Bangladesh’s power and energy sector is caught in a striking contradiction. Installed generation capacity has grown substantially, yet people continue to endure prolonged load-shedding. According to Power Cell data, the country’s total installed generation capacity, including grid and off-grid sources, stood at around 33,092 megawatts in 2026. Yet peak generation on May 20 was only 17,201MW. In September, demand crossed 16,500MW while supply hovered around 13,500MW, leaving a shortfall of 2,700–3,500MW.
Few places expose this contradiction more starkly than Cox’s Bazar. The district was long envisioned as more than Bangladesh’s premier tourism destination; it was also meant to emerge as a major economic and energy hub. Matarbari in Maheshkhali hosts a 1,200MW coal-fired power plant, while two floating LNG terminals operate offshore. Yet the people living in this increasingly strategic energy zone continue to face prolonged power cuts. The question is not simply whether Bangladesh has enough generation capacity, but whether that capacity can reliably reach those who need it.
The consequences for ordinary people are immediate. In the intense heat, prolonged outages disrupt daily life, education and small businesses. Families are forced to spend more on alternative lighting, fans and generators, while electricity-dependent healthcare and other essential services face added pressure. In Teknaf, Ukhiya and Chakaria, disruptions also affect salt production, dried-fish processing and fisheries.
The tourism economy is taking a hit as well. Cox’s Bazar town and the hotel-motel zone require around 50MW a day against a supply of roughly 40MW. Hotels and resorts are consequently forced to rely on generators, raising operating costs and disrupting services for visitors. For a tourism-dependent economy, unreliable electricity is a direct constraint on business.
Yet this is not simply a generation problem. Fuel shortages, dollar constraints and import dependence are central to it. Reduced gas supplies prevent gas-fired plants from operating at full capacity, while imported LNG and coal add pressure on foreign-exchange reserves. Then there is the burden of capacity payments—around Tk 42,000 crore in FY2024–25—even when plants do not generate electricity.
The answer is not simply to build more power plants. Bangladesh needs a more efficient and financially sustainable system spanning generation, fuel supply, transmission and distribution. Cox’s Bazar needs uninterrupted power as an immediate priority, particularly for the town and hotel-motel zone. Power-purchase agreements and capacity payments must also be reviewed to curb avoidable expenditure.
In the longer term, Cox’s Bazar should harness its solar and wind potential and develop into a renewable-energy hub. But the success of a power sector cannot be measured by megawatts alone. The real test is how reliably, affordably and sustainably that electricity reaches people. Bangladesh’s next energy strategy must therefore put reliable supply and sustainable costs—not capacity figures alone—at its centre.
By Salam Abu
Editor
