Bangladesh’s energy crisis: The time to act is now

Bangladesh’s energy sector has faced severe crises in the past, much like the one we are experiencing today.

Yet, because we failed to take adequate and timely measures to address those crises, we are once again facing acute gas shortages, power deficits and widespread load-shedding across the country.

This time, however, the situation has been compounded by difficulties in importing fuel.

Industries are cutting production, households are facing prolonged outages, CNG stations have long queues, and rural communities are bearing much of the burden.

Energy crises can have consequences far beyond the economy. Prolonged shortages, rising costs and disruptions to daily life can fuel public frustration, and erode public confidence in the government.

The present government should therefore treat the situation with the seriousness it deserves, communicate openly with the public, and present a credible plan to address both the immediate shortages and their underlying causes.

The immediate priority is to ensure adequate and uninterrupted supplies of fuel, gas, and electricity.

Equally important is to take necessary measures to reduce Bangladesh’s vulnerability to energy disruptions in the future.

Clearly, we need both immediate action and a fundamental shift in energy policy-from repeated crisis management to a long-term strategy for energy security.

Immediate Action
The government should establish a transparent national fuel-stock monitoring system, regularly publishing data on stocks, imports, consumption and days of supply remaining.

Bangladesh should also maintain strategic reserves of diesel, petrol, jet fuel and other essential petroleum products sufficient to withstand several weeks of import disruption, while diversifying import sources where economically and logistically feasible.

Such measures would reduce uncertainty, discourage panic buying and strengthen public confidence.

Digital monitoring of fuel depots and filling stations could improve distribution and help detect hoarding, diversion and artificial shortages.

During severe shortages, fuel and gas should be allocated according to clear economic and social priorities, with agriculture, public transport, freight, emergency services, power generation, fertiliser production and export-oriented industries receiving priority.

Industries and power plants should also be given predictable rationing schedules when gas supplies are inadequate.

Reduce Demand, Not Just Increase Supply
Illegal electricity and gas connections, along with technical and commercial losses, should be tackled more aggressively through digital monitoring.

Non-essential consumption, including excessive decorative lighting and billboards, should be restricted during periods of acute shortage.

Energy efficiency should become a national priority. The cheapest unit of energy is the unit that does not have to be generated or imported.

Large industries should undergo periodic energy audits and implement cost-effective efficiency measures.

This is particularly important for the garment and textile industries.

Efficient motors, variable-speed drives, boilers, pumps, compressors, refrigeration systems, and industrial controls can significantly reduce energy consumption. Government incentives should encourage investment in such technologies.

Transport also deserves attention. Traffic congestion causes vehicles to consume large quantities of fuel while moving slowly or remaining stationary.

Better traffic management, improved public transport, mass transit and stricter enforcement of traffic regulations can reduce both fuel consumption and congestion.

Build a More Resilient Energy System
Bangladesh is increasingly dependent on imported fossil fuels as domestic gas production declines.

Oil, gas and electricity should therefore be treated as interconnected components of a national energy-security system.

A disruption in LNG supplies can quickly reduce gas availability for power generation, triggering electricity shortages for households and industries-as the present crisis demonstrates.

Bangladesh should accelerate both onshore and offshore gas exploration.

BAPEX needs stronger technical and managerial capacity, while international oil companies should be encouraged to participate through transparent and competitive arrangements.

However, domestic exploration should reduce import dependence, not replace the broader goal of energy diversification.

Make Renewable Energy a Strategic Priority
Bangladesh cannot achieve long-term energy security by relying increasingly on imported fossil fuels; renewable energy must therefore become a much larger part of the national energy mix.

Solar power offers the greatest immediate opportunity, but given the country’s limited land, the focus should be on rooftop solar, solar irrigation, floating solar and carefully selected projects on non-agricultural land, rather than large solar parks alone.

Bangladesh remains far behind countries such as India and Vietnam, with renewables contributing only around 1-2 percent of its electricity.

Renewables cannot replace conventional fuels overnight, so Bangladesh needs a balanced transition combining renewable energy, domestic gas exploration, diversified fuel imports and aggressive energy-efficiency measures.

Modernise the Grid
Renewable energy cannot expand rapidly without a modern electricity grid.

Bangladesh needs investment in transmission and distribution, battery storage, smart-grid technologies and automated demand management.

The objective should be a flexible grid capable of integrating increasing amounts of rooftop and utility-scale solar while maintaining reliability during peak demand.

A reliable grid is essential not only for households but also for industrial competitiveness, investment and sustained economic growth.

From Crisis Management to Energy Security
Bangladesh needs a permanent national energy-security framework covering fuel reserves, LNG procurement, domestic exploration, renewables, power generation, grid modernisation, efficiency and emergency response.

It should set measurable targets and be reviewed regularly, with procurement made more transparent and diversified. Long-term LNG contracts can improve supply security, but excessive dependence on any single supplier or fuel should be avoided.

The present crisis is not simply a temporary shortage; it is a warning about the vulnerability of Bangladesh’s energy model.

The country must produce more domestic energy, import strategically, waste less and rapidly expand renewables.

Industries must improve efficiency, the grid must be modernised, and energy planning better coordinated.

This is how Bangladesh can move from repeated crises to lasting energy security.

The time to act is now
Bangladesh should use the present crisis to build an energy system that is secure, diversified, efficient and increasingly based on domestic and renewable resources.

Energy security is not simply about keeping the lights on.

It is a prerequisite for industrial competitiveness, food security, employment and sustained economic growth.

(The writer is a distinguished Professor, Eastern University and Professor (retired), BUET).