Bangladesh’s power sector is one of the fastest growing in South Asia. The growth in terms of capacity addition has been remarkable -- increasing from 5% to 28% from 2012 to 2018 according to the World Bank and the Bangladesh Power Development Board.
Electricity consumption has increased in line with the rise in capacity. Domestic and industrial sectors are the key power demand drivers in the country. The industrial sector has witnessed impressive growth in the last six to seven years, with a growth of 12.06% in FY17.
Demand for electricity in Bangladesh is projected to reach 50,000 megawatts (MW) by 2041. The Government of Bangladesh has plans to increase power generation beyond expected demand to help propel growth in the export-oriented economy and meet the needs of a growing middle class by raising $127 billion in total investments in the power generation sector.
To meet the country's increasing electricity demand, investment in power infrastructure will support forecast-period output in the energy and utility sector. Electricity demand is expected to reach 40 GW by 2030, prompting the government to seek USD 70 billion in investment in the sector by 2035.
Foreign state-owned power and utilities companies have been active in their search for suitable international power utility and grid investment opportunities which have led to an increase in FDI inflow to Bangladesh. Infact the power sector accounts for around 14% of total FDI!
Bangladesh has seen a swift upsurge in electricity usage and daily power generation capacity has grown from 3,000 megawatts in 2009 to 15,500 megawatts by 2017. At the moment more than 80% of the population have access to electricity which is more than 160 Million citizens.
There is an increasing demand for efficient modern electric generators in Bangladesh. This is because the sector as a whole accounts for more than two-thirds of global greenhouse-gas emissions, with over 40% of this stemming from power generation. Resource scarcity and the associated geopolitics and economics of gas, oil, and coal supply are key factors shaping the power market policy.