Govt plans to privatise power distribution
The government is planning to privatise electricity distribution at the consumer level in a move aimed at improving accountability, enhancing service quality and strengthening bill collection, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood said on Thursday.
Speaking at the “Energy Security and Transformation of Bangladesh” conclave organised by Bangla daily Banik Barta at the Pan Pacific Sonargaon in Dhaka, the minister said the government would retain control over electricity generation and wholesale supply while opening the distribution segment to private participation.
“Although the government will continue to control power generation and wholesale supply, privatising the distribution system will improve accountability, bill collection and the quality of services,” he said.
The minister revealed that the government had already invited proposals from private sector companies interested in managing electricity distribution operations.
He said greater private sector involvement would enhance transparency, improve consumer services and reduce the financial burden on the state.
The programme was moderated by Banik Barta Editor Dewan Hanif Mahmud. State Minister for Planning Md Zonayed Abdur Rahim Saki attended as special guest, while Bangladesh Energy Regulatory Commission (BERC) Chairman Jalal Ahmed, East Coast Group Chairman Azam J Chowdhury, Transcom Group CEO Simeen Rahman, former Power Grid Bangladesh PLC Chairman Dr M Rezwan Khan, former Infrastructure Development Company Limited (IDCOL) Managing Director Alamgir Morshed, Standard Chartered Bangladesh Acting CEO Md Enamul Haque and Bangladesh Sustainable and Renewable Energy Association (BSREA) President Mostafa Al Mahmud also spoke.
Highlighting the country’s long-term energy challenges, the minister said Bangladesh’s energy security would depend on expanding domestic gas exploration and production while strengthening LNG import infrastructure.
He also announced plans to implement large-scale solar power projects on a cluster basis to reduce pressure on the national power distribution network. Tenders for the projects are expected to be invited by September, with several Chinese companies already expressing interest in investing.
Iqbal Mahmood said Bangladesh has the potential to generate up to 10,000 megawatts (MW) of electricity from renewable sources if all stakeholders work together.
To encourage rooftop solar installations, he said the government has introduced tax incentives and reduced holding taxes for property owners installing solar systems.
The minister criticised the previous government for expanding electricity generation capacity without ensuring adequate domestic gas supplies.
“About 28,000 megawatts of power generation capacity has been created, but no effective initiative was taken to explore the gas needed to operate those plants,” he said.
Referring to a recent fire at one of the country’s Floating Storage and Regasification Units (FSRUs), he said the incident disrupted LNG imports and reduced gas pressure across parts of the country, affecting households, industries and CNG filling stations.
He also questioned the decision to establish a gas-fired power plant in Khulna without securing a reliable gas supply, saying the facility had remained largely underutilised because the proposed Bhola-Barishal-Khulna gas pipeline was never constructed.
The minister noted that global energy security had become increasingly uncertain due to geopolitical tensions, including the Iran-US-Israel conflict, which had driven up global LNG prices and forced Bangladesh to purchase fuel from the spot market at significantly higher costs.
He added that the government had recently announced a new renewable energy policy and would continue promoting cluster-based solar power projects to diversify the country’s energy mix and reduce pressure on the electricity distribution system.
The government aims to issue tenders for the major solar projects by September, he said, expressing confidence that private investment would help accelerate Bangladesh’s transition towards a more sustainable and secure energy future.
