout.

On 4 October 2022, 70–80% of the country's 168 million residence were hit with blackouts and only 45% of residences were restored with power by nightfall. There was a shortage of natural gas because of the 2021–present global energy crisis where 77 natural gas power plants had insufficient fuel to meet demand. The electricity sector in Bangladesh is heavily reliant on natural gas. The government stopped buying spot price liquefied natural gas in June 2022; they were importing 30% of their LNG on the spot market this year down from 40% last year. They are still importing LNG on futures exchange markets. (Full article...)

Renewable energy

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According to the Bangladesh's Power Sector Master Plan 2016 (PSMP–2016), the country has the potential to generate a combined 3.6 GW of electricity from renewable energy sources.[26] Another research has estimated that the potential from wind power alone stands at 20 GW.[26]

The government of Bangladesh has approved the construction by private developers of 19 on-grid solar parks, with would have cumulative generation capacity of 1070 MW.[27]

Bangladesh has planned to produce 10% of total power generation by 2020 from renewable energy sources like wind, waste, and solar energy. The country plans to increase its renewable energy share to 17% by 2041 under its Intended Nationally Determined Contribution (INDC) commitment to reduce greenhouse gas emissions by 5% until 2030.[28]

The country's prospect of geothermal energy extraction has also been discussed by researchers.[29] Studies carried out by geologists suggested geothermal resources in northwest and southeast region.[30][31]

