Bangladesh’s power generation capacity is set to surpass 30,000 MW in 2023, leading to a 50% increase in unused generation capacity. The country’s total installed electricity generation capacity currently stands at 28,159MW, with 31,273MW expected by the end of the year. However, the existing demand is only 16,000MW, leaving over 50% of the capacity idle. The increase in power generation capacity, primarily driven by the private sector, poses challenges for the authorities in paying capacity charges, which are set to rise significantly. Additionally, the capacity payment will involve more than 90% being made in foreign currency amid reduced foreign exchange reserves. Experts suggest applying “force majeure” and prioritizing renewable-based power plants to alleviate the burden on the state-owned Bangladesh Power Development Board (BPDB) and avoid a potential crisis.
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