Bangladesh to Add 1,210MW to National Grid This Week: State Minister Amit
550MW from 5 expired-contract power plants (no capacity charges), 660MW from Rampal power plant resuming. Govt allocated Tk6,000cr for 4,000MW HFO-fired plants. IsDB $1B financing for Eastern Refinery modernisation.
⚡ Dhaka, Bangladesh — A combined 1,210MW of electricity is expected to be added to the national grid this week as the government moves to ease widespread power shortages amid an ongoing gas and energy crisis.
📊 Five power plants whose contracts have expired are set to generate 550MW for the national grid this week without capacity charges, while the 660MW Rampal power plant is also scheduled to resume operations, State Minister for Power, Energy, and Mineral Resources Aninda Islam Amit told parliament on 7 September 2026.
💬 State Minister: Short-, Medium- and Long-Term Plans
💬 “The government has short-, medium- and long-term plans to tackle the energy crisis,” he said while taking part in the discussion on the country’s energy crisis tabled by Leader of the Opposition Shafiqur Rahman at the House.
💬 Expressing optimism about an improvement in the situation next year, Amit said he expects Bangladesh to overcome the energy crisis by 2030.
📊 Key Announcements
💬 He said: “The national grid is expected to receive around 500 megawatts of electricity from five power plants whose contractual terms have expired. No capacity charges will be required for electricity generated by these plants.”
📊 Key elements announced:
- ⚡ 550MW from 5 expired-contract power plants — no capacity charges
- ⚡ 660MW Rampal power plant — one unit resuming within a week
- 💰 Tk 6,000 crore allocated for up to 4,000MW HFO-fired power plants
- 🔍 Offshore bidding round for oil and gas exploration launched
- 🛢 106 new gas wells to be drilled (30 already underway)
- 🚢 2 new FSRUs — agreements expected by end of 2026
- 🛢 Land-based LNG terminal at Matarbari — preparations progressing
- 🛢 Eastern Refinery second unit — refining capacity from 15 lakh to 45 lakh tonnes annually
💰 LNG Spot Market Cost: Tk 15,350 Crore Increase
💬 Amit said the cost of purchasing LNG from the spot market had increased by Tk 15,350 crore due to higher global energy prices and the crisis in the Middle East.
🏛 IsDB $1 Billion for Eastern Refinery Modernisation
📊 The Jeddah-based Islamic Development Bank (IsDB) will provide over $1 billion in financing for the modernisation project. The Bangladesh government and the IsDB signed a financing agreement on 3 September 2026.
💬 He said that once the second unit of the Eastern Refinery becomes operational, the country’s annual crude oil refining capacity will increase from 15 lakh tonnes to 45 lakh tonnes.
☀ Renewable Energy: Rooftop and Land-Based Solar
💬 A sustainable plan has also been made to increase power generation through rooftop and land-based solar systems. The duty-free policy supported by the government will bring a revolution in the renewable energy sector, said the state minister.
⛽ Fuel Price Coordination: Tk 25,000 Crore Subsidy
💬 About the fuel price, Amit said the fuel price has been hiked in all the developed countries, including Australia and the US, after the Middle East crisis, but Bangladesh has coordinated the price to reduce smuggling to the neighbouring countries.
📊 Under the coordinated fuel price from 18 February to 31 August, the government had to pay Tk 25,000 crore as a subsidy.
💬 Home Minister: Self-Sufficient Energy Sector
💬 Participating in the discussion, Home Affairs Minister Salahuddin Ahmed said the government is trying to make the energy sector self-sufficient instead of an import-based policy undertaken by the previous fascist government.
💬 Opposition Leader: Pragmatic Policy Needed
💬 Raising the discussion in parliament, Shafiqur Rahman, also the chief of Jamaat-e-Islami, said the government should take a pragmatic and sustainable policy to reduce the energy crisis.
🌏 Strategic Context: Bangladesh Power Generation
📊 For Bangladesh’s power sector, the 1,210MW addition represents meaningful short-term relief:
- ⚡ 550MW without capacity charges — significant cost saving
- ⚡ 660MW Rampal restart — coal-based generation resumes
- 💰 Tk 6,000cr for HFO plants — up to 4,000MW potential
- 📊 106 new gas wells — medium-term supply boost
- 🚢 2 new FSRUs by end-2026 — LNG import capacity expansion
- 🛢 Matarbari LNG terminal — long-term LNG infrastructure
- 🛢 Eastern Refinery 3x capacity — reduced refined oil imports
📋 Implications for Industries
📊 For Bangladesh’s industrial sector, the power additions offer some relief from ongoing rationing:
- 🏭 Ceramics industry — 35% capacity utilisation may improve
- 🧵 Textile mills — 660 mills facing gas shortage may see some relief
- 🏛 Steel re-rolling — production disruptions may ease
- 🌾 Fertiliser factories — critical for Aman season
- 🔌 Power plants — reduced load shedding
- 👕 RMG factories — supply chain stabilisation
✅ For Bangladesh’s broader energy strategy, the Parliament announcements signal that the government is executing on multiple fronts simultaneously — short-term power additions (1,210MW this week), medium-term gas exploration (106 wells), and long-term LNG infrastructure (2 new FSRUs, Matarbari terminal, Eastern Refinery modernisation). The success of this multi-pronged approach will determine whether Bangladesh can achieve the government’s stated goal of becoming crisis-free by 2030.
🌏 For the export community, the 1,210MW addition this week — particularly the 550MW without capacity charges — offers some immediate relief from the power and gas rationing that has disrupted industrial production. However, the Tk 15,350 crore increase in LNG spot market costs and the Tk 25,000 crore fuel subsidy underscore the significant fiscal burden the energy crisis is placing on the government — costs that will eventually need to be shared across the economy through tariff adjustments or broader fiscal reforms.
This news was originally published by The Business Standard. For the full original report, please visit: https://www.tbsnews.net/economy/energy/1210mw-set-be-added-national-grid-week-state-minister-1536646
📬 Get Bangladesh Trade News in your inbox
Weekly digest of export industry news, policy updates, and market analysis.
📰 Related Stories