Bangladesh Mandates Business Closures Amid Severe Power Crisis

The Government of Bangladesh has implemented mandatory electricity-saving measures to address a severe energy crisis that has left some regions with power outages lasting between six and 12 hours. A new directive requires shopping malls, markets, and shops to close by 8 p.m. and mandates that illuminated billboards be switched off by 7 p.m., though hospitals, pharmacies, and food shops are exempt.

The crisis is driven by a 5,000-megawatt deficit, with generation falling to 13,000 megawatts against a peak demand of 18,000 megawatts. This shortfall stems from a natural gas shortage where daily supply dropped to 2,100 mmcfd against a demand of 3,800 mmcfd. Contributing factors include a July 21 accident at an Excelerate Energy LNG terminal, rough weather affecting a Summit-operated terminal, and global market volatility linked to the Iran crisis.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud stated the government has no other option due to limited capacity and difficulties extracting gas without Floating Storage and Regasification Units. To stabilize the grid, Mahmud met with Indian High Commissioner Dinesh Trivedi to request additional diesel supplies via an existing cross-border pipeline.

The crisis has sparked public anger and political instability. The Bangladesh Rural Electricity Association requested police security for 80 rural associations following attacks on substations. Meanwhile, the Awami League condemned the ruling Bangladesh Nationalist Party government, describing the situation as a "full-blown systemic collapse" with devastating impacts on industrial production and irrigation in regions such as Khulna, Rajshahi, and Natore.