The government has launched an initiative to strengthen energy audits in major industries as part of a broader effort to improve energy efficiency, reduce fuel waste and lessen Bangladesh’s dependence on imported energy.
According to the FY2026-27 budget, designated industrial consumers will be encouraged to optimize electricity use and adopt energy-efficient technologies to help lower rising power generation costs driven by increasing LNG imports and declining domestic gas production.
The government is also promoting renewable energy by offering incentives for local manufacturing of solar panels, wind turbine components and battery storage systems, while targeting 20% of electricity generation from renewable sources by 2030.
Alongside efficiency measures, the government plans to expand power generation and transmission capacity, modernize the grid with smart technologies, retire inefficient power plants and review costly power purchase agreements to improve financial sustainability.
The reforms are aimed at creating a more reliable, affordable and environmentally sustainable power sector while reducing the growing subsidy burden and strengthening long-term energy security.
