Generator demand surges as power supply remains unreliable

Over the past decade, Bangladesh's power sector has made significant progress.

According to the Bangladesh Economic Review, in the fiscal year 2023–24, the country's installed power capacity, including captive and off-grid sources, reached 31,452 MW. This capacity is crucial for industrialisation, urbanisation, and digital development. However, despite having the capacity for large-scale generation, the electricity supply system remains inefficient, particularly in transmission and distribution, where system losses were recorded at 10.06%.

Due to irregular power supply, demand for generators has increased across various sectors. Research shows that the Bangladesh diesel genset market is projected to grow at a compound annual growth rate of 9.9% from 2025 to 2031. With rapid urbanisation, industrial expansion, and frequent power outages, the need for reliable alternative power systems has become increasingly urgent.

Infrastructure development is advancing in both urban and rural areas. The expansion of metro rail, improved roads, bridges, industrial zones, residential projects, and commercial buildings has led to a rise in generator usage. As a result, generators have become not only emergency backup systems but also a supportive component of wider economic activities.

Several companies have established a notable presence in Bangladesh's generator market, including Energypac Power Generation PLC, ACI, and Rahimafrooz. Energypac manufactures a range of diesel generators locally under its GLAD brand. At its industrial park in Gazipur, GLAD generators are produced by skilled engineers and technicians following international standards, with after-sales services also provided. The company is planning exports to meet overseas demand. It currently holds 18% of the domestic market and assembles around 300 units annually, ranging from 20 to 1,000 KVA, with plans to increase production to 1,000 units in the coming years.

ACI and Rahimafrooz are also notably active, supplying both locally manufactured and imported generators.

Demand is particularly strong in industrial, commercial, and real estate sectors. Industrial enterprises increasingly rely on captive power plants due to gas shortages and power outages. In commercial areas, shopping centres, office buildings, banks, hospitals, and other facilities require continuous or backup power to operate smoothly. In real estate, high-end residential projects, individual houses, small businesses, and educational institutions depend on generators ranging from 5 to 75 KVA.

Despite rapid growth, several challenges persist. Imports account for the majority of generator sales, creating issues related to foreign exchange shortages, customs duties, taxes, and delays. Local manufacturers face high taxes on imported components, making domestic production costlier, while government incentives and policy support remain limited.

Although Bangladesh's power generation capacity has increased, a fully reliable supply system has not yet been achieved. Consequently, reliance on generators is expected to continue. With supportive policies that reduce taxes and duties, encourage technology transfer, and promote local manufacturing, Bangladesh has the potential to emerge as a competitive generator-producing hub.