Despite a combined installed capacity of 7,095 megawatts (MW), Bangladesh’s coal-based power plants are failing to operate at full potential due to multiple constraints, particularly transmission bottlenecks in the national grid. A significant portion of the country’s base-load power infrastructure-comprising four major coal-fired plants in the southern region—remains underutilized, according to Bangladesh Power Development Board (BPDB) sources.
While coal-fired plants are designed to operate continuously to ensure stable base-load electricity supply, they are currently forced to run below capacity. When demand surges in the national grid, oil-based power plants are often used to meet the deficit—pushing up production costs and straining government finances. Senior officials of BPDB confirm that apart from grid limitations, other serious issues are undermining plant performance: inadequate coal stockpiles, delayed coal imports due to unpaid dues, and scheduled or emergency maintenance.
Key Plants Affected: The four primary coal-based plants in the south—accounting for a collective 4,267 MW of generation capacity—include: Rampal Power Plant (BIFPCL) in Bagerhat (Actual output: 1,234 MW), Barisal Electric Power Plant (Capacity: 307 MW), Payra Power Plant (RNPL) in Patuakhali (Capacity: 1,320 MW), BCPCL Power Plant in Payra (Capacity: 1,320 MW). These plants, all built with ultra-supercritical technology, were strategically located in the southern region with the expectation of rising industrial activity after the inauguration of the Padma Bridge. That anticipated industrial demand, however, has not materialized as projected. Electricity generated in these plants is primarily transmitted to Dhaka and other parts of the country via long-distance transmission infrastructure—much of which is still under development or insufficient for high-load transfers.
Underperformance in Numbers: As per BPDB data from January to July 17 this year:
BCPCL operated at 80% plant factor for 61 days. Rampal (BIFPCL) operated at 80% plant factor for 27 days. Barisal Electric Power managed only 30 days. RNPL, although technically ready, has yet to commence commercial operation fully. In contrast, a plant factor of 80% is expected year-round per the terms of power purchase agreements, underscoring how far current performance deviates from planned operations.
Structural and Logistical Challenges
BPDB Member (Production) Md Jahirul Islam explained the core challenges in operating coal plants full-time: Coal Shortages: Power plants are not maintaining coal stockpiles as required. Delayed Coal Imports: Arrears and payment delays with coal suppliers slow imports. Grid Limitations: The national grid still lacks the capacity to evacuate full power from southern plants. Maintenance Demands: A minimum of 20% capacity of base-load plants is typically under maintenance at any time. In addition, mechanical faults and logistical hurdles at coal unloading facilities further disrupt seamless operation.
Transmission Constraints: A Major Barrier
The Power Grid Company of Bangladesh (PGCB) has confirmed that efforts are underway to upgrade transmission lines. Currently, the Gopalganj-Aminbazar 400 kV transmission line can handle only up to 2,500 MW of electricity from the southern plants—well below total installed capacity.
To mitigate this, a major infrastructure project—the Mongla-Mawa-Aminbazar 400 kV transmission line—has been constructed to route power from Rampal to Dhaka. However, the full functionality of this line and its capacity to handle sustained high volumes remains limited.
A PGCB official, requesting anonymity, noted that while the transmission constraint is a significant factor, “merit order” dispatching also plays a role. The grid prioritizes cheaper or more necessary electricity, and if coal-based production is costlier or demand is low, the plants remain idle.
Broader Implications
Bangladesh has made heavy investments in coal-based energy in recent years to address persistent power shortages. However, the inability to operate these plants at optimum capacity has led to: Increased use of expensive oil-based power generation. Wastage of investment in idle or underperforming infrastructure. Growing government subsidies to cover operational inefficiencies. Unmet expectations for industrial development in the southern belt. When contacted, PGCB Chairman Dr. M. Rezwan Khan acknowledged the bottlenecks, stating:  “It’s not just transmission; coal unloading and fuel imports are also problematic. But within three to four months, our infrastructure will be ready to support an 80% plant factor for the southern plants.”
Economic and Policy Consequences
Experts suggest that the current scenario reflects systemic weaknesses in planning and implementation. Energy economist Dr. Khondaker Golam Moazzem of the Centre for Policy Dialogue (CPD) notes that long-term success depends not just on building power plants but also on synchronizing fuel supply chains, grid infrastructure, and industrial demand. “Unless these issues are resolved in a coordinated manner, we’ll continue to see capacity without output,” Dr. Moazzem said.
From a policy standpoint, the mismatch between supply and grid capacity raises questions about strategic planning in the power sector. While coal-based electricity is cheaper than oil-based alternatives, frequent outages, debt arrears, and mechanical breakdowns are negating the cost advantages.
Looking Ahead: If current challenges are resolved, coal-based power could significantly reduce Bangladesh’s electricity costs and improve reliability. With over 7,000 MW of capacity already in place, experts argue that enabling even 80% of this fleet would greatly stabilize the grid. 
To achieve that, the government must: Fast-track completion of grid infrastructure projects, Ensure timely payments for fuel imports, Improve coal import logistics and handling, Enhance preventive maintenance and monitoring. There is also growing consensus around diversifying energy sources and reducing dependency on expensive liquid fuels. Renewable energy investments—especially solar and wind—are being eyed as long-term alternatives to balance the grid and reduce import dependence.
Despite significant investment in coal-based power generation, structural inefficiencies, fuel logistics, and grid constraints are preventing Bangladesh from capitalizing on this capacity. Until these issues are holistically addressed, the full benefits of the country’s energy expansion may remain out of reach—further straining the economy and slowing industrial progress.