Dhaka – Bangladesh has been contemplating the privatization of its electricity distribution system at the consumer level to improve accountability, enhance service quality, and refine the billing mechanism.
Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood made the disclosure on Wednesday at a discussion titled “Energy Security and Transformation of Bangladesh” in Dhaka.
The minister, however, said power generation and wholesale electricity distribution will remain under government control.
“If privatization of the distribution system is ensured, accountability, bill collection, and service quality will be improved,” the minister told the conclave, organized by Bangla daily Banik Barta.
Leading power sector businessmen attended the event at Pan Pacific Hotel Dhaka.
The government had invited proposals from the private sector to take over electricity distribution companies, the minister said, adding that private participation would bring greater transparency, improve service quality, and reduce the state’s financial burden.
The minister said long-term energy security could only be achieved through increased domestic gas exploration and production, alongside strengthening LNG import infrastructure.
He said the government plans to implement solar power projects on a cluster basis to reduce pressure on the national distribution system, with tenders expected to be floated by September.
Chinese companies have already shown interest in investing in the sector, he added.
Iqbal Mahmood expressed optimism that Bangladesh could generate up to 10,000 MW of renewable energy with cooperation from stakeholders. He said the government has offered tax rebates and reduced holding taxes to property owners to encourage rooftop solar installations.
The minister alleged that the previous government had failed to undertake effective gas exploration despite expanding electricity generation capacity.
“About 28,000 megawatts (MW) of power generation capacity has been created, but no effective initiative was taken to explore the gas needed to run those plants,” he said.
Referring to a recent fire at one of the country’s floating storage and regasification units (FSRUs), Mahmood said the incident disrupted LNG supply and reduced gas pressure in different parts of the country, affecting households, industries, and CNG stations.
Describing global energy security as increasingly complex, he said geopolitical tensions, including the Iran–US–Israeli conflict, had driven up LNG prices, forcing Bangladesh to purchase gas at higher prices from the spot market.
The government has announced a new renewable energy policy and plans to promote cluster-based solar power projects to reduce demand on distribution companies, the minister said.
State Minister for Planning Zonayed Abdur Rahim Saki attended as special guest at the event, while Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed, East Coast Group Chairman Azam J Chowdhury, Transcom Group CEO Simeen Rahman, former Chairman of Power Grid Bangladesh PLC M Rezwan Khan, former Managing Director of Infrastructure Development Company Limited (IDCOL) Alamgir Morshed, acting Chief Executive Officer of Standard Chartered Bangladesh Md Enamul Haque, and Bangladesh Sustainable and Renewable Energy Association (BSREA) President Mostafa Al Mahmud also spoke.