See also

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References

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  1. ↑ Share of primary energy consumption from fossil fuels - Measured as a percentage of primary energy, using the substitution method. (Till 2024) - Our World in Data
  2. ↑ "Bangladesh - Countries & Regions". IEA. Archived from the original on 2025-08-12. Retrieved 2025-08-31.
  3. 1 2 Energy Institute - Statistical Review of World Energy (2025) – with major processing by Our World in Data. "Other renewables (including geothermal and biomass)" [dataset]. Energy Institute, "Statistical Review of World Energy" [original data]. Source
  4. ↑ "Fading traditions, rising innovations: The story of Bangladesh's rural kitchens". The Daily Star. 2024-04-08. Retrieved 2025-09-19.
  5. ↑ Islam, Md. Shafiqul; Al-Amin, Abul Quasem; Sarkar, Md. Sujahangir Kabir (2021-08-01). "Energy crisis in Bangladesh: Challenges, progress, and prospects for alternative energy resources". Utilities Policy. 71 101221. Bibcode:2021UtPol..7101221I. doi:10.1016/j.jup.2021.101221. ISSN 0957-1787.
  6. ↑ "New energy policy, same challenges: Why Bangladesh needs an inclusive approach". ieefa.org. Retrieved 2026-02-19.
  7. ↑ Energy Sector in Bangladesh: An agenda for reforms - GSI Report March 2014 by BIDS (Bangladesh Institute of Development Studies) IISD
  8. 1 2 Mohazzem Hossain, Shah; Biswas, Sagor; Raihan Uddin, Md (January 2024). "Sustainable energy transition in Bangladesh: Challenges and pathways for the future". Engineering Reports. 6 (1) e12752. doi:10.1002/eng2.12752. ISSN 2577-8196.
  9. ↑ "Hydrocarbon Exploration - Banglapedia". en.banglapedia.org. Archived from the original on 2022-11-24. Retrieved 2026-02-19.
  10. ↑ Dey, Sima Rani; Tareque, Mohammed (2020-02-11). "Electricity consumption and GDP nexus in Bangladesh: a time series investigation". Journal of Asian Business and Economic Studies. 27 (1): 35–48. doi:10.1108/JABES-04-2019-0029. ISSN 2515-964X.
  11. ↑ Islam, Saiful; Khan, Md. Ziaur Rahman (2017-03-01). "A Review of Energy Sector of Bangladesh". Energy Procedia. 1st International Conference on Energy and Power, ICEP2016, 14-16 December 2016, RMIT University, Melbourne, Australia. 110: 611–618. Bibcode:2017EnPro.110..611I. doi:10.1016/j.egypro.2017.03.193. ISSN 1876-6102. Archived from the original on 2024-04-16. Retrieved 2025-09-03.
  12. ↑ "Quick rental power plant: Extend or Escape? – Policy Insights". Retrieved 2026-02-19.
  13. ↑ Khan, Mushtaq; Watkins, Mitchell; Zahan, Iffat (2022-09-01). "De-risking private power in Bangladesh: How financing design can stop collusive contracting". Energy Policy. 168 113146. Bibcode:2022EnPol.16813146K. doi:10.1016/j.enpol.2022.113146. ISSN 0301-4215.
  14. ↑ Mohazzem Hossain, Shah; Biswas, Sagor; Raihan Uddin, Md (2024). "Sustainable energy transition in Bangladesh: Challenges and pathways for the future". Engineering Reports. 6 (1) e12752. doi:10.1002/eng2.12752. ISSN 2577-8196.
  15. ↑ sarwar (2023-03-13). "How global energy market volatility impacted inflation in Bangladesh". CPD Power and Energy Study. Retrieved 2026-02-19.
  16. ↑ "Nuclear Power in Bangladesh - World Nuclear Association". world-nuclear.org. Retrieved 2026-02-19.
  17. ↑ "High construction cost to double power generation cost". New Age | The Most Popular Outspoken English Daily in Bangladesh. Archived from the original on 2023-07-08. Retrieved 2026-02-19.
  18. ↑ "Bangladesh is being 'killed by economic conditions elsewhere in the world'". Financial Times. 24 August 2022.
  19. ↑ "Even with floating forex system, taka devalued against US dollar again". Bdnews24. Retrieved 2026-08-28.
  20. ↑ bdnews24.com. "Remittance slowdown lifts bank dollar rates as open market eases". Bank dollar rate climbs, open market cools. Retrieved 2026-08-28.{{cite web}}: CS1 maint: numeric names: authors list (link)
  21. ↑ "Bangladesh Electricity". Worldometer. Retrieved 2026-08-28.
  22. ↑ "Bangladesh Foreign Exchange Reserves 2026 | Reserves cross $29b under IMF method | The Daily Star". www.thedailystar.net. Retrieved 2026-08-28.
  23. ↑ "Fuel: Over 1km queue in Dhaka, people wait even at closed filling stations". Prothomalo. 2026-03-09. Retrieved 2026-08-28.
  24. ↑ Hasnat, Saif; Travelli, Alex (2026-03-16). "The War Is Making It Harder to Keep the Lights On, 2,000 Miles Away". The New York Times. ISSN 0362-4331. Retrieved 2026-08-28.
  25. ↑ bdnews24.com. "How badly could Eastern Refinery's closure impact Bangladesh?". What will happen if Eastern Refinery closes?. Retrieved 2026-08-28.{{cite web}}: CS1 maint: numeric names: authors list (link)
  26. 1 2 Rahman and Sarker (2018-02-02). "Nuclear power: Surviving on secrecy and misinformation". The Daily Star. Retrieved 2019-01-04.
  27. ↑ Imam, Badrul (2018-04-11). "Why is solar power development so slow in Bangladesh?". The Daily Star. Retrieved 2019-01-04.
  28. ↑ Rashid and Sajjad (2018-08-20). "Powering the nation". Dhaka Tribune. Retrieved 2019-01-04.
  29. ↑ Md. A. Akbar, "An assessment of the geothermal potential of Bangladesh", United Nations University, Geothermal Training Programme, Orkustofnun, Grensasvegur 9, IS-108 Reykjavik, Iceland, Reports 2011, Number 5.
  30. ↑ Guha, D. K.; Henkel, H.; Imam, B. (April 2010). "Geothermal potential in Bangladesh - results from investigations of abandoned deep wells" (PDF). Proceedings of the World Geothermal Congress 2010. Bali, Indonesia. Archived from the original (PDF) on 31 December 2021. Retrieved 11 August 2023.
  31. ↑ Rahman, M. (2006). "Geothermal potential resources in Thakurgaon district, northern Bangladesh". Bangladesh Journal of Geology. 25: 13–30.
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