The claims from this particular article was given quite a detailed refutation on YPF. Here's the copy paste version:
This is a misleading report and does not really capture the nuances of the power sector. For starters, IEEFA (the institute that conducted the study this news article refers to) is know to be a proponent of renewable energy and often manipulates their analysis to make conventional power generation look bad. Consider this quote from Simon Nicholas, the author of the study. "A long-term switch from cheap domestic gas towards more expensive imported coal and liquefied natural gas (LNG), combined with the severe, long-term power overcapacity Bangladesh is on course for, is likely to see government subsidies continue to rise”. He conveniently fails to mention that the switch to imported LNG is purely driven by depleting natural gas reserves. The report similarly fails to mention this fact as well. Past reports have also done a shoddy analysis of the sector in order to promote their renewable energy agenda. While promoting renewable energy is definitely appreciated, one should also take into consideration the market realities and cost implications. Conventional power will thus remain part of the energy mix, whether one likes it or not.
Now coming back to the point of 'unused capacity'. It is true that total installed capacity is higher than available demand at present. However, this is not the full picture. Most of the BPDB owned power plants, run by gas, are not modernized. Their average efficiency is around 30%. So even though their installed capacity is high on paper, they are able to churn out far less. BPDB has thus undertaken several projects, known as repowering projects, to equip these plants with modern engines to improve their efficiency and capacity. Fuel shortages are also another reason why many plants are not utilized to full capacity. The low efficiency of the power plants is why the sector uses the term 'available generation capacity', as opposed to total capacity. Available installed capacity remains below actual demand. So it would make sense to invest in adding to the generation capacity either through repowering projects or through new power plants.