The Role of Private Sector Power Generation in Bangladesh

The demand of electricity is increasing day by day. For economic emancipation and in order to meet the Millennium Development Goals, the electricity growth that is generating more electricity, building more transmission/ distribution capacity, bringing more area/ population under electricity coverage and ensuring more efficient management of these are the essential issues. According to the power sector growth in the country, the country needs new 400 MW power each year to meet the growing demands. Building of this particular infrastructure require large amount of capital and is encountering increasing difficulties to finance the required capacity either through the government budget or even by the international development agencies and financing organizations. But the government of Bangladesh is unable to provide the finance to set up new power plants according to the growing demand. That is why in 1996 the Government of Bangladesh (GOB) has decided to build power plants in private sectors and Independent Power Producers (IPPs) launched their business in Bangladesh. In this paper the brief history of the private sector power plants in Bangladesh, their problems and prospects are discussed.