Posted by: Farzana Yesmin
on Jul 20, 2009
Energy is an Engine of Growth
For Bangladesh, stable, expanding energy resources are a prerequisite for economic development. Bangladesh's energy resources constitute a significant engine of growth. More than two million people are employed in rural areas through electricity-run irrigation pumps, equipment and businesses. Rural businesses with electricity can generate eleven times more jobs than those without electricity.
Large Unsatisfied Demand for Energy
Bangladesh has a large unsatisfied demand for energy, which is growing by 10 percent annually. Currently, it has the lowest per capita consumption of commercial energy in South Asia. While the current installed capacity is 5320 megawatts because of reduced efficiency of the old generating units the derated (effective) capacity stands at 4830 megawatts as of November 2008. As a result, the country has been unable to meet the growing demand for electricity. All parts of the country, including the capital, Dhaka, experience frequent planned electricity outages.
To respond to the growing demand for energy, the Government of Bangladesh has permitted private, independent power producers to enter the Bangladeshi market since 1996. While the maximum generation currently is approximately 3,800 megawatts, demand during peak hours reaches 5,000 megawatts. U.S. assistance in this program area helps Bangladesh move from a developing country to a transforming country by establishing a transparent energy regulatory climate that will facilitate infrastructure investment, simultaneously promoting economic growth and good governance. USAID anticipates that by 2012 increased investment in infrastructure will allow Bangladesh to provide 6,400 megawatts of electricity during peak demand and an additional 1.8 million consumers will have access to off-grid power from solar energy.
