The report “Fixing Bangladesh’s Power Sector” by IEEFA summarises that the Bangladesh Power Development Board (BPDB) continues to depend on hefty subsidy support from the government, despite a series of power tariff hikes, highlighting the need for reforms in the electricity sector. The proposed roadmap for reform suggests improving power demand forecasting methods by factoring in the role of energy efficiency to reduce overcapacity.
It recommends limiting new investments in fossil fuels-based generation while promoting renewable energy deployment. Further, the roadmap suggests modernising Bangladesh’s electricity grid to encourage industries to gradually shift to grid power rather than operate gas-based captive plants and minimise load shedding. The report finds that taking such consistent steps can help reduce the sector’s subsidy burden. Besides, a transition to electric systems from gas-driven systems will help increase the use of grid power and bring down the government’s subsidy burden to nearly zero.
Access the report here
