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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Bibliographic Details
Main Author: Energy Sector Management Assistance Program
Format: Technical Paper
Language:English
Published: World Bank, Washington, DC 2017
Subjects:
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
id okr-10986-29020
recordtype oai_dc
spelling okr-10986-290202021-05-25T09:08:33Z Mini Grids in Bangladesh : A Case Study of an Incipient Market Energy Sector Management Assistance Program ELECTRICITY GRIDS POWER SECTOR TARIFF SUBSIDIES 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. 2017-12-18T20:07:08Z 2017-12-18T20:07:08Z 2017-11 Technical Paper http://documents.worldbank.org/curated/en/669331512390210193/Mini-grids-in-Bangladesh-a-case-study-of-an-incipient-market http://hdl.handle.net/10986/29020 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: ESMAP Paper South Asia Bangladesh
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ELECTRICITY GRIDS
POWER SECTOR
TARIFF
SUBSIDIES
spellingShingle ELECTRICITY GRIDS
POWER SECTOR
TARIFF
SUBSIDIES
Energy Sector Management Assistance Program
Mini Grids in Bangladesh : A Case Study of an Incipient Market
geographic_facet South Asia
Bangladesh
description 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.
format Technical Paper
author Energy Sector Management Assistance Program
author_facet Energy Sector Management Assistance Program
author_sort Energy Sector Management Assistance Program
title Mini Grids in Bangladesh : A Case Study of an Incipient Market
title_short Mini Grids in Bangladesh : A Case Study of an Incipient Market
title_full Mini Grids in Bangladesh : A Case Study of an Incipient Market
title_fullStr Mini Grids in Bangladesh : A Case Study of an Incipient Market
title_full_unstemmed Mini Grids in Bangladesh : A Case Study of an Incipient Market
title_sort mini grids in bangladesh : a case study of an incipient market
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/669331512390210193/Mini-grids-in-Bangladesh-a-case-study-of-an-incipient-market
http://hdl.handle.net/10986/29020
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