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Progressive efforts from policymakers, effective participation from private entrepreneurs and support from development partners has transformed Bangladesh power sector into almost self-reliant within a short span of time.


Author: Mohammad Asrarul Haque

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Introduction

An undisrupted supply of power and energy is a prerequisite for the progress of an economy. The importance of energy is even more supplementary in the context of Bangladesh, an emerging economy that has been enjoying rapid economic growth but also experiencing prolonged period of energy crisis. Bangladesh is one of Asia's buoyant emerging economy that has a growing need for power and energy. Bangladesh aspires to achieve middle income country status by 2021 and also targets to be in the ‘high-income country’ club by 2041. The movement towards a progressive national economy strongly depends on the uninterrupted supply of power and energy to cater to the industrial and domestic demand. In order to achieve its ambitious socioeconomic growth target, it has successfully identified shortage of electricity as its one of the key barriers in achieving such growth. The government of Bangladesh (GOB) has recognized that the pace of power development has to be accelerated in order to achieve overall economic development targets of the country.

To meet the increasing demand for Power, the government of Bangladesh undertook some pragmatic steps towards increasing the power supply within the short span of time by encouraging more private sector power generation as well as import of power from native countries. The performance of Bangladesh’s power sector in last decade has been impressive due to the progressive efforts from the policymakers, effective participation from the private entrepreneurs and support from the development partners. The government of Bangladesh has set a target to bring the whole country under electricity coverage by 2021.

This report (Part 1) contains major highlight on the ongoing state of power generation and supply in Bangladesh, major steps and new approvals of power projects as well as financial viability of the power sector in Bangladesh. In this report, we tried to present the state and performance of power sector from various perspectives; from the viewpoint of the government/public interest as well as from the viewpoint of the investment potential by private power producers. We tried to appraise the sector performance both from the operational and financial perspectives. Our upcoming report (Part 2) will cover major highlights of the listed power generation companies, their comparative financial performance, investment insights and operation detail, risk assessments and investment potentials in the shares of listed power generation, distribution and transmission companies. 

Publisher

EBL Securities Ltd.

EBL Securities Ltd. is committed to being a preferred brokerage house providing comprehensive services to help achieve the financial goals through the guidance of its highly qualified and experienced human resources.

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