❝ No house will be left in dark by Mujib Borsho. We will light every house in order to build a poverty-free country as electricity creates scope for job employment. ❞
Sheikh Hasina
Honorable Prime Minister of Bangladesh


In the last decade, Bangladesh has made significant progress in increasing electricity generation capacity. Now, 96 percent of citizens have access to electricity, compared to 47 percent in 2009. The country’s current installed generation capacity is 22,787 MW (including captive, renewable and import). To continue the country’s robust economic growth, the businesses, factories and enterprises need uninterrupted electricity supply.

In the past decade, national energy demand has increased on average 10 percent annually and the demand for energy is projected to increase by more than two times by 2030.

In order to meet the increasing demand for power, the Bangladesh government is giving more emphasis towards increasing power generation. The government understands that in order to accomplish its aim of making Bangladesh a developed nation by 2041, it needs to ensure that its Gross Domestic Product (GDP) does not fall. The government also understands that the power sector cannot single-handedly deal with the mounting demand. This is why the government allowed the power generation by private sector.

Despite increased power generation capacity, Bangladesh faces significant outages during the peak demand hours, especially during the irrigation and summer seasons.

Load shedding and power outage accounts for an output loss of nearly 3 percent of the GDP. About 65 percent of Bangladeshi firms invest in back-up generation, adding to substantial costs in doing business. This undermines the country’s competitiveness and strong growth potentials.

To overcome the existing barriers government is setting strategic objectives on power generation, transmission and distribution system. Besides govt gives highest emphasis on development of renewable energy and development on institutional efficiency and capability.


The future demand for electricity in the country will be changed. According to the Power Sector Master plan (PSMP) 2016, the structure and composition of electricity demand will be changed with the changes in economic activities. There is significant rise in demand in industry and commercial and public services (e.g. special economic zones; metro rails and other services).

The Power System Master Plan, 2016 (PSMP) has been adopted considering the scarcity of natural gas and a gradual increasing demand for electricity generation. According to the PSMP, 2016, under long term plan, there are target of achieving electricity generation capacity of 24000 MW against a demand of 19000 MW in 2021, 40000 MW against a demand 33000 MW in 2030 and 60000 MW against a demand of 52000 MW in 2041. A summary of government future plan is given below.

SL NO. DESCRIPTION 2021 (PSMP, 2010) 2030 (PSMP, 2010) 2041 (PSMP, 2016)
Installed Capacity (MW)
Electricity Demand (MW)
Transmission Line (Ckt. KM)
Grid Substation Capacity (MVA)
Distribution Line (KM)
Per Capacity Generation (KWh)
Access to electricity (%)

On the other hand, Perspective Plan of 2021-2041 has been approved on last 26 February, 2020 by NEC.

The country’s second perspective plan will guide the government to achieve. the status of a developed country. The plan has a target to grow the economy at 9 percent by 2031 and 9.9 percent. by 2041. It has projected that the overall private investment should be enhanced to 31.4 per cent of the GDP in 2030 and 36.36 per cent in 2041 from the present 24.57 per cent. This needs an establishment of 92,000 MW for meeting up the demand of power. It envisages a Plan to ensure Energy Efficiency & Conservation both at supply and demand side. Moreover, it focuses on drawing more investment in generation, distribution and transmission system. Power division will revise the existing Power System Master Plan to align it the Perspective Plan 2021-2041.

Overall, addressing the future demand will need a shift in the demand management. More focus is needed to put on quality of electricity and is required to put emphasis on improvement of users’ efficiency.

According to the PSMPs, a major share of primary energy had been planned. to be supplied from coal and renewables, and lesser use of gas and petroleum. Natural gas is still playing a major role as primary energy; followed by HFO and HSD.

The cost of power generation varies with market price of various fuels in international market.

As a result, how much electricity will be produced from a particular fuel is determined by balancing the production cost and electricity tariff. Fuel diversification has been adopted as strategy considering the promotion of environment friendly fuels, regulation on power generation cost, the future availability of various fuels and international market price. Hence, the dependency on natural gas for electricity generation is reducing. Figure value shows the change in fuel mix in electricity generation over the years,

Renewable energy possesses a huge potential in our country. But it comprises only 2.95% of the entire energy sector in Bangladesh; which includes the off-grid share (314.87 MW) of renewable energy. Among the different forms of renewable energy potentials, at present solar energy seems to have the greatest potential with biomass and biogas having some limited applications. Bangladesh receives an average daily solar radiation in the range of 4.5 kWh/m²/day.

There is also a significant potential for wind energy. Different study has identified 13 locations for setting up wind mill. At present, the different categories of renewable energy that are being used in limited ways in Bangladesh are: 

1) Hydro-electricity
2) Solar power using solar PV
3) Wind power
4) Electricity from municipal waste
5) Bio-gas using cattle dung and poultry liter
6) Electricity & Thermal energy generation from Biomass like rice husk bagasse, waste residues from industrial processes etc.

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The size and economic potential of the renewable energy resources (e.g., solar photovoltaic, solar thermal power, wind power, biogas, etc.) in Bangladesh are yet to be determined and the capacity of renewable energy development is presently low.

Although investment costs of renewables are generally higher compared to fossil fuel alternatives, this option becomes economically viable when all externalities (e.g. environmental cost, health hazards etc.) and lower operating cost are taken into consideration.


Bangladesh has been making an effort to balance the primary energy mix for power generation. The government intends to increase its power generation capacity to 24.000 MW by 2021. Within 2030, the government plans to increase power generation capacity to 40,000 MW. The current power generation capacity (installed) in the country stands at 24,982 MW using natural gas, liquid fuel, coal, renewable and import sources.

