Impact of energy insecurity

As a university student studying entrepreneurship, I have been closely monitoring how energy instability is shifting from a minor operational hurdle to a major existential threat to our nation's manufacturers and small-scale industries.

In the current economic climate of 2026, where global supply chains are increasingly sensitive to lead times, our industrial hubs in Gazipur, Savar, and Narayanganj are struggling to remain functional. Frequent load-shedding -- often occurring during peak production hours -- has forced a reliance on captive power through diesel generators.

This shift has escalated operational costs by an estimated 20 to 25 per cent. For large-scale RMG factories, this erodes the thin margins necessary to compete with regional rivals such as Vietnam and India. For emerging entrepreneurs, these overheads act as a "barrier to entry" that stifles innovation before it can even begin.

Furthermore, the impact is not limited to direct production. A "ripple effect" is being observed throughout the supply chain: machinery longevity is reduced due to frequent power surges, and labour productivity is declining as workers face unbearable conditions in non-ventilated factory floors during outages. If this trend continues, there is a risk of "de-industrialisation", where local investors turn towards more stable markets abroad.

To safeguard our economic future, the government must adopt a dual-track strategy. First, there is a need for the immediate prioritisation of the industrial grid over non-essential sectors to ensure "uninterrupted production windows".

Second, there must be a policy-driven push towards decentralised energy solutions, such as providing tax-free imports for industrial-grade solar panels and battery storage for SMEs. Energy security is no longer just a utility issue; it is a fundamental prerequisite for economic growth.

Tanveer Rahman Riyad

Department of Marketing & International Business

North South University