Certainly!
Here’s an expanded look at various aspects of electricity in Bangladesh, including its
historical development, challenges, and future opportunities.
6. Historical Development of the Electricity Sector
The electricity sector in Bangladesh has evolved significantly since the country’s independence
in 1971. In the early years, the electricity infrastructure was limited, with a high dependence on
imported fuel and minimal local generation capacity. The first major efforts in electrification
began in the 1970s and 1980s, though progress was slow due to economic constraints, limited
resources, and political instability.
In the 1990s, there was a concerted effort to increase electricity access and reliability, with the
establishment of new power plants and expansion of the national grid. However, the country’s
growing population and demand for energy outpaced these efforts, and the 2000s and early
2010s were marked by severe power shortages and blackouts, particularly in urban centers.
7. Rural Electrification
A major breakthrough in electricity access came in the form of rural electrification, especially
during the 1990s and early 2000s. The Rural Electrification Board (REB) was set up to provide
electricity to rural areas. Bangladesh, with the help of international agencies and government
support, embarked on an extensive rural electrification program, which saw significant growth in
the number of rural households connected to the national grid.
However, many remote regions and hilly areas remained outside the grid, requiring the
development of off-grid solutions. In response, solar home systems (SHS) were introduced.
These small-scale systems allowed rural communities to access electricity without relying on the
national grid, contributing to improved quality of life and increased economic activities, such as
small-scale businesses and home-based industries.
8. Energy Imports
As Bangladesh’s domestic energy resources are limited, especially in terms of coal and oil,
energy imports have become an essential component of the national power supply strategy.
Bangladesh imports a significant amount of electricity from India through the cross-border grid
connection.
The first cross-border electricity supply agreement between India and Bangladesh was signed in
2013, and it has been a critical source of energy. The electricity exchange allows Bangladesh to
tap into India’s vast power grid, especially during periods of high demand. Plans are also in place
to expand this exchange, with potential to import more electricity from Bhutan and Nepal via
India, thus creating a regional energy market.
9. Role of Private Sector and Foreign Investment
The role of private investors in the electricity sector has increased significantly in Bangladesh. In
the past, the government played a dominant role in power generation, but over the last two
decades, private companies have invested heavily in Independent Power Producer (IPP) projects.
These projects, which include gas-based, coal-fired, and renewable power plants, have helped
bridge the gap between supply and demand.
Bangladesh has been successful in attracting foreign direct investment (FDI) in its power sector,
particularly from countries like China, India, and South Korea. The involvement of international
players has not only boosted capacity but also introduced modern technologies and management
practices.
10. The Role of Solar Energy
Solar energy is perhaps one of the most promising and rapidly expanding segments of the
Bangladeshi energy sector. The country receives ample sunlight throughout the year, making it
an ideal location for large-scale solar energy projects. The government has encouraged solar
energy through subsidies, incentives, and projects like the Solar Home System (SHS) initiative,
which has been one of the largest in the world.
By 2025, Bangladesh aims to generate 10% of its energy from renewable sources, with solar
power being a major contributor. Large-scale solar parks are being developed, such as the 20-
megawatt solar plant in Teknaf. These developments are essential to ensure a more sustainable,
decentralized energy system, especially in rural areas.
11. Energy Storage and Smart Grid Development
A major challenge in renewable energy integration is the issue of intermittent supply. Solar
power, for example, is only generated during the day, and the demand for electricity peaks in the
evening. To address this, Bangladesh is exploring energy storage solutions, such as batteries and
pumped storage hydropower. These technologies could store excess energy during off-peak
hours for use during periods of high demand.
Additionally, the country is working to modernize its electricity grid, implementing smart grid
technologies to improve the reliability and efficiency of electricity distribution. These
innovations could help reduce transmission losses, improve demand-side management, and
facilitate better integration of renewable energy sources into the grid.
12. Environmental Concerns and Sustainability
Bangladesh’s growing reliance on fossil fuels—particularly coal—has raised significant
environmental concerns. Coal-fired power plants emit large amounts of greenhouse gases,
contributing to climate change and air pollution. As the country continues to develop, the need
for a more sustainable energy model is becoming increasingly urgent.
The government has acknowledged the environmental impact of its energy strategy and has
committed to reducing its carbon footprint in line with international climate agreements. One
way the government is addressing these concerns is by exploring cleaner technologies, such as
carbon capture and storage (CCS) for coal plants and transitioning to more sustainable sources
like natural gas and renewables.
In addition, the government is exploring energy efficiency measures, including energy-saving
technologies and reducing energy consumption in residential and commercial buildings. There is
also a push for increasing public awareness about the importance of reducing energy use and
adopting green technologies.
13. Future Outlook and Opportunities
The future of electricity in Bangladesh is filled with opportunities, particularly as the country
continues to industrialize and urbanize. There are several key areas where the country could see
progress:
Renewable Energy Growth: With solar energy at the forefront, Bangladesh is likely to
increase its renewable energy share in the coming decades. Wind and biomass energy are
also being explored, creating potential for a diversified energy mix.
Energy Efficiency: The promotion of energy-efficient appliances, energy-saving
building designs, and industrial energy management can significantly reduce overall
energy demand. The government is already taking steps to introduce energy efficiency
standards for various sectors.
Regional Energy Cooperation: Regional cooperation in energy, particularly through
cross-border electricity trade, could help Bangladesh diversify its energy supply, ensuring
a more resilient and stable energy system.
Technological Innovation: The ongoing development of smart grids, energy storage
technologies, and electric vehicles could play a transformative role in Bangladesh’s
energy future.
Climate Resilience: Given Bangladesh’s vulnerability to climate change, it is crucial for
the energy sector to incorporate climate-resilient infrastructure and low-carbon
technologies. The country could become a regional leader in sustainable energy practices
if it can strike the right balance between development and environmental sustainability.
Conclusion
Bangladesh’s electricity sector has made significant strides in addressing its energy needs, but it
still faces a host of challenges in terms of supply, demand, and sustainability. The government
has shown a strong commitment to improving the power sector through increased generation
capacity, investment in renewable energy, and regional cooperation. However, the continued
expansion of access to electricity, infrastructure modernization, and ensuring environmental
sustainability will remain critical priorities for the future. With a combination of government
action, private sector involvement, and technological innovation, Bangladesh is well-positioned
to build a more sustainable and efficient energy future.
