Download Link for Energy & Power Vol 22 Issue 14 (Jnauary 1, 2025) as PDF/userfiles/EP_22_14(2).pdf

As Bangladesh steps into 2025, the power and energy sector faces mounting pressure, with over $5.0 billion in unpaid dues weighing heavily on the interim government. While efforts have brought the debt down to $4.0 billion, new challenges—like the December 2024 rise in exchange rates—are making it harder to import much-needed fuel. LNG suppliers and cross-border electricity providers are losing confidence, and Independent Power Producers (IPPs) have scaled back electricity generation to just 40% due to unpaid bills. The situation worsened as the coal imports were affected, leaving power plants unable to operate at capacity. However, the peak demand for electricity is estimated to be 17,500-18,000MW this year. The generation and distribution systems can serve it subject to the availability of required fuel. The authorities concerned are optimistic that there would be no major load-shedding in that situation.

To prevent a full-blown energy crisis, the government needs to act swiftly. Between March and August, it must secure the necessary funds—both in dollars and Taka—to ensure steady fuel supplies and keep the lights on. Without urgent actions, fuel shortages and uncertain electricity generation could ripple across the economy, disrupting industries and daily life. Addressing these issues head-on is critical to safeguarding the country’s energy security and ensuring a stable path forward in 2025.

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