Dhaka, May 7 -- Bangladesh's primary energy imports rose from 47.7% to 62.5% in four years, exposing its vulnerability to the volatile international fossil fuel market and raising the power generation cost by 83%, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).

Apart from expensive fossil fuels and depreciation of the Bangladeshi Taka (BDT) against the United States Dollar (USD), large capacity payments from low demand growth significantly influenced the rising power costs, according to 'Fostering Bangladesh's energy transition', it said.

Analysing data from FY2020-21to FY2024-25, the report finds that a surge in the average coal price by 290% between FY2020-21 and FY2022-23, along with an...