Bangladesh’s heavy reliance on captive power, generating over 3,000MW through gas-fired plants, is weakening the financial health of the Power Development Board (PDB) by reducing high-tariff-paying customers. A study by the IEEFA estimates that shifting half of these users to the national grid could generate Tk 3,414 crore annually, helping offset the PDB’s $1.2 billion annual losses. Despite grid reliability issues and cost inefficiencies, captive power remains cheaper for industries. The IEEFA recommends reforms, including reducing the reserve margin, halting new fossil fuel investments, and retiring inefficient plants, to address surplus capacity, cut subsidies, and ensure sustainable growth in the power sector.
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