Bangladesh’s energy crunch highlights the promise — and limits — of solar

• As Bangladesh struggles with gas shortages, fuel import costs and power plant outages, solar power plants have continued generating electricity during daylight hours, helping reduce pressure on the national grid.
• Although renewables account for only a small share of Bangladesh’s electricity mix, solar plays a particularly important role in the northern Rangpur region, where it provides most daytime electricity generation.
• Major gas-fired plants, including the 1,200-MW Ghorashal facility near Dhaka, have been shut down because of fuel shortages, highlighting Bangladesh’s dependence on imported fossil fuels.
• Experts say Bangladesh could reduce its exposure to volatile global fuel markets by expanding solar energy, though challenges including land availability, policy support and slow implementation continue to limit growth.

As Bangladesh grapples with fuel shortages, power plant outages and rising energy import costs, the country’s small but growing solar sector is helping cushion the grid against widespread blackouts.

According to the Bangladesh Power Development Board (BPDB), 16 of the 136 power plants and electricity import sources are solar facilities. At least 52 power plants are currently fully shut down because of gas and coal shortages.

Despite having installed electricity generation capacity far exceeding peak demand, Bangladesh has recently struggled in recent months to generate enough power to meet its needs. Fuel supply constraints, maintenance shutdowns and technical faults have forced many gas- and coal-fired plants to operate below capacity, leading to periodic load-shedding, or blackouts, across the country.

While fossil fuel-dependent plants have been hampered by supply shortages, solar plants continue generating during daylight hours and remain largely insulated from global fuel price volatility.

A BPDB report published May 10 showed that Bangladesh generated and imported a combined 312,620 megawatt-hours (MWh) of electricity on May 9. Of that total, solar contributed 5,377 MWh, compared to 127,700 MWh from gas and 105,400 MWh from coal.

Although solar still accounts for only a small share of the national energy mix, experts say its importance becomes more apparent during crises when fossil fuel-dependent plants can’t operate at full capacity.

The same BPDB report showed that Bangladesh faced a generation shortfall of 3,868 megawatts due to gas constraints and an additional 1,668 MW due to plant shutdowns and maintenance. Several major gas-fired plants were operating below capacity because of fuel shortages.

According to the BPDB data for May 2026, the country’s total installed electricity generation capacity stands at 28,919 MW. Gas-fired power plants dominating the energy mix, with 12,472 MW, or 43% of total capacity. Coal-fired plants account for 7,769 MW (26.9%), followed by heavy fuel oil plants at 5,641 MW (19.5%).

Imported electricity contributes 1,160 MW (4%), while renewable energy sources remain a relatively small share of the grid, including 777 MW (2.7%) from solar, 230 MW (0.8%) from hydropower, and 62 MW (0.2%) from wind energy.

An outsized role for solar in northern Bangladesh

In northern Bangladesh’s Rangpur region, one of the country’s poorest regions, solar has become especially important in stabilizing local electricity supply.

The region hosts several of Bangladesh’s largest solar facilities, including the 200-MW Teesta Solar Limited plant in Gaibandha district, the 30-MW Lalmonirhat Solar Plant and the 8-MW Majhipara facility in Tetulia.

Md. Sazid Zakir, senior manager for administration and security at Teesta Solar, told Mongabay that the plant generates 1,000-1,200 MWh of electricity daily without requiring any  fuel input.

“Although our contribution to the national grid is still relatively small, it becomes particularly important during periods of energy crisis,” Zakir said. “During the summer season, these solar plants achieve their highest output, and at times our facility generates up to [the full] 200 MW.”

He added that expanding solar power infrastructure could help Bangladesh reduce its dependence on fossil fuels and stabilize the country’s electricity supply during fuel shortages. According to Zakir, Teesta Solar sells electricity to the national grid at around 12 taka (10 U.S. cents) per kilowatt-hour.

BPDB power generation data show that solar accounts for roughly 84% of daytime electricity generation in the Rangpur region.

Gas shortages shut down major power plant

The Ghorashal plant near Dhaka, one of Bangladesh’s largest gas-fired facilities, has been fully shut down because of gas shortages. The plant’s seven units have a combined generation capacity of around 1,200 MW.

“Due to the severe gas shortage since February’2026, the plant is fully shut down,” Mohammad Abul Kalam, manager of the plant’s fourth unit, told Mongabay. “If gas were to be supplied at this moment, we would be capable of generating around 615 MW of electricity to the grid as immediate support.

“When a power plant remains idle, it faces technical risks,” he added. “With the plant out of operation, our entire setup of 1,200 officers and employees is effectively left underutilized, which poses a significant challenge for the facility.”

Renewable energy share still lags global average

A recent study  by the Institute for Energy Economics and Financial Analysis (IEEFA) found that renewables account for just 2.3% of Bangladesh’s energy mix, far below the global average of around 33.8%, limiting the country’s ability to shield itself from volatile international fossil fuel markets.

The report estimated that 100 MW of rooftop solar capacity could save more than 30 times the value of one-off import duties by reducing furnace oil imports over the system’s lifetime, and called on the government to waive such duties.

The report also highlighted how declining domestic gas production is forcing Bangladesh to import expensive liquefied natural gas (LNG). It estimated the country could pay subsidies totaling $1.07 billion between April and June 2026 to support LNG imports.

“Solar cannot fully replace baseload generation yet, but during fuel crises it provides an important cushion,” Shafiqul Alam, author of the study and IEEFA’s lead energy analyst for South Asia, told Mongabay.

“Unlike imported LNG or coal plants, solar generation is not exposed to global fuel market shocks,” he added. “The conflict in West Asia is likely to increase financial pressure on Bangladesh’s energy sector.”

Alam said Bangladesh’s shift toward renewable energy would depend on practical policies, realistic targets and strong support systems that reduce dependence on imported fossil fuels and costly government subsidies.

“The government can provide a duty-free [incentive] for setting up solar plants under the community label and industry-based solar,” he said. “Hopefully, the Bangladesh government will provide some such facilities in the upcoming budget.”

Alam also proposed smaller distributed solar projects across the country. “The government can plan for one small solar plant with a capacity of 50 megawatts in each of the country’s 64 districts,” he said. “This will easily generate 3,000 megawatts of electricity across the country. This will reduce the pressure on fossil fuels. At the same time, emphasis should be placed on electrical vehicles. Solar systems should be installed at their charging stations.”

Government pushes renewable ambitions

Since the  start of the Russia-Ukraine war, Bangladesh’s energy sector has come under mounting pressure from rising global fuel prices. The country depends heavily on imported LNG, oil and coal for electricity generation, leaving it vulnerable to foreign exchange shortages and price fluctuations.

In response, the government has announced more ambitious renewable energy plans, particularly for community-based and government office rooftop solar projects. However, progress has been slower than planned.

Experts say Bangladesh’s geography presents both opportunities and constraints for solar expansion, with securing suitable land remaining one of the biggest challenges for large-scale projects.

Bangladesh’s power and energy minister, Iqbal Hassan Mahmood Tuku, said the government aims to generate 5,000 MW of electricity over the next five years solar expansion.

“As an initial step toward achieving this goal, instructions have been issued to install solar panels at all deputy commissioner offices across the country within the next three months,” he said.

This story was published on Mongabay