Bangladesh spends $10.63 billion a year on energy imports. That is the headline figure from a study presented in Dhaka by Policy Exchange Bangladesh, which examines the country’s energy crisis and identifies nuclear power as one of the cornerstones of its future electricity mix — a sum that rivals the entire national budget of many emerging economies.
The study, titled “Bangladesh’s Energy Security Challenge: Powering a More Competitive Business Climate,” documents a deepening dependency: the share of imported primary energy has risen from 47.7% four years ago to 62.5% today, according to data from the Institute for Energy Economics and Financial Analysis. Over the same period, Asian spot LNG prices have nearly doubled — from $10.5 to $25.3 per MMBtu — driven by Middle Eastern conflicts and early European stockpiling ahead of winter. Industry is bearing the heaviest burden: in Gazipur, gas supply meets barely 45% of demand, while in Narayanganj alone, around 900 of the 1,850 factories affiliated with the BKMEA have been forced to halt operations.
Among the short-term recommendations, the study calls for strategic LNG reserves of at least seven days and a generation mix that integrates renewables, energy efficiency and — with explicit mention — a long-term role for nuclear power. Over the medium-to-long term, it points to the need to accelerate domestic gas exploration, diversify LNG supply contracts and reform the capacity payment structure, addressing the supply-demand gap projected beyond 2031. The message is unambiguous: energy security must be treated as a strategic economic priority, not merely a utility management issue.
The backdrop against which this study lands is far from neutral. Bangladesh has been building the Rooppur nuclear power plant for several years — two VVER-1200 reactors of 1.2 GW each, constructed by Rosatom at a total cost of $12.65 billion. The first reactor is expected to come online in 2026, with an initial grid connection at 30% capacity. At full output, Rooppur could cover up to 15% of the country’s electricity needs. Demand is growing at 7% per year, and installed capacity has already surpassed 28.9 GW — six times the 5 GW figure recorded in 2009.
Looking beyond Rooppur, Dhaka has already opened talks with Western and Chinese companies on small modular reactors (SMRs). This signals a diversification of technology partners away from exclusive reliance on Russia, and reflects a vision that extends well beyond the first plant. Bangladesh has also formalized a new cooperation agreement with the International Atomic Energy Agency in support of its broader civilian nuclear programme.
Bangladesh’s case offers a concrete lesson for developing economies: when the cost of fossil fuel imports becomes unsustainable and electricity demand surges, nuclear power ceases to be a theoretical option and becomes a line item in investment plans. If Rooppur comes online on schedule and SMRs find their way into future energy roadmaps, Bangladesh could become a reference point for other countries across South and Southeast Asia facing the same dilemma between fossil fuel dependency and energy security.
