Bangladesh will add 1,982 megawatts of electricity generation capacity in the first week of May, addressing a persistent power shortfall that has forced industrial output below half capacity.
How the capacity addition targets the gas shortage bottleneck
The new generation, primarily from quick-deploy rental and hybrid plants, aims to alleviate strain on the national grid caused by dwindling domestic gas supplies. State utilities have reported that gas-fired plants, which supply over 60 percent of peak demand, are operating at reduced loads due to field depletion and import delays. The infusion of nearly 2 GW is intended to bypass fuel constraints by utilizing liquid fuel and dual-fuel capable units already under contract.
Why industrial users remain vulnerable despite grid upgrades
Even with the May infusion, factories in export-processing zones continue to report load-shedding during peak hours, citing voltage instability and localized distribution constraints. Transmission losses, averaging 12 percent nationally, remain high due to aging infrastructure in Dhaka and Chittagong corridors. Analysts note that without parallel investment in substation upgrades and smart metering, additional generation may not fully translate to usable power for energy-intensive sectors like textiles and ceramics.
What the timeline implies for summer demand management
The government’s target aligns with historical patterns of pre-summer capacity auctions, where temporary contracts are rolled out to meet the March-to-September cooling load surge. Last year, a similar 1.8 GW addition reduced nationwide outage duration by 30 percent in April and May. However, if gas imports from offshore LNG terminals face further delays due to global price volatility, the effectiveness of the new units could be curtailed, potentially necessitating emergency diesel-based generation at higher economic cost.
How much of the new capacity will rely on imported fuel?
The source does not specify the fuel mix for the 1,982 MW addition, though officials have previously indicated that rental plants often use heavy fuel oil or diesel when gas is unavailable.
Will this addition eliminate load-shedding entirely?
No; while the infusion aims to reduce outages, distribution-level constraints and transmission losses mean some areas may still experience scheduled power cuts, particularly during evening peak hours.
