Bangladesh faces severe power crisis as load-shedding exceeds 3700 megawatts amid fuel shortages and mounting debt

Bangladesh is facing a severe power crisis as electricity shortages force daily load-shedding to exceed 3,700 megawatts, despite recent tariff hikes. Official data from the Bangladesh Power Development Board (BPDB) and Power Grid Bangladesh PLC (PGCB) indicates that load-shedding peaked at 3,757 megawatts on Monday night, following a peak of 3,671 megawatts the previous day.

In June, electricity prices were increased by an average of 19.85 percent at the wholesale level and 16.68 percent for retail consumers. Despite these measures, the BPDB remains unable to settle massive outstanding payments to power producers, which currently total approximately 50 billion taka. BPDB officials noted that while price adjustments are intended to stabilize the board’s financial standing, the benefits take time to materialize.

The crisis is compounded by a acute shortage of fuel, particularly gas, which is limiting production. While the country has an installed generation capacity of 29,000 megawatts, actual supply has been restricted to around 12,500 megawatts. Officials are limiting the use of expensive oil-fired power plants to control costs, leaving the grid heavily reliant on coal-fired facilities, which are currently struggling with supply chain disruptions and maintenance requirements.

Several major power plants, including the Payra plant in Patuakhali, have faced production cuts due to coal shortages and technical maintenance. Similarly, the Adani power plant in Jharkhand, India, reduced production after heavy rains disrupted coal shipments, though management expects supplies to normalize by August 12.

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The impact of the power deficit is felt acutely across the country. Rural regions, served by the Rural Electrification Board (REB), are experiencing severe outages. In districts such as Netrokona, Habiganj, and Nilphamari, residents report electricity supply for fewer than 10 hours a day, while industrial hubs, including tea estates and manufacturing plants in Feni and Keraniganj, face production losses and significant operational disruptions.

BPDB Member (Generation) Md. Zahurul Islam stated that efforts are underway to manage load-shedding by prioritizing supply during evening hours, while admitting that gas and coal constraints remain primary challenges. Distribution companies like DESCO and DPDC, which serve the capital, report relatively stable demand fulfillment compared to rural cooperatives, which are currently operating with significant supply gaps.