Bangladesh, with a population of 173.92 million, ranks among the most densely populated nations globally. Historically, agriculture served as the primary income source for its citizens. Nevertheless, the Gross Domestic Product (GDP) for Bangladesh is projected at 3.49% for the fiscal year 2024-25, compared to 4.22% for the fiscal year 2023-24. [Source: BBS] The combination of rapid urbanization and industrialization, driven by consistent economic growth, has resulted in a significant increase in energy demand.

Energy is widely recognized as a crucial factor in alleviating poverty, fostering economic growth, developing sustainable infrastructure, and ensuring the security of any nation. To sustain ongoing economic development, it is essential to utilize the country's indigenous natural resources.

The northeastern folded basin is particularly rich in the indigenous natural gas of Bangladesh, while the northwestern basin is enriched in coal and hard rock resources.

Current Position of Energy Resources

Primary energy resources in Bangladesh include indigenous natural gas, coal, imported oil, LPG, imported LNG, imported electricity, solar, wind and hydro-electricity. Biomass accounts for about 23% of the primary energy and the rest 77% is being met by the rest of the components of primary energy. Natural gas accounts for about 38% of the primary energy (with imported LNG).[1]  Imported oil accounts for the lion's share of the rest. In this tenure, Bangladesh imports about 6.86 million metric ton of crude and refined Petroleum Products.

Moreover, power is also generated by capitalizing Solar Home System (SHS) in on-grid and off grid areas. The amount of Renewable Energy (Solar+ wind) is currently about 1403.93 MW.  The amount of power generation from such plants is currently about 0.69 MW. Generation of electricity by Bio-Mass Gasification Method is 0.4 MW in the country.[2]

Per capita consumption of energy in Bangladesh is on an average 349 kgoe (Kilogram Oil Equivalent) and per capita generation of electricity is 661 kWh (Source: Annual Report of BPDB 2024-25) including captive and off-grid renewable energy in the FY 2024-25.

[1] Source: Energy Data Center, Hydrocarbon Unit

[2] Source: http://www.renewableenergy.gov.bd/