January 22, 2021 Read More →

Bangladesh overcapacity situation bad and getting worse

Saur Energy:

Overcapacity in the power system of Bangladesh has worsened and threatens to deteriorate further according to a new briefing note by IEEFA.

Overcapacity in the power system of Bangladesh has worsened and threatens to deteriorate further according to a new briefing note released by the Institute for Energy Economics and Financial Analysis (IEEFA). Data from the Bangladesh Power Development Board’s (BPDB) latest annual report shows that overall power capacity utilisation in the fiscal year 2019-20 was just 40 percent, down from 43 percent in the prior year – a clear sign of worsening overcapacity.

Simon Nicholas, an energy finance analyst with IEEFA, believes that the planned capacity additions over the next five years will likely see capacity utilisation decline further. “With another 21,000 megawatts (MW) due to come on line by 2025 and only 5,500 MW of old capacity due to be retired, utilisation will drop below 40 percent unless a very high rate of power generation growth is maintained,” he said. 

[Staff Report]

More: Power System Overcapacity Problem in Bangladesh Getting Worse: IEEFA

Posted in: IEEFA In the News

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