Bangladesh Electricity Demand 2025 | Power Import and Fuel Oil Use from India

Bangladesh will import power from India and increase fuel oil based production to meet its electricity demand in 2025. Know how the energy crisis is being managed amidst the issues of gas and coal plants through Ministry and Reuters reports.

Bangladesh increases electricity import, power from India is providing great help. Bangladesh is currently grappling with a rise in electricity demand, the main reasons behind which are: shortage of gas supply, reduced generation due to maintenance of coal-based power plants, and the need for overall cost control.

Electricity demand and challenges

Over the past few months, electricity consumption in Bangladesh has increased, especially since March. But at the same time gas-fired power plants have faced problems in not getting the required gas. Many gas plants are not able to operate at full capacity because of limited gas infrastructure, or technical problems in transmission/evacuation.

In addition, coal-based power generation is also affected as some plants are undergoing maintenance work. All these reasons have limited the options available to the Bangladesh government to meet the electricity demand.

Increasing share of power imports from India

Amid these difficulties, Bangladesh has increased power imports from India. Imports from India increased by almost 70% in the seven months from March to July, especially from coal-fired power plants run by Adani Power.

The share of imports increased in such a way that it has become a major support in meeting the electricity demand. This import has helped in avoiding power crisis (blackouts).

Fuel oil-based generation also fluctuates

As electricity demand has grown, Bangladesh has also increased fuel oil-based power generation. The share of fuel oil power has increased year over year, from ~11.9% previously to around 12.6% now.

At the same time, the share of gas-based generation is declining: from ~46.8% previously to around 43.9% now, due to problems in gas supply and other infrastructure constraints.

Role of Coal and LNG (Liquefied Natural Gas)

The share of domestic coal-fired output is also declining: from ~30.1% to around 26.2% now.

On the other hand, LNG imports have seen a rise of ~24% in the last seven months. This move has been taken mainly to meet the gas shortage.

Government and analyst comments

One official said several gas plants were not operating at full capacity because of “pressure-related” technical problems. Production was not stabilising because of gas shortages at plants, evacuation, or disruptions in the power transmission network, and maintenance at coal plants.

Companies such as Summit Power have said that because of cost effectiveness, and the demand for gas by utilities such as the fertilizer industry, fuel oil and imported electricity are better options where power generation is needed.

Can this situation continue for long?

The gas infrastructure must be improved so that gas plants can produce more power. Coal plants must be maintained on a regular basis to reduce downtime. Electricity transmission networks, evacuation and distribution systems must be strengthened.

The cost of imported power and energy security issues will also be important for Bangladesh. It remains to be seen how sustainable the cost of these options is in the future, and whether they will be able to balance the country’s energy policy.

Expansion of LNG Imports

Bangladesh has also expanded LNG imports. There was a 24% growth in LNG imports between March and July of FY 2024-25. This clearly shows that Bangladesh is becoming heavily dependent on imports to meet its fuel deficit.

But the cost factor of LNG and its impact on forex reserves is a long-term concern.

Adani Power and Bangladesh’s Dependency

The role of India’s Adani Power has become critical in Bangladesh’s electricity supply. Electricity coming from Adani’s coal-based plant directly supports Bangladesh’s demand. But this dependence has given rise to a new debate – is Bangladesh’s energy security in danger?

Because if the supply from India gets disrupted, then the crisis can become more serious for Bangladesh.

Government and Energy Experts’ Comments

A senior Bangladesh power ministry official said that “gas plants are not operating at their full capacity due to pressure-related issues”. Meaning infrastructure and technical bottlenecks are still major roadblocks.

Summit Power and other private players said that imported power and fuel oil are the most feasible solutions right now in terms of cost-effectiveness and availability.

Long-Term Challenges for Bangladesh

In the short term, imports and fuel oil from India provide relief for Bangladesh. But long-term challenges still exist:

• Gas Infrastructure – Transmission and supply chain need to be upgraded.
• Coal Plants Reliability – Maintenance and operational efficiency need to be improved.
• LNG Cost – The forex and fiscal impact of LNG imports could be risky for Bangladesh.
• Dependency on Imports – Excessive reliance on India creates a geopolitical and energy security challenge.
• Renewables Integration – In the long term, solar, wind and renewables need to be included in the mix.

Conclusion

Bangladesh’s electricity demand is growing at a rapid pace. But due to fuel and infrastructure related constraints in domestic production, it has to rely on imports and expensive fuels.

Power import from India and fuel oil based generation have provided relief for now, but if this dependency continues then energy security and cost concerns can become more serious.

Bangladesh will have to streamline its domestic gas and coal plants, and accelerate investment in renewable energy for long-term sustainability.

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