Power Struggles: How the War Is Disrupting Electricity Across Borders

Bangladeshi factories are facing a new challenge in keeping their operations running smoothly - the impacts of the war in Ukraine. Despite being over 2,000 miles away, the conflict is rippling through global energy markets and disrupting the reliable access to electricity that businesses in Bangladesh have long depended on.

"Bangladeshis are very good at doing one thing, like ready-made garments," said Mohiuddin Rubel, who runs several garment factories. "We are not diversified."

This laser-like focus on a single industry has been a strength for Bangladesh's economy, propelling it to become one of the world's top garment exporters. But it also leaves the country vulnerable when external shocks disrupt the supply chains it relies on. And the war in Ukraine, combined with the lingering effects of the COVID-19 pandemic, is proving to be just such a shock.

The conflict has upended global energy markets, sending prices for oil, natural gas, and other fuels soaring. This, in turn, is making it increasingly difficult for Bangladeshi factories to secure the reliable and affordable electricity they need to keep their operations running.

"We are struggling to get electricity," said Rubel. "Sometimes we have to close factories for a few hours, and that creates a lot of disruption in our production."

The challenges facing Bangladesh's factories are a microcosm of the broader strain the war is placing on global energy systems. As Russia, a major producer of oil and natural gas, faces international sanctions, supplies have tightened and prices have soared. This is forcing governments and businesses around the world to make difficult choices about how to allocate scarce energy resources.

For Bangladesh, the impacts are particularly acute. The country relies heavily on natural gas to generate electricity, and its domestic production has been declining in recent years. This has forced the government to increasingly turn to imported liquefied natural gas (LNG) to meet its energy needs - a supply that has become both more costly and harder to secure.

"We don't have enough gas to run our power plants," said Nasrul Hamid, Bangladesh's state minister for power, energy and mineral resources. "We have to import LNG, and the prices have gone through the roof."

The rising energy costs are putting significant strain on Bangladeshi businesses, forcing them to make tough decisions about how to allocate their limited resources. Some factories are having to reduce production, while others are turning to backup diesel generators - a costly and polluting alternative.

"We are trying our best to manage the situation," said Rubel. "But it's getting more and more difficult every day."

The challenges facing Bangladesh highlight the interconnected nature of the global energy system, and how shocks in one part of the world can have far-reaching consequences. As the war in Ukraine drags on, the ripple effects are likely to continue to be felt, testing the resilience of businesses and economies around the world.