Publication: Mini Grids in Bangladesh: A Case Study of an Incipient Market
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2017-11
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2017-12-18
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The study’s objective is to understand what regulatory settings governments may adopt to scale up electrification through private development of mini grids, drawing on the experience of these six jurisdictions; provide technical assistance to four countries that want to further develop their mini grids framework; and disseminate findings and recommendations globally to inform successful mini grids regulation. The study focuses on mini grids defined as small, privately-owned and operated systems with generation of up to 10 megawatts (MW) capacity and a network that distributes power to several customers. The study includes small mini grids of less than 1 kilowatt (kW) capacity, also known as ‘micro’ or ‘pico’ grids. The six case studies are intended to be synthesized in one report. The report is to provide a cross-country comparison of these topics: it examines side by side how each of the countries studied have responded to a specific regulatory question, and presents a decision-tree approach to developing regulatory frameworks for mini grids. This case study is based on in-depth interviews with a number of key stakeholders in Bangladesh, conducted during and after a research trip in August 2017. Several experts in the Bangladesh context and mini grids more broadly reviewed this case study for accuracy and clarity, and their have incorporated their comments while retaining a neutral fact-based position. The Government aims to provide electricity to all by 2021 through grid extension, mini grids and stand-alone systems. The Power Sector Master Plan (PSMP) 2010 sets out to accommodate the Government’s vision by 2021.The Government recognizes that public sector investment alone will not be sufficient to achieve its target and wants to mobilize resources from the private sector. The Government seeks to catalyze and promote private sector participation in renewable energy projects through Infrastructure Development Company Limited (IDCOL), a fully government-owned financial institution.IDCOL works alongside the Ministry of Power, Energy, and Mineral Resources (MPEMR) to identify areas where grid expansion is unlikely in the foreseeable future, and to entice private mini grid developers. Mini-grid operators are occupying a small but growing space in Bangladesh, with seven mini-grids connecting around 2,243 households in rural areas. IDCOL has approved 18 mini grid systems and plans to install 50 by 2018.
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“Energy Sector Management Assistance Program. 2017. Mini Grids in Bangladesh: A Case Study of an Incipient Market. © World Bank. http://hdl.handle.net/10986/29020 License: CC BY 3.0 IGO.”
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