Current Conditions: Energy

For Bangladesh, stable, expanding energy resources are more than a prerequisite for economic development. Bangladesh's energy resources constitute a significant engine of growth. Increased energy consumption can lead to more pollution, including carbon dioxide emissions.

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. At best, only 4,300 of the 5,275 installed megawatts are available at any given time. As a result, the country has been unable to meet the demand for electricity. All parts of the country, including the capital, Dhaka, experience frequent planned eletricity 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. This measure aims to increase energy supply to over 6,400 megawatts by the year 2007. However, it will still mean a shortfall of almost 1,000 megawatts, due to the retirement of older power stations.