Bangladesh’s heavy reliance on natural gas for power generation poses economic challenges, according to the South Asian Network on Economic Modeling (Sanem). The cost of generating electricity solely from liquefied natural gas (LNG) is projected to be Tk49.49 per kilowatt-hour, potentially straining the country’s economy. In 2022, nearly 98% of energy production came from fossil fuels, with renewables accounting for less than 2%. Bangladesh faces the depletion of natural gas reserves by 2030, leading to plans for increased LNG imports. Sanem recommends a shift towards renewable energy to alleviate economic pressure. Currently, Bangladesh has the lowest proportion of renewable energy capacity among South Asian countries, despite climate commitments and the introduction of ambitious renewable energy targets. Experts emphasize the need for coherent energy policies, improved electricity quality standards, and addressing alleged issues in the power sector.
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