In 2023, Bangladesh witnessed a nearly threefold increase in its coal-fired power output, as revealed by a Reuters analysis of Government data.
This substantial surge played a crucial role in mitigating the country’s most severe power shortages in over a decade while concurrently reducing the escalating costs associated with electricity generation.
It may be mentioned here the power shortage in the county has had an adverse impact on the industrial sector, including the textile and RMG sector.
The ascendancy of coal in Bangladesh’s power mix during 2023 came as a consequence of economic challenges, including difficulties in financing costly imports of natural gas, furnace oil, and diesel.
The dwindling dollar reserves and a weakening currency further exacerbated the situation.
According to the Power Grid Company of Bangladesh (PGCB) daily operational reports, power generation from coal reached a record 21 billion kilowatt-hours (kWh) in 2023, a substantial leap from the 7.9 billion kWh produced in 2022.