Mini Grids in Bangladesh : A Case Study of an Incipient Market
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...
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| Format: | Technical Paper |
| Language: | English |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/669331512390210193/Mini-grids-in-Bangladesh-a-case-study-of-an-incipient-market http://hdl.handle.net/10986/29020 |
| Summary: | 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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