The government has identified energy security and infrastructure development as key pillars of its medium-term economic recovery strategy, placing particular emphasis on reducing external energy dependence and accelerating domestic gas exploration amid growing global uncertainties.
According to the national budget 2026-27 document, Bangladesh remains heavily reliant on imported energy resources, sourcing around 95 percent of its petroleum requirements, about 34 percent of its natural gas demand in the form of liquefied natural gas (LNG), and virtually all of its liquefied petroleum gas (LPG) needs from international markets.
A significant share of these imports originates from the Middle East, exposing the country to geopolitical risks and supply disruptions.
To strengthen energy security, the government has prioritised domestic gas exploration while pursuing measures to diversify energy sources and improve fuel supply reliability for industries, agriculture and households.
Efforts are also underway to enhance the efficiency of power generation, transmission and distribution systems, strengthen the LNG supply chain and expand related infrastructure to meet rising energy demand.
The government is encouraging greater adoption of renewable energy technologies and promoting energy-efficient practices across industrial, agricultural and residential sectors.
Public-private partnerships (PPPs) are expected to play a key role in mobilising investment in energy and infrastructure, supporting economic activities, job creation and long-term growth.
Bangladesh’s growing economy, expanding industrial base and rapid urbanisation continue to drive higher demand for electricity and energy.
According to the Bangladesh Power Development Board (BPDB), the country’s installed power generation capacity stood at 28,919 MW in January 2026, while the highest electricity demand served reached 16,794 MW in July 2025.
The national grid receives electricity from natural gas, coal, furnace oil, diesel, hydropower, renewable sources and imports from neighbouring countries, including India and Nepal. Natural gas remains the dominant fuel in the power sector, although declining domestic reserves have increased dependence on imported fuels.
Electricity generated by public and private power plants is transmitted through the national grid operated by the Power Grid Company of Bangladesh (PGCB) and coordinated by the National Load Dispatch Centre (NLDC) to maintain system stability and balance supply with demand. Cross-border power imports currently contribute nearly 2,700 MW to the national system.
According to government estimates, primary energy imports now account for around 62.5 percent of Bangladesh’s overall energy mix.
Rising international fuel prices have significantly increased power generation costs, highlighting the need for greater domestic energy production and diversification.
The government has also outlined a long-term strategy to develop a secure, efficient and environmentally sustainable energy system.
The plan includes expanding solar, wind and other clean energy sources, modernising the national power grid through smart technologies and advanced energy management systems, and strengthening infrastructure resilience against global market volatility and climate-related challenges.
Officials believe that the combined focus on domestic resource development, renewable energy expansion, infrastructure modernisation and private investment will enhance national energy security and create a more favourable environment for sustainable economic growth in the coming years.