Poor planning for past 17 yrs behind current energy crisis

By the Editorial Team · Wednesday, October 28, 2026

Bangladesh's energy crisis stems from nearly 20 years of short-term power policies and inadequate infrastructure investment, leading to costly LNG purchases and operational difficulties in rural electricity distribution. The government aims to address these challenges by expanding renewable energy to 30 percent of the power mix by 2030, removing taxes on renewable imports, and passing a new comprehensive energy law in the next parliamentary session.

Bangladesh's ongoing energy crisis is the result of nearly two decades of inadequate planning and reliance on short-term power solutions, according to Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood. Speaking at the inauguration of the Second Renewable Energy Fest 2026 held at Bangladesh University of Engineering and Technology (BUET) on October 26, Mahmood highlighted systemic issues underlying the current power shortages, including operational challenges and supply disruptions.

The three-day event, running through October 28, emphasized the need to rapidly expand renewable energy infrastructure nationwide to reduce carbon emissions and support the country's transition toward green energy. It was organised by ActionAid Bangladesh and BUET in partnership with the Just Energy Transition Network Bangladesh (JETnet-BD) and BUET’s Institute of Energy and Sustainable Development (IESD).

Mahmood attributed the crisis to policy choices made over the past 17 years, particularly the government's preference for quick rental power initiatives that disrupted a coherent long-term energy master plan. He noted that Bangladesh has not drilled any new gas wells during this period, despite potential reserves, a factor that has strained domestic energy supplies.

"The consequences of these past policies will affect the country for another 50 to 60 years,” the minister stated. He further explained that the government’s financial burden has increased significantly after Qatar ceased liquefied natural gas (LNG) deliveries under contract, forcing the country to purchase LNG on the spot market at prices reaching $30 per unit. This shift has led to over $4 billion in government spending on energy within recent months alone.

Mahmood also drew attention to operational inefficiencies, particularly in rural electricity distribution. While 100 percent electrification has been achieved through extensive power line installations, critical infrastructure such as line fault detectors was omitted. As a result, technicians must manually inspect long stretches of rural feeders when outages occur, a process that can take two to three days. Poor road access further complicates maintenance efforts, often necessitating the use of local transport to reach affected areas.

These technical outages are frequently mistaken by the public for deliberate load-shedding policies, the minister explained, highlighting a gap in understanding and communication. He expressed concern that political leaders often face criticism for failures beyond their control due to these operational challenges.

Looking ahead, the government plans to increase the share of renewable energy in the national power mix to 30 percent by 2030. To encourage this transition, all renewable energy equipment imports have been made tax-free. Incentives and favorable rental agreements have been introduced for solar power installations, including rooftop systems, and frameworks have been established to enable consumers to purchase solar-generated electricity at affordable rates.

Mahmood also announced that a comprehensive energy law addressing these issues is expected to be finalized in the upcoming parliamentary session, signaling the government’s commitment to reforming the sector and enhancing energy security.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.