Bangladesh outdoor power supply recommendation

Does Bangladesh have excess power capacity?

Bangladesh has more power capacity than it needs, resulting in significant capacity payments to idle plants. In 2018-19, overall power capacity utilization in Bangladesh was only 43%, while capacity payments to idle plants reached Tk90bn (US$1.1bn).

How much power does Bangladesh need in 2018-19?

The net power demand for Bangladesh in 2018-19 was around 62TWh after taking transmission and distribution losses into account, according to IEEFA.

Should Bangladesh reprioritize its energy system?

Bangladesh should reprioritize its power system development and redirect resources at technologies that can deliver the price stability and competitiveness required to sustain rapid economic growth and realize the goals of ‘Vision 2041’. Affordable energy over the medium and long term remains essential for Bangladesh.

Is Bangladesh on course for major overcapacity?

Bangladesh is experiencing major power overcapacity due to the addition of excess coal- and LNG-fired power plants. (Source: Revisited Power System Master Plan 2016, BPDB Annual Report 2018-19, IEEFA calculations). Overestimated forecasts of power demand growth are common in developing countries and can lead to poor power system planning decisions.

How can we reduce the cost of power generation in Bangladesh?

To minimize the cost of power generation in Bangladesh, it is essential to prioritize the power generation source that can limit costs, which is increasingly renewable energy. The cost of renewable energy is now declining in Bangladesh.

Will Bangladesh generate 58% more power than needed in 2029-30?

Based on the Revisited PSMP, Bangladesh will have the capacity to generate 58% more power than its requirement in 2029-30 (Table 1). This calculation assumes Bangladesh does not reach its goal of 10% power capacity from renewable energy. Bangladesh is on course for major overcapacity due to the addition of excess coal- and LNG-fired power plants.