Bangladesh’s energy sector is expected to face another difficult year in FY2026-27, with experts warning that persistent gas shortages, rising power generation costs and limited progress in renewable energy will continue to strain the economy.
Despite higher budget allocations, electricity and gas supplies are unlikely to improve significantly due to declining domestic gas production and continued reliance on expensive imported LNG.
Industry is expected to remain affected by inadequate gas supplies, potentially disrupting production and complicating efforts to reduce inflation.
The Bangladesh Power Development Board (BPDB) expects capacity payments to rise to Tk 52,608 crore in FY27 from Tk 48,260 crore a year earlier, increasing pressure on government subsidies.
Experts have also urged a review of costly power purchase agreements to reduce generation costs.
