Bangladesh Energy Security: Bangladesh is facing a critical energy security challenge as its reliance on imported fossil fuels reaches 98%, according to a report by energy think tank Ember. The Bangladesh energy security study, in collaboration with the Climate Vulnerable Forum and V20 Finance Ministers, identifies Bangladesh as one of 74 economies vulnerable to climate impacts due to this dependency.
The report highlights that 65% of Bangladesh’s power supply is imported, making it susceptible to global price volatility and geopolitical disruptions. Recent instability in the Middle East disrupted liquefied natural gas (LNG) supply chains, underscoring the fragility of Bangladesh energy security:. With LNG accounting for 22% of its gas supply, any disruption forces the country into expensive spot markets.
Bangladesh’s energy model, heavily dependent on fossil fuel imports, is described as a structural economic burden by Ember. Rising import costs strain public finances, with projections indicating billions more in annual expenses. The country’s energy vulnerability is exacerbated by global supply dynamics, with trade routes like the Strait of Hormuz posing additional risks.
The report suggests a shift towards renewable energy, such as solar power and battery storage, to reduce import dependence and enhance energy security. These alternatives offer a stable, cost-effective solution, especially for countries facing foreign currency constraints. However, challenges such as existing LNG infrastructure investments and policy inertia hinder rapid transition.
As global energy markets grow volatile, delaying the transition to renewable energy could increase Bangladesh’s exposure to fiscal strain and supply shocks. Ember concludes that embracing renewable solutions is crucial for stabilizing costs and improving long-term resilience.
Published in SouthAsianDesk, April 3, 2026
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