The government has set a target to raise Bangladesh’s electricity generation capacity to 35,000 megawatts (MW) by 2030, alongside expanding the national transmission network to 25,000 circuit kilometers, Finance Minister Amir Khosru Mahmud Chowdhury announced while presenting the FY2026-27 national budget in Parliament on June 11.
The finance minister said the government is implementing a comprehensive strategy to strengthen the country’s energy security through intensified oil and gas exploration, increased domestic energy production, expansion of petroleum refining capacity, and diversification of fuel import sources.
“Our government is committed to building a self-reliant, affordable, uninterrupted, environmentally sustainable and modern power system,” he told the Jatiya Sangsad.
To support the clean energy transition, the government will provide incentives for local manufacturing of renewable energy equipment, including solar panels, wind power components and battery storage systems.
Plans are also underway to retire inefficient power plants, modernize existing facilities and adopt a least-cost power generation strategy.
The budget outlines measures to improve financial transparency in the power sector through a review of capacity payments and power purchase agreements. Special initiatives will also be taken to expand electricity access in remote and island regions while promoting competitive bidding for new power projects to keep electricity prices affordable.
