The Bangladesh government has introduced a new energy roadmap designed to enhance national energy security, support rapidly growing electricity demand, and reduce reliance on fuel imports by developing domestic resources and adopting modern technologies. The policy, titled “Challenges and future roadmap for Bangladesh’s power and energy sector,” was submitted to Prime Minister Tarique Rahman on September 14.
The medium-term plan, spanning 2026 to 2030, targets the addition of 12,940 megawatts (MW) of generation capacity to meet an anticipated peak demand between 20,000 and 25,000 MW. This expansion includes 10,000 MW from new solar projects, 2,940 MW from coal-fired power plants in Barapukuria (300 MW), Payra (1,320 MW), and Matarbari (1,320 MW), along with upgrades to the grid infrastructure and deployment of battery energy storage systems.
The government aims to foster large-scale solar development through public-private partnership (PPP) models in Sirajganj, Sonagazi, and Rampal, while also encouraging private entrepreneurs under an operational expenditure (OPEX) model. As of September 28, 1,400 applicants had shown interest in these initiatives. The plan is supported by an initial approval for a US$350 million loan associated with small modular reactor (SMR) nuclear technology projects and includes cross-border electricity imports to serve a projected demand of 38,000 to 40,000 MW in the longer term.
Expanding natural gas supply forms another critical element of the roadmap. Planned projects include a 1,000 million cubic feet per day (mmcfd) onshore liquefied natural gas (LNG) terminal, ongoing negotiations for a 600 mmcfd floating storage and regasification unit (FSRU) in Kutubdia with a Chinese state enterprise, and the completion of surveys for a 96-kilometer Feni-Bakhrabad pipeline. Drilling has commenced onshore with 31 exploration wells completed out of a target of 150 in the first phase; a second phase for an additional 150 wells is scheduled for 2031 to 2035. Moreover, bidding has opened internationally under the “Bangladesh Offshore Model PSC-2026” to attract foreign energy firms.
While the roadmap outlines ambitious targets, energy experts have expressed reservations about its financial viability and implementation challenges. Khondaker Golam Moazzem, president of Knowledge Hub Institute Trust, warned that the plan lacks a comprehensive integrated financial assessment and clear funding sources. He cautioned that unresolved fiscal pressures stemming from previous administrations’ policy missteps and corruption risks could worsen without strategic revision. Moazzem also highlighted the economic vulnerability linked to heavy LNG imports and flagged environmental concerns associated with domestic coal development. He noted that alternative renewable sources such as wind, waste-to-energy, and small hydro power are noticeably absent from the strategy.
Shafiqual Alam, lead energy analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis, emphasized the importance of maintaining operational continuity, noting that renewable energy will be pivotal in the coming years. Alam pointed out the declining availability of global financing for coal projects and stressed that accelerating domestic gas exploration is essential to lessen dependence on costly liquid fuels and LNG imports.
The roadmap underscores the urgency of expanding generation capacity amid rapidly increasing electricity demand. As of September 2025, peak demand stood at 15,570 MW but surged by 17 percent year-on-year to an estimated 18,178 MW by mid-September 2026. Total electricity generation was 15,271 MW in September 2025, with gas-fired plants producing 5,875 MW, coal-fired plants 4,719 MW, and liquid-fuel plants, including furnace oil and diesel, contributing 2,812 MW. Projections for September 2026 anticipate generation reaching 15,859 MW, with a slight increase in gas-fired output to 5,977 MW, a decrease in coal generation to 4,363 MW, and a significant rise in liquid-fuel generation to 3,791 MW to address coal supply shortfalls.