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Electricity Crisis in Bangladesh

The electricity crisis in Bangladesh refers to the ongoing challenges faced by the country in meeting its increasing demand for electricity. Bangladesh, with a population exceeding 160 million and experiencing rapid economic growth, has encountered significant difficulties in ensuring a reliable and sufficient supply of electricity. As of June 2023, the country is reeling under an unprecedented load shedding of around 2,500 megawatts, equivalent to what the country used to produce in total during the late nineties. Out of a total of 170 power units in whole country, only 57 were running at full capacity on Saturdays, 62 were able to utilize half their capacity and 51 were idle. 18,000 crore bills of private power producers have not been paid till March 2023. Bangladesh government blamed the Ukraine war for all the problems in the energy and other sectors. However, experts at the national level also blame the country for some wrong policies and failure to implement some aspects of good policies in the power sector.

Cause & impects
The electricity crisis in Bangladesh can be attributed to several factors. Firstly, the limited capacity of domestic electricity generation plays a significant role. Despite efforts to increase generation capacity, the demand for electricity has outpaced the expansion of power plants and infrastructure. As a result, the supply-demand gap has widened, leading to frequent power shortages and blackouts.

Insufficient fuel supply is another critical factor contributing to the crisis. Bangladesh heavily relies on natural gas as a primary fuel source for electricity generation. However, the declining reserves and insufficient exploration efforts have led to a shortage of natural gas, impacting the generation capacity and reliability of the electricity supply.

Inadequate transmission and distribution infrastructure pose additional challenges. The existing infrastructure is outdated, inefficient, and prone to technical losses. Inadequate investment in upgrading and expanding the transmission and distribution systems has resulted in transmission losses, voltage fluctuations, and unreliable electricity supply.

The electricity crisis has significant impacts on various sectors in Bangladesh. The frequent power outages and unreliable electricity supply disrupt daily life, affecting households, businesses, and essential services. Industries face reduced productivity, increased costs, and decreased competitiveness due to unreliable power supply. The lack of access to electricity hampers economic growth, employment opportunities, and the overall development of the country.

The reliance on backup power sources, such as diesel generators, during power outages contributes to increased expenses, environmental pollution, and carbon emissions. The lack of reliable electricity also hampers technological advancements, stifles innovation, and limits access to modern amenities and services.

Businesses are now crying for electricity as manufacturing has been severely affected, which has adversely affected both revenue and employment.

Government initiative
To address the electricity crisis, Bangladesh has implemented various measures and initiatives. The government has focused on increasing the capacity of electricity generation by diversifying the energy mix. Efforts are underway to promote renewable energy sources such as solar, wind, and hydroelectric power. Large-scale renewable energy projects have been initiated to reduce dependency on fossil fuels and enhance the resilience of the electricity supply.

Improving energy efficiency and reducing wastage is another crucial aspect of mitigating the crisis. Programs are being implemented to encourage energy conservation, promote energy-efficient practices, and raise awareness among consumers about efficient energy use.

Investments in upgrading and expanding the electricity transmission and distribution infrastructure are being prioritized. Upgrading aging infrastructure, implementing smart grid technologies, and reducing technical losses are essential steps to improve the reliability and efficiency of the electricity supply.

Inefficiencies and infrastructure
Bangladesh relies heavily on natural gas resources, with small reserves of oil and coal, for its commercial energy consumption. Approximately 66% of the country's energy comes from natural gas, followed by oil, hydropower, and coal. Non-commercial energy sources, including wood fuel and crop residues, account for over half of the nation's energy consumption. Since 2009, the country's dependence on imported energy has increased dramatically, mainly because there has been no serious effort to explore new oil and gas fields, or to develop any coal mines or explore wind energy.

A 2014 news report stated that:"Bangladesh is considered one of the most energy-poor nations, with one of the lowest per capita electricity consumption rates in the world. More than a third of Bangladesh's 166 million people still have no access to electricity, while the country often is able to produce only some of its 11,500-megawatt generation capacity."Inadequate load management during electricity generation and distribution leads to extensive load shedding, causing severe disruptions in industrial production and other economic activities. A recent survey estimated that power outages result in an annual loss of industrial output worth $1 billion, leading to a reduction of approximately half a percentage point in Bangladesh's GDP growth. Inefficient distribution systems contribute to the problem, with transmission and distribution losses amounting to around one-third of total generation, equivalent to approximately US$247 million per year.

Efforts have been made to address these challenges. In 2011, proposals were made to upgrade grid technologies to digital smart metering systems and invest in renewable energy technologies to achieve 5% of total power generation by 2015 and 10% by 2020, as outlined in the National Renewable Energy Policy of 2008. Suggestions were also made to implement zoning areas to encourage self-reliant subdivisions and higher density housing around subways, reducing the impact of load shedding during peak times. The use of radio transmitters operating remotely in unlicensed radio bands and two-way real-time communication was proposed to transmit coded instructions to circuit breakers in microgrid substations, enabling multiple power flow lines with automated control and digital metering. Such advancements would facilitate feed-in tariffs (FIT) and provide incentives for private power generation and energy-efficient entities. However, it should be noted that the government has expressed no plans to implement these proposals, according to the Secretary of the Ministry of Power, Government of Bangladesh.

Various think tanks, including the Bangladesh Solar Energy Society and the Renewable Energy Institute (REI), along with international development government agencies like the Deutsche Gesellschaft für Internationale Zusammenarbeit, have shown support for these initiatives. Advocates argue that they would expedite investments in the energy sector, create job opportunities for engineering graduates and technicians, and alleviate pressure on the government.