The government of Bangladesh has taken a comprehensive action plan for the development of power sector to ensure affordable electricity for all. The activity in the sector is centered on the mission to ensure reliable electricity for all by 2021 through integrated development of generation, transmission and distribution system. As a result, the rise in economic growth, the growth in the industrial sector, and rapid progress in urbanization has been achieved. As a result, Bangladesh’s power sector has been recognized as one of the fastest growing in South Asia. What was achieved between 1971-2009, has been tripled in the last ten years by the Awami League government.

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Number of Power Plants

in 2009
in 2021
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Per capita generation

512 KWh in 2020
220 KWh in 2009
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Electricity coverage

0 %
in 2009
0 %
in 2021
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Power Generation Capacity

MW in 2009
MW in 2021
0 %
in 2009
0 %
in 2021
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System lost in distribution

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Transmission Line

8,000 ckt.km in 2009
12,692 ckt.km in 2020


To achieve government’s targeted GDP growth 24,000 MW power will have to be generated by 2021 and 60,000 MW by 2041. From FY 2008-09 to FY 2018-19, around USD 19 billion has been invested in power sector. Out of that the public sector investment is equivalent to around USD 11.5 billion and in private sector projects worth around USD 7.5 billion. From GOB’s power sector Road Map, following investment potentials can be identified: (EBL research)



Access to Electricity by Mujib Year


Solar Home System already installed Since 2009

767 MW

Capacity of renewable energy installations






Increasing the share of Clean and Green Energy in Power Generation

Modernizing and Strengthening Transmission System

Underground Distribution Network

Introduction of SCADA System and Smart Pre-payment Metering


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533 MW


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2.9 MW


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230 MW


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0.69 MW

Biogas to Electricity

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0.4 MW

Biomass to Electricity

Given limited resources and insignificant carbon footprint, Bangladesh has made all out efforts to scale up renewable energy. To date, capacity of renewable energy installations is around 767 MW including 230 MW hydropower and 2.9 mw wind power. Most of the capacity addition is from Solar Home Systems (SHSs). Until recently, installation of SHSs reaches 5.8 million providing electricity to over 20 million people outside the grid network. In addition to SHSs, 26 mini-grid areas. A total of 2130 solar irrigation systems are now in operation reducing significant amount of diesel consumption. As of now, 7 solar parks with aggregated capacity of 130 MW are feeding electricity to the grid. Taking all applications together, installed capacity solar power (both on grid and off-grid) in the country stands at around 533 MW. Other renewable resources such as off-shore wind and marine renewable energy are yet to be explored. 

Source of energy:
Present and future

Fuel Mix at Present

in percentage

No Data Found


Imported Liquefied Natural Gas (LNG) constitutes about 20% of total gas supply currently and it is estimated that it would increase about 70% by 2041. Two Floating Storage & Re-gasification Unit (FSRUS) were installed in deep sea at Moheshkhali, Cox’s Bazar to re-gasify imported LNG which started their commercial operation in 2018 and 2019 respectively. Of 3250 mmcfd total gas supply, around 700 mmcfd Re-gasified Natural Gas (RLNG) is supplying from the installed two FSRUS having capacity to supply 500 mmcfd of RLNG each. Government has taken decision to build a Land-Based LNG terminal with a re-gas capacity of 1000 mmcfd at Matarbari, Cox’s Bazar which is expected to be commissioned in 2026/2027 as well. Bangladesh is trying to replace its dependence on natural gas with LPG and LNG given the depleting indigenous natural gas reserves and the sustainability of import prospects for the latter two. To that end, household pipeline gas is being replaced by LPG gradually.

Industrial sector contributes 30% of Bangladesh’s GDP. The government has also undertaken the monumental task of setting up 100 economic zones to further expedite economic growth. The Government has pledged uninterrupted power and gas supply in these zones. LNG has been earmarked for being the primary source of energy in these zones.

To promote LPG instead of natural gas, all household gas supply will be replaced with LPG. Currently, one of the primary sources of fuel for road transports like bus, cars, 3-wheeler taxis is Compressed Natural Gas (CNG). This will be replaced with autogas.


Bangladesh is a developing country. To make resourceful developed Bangladesh by 2041, Govt. has prepared a Power System Master Plan. According to Master Plan, power generation will be 40,000 MW and 60,000 MW in 2030 and 2040 respectively. In Bangladesh, Power demand growth is about 9-10%. Bangladesh are using different uel mix such as natural gas, liquid fuel, nuclear hydro LNG and coal for power generation. To implement the Master Plan, Govt. took initiative to establish 22 coal based power plants by which the coal based generation would be 19,668 MW.

Environment and climate is changing day by day. This is why the world is shifting towards other fuel based power generation from coal and Bangladesh is a part of this change. So the Govt. has decided not to implement 10 of the 22 coal based power plants by which coal based generation will be reduced 8451 MW. Moreover, the government has decided not to establish any new coal based power plant in future. As a result the coal based generation will be decreased gradually.


In 2013, Power Division Launched Country Action Plan for Clean Cookstoves’ to promote clean cooking in Bangladesh. The target was ‘Clean Cooking for All by 2030’. A project titled ‘Household Energy Platform Programme in Bangladesh’ has been working under SREDA to coordinate and facilitate clean cooking sector activities.

In continuation of the Country Action Plan, SREDA has come up with a Draft ‘National Action Plan for Clean Cooking that suggests adoption of various clean cook stoves and clean fuels putting milestones to achieve government’s target to bring 100% cooking systems within the perview of clean cooking by 2030.

concerted effort of the

It’s a Government, academia development partners, financial institutions and NGOs. The success depends mainly on the willingness and ability of the end users to change their habit to clean cooking systems.

Let’s say NO to the cooking system that is unclean, unhealthy and unfriendly to nature & environment.


In Million USD

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Japan (jica)



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