This perplexing situation may not make sense to ordinary minds, unaware of the circumstances that have resulted in the unique coexistence of power overcapacity and power poverty. With an investment exceeding $3.9 billion, Bangladesh has managed to achieve a current installed capacity of 25,929MW (excluding 2,800MW of captive power). However, more than half of this capacity remains unused for various reasons, leading to the generation of a massive capacity charge every year – money paid to idle power plants.

The projected capacity charge for this year is expected to be close to Tk 19,000 crore, potentially adding an extra Tk 1.8 to a unit of the electricity bill. Despite being heralded as an Asian tiger with remarkable economic growth, Bangladesh ranks among the world›s poorest nations in terms of electricity use, consuming less electricity than conflict-prone, poor nations such as Mozambique, Angola, and Nicaragua.

Even with its frequent economic growth trumpeted, an average citizen of Bangladesh consumes one of the lowest amounts of electricity, and the cost keeps escalating. On the industrial front, reliance on the national grid is challenging, as large industries generate power on their own, while many small and medium industries face competitiveness issues due to an unreliable electricity supply.

According to M Shamsul Alam, the Consumers Association of Bangladesh energy adviser, Bangladesh›s power system reflects a business model designed exclusively to meet private investors› need for predatory profits. The model focuses on increasing power generation capacity without ensuring a cost-effective supply of quality power.

News Link: Per capita power usage still remains low