Power and Energy Sector of Bangladesh

Just a decade ago, only about half of Bangladesh's people had access to electricity, and they continued to suffer from regular power outages hampering their daily lives, essential services, and businesses. 

This is when the country in 2013 embarked into a landmark deal with its next-door neighbour -- India- regarding a power sharing deal. Under this deal, Bangladesh started importing merely 600MW electricity from India as short-term relief to deal with power shortages that had been causing economic losses and difficulties in daily life. 

Sol The deal, marking a key step forward in regional power sharing and cooperation, addressed the urgent crisis faced by Bangladesh. Now, the imports in Bangladesh have gradually risen to around 1,160 MW of electricity from India, the only South Asian neighbour we have a Cross Border Electricity Trade (CBET) partnership with. The energy trade has, over the years, increased as Bangladesh importing power from our next door neighbour has proven to be economically better than production, as it needs less domestic power generation capacity which means it is cheaper than coal-fired power plants. 

India, which on the other hand has a greater surplus in generation, can through CBET use the export revenue earnings to higher investment in the power sector that would add to the economy of the country. 

According to a 2018 study titled "Economic Benefits of Bangladesh-India Electricity Trade," the money which was supposed to be invested in improving power generation capacity and fuel infrastructure development can be used for the development of non-energy sectors like agriculture, manufacturing, or for consumption expenses, making the partnership a win-win situation. For any country, electricity import from neighbours does not require investments for developing power supply infrastructure. It is quick, cheap, and offers low-cost supply compared to setting up own power plants. Adopting the import option also allows Bangladesh to reduce carbon dioxide emissions significantly as well. 

Bangladesh has so far focused on power generation only. The country currently generates roughly 8,000-10,000 MW of power with a capacity to produce 25,514 MW. Still, the government continues to focus more on power generation, instead of other factors which could be more beneficial for the power sector, and the country as a whole. 

Now is the time it shifts focus on improvement of distribution lines so that people can get reliable electricity. It also needs to inspect power plants and transmission lines more judiciously, and inefficient or redundant power plants need to reckon with rigorous standards for clean and efficient power. 

Bangladesh also needs to shift its transition from polluters like coal or gas-based power plants to more environment-friendly alternatives like wind, solar, and hydro-electric powers, among others Shifting away from polluters and towards sustainable and clean energy would make Bangladesh a role model for responsible energy management. 

In developing countries, the maximum overcapacity threshold for electricity generation is capped at 10%, but Bangladesh's Power Sector Master Plan notes a steep 25% without any supportive argument or proposal. The ruling government has set a target to increase power generation capacity to 40,000 MW by 2030 and further to 60,000MW by 2041. 

But merely increasing power generation capacity will not ensure uninterrupted power supply to the doorsteps of the citizens. This is why Bangladesh should shift its focus from raising power generation to improving transmission and distribution lines to make sure people get uninterrupted supply of clean and responsible electricity. 

Since energy production alone is not a benchmark of success, the country should, on one hand, find out responsible use and application of the production, and on the other hand, explore opportunities in the neighbourhood so that all the South Asian countries together can work for energy security in the region.