Power and Energy Industry in Bangladesh

Introduction

History

In 1959 East Pakistan Water and Development Authority (EPWAPDA) was established to look after
generation, transmission, distribution and sale of electricity through the East Pakistan. After the
independence of Bangladesh in 1972 Bangladesh Power Development Board was created to look after
the same function. The Dhaka Electric Supply Authority (DESA) was promulgated by the President in
1990.

Present Situation

A power Development Board (PDB) official said with the upcoming election in mind, the govt. planned to
generate about 2,000MW additional electricity by April 2018. Power generation capacity has more than
tripled from 4,942MW in 2009 to 13,621 currently.

Demand for electricity in Bangladesh is projected to reach 34,000MW by 2030 and the Govt. of
Bangladesh has plans to increase power generation beyond expected demand to help propel growth in
the export-oriented economy and to meet the demands of a growing middle class. Generation capacity
is 13,179 as of February 2017, shortfall exit due to poor distribution infrastructure and a mismatch
between the types of energy plants and fuel mix available Private power production units are
approaching half of total installed capacity.

Customers

The total consumers of power in our country are 12.5 Million. But the current capacity is 13,621MW.
40% of the populations are deprived of Electricity and approximately there is 1600 MW of power
generation.

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 Power and Energy Industry in Bangladesh

Description

Major players

The following entities are involved in power distribution:

 Bangladesh Power Development Board. (BPDB)

 Dhaka Electric Supply Co. Ltd (DESCO)
 Dhaka Power Distribution Co. Ltd. (DPDC)
 West Zone Power Distribution Co. Ltd (WZPDCL)
 7. South Zone Power Distribution Company Ltd (SZPDCL)
 3. Electricity Generation Company of Bangladesh Ltd. (EGCB)
 Independent Power Producers (IPPs)

Market Share

54% of the power is generated by government, 41% comes from private sector and the remaining 5%
are imported from India

Market Potential

The market potential in terms of generation capacity

Generation Capacity (MW)

Public sectors
Ashuganj Power Station Co. Ltd (APSCL) 2620
Bangladesh Power Development Board. (BPDB) 659
Electricity Generation Company of Bangladesh Ltd. (EGCB) 255
Private sectors
West Zone Power Distribution Co. Ltd (WZPDCL) 179
South Zone Power Distribution Company Ltd (SZPDCL) 226
Independent Power Producers (IPPs) 1271

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 Power and Energy Industry in Bangladesh

Weaknesses
 Decreasing supply of Natural Gas
 Capital Intensive Industry
 Energy infrastructure
 Lack of necessary maintenance and rehabilitation of old power plants
 Dependency on single energy (gas) and entity for electricity generation
 Participation of private sector

Home and Abroad Business

The Government of Bangladesh had previously indicated that the terms of production sharing contracts
would be improved to attract greater international interest. According to press reports, Bangladesh’s
new model production sharing contract (PSC) allows Daewoo to sell natural gas and other petroleum
resources to a third party in the country or outside at negotiated prices if Petrobangla refuses to buy the
gas.

Major Challenges and Future Outlook

Bangladesh plans to reduce dependence on natural gas and move towards coal with plans to generate
50 percent of total electricity using coal-based power plants by 2030. Other solutions include importing
electricity from neighboring countries, importing liquefied natural gas (LNG), and expanding use of
renewable resources, including solar and wind.

Transmission Projects of PGCB

Government has taken a massive plan to strengthen the transmission system and fulfill the future
demand of electricity with the aim of reaching to all by 2020.

Major Upcoming Transmission Projects of PGCB

 Bibiyana-kaliakoir 400 kv and Fenchugonj-Bibiyana 230kv Transmission line

 Barisal-Bhola-Burhanuddin 230kv transmission line
 Anowara-Meghnaghat 400kv transmission line

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 Power and Energy Industry in Bangladesh

References

www.en.wikipedia.org/wiki/electricity_sector_in_Banladesh

www.powercell.gov.bd

www.dpdb.gov.bd

www.desco.org.bd

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