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Eradicating Energy Poverty in Bangladesh

Energy Poverty in Bangladesh
Bangladesh recently transitioned from a lower-income country to a lower-middle-income country as per the World Bank’s GDP per capita benchmark. Bangladesh’s Global Domestic Product (GDP) growth rate went from 6.5% in 2012 to 7.3% in 2017.

The demand for electricity rose, as a result, thrusting the government into focusing on eradicating energy poverty in Bangladesh. However, misuse and improper management of energy contributed to the shortage of electricity, and load shedding became a daily phenomenon. Here are some additional facts about energy poverty in the country.

Facts About Energy Poverty in Bangladesh

Only around 59.6% of the people in Bangladesh have access to electricity with 180 kilowatt-hours of energy per capita in use, which is very low in comparison to other countries. Rural areas tend to suffer more as they face more load shedding than urban areas.

Bangladesh heavily relies on natural gas and furnace oil, followed by coal, for electricity generation. As of February 2017, the installed power capacity shows the reliance on natural gas is 62%.

This raises concerns over energy security due to the increasing fuel imports and high dependence on coal and gas for electricity generation. Yet, the country has been failing to meet its electricity demand. Therefore, it is trying to focus on meeting its energy needs and providing access to electricity all over the country.

Progress in Eradicating Energy Poverty in Bangladesh

In September 2018, there was significant progress in eradicating energy poverty in Bangladesh when the country managed to meet its energy production target of 20,000 MW. Bangladesh also set a new target of generating 24,000 MW of electricity by 2021, 40,000 MW by 2030 and 60,000 MW by 2041.

As of 2018, the number of power plants amounted to 108, a significant increase from the 27 power plants in 2009. Bangladesh ranked 90th among 115 nations on the global Energy Transition Index (ETI) which benchmarks countries on how well they balance their energy security and access with environmental sustainability and affordability.

Bangladesh made progress due to a strong political commitment, a stable policy regime, the use of grid expansion and generation sources and an investment-friendly environment in the infrastructure sector.

Some Upcoming Projects for Eradicating Energy Poverty in Bangladesh

  • Rooppur Nuclear Power Plant – Bangladesh’s first nuclear power plant, the Rooppur Nuclear Power Plant (RNPP) project, is being constructed in Rooppur, a remote village on the western side of Bangladesh in the Pabna District. The Bangladesh Atomic Energy Commission (BAEC) implemented the project under the Ministry of Science & Technology. The project is a part of an intergovernmental agreement between Bangladesh and Russia. The nuclear power plant of 2,400 MW capacity, with two reactors of 1,200 MW each, is one of the major efforts in eradicating energy poverty in Bangladesh. The project’s expected completion is by 2024.
  • Matarbari Coal Power Plant – The 1,200 MW Matarbari coal-fired power plant project, which the Coal Power Generation Company Bangladesh Ltd (CPGCBL) implemented and the Japanese International Cooperation Agency assisted, will use imported coal to generate power. The plant will have two units, each having a production capacity of 600 MW. The project will also include a deep seaport.
  • Rampal Thermal Power Plant – This 1,320 MW coal-fired power plant in the Bagerhat district of Khulna is a joint venture between India’s National Thermal Power Corporation and Bangladesh Power Development Board. Expectations have determined that this will be the country’s largest power plant.

Expansion of Renewable Energy

On March 1, 2019, the World Bank approved $185 million to add up to 310 MW renewable energy generation capacity and also to mobilize around $212 million from the private sector, commercial banks, and other sources to meet the increasing demand for electricity. The Scaling-up Renewable Energy Project in Bangladesh by the World Bank will build the first 50 MW segment of a large solar panel energy park in the Feni district. This project should provide better access to clean energy and cut emissions by an equivalent of 377,000 tons of carbon dioxide per year.

With the rapid economic growth in the country, Bangladesh has made some notable progress in addressing its growing electricity demand. Through increased diversification of its energy mix and more ambitious projects on the way, energy poverty in Bangladesh should reduce.

– Farihah Tasneem
Photo: Flickr

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Five Development Projects in Bangladesh

BangladeshBangladesh is a developing country deep in poverty—about 31 percent of the country lives below the poverty line. Even though poverty is certainly prevalent in the country, strides have been made to reduce it in the past few years. For instance, the literacy rate in the country stands at an average of 72 percent and about 86 percent of the population has access to a drinking water source, according to the World Factbook.

Developing a country is an on-going process. Bangladesh is trying to continue its growth in ways that will ensure the success of the country. Here are five development projects in Bangladesh that will help the country reduce its level of poverty.

  1. Health Sector Support Project. There are areas in Bangladesh, such as Sylhet and Chittagong, whose key health indicators are below average. The Health Sector Support Project will help to strengthen health, nutrition and population management systems. One of the most notable aspects of this project is that it seeks to improve the quality and coverage of essential services, such as immunization coverage for children. According to the World Bank, $515 million was loaned to the country in support of the project.
  2. Bangladesh Insurance Sector Development Project. In order for the health sector to be sufficient, the insurance sector needs to be developed. The World Bank states that this project will “strengthen the institutional capacity of the regulator and state-owned insurance corporations and increase the coverage of insurance in Bangladesh.”
  3. Smart City campaign. The urban population of Bangladesh, which currently stands at 55 million, will significantly contribute to the growing national GDP. According to the Smart City website, this will lead to “burgeoning in cities” and a need to improve the conditions of urban cities. Since cities are “key economic engines” one of the development projects in Bangladesh, the “Smart City” campaign, will help to innovate these areas of opportunities.
  4. Additional Financing to Chittagong Water Supply Improvement and Sanitation Project. Parts of Bangladesh do not have access to an adequate water supply and sanitation. About 13 percent of the country does not have an adequate drinking supply and 39 percent of the country does not have access to water sanitation. This project will increase access to safe water and improve water supply, sanitation and drainage in Chittagong.
  5. Clean Air and Sustainable Environment (CASE) Project. According to the World Bank, poor air quality in urban areas creates serious health hazards and adversely affects the environment and quality of life. Reducing pollution could save lives and diminish disease outbreaks. The CASE project would improve air quality and safe mobility in Dhaka through the implementation of demonstration initiatives.

Increasing water supply and sanitation, innovative technology and improving access to healthcare are significant ways to reduce poverty. With these development projects in Bangladesh, the country is well on its way to implementing practices that will reduce poverty in the country for the long term.

– Dezanii Lewis

Photo: Flickr