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Lighting the Way : Achievements, Opportunities, and Challenges in Bangladesh's Power Sector (English)

The report surveys the challenges facing Bangladesh's power sector today and makes recommendations for consideration by national policy makers. Its starting point is the Government's goal of universal access to electricity by 2021, when Bangladesh completes 50 years of independence. Bangladesh can justly be proud of its progress in providing power to its people over the past decade. Generation capacity has steadily grown from 5.5 GW in 2009 to more than 13 GW in 2017—an increase of 140 percent. Starting from levels of access to electricity below 50 percent, today access is around 80 percent, with a globally recognized off-grid rural Solar Home System (SHS) program contributing almost 14 percent of that total. Sector performance is better than that of larger countries in the South Asia Region on key dimensions—distribution and transmission losses (together around 14 percent) and collection efficiency (above 90 percent). Bangladesh was an early mover in initiating private power generation in the late 1990s. The independent power producer (IPP) contracts awarded at that time through a transparent competitive process brought it what remains even today some of the lowest cost power in South Asia. Power imports from India commenced in 2013 and are set to grow—they are a critical element of the Government's strategy to supplement domestic generation with other sources of supply. The country has also demonstrated impressive mobilization and institutional capacity in selected agencies, which it can leverage in its quest to rapidly achieve middle-income status.


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    South Asia,

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    Lighting the Way : Achievements, Opportunities, and Challenges in Bangladesh's Power Sector

  • Keywords

    gas; Power Generation; Scaling-Up Renewable Energy Program; liquid fuel; Electricity; Power Grid Company of Bangladesh; Electricity Generation Company of Bangladesh; average cost of power; domestic gas; impact of climate change; social cost of carbon; generation capacity; price of natural gas; Access to Electricity; power trade; Energy Sector; energy sector management assistance; Sustainable Energy for All; fuel for power generation; annual budgetary transfer; domestic gas production; opportunity cost; power generation capacity; electricity and gas; price of power; independent power producer; nationally determine contribution; cost generation; liquefied natural gas; availability of power; heavy fuel oil; gross domestic product; power purchase agreement; price of gas; Computable General Equilibrium; transmission and dispatch; cycle gas turbine; oil price decline; price of crude; natural gas supply; electricity generation capacity; benefits of electrification; power sector subsidy; power generation expansion; domestic natural gas; renewable energy capacity; supply of power; investment in efficiency; wholesale power market; total energy use; quantity of gas; gdp growth rate; absence of incentive; rate of growth; demand for gas; natural gas output; private power generation; distribution and transmission; rate of consumption; national oil company; amount of power; climate change resilience; fossil fuel technology; tax on coal; fossil fuel subsidy; speed of adjustment; level of consumption; high opportunity cost; forms of energy; cost of goods; ancillary services market; production sharing contracts; electricity transmission grid; supply of electricity; improvements in efficiency; renewable energy source; availability of land; primary energy requirement; natural gas reserves; engine of growth; amount of gas; renewable energy generation; regional power market; renewable energy resource; bulk supply tariff; natural gas account; foreign direct investment; rural electrification cooperative; international oil company; voltage direct current; domestic gas price; electricity generation costs; electric supply company; international energy agency; cost of electricity; competition in generation; power distribution company; quality of supply; price of fuel; cost of fuel; national policy maker; price of good; power exchange; fuel mix



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Lighting the Way : Achievements, Opportunities, and Challenges in Bangladesh's Power Sector (English). Washington, D.C. : World Bank Group.