BMI View: Gas will remain the dominant source of energy for electricity generation in Bangladesh formuch of the foreseeable future. However, if Bangladesh is to stop the acute gas shortages from crimpingeconomic growth, the country will have to cut its over-reliance on gas-fired capacity and diversify theenergy mix. The government outlined plans to ensure that coal accounts for 50% of the energy mix by 2030,but we remain unconvinced such plans will come to fruition as local opposition to the exploitation ofBangladesh's huge coal reserves has so far stymied the development of a domestic industry.
Latest Updates And Structural Trends
We forecast power generation in Bangladesh at 65.3TWh in 2017, before rising to 71.5TWh in 2018, anannual growth rate of 9.5%. We estimate this figure will rise to more than 122.7TWh in 2026, the end ofour forecast period, representing an average annual growth rate of 7.3%.