The Awami League-led coalition government has achieved a number of successes in the power sector during the past six years. Power generation capacity more than doubled from 4,942MW in 2009 to 11,265MW currently, with around 68% of the population having access to electricity.
Furthermore, the government has increased the number of power plants, transmission lines and distribution lines. Per capita power generation has increased. The country has the highest rate of solar home system installations in the world. The number of irrigation pumps has gone up and the number of consumers of electricity has also increased during the tenure of the AL-led coalition government.
System losses have been significantly reduced during this period.
Some $5.2bn was pumped into the sector to set up 65 power plants from 2009 to 2014.
Shortfalls of electricity generation compared with national demand has been a problem for the country since independence. An adequate and uninterrupted power supply is a crucial factor for fostering economic growth.
To cope with the severe power crisis, the government entered into contractual agreements for high-cost temporary solutions, such as rental power and small independent power producers (IPPs, mostly diesel or furnace oil based) on an emergency basis.
At the aggregate level, the estimated relationship between gross domestic product (GDP) and electricity generation shows that an extra economic output (value added) in the range of Tk46mn to Tk107mn (at constant 1995/96 prices) is generated for every million kilowatt-hours (MkWh) increase in electricity supply in Bangladesh, according to a study titled “Quick Rental Power Plants in Bangladesh: An Economic Appraisal” conducted by the Bangladesh Institute of Development Studies in June 2013.
This implies that in fiscal year 2011-12 alone, the contribution of additional electricity generated by the quick rental power plants to GDP was between Tk23,312cr and Tk54,226cr at constant 1995/96 prices, which is equivalent to between Tk52,093cr and Tk121,168cr at 2011/12 prices, it said.
In 2009, when the Awami League took office, the country’s power generation capacity was 4,942MW. This number rose to 11,265MW last year, Mohammad Hossain, director general of the Power Cell, under the Power Division of Ministry of Power, Energy and Mineral Resources, told the Dhaka Tribune yesterday.
Countrywide, electricity generation was 3,268MW at the beginning of 2009, and reached 7,418MW in July last year, he said.
“The success was achieved through long term, mid-term and emergency measures adopted as part of the government’s power sector guidelines. As the country continues to industrialise the importance of power generation and its supply will grow,” he said.
“A flourishing economic growth, fast urbanisation and increased industrialisation and development has increased the country’s demand for electricity. Electricity is a key ingredient for the socio-economic development of the country,” State Minister for Power Nasrul Hamid told the Dhaka Tribune.
“The government has given top priority to the development of the sector considering its importance in the overall development of the country. The government has set the goal of providing electricity to all citizens by 2021,” he added.
Right after assuming office in 2009, in order to address the debilitating power shortages plaguing Bangladesh from 2001 onwards, the Awami League-led government formulated the forward looking Power Sector Master Plan 2010.
Nasrul said that a total of 65 power plants with a combined capacity of 5,091MW were commissioned and 500MW of power is being imported from India.
Of the total of 5,091MW, gas-based plants produce 2,537MW while liquid fuel-based plants account for 2,554MW.
The additional capacity has been added in annual increases of 365MW, 775MW, 1763MW, 951MW, 1163MW and 583MW respectively in 2009, 2010, 2011, 2012, 2013 and 2014.
He said the present government had prioritised the power sector right from the publication of its election manifesto.
The government aims to generate an additional over 9,600MW electricity by 2018 under short, medium and long-term plans, he added.
“A total of $5.2bn has been invested in establishing power plants from 2009 to 2014 of which $2.8bn was invested in public sector projects and $2.4bn was invested in private sector projects,” the state minister said.
“Another $8.5bn is needed to complete the ongoing power plant projects. Of that, $4.3bn is needed for government-owned projects and $4.2bn for private sector projects,” Nasrul added.
Bangladesh is now importing power from India. Power from India began to flow in October, 2013.
Bangladesh has achieved the fastest growth rate for installing solar home systems in the world, at a rate of 70,000 systems every month. Over 3 million systems have already been installed with support from development partners.
“Presently, 68% of the total population has access to electricity, including renewable energy, and the per capita generation is 348kWH, which is very low compared to other developing countries,” he said.