Bangladesh is confronting a worsening energy power crisis as electricity generation is currently unable to match demand. Less than half the population have access to electricity and those that do experience frequent blackouts of 8 to 12 hours per day. These blackouts hamper the operations of existing industries and food producers. Most significantly the shortfall in commercial energy and electrical power is a barrier to industrial expansion, particularly to the development of new industries.
Electricity generation is highly dependent on Bangladesh's gas reserves, with 89% of electricity generated using gas. However, the gas reserves are rapidly depleting and are in high demand for other uses such as fertiliser production. With no recent significant gas discoveries in Bangladesh and with Government anticipating demand for electricity to quadruple by 2021 to 20,000W, the Government is prioritising the diversification of its energy sources.