The utility electricity sector in Bangladesh has one national grid operated by Power Grid Company of Bangladesh with an installed capacity of 25,700 MW as of June 2022. Bangladesh''s energy sector is not up to the mark. However, per capita energy consumption in Bangladesh is considered higher than the production. Electricity was introduced to the country on 7 December 1901.
Electricity is the major source of power for most of the country''s economic activities. Bangladesh''s total installed electricity generation capacity (including captive power) is 25,700 MW. It was 15,351 megawatts (MW) as of January 2017[2] and 20,000 megawatts in 2018.[3]
The largest energy consumers in Bangladesh are industries and the residential sector, followed by the commercial and agricultural sectors.[4]
Bangladesh will need an estimated 34,000 MW of power by 2030 to sustain its economic growth of over 7 percent.[5]
Problems in Bangladesh''s electric power sector include high system losses, delays in completion of new plants, low plant efficiency, erratic power supply, electricity theft, blackouts, and shortages of funds for power plant maintenance. Overall, the country''s generation plants have been unable to meet system demand over the past decade.[citation needed]
On the 2nd of November, 2014, electricity was restored after a day-long nationwide blackout. A transmission line from India had failed, which "led to a cascade of failures throughout the national power grid," and criticism of "old grid infrastructure and poor management." However, in a recent root-cause analysis report the investigating team has clarified that the fault was actually due to lack of coordination and poor health of transmission and distribution infrastructure that caused the blackout.[6][7]
On 4 October 2022, 70–80% of the country''s 168 million residence were hit with blackouts and only 45% of residences were restored with power by nightfall. There was a shortage of natural gas because of the 2021–present global energy crisis where 77 natural gas power plants had insufficient fuel to meet demand. The electricity sector in Bangladesh is heavily reliant on natural gas.[8]The government stopped buying spot price liquefied natural gas in June 2022; they were importing 30% of their LNG on the spot market this year down from 40% last year. They are still importing LNG on futures exchange markets.[9]
Total energy supply 2021[10]
As of 2011, 79 natural gas wells were present in the 23 operational gas fields which produce over 2,000 million cubic feet (57 million cubic metres) per day of gas. It is well short of over 2,500 million cu ft (71 million m3) per day that is demanded, a number which is growing by around 7% each year. In fact, more than three-quarters of the nation''s commercial energy demand is being met by natural gas. This influential sector caters for around 40% of the power plant feed-stock, 17% of industries, 15% captive power, 11% for domestic and household usage, another 11% for fertilizers, 5% in Compressed natural gas (CNG) activities and 1% for commercial and agricultural uses.
According to the Bangladesh''s Power Sector Master Plan 2016 (PSMP–2016), the country has the potential to generate a combined 3.6 GW of electricity from renewable energy sources.[15] Another research has estimated that the potential from wind power alone stands at 20 GW.[15]
The government of Bangladesh has approved the construction by private developers of 19 on-grid solar parks, with would have cumulative generation capacity of 1070 MW.[16] A solar power plant having a power generation capacity of 28 MW has recently started its operation in Teknaf of Cox''s Bazar. Accounting this, the power generation capacity from renewable energy sources exceeds five percent of the country''s total demand.Technical Solartech Energy Ltd (TSEL) has installed this power plant in Teknaf utilizing a total of 116 acres of land. Currently, the power plant is feeding 20MW to the national grid.[17]
Bangladesh has planned to produce 10% of total power generation by 2020 from renewable energy sources like wind, waste, and solar energy. The country plans to increase its renewable energy share to 17% by 2041 under its Intended Nationally Determined Contribution (INDC) commitment to reduce greenhouse gas emissions by 5% until 2030.[4]
The country''s prospect of geothermal energy extraction has also been discussed by researchers.[18] Studies carried out by geologists suggested geothermal resources in northwest and southeast region.[19][20]
[21]
Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption comes mostly from natural gas (around 66%), followed by oil, hydropower, and coal. Non-commercial energy sources, such as wood fuel, and crop residues, are estimated to account for over half of the country''s energy consumption.
Bangladesh is considered one of the most energy-poor nations, with one of the lowest per capita electricity consumption rates in the world. More than a third of Bangladesh''s 166 million people still have no access to electricity, while the country often is able to produce only some of its 11,500-megawatt generation capacity.[7]
In generating and distributing electricity, the failure to adequately manage the load leads to extensive load shedding which results in severe disruption in the industrial production and other economic activities. A recent survey reveals that power outages result in a loss of industrial output worth $1 billion a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total transmission and distribution losses in Bangladesh amount to one-third of the total generation, the value of which is equal to US$247 million per year.
To ensure growing energy supply and reducing ghg emission, Bangladesh sees Nuclear energy as a viable option.
To this fact, the govt of Bangladesh has already started construction of the Rooppur Nuclear Power Plant. It will be a 2.4 GWe nuclear power plant and will be the country''s first. The power plant is being constructed at Rooppur of Pabna District, on the bank of the river Padma, 87 miles (140 km) west of Dhaka. The first of the two unit is expected to go into operation in 2024. Once completed, the plant is expected to generate around 15% of the nation''s electricity demand.[citation needed]
The current government has decided to construct a 2nd nuclear plant in the southern part of the country. The possible sites are - Gangamati in Patuakhali, Majher Char in Barguna, Boyar Char in Noakhali and Muhurir Char in Feni. The project is still in early stage of development. Russian, Chinese and Korean companies has expressed interest to build and finance the project.[citation needed]
The proposed project supports the Government of Bangladesh in enhancing the electricity distribution network in the rapidly expanding city of Dhaka to ensure reliable electricity supply to residential, commercial, and industrial sectors. The project will construct substations, lay underground cables, and overhead lines to provide reliable, safe, and improved quality of electricity supply to 200,000 new and 1.1 million existing customers in Dhaka. In addition, the project will improve the energy efficiency and also support the improvement of the operational capacity of Dhaka Electric Supply Company (DESCO).
Energy / Electricity transmission and distribution
A sustainable development pathway resilient to disaster and climate change developed.
Power supply in Dhaka''s urban areas improved
Climate- and disaster-resilient and GESI-responsive electricity distribution system in urban areas of northern Dhaka established
Institutional capacity of DESCO improved
Public-private partnership capacity of PPPA, Power Division of MPEMR, and DESCO improved
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
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