Story perspectives

Bangladesh Power Costs Surge Amid Idle Capacity Crisis

1/27/2025

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Summary

Story summary

Bangladesh's power sector fixed costs are expected to rise to Tk 38,000 crore in FY2024-25, up from Tk 26,000 crore.
This increase stems from higher installed generation capacity, while demand remains unchanged, resulting in idle plants.
Capacity charges are straining finances, necessitating Tk 41,000 crore in subsidies this year.
Since 2009, the government has disbursed Tk 1.04 lakh crore to power producers, prompting calls for more renewable energy investments.

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Story summary

Bangladesh's power sector fixed costs are expected to rise to Tk 38,000 crore in FY2024-25, up from Tk 26,000 crore.
This increase stems from higher installed generation capacity, while demand remains unchanged, resulting in idle plants.
Capacity charges are straining finances, necessitating Tk 41,000 crore in subsidies this year.
Since 2009, the government has disbursed Tk 1.04 lakh crore to power producers, prompting calls for more renewable energy investments.