Bangladesh urged to rethink strategy for electricity generation

The country needs to diversify energy sources.

It has been noted that in comparison with other developing Asian countries, Bangladesh is the least well diversified in terms of energy sources, and with this, the nation needs a concrete and diversified strategy for long-term electricity generation.

According to a research note from Standard Chartered, available data from the World Bank, though different from Bangladesh’s current situation, highlights the point that the country is overly dependent on natural gas for electricity generation, while its share of coal and hydro electricity in electricity generation is the lowest among developing Asian economies.

It also lags the South Asia average on nuclear and renewable power (excluding hydro) generation.

The latest data from the Bangladesh Power Development Board (BPDB) shows that c.77% of total electricity generation comes from natural gas, which is an improvement from the 2011 World Bank figures, but still skewed towards gas-based generation.

Here’s more from Standard Chartered:

Construction of coal, nuclear, and renewable energy plants must be a priority for the government given that these projects typically take years to construct.

We note that no coal or renewable power plants are expected to be completed before 2015 at the earliest. In 2015, 4% of incremental generation capacity is planned to come from renewable energy.

From 2016 onwards, we should see imported coal-based plants being plugged into the electricity grid, assuming there are no delays to current plans.

In the BPDB’s latest annual report, it makes no concrete reference to building power plants for either nuclear energy or hydro power generation.

Current plans outline the creation of minimal capacity for generation of domestic coal- and renewable energy (solar, wind)-based electricity.

Progress is needed on developing a concrete plan to achieving the long-term targets set out in the energy master plan.