Energy minister seeks proposals to privatise power distribution
Govt also plans private petroleum imports, targets 10,000MW solar capacity by end of tenure
Highlights:
- Govt seeks private takeover of power distribution
- Private fuel imports under consideration
- Bangladesh targets 10,000MW solar capacity
- Tax incentives planned for rooftop solar
- Utility-scale solar tenders due soon
Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood has invited private sector proposals to take over electricity distribution companies, saying the government wants to privatise the country's power distribution system to improve efficiency, accountability and bill collection.
Speaking at the Energy Security & Transformation of Bangladesh conclave organised by Bonik Barta today (22 July), the minister said the government had already received the prime minister's consent to move ahead with the initiative.
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"I want to privatise all our distribution companies," he said. "The government can generate electricity and sell it in bulk, but retail distribution should be handled by the private sector."
Drawing comparisons with India, Mahmood said electricity distribution in cities such as Kolkata, Mumbai and Delhi is managed by private companies and questioned why Bangladeshi entrepreneurs could not do the same. He invited local investors to submit proposals, saying the government would examine them before proceeding.
According to the minister, transferring electricity distribution to the private sector would improve bill collection and reduce the government's financial burden.
"The government cannot do retail business," he said. "Private operators will ensure greater accountability and better collection."
Beyond power distribution, Mahmood said the government was also considering allowing private companies to import petroleum products to reduce the state's role and encourage competition.
"Why should the government always import petroleum products? Let the private sector do it. It has a market, and competition will reduce the government's burden," he said.
The minister also outlined the government's renewable energy plans, saying Bangladesh aims to install 10,000MW of solar power by the end of the current government's tenure.
He said the government plans to introduce cluster-based rooftop solar systems to be installed and operated by private investors under net metering arrangements. Building owners installing rooftop solar systems would receive municipal tax rebates, while those unwilling to adopt solar energy could face additional taxes.
Mahmood said land had already been identified for utility-scale solar projects and tenders are expected to be invited in August or September. He added that Chinese investors have expressed interest in the projects.
Highlighting the challenges facing the sector, the minister said Bangladesh's energy industry is grappling with significant financial and structural constraints, including Tk67,000 crore in outstanding power sector liabilities and continued dependence on imported fuel.
