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More Facts
About Energy
- Bangladesh has one of the lowest levels of per capita consumption of commercial energy in South Asia,
equal to 160 kg of oil. Per capita electricity consumption is 144 kWh.
- Demand for energy is growing at a rate of 10% annually.
- Since 1976, USAID has contributed approximately $210 million to rural electrification.
- Rural electrification programs have created 67 rural cooperatives. They provide electricity to
over 38,000 villages, covering over 28 million people in rural areas.1
- 96% of rural electric cooperative customers pay their bills. Bill payments total $277 million annually.
- Legislation establishing Bangladesh's national independent Energy Regulatory Commission was approved
in the parliament on March 10, 2003.
Supporting Document
U.S. Department of Energy Information
Administration Bangladesh Country Study
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| USAID's Response: Energy
USAID aims to:
- strengthen energy institutions, particularly the new Energy Regulatory Commission and Rural Electric Power Boards;
- commercialize government-owned firms that generate, transmit and distribute power and gas;
- encourage stability in Rural Electric Power Boards;
- build the energy market to improve the efficiency of the energy industry;
- promote balanced public discussion on reform of Bangladesh's power and natural gas industries; and
- Improve the legal, regulatory, and investment environment to promote private investment and development of the energy industry.
Rural Electrification
USAID's most significant contribution to the energy sector in Bangladesh
($210 million to date) is in rural electrification.1 Working
with the National Rural Electric Cooperative Association (NRECA), USAID
pioneered the Rural Electrification Program. It now brings electricity
to over 28 million people across rural Bangladesh. This program helped
establish the Rural Electrification Board as a semi-autonomous agency
under the Government of Bangladesh. Rural electric cooperatives deliver
the services.
With electricity, 120,000 electric irrigation pumps can now provide low-cost irrigation to farmers during the
dry season. As a result, farmers can increase their production, providing more food for themselves and their families.
Additional benefits of electricity have included higher literacy rates and incomes and better family planning.
USAID encourages the use of natural gas, a cleaner energy source, and more efficient energy use. Both result
in reduced production of greenhouse gases.
Taking Advantage of Natural Gas
In Bangladesh, natural gas resource meets 71% of commercial energy needs. The country has
slightly over 11 trillion cubic feet in recoverable natural gas reserves. According to the U.S. Geological Survey,
discoveries of new natural gas sources are likely.2 USAID and the Government are studying ways to take
advantage of this new, cleaner energy source. In the meantime, USAID encourages buses, trucks and other forms of
transport to use compressed natural gas.
Renewable Energy
The Bangladeshi NGO, Grameen Shakti, provides solar power systems to households in remote
rural areas, where there will be no electric connections in the near future. USAID has funded 13,000 of the 15,000
solar household systems Grameen Shakti has installed to date.
Independent Regulatory Commission
USAID works closely with other donors to promote a truly independent Energy Regulatory Commission.
USAID also works with other donors on transparency and accountability in rural electrification. This includes
using energy markets to discourage corruption.
South Asia Regional Initiative on Energy
Complementing these activities is USAID's South Asia Regional Energy Initiative. This initiative
brings together governments and businesses to facilitate cross-border cooperation on energy issues. The program also
brings in private investment, technology and managerial expertise.
2The Bangladesh Government version of the Report.
Program Successes
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