Supply Chain Strategy and Infrastructure Overcapacity in the Bangladesh Power Sector

Abstract

Purpose: This paper examines the gap between supply chain strategy and infrastructure planning in Bangladesh’s power sector. It explores how rapid, government-led capacity expansion has resulted in overcapacity, financial inefficiency, and underutilization of power plants.

Methodology: The study applies a qualitative and descriptive approach using secondary data sources, including government reports, financial statements, energy policy documents, and international agency publications. A SWOT analysis identifies internal and external sectoral factors, while a comparative review of India’s energy model highlights alternative approaches to planning, coordination, and renewable integration.

Findings: The analysis reveals systemic inefficiencies driven by poor demand forecasting, overreliance on imported fuels, centralized governance, and slow renewable adoption. Although Bangladesh has improved electricity access and invested heavily in generation, many plants operate below capacity, creating high financial burdens through capacity payments and subsidies. In contrast, India’s decentralized and flexible planning framework demonstrates better utilization, resilience, and integration of renewables.

Unique Contribution to Theory, Practice and Policy: This paper contributes to supply chain and infrastructure literature in emerging economies by showing how strategic misalignment can undermine long-term energy security. It recommends a shift toward demand-driven planning, fuel diversification with greater renewable integration, decentralized governance with empowered local utilities, smart pricing systems, and grid modernization with transparency in data sharing. These recommendations offer policymakers a roadmap for building a more resilient, cost-efficient, and sustainable power supply chain in Bangladesh.