Rising fuel imports strain energy system
Bangladesh’s deepening energy crisis is increasingly turning into a fiscal burden, as rising dependence on imported fuel continues to strain the country’s already mounting debt. With more than 65 percent of electricity generation now reliant on imported energy sources, civil society experts say the issue has moved beyond supply disruptions and is now a growing threat to overall economic stability.
The concern was raised at a press conference held on Sunday at the National Press Club, organised by the Bangladesh Solar and Renewable Energy Association and ActionAid Bangladesh.
The event focused on the roadmap and expectations surrounding the government’s target of generating 10,000MW of solar power by 2030.
Speakers at the event warned that Bangladesh’s increasing exposure to global fuel markets is making the economy more vulnerable to external shocks. According to data presented, around 65 percent of electricity generation and 62.5 percent of primary energy supply currently depend on imports, a sharp rise from about 47.78 percent four years ago.
This growing dependence has already contributed to supply instability, with load shedding reportedly exceeding 2,700MW in recent months. At the same time, rising imports of LNG and diesel have pushed up government subsidies, adding further pressure on the national budget.
Energy experts said the situation reflects a structural problem in the country’s power system. Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA) and adviser to JETNET-BD, said overreliance on imported fossil fuels is at the core of the ongoing crisis. He noted that rising import dependence is driving price volatility and weakening the competitiveness of the economy.
The financial strain is also becoming more visible in broader macroeconomic indicators. Zakir Hossain Khan, chief executive of Change Initiative and an advisory member of JETNET-BD, said Bangladesh’s total internal and external debt now stands between $112 billion and $114 billion, alongside additional climate-related liabilities. He warned that any further rise in global oil prices, already above $100 per barrel, could significantly increase energy costs, potentially doubling expenditure and raising industrial production costs by 30 to 40 percent.
“In this situation, energy sovereignty is no longer optional,” he said, stressing the need to shift away from import-dependent fossil fuels toward decentralised renewable energy systems.
Despite these concerns, experts said Bangladesh has potential for a faster transition if renewable energy, particularly solar, is scaled up efficiently. They pointed to research suggesting that rooftop solar systems in the industrial sector alone could generate up to 12,000MW of electricity, offering a quicker and more cost-effective solution compared to large infrastructure projects.
Dipal Chandra Barua, chief executive of Bright Green Energy Foundation (BGEF), said the government’s 10,000MW solar target is achievable but depends entirely on speed and execution. He added that wider public participation in energy generation could significantly accelerate progress.
Civil society groups welcomed the government’s renewable energy commitment but cautioned that delays in implementation could worsen existing vulnerabilities. In a joint statement, they said global geopolitical tensions, volatile fuel prices and supply disruptions are already affecting Bangladesh’s economy and daily life.
They called for urgent prioritisation of decentralised renewable energy models to reduce import dependence, strengthen resilience and ensure long-term energy and fiscal stability.
