Energy in Bangladesh: From scarcity to universal access

Bangladesh launched the Vision 2021 initiative to reach the status of a middle-income country and provide universal access to power. This gave an impetus to a significant rise in installed generation capacity, with the most positive developments seen through the Seventh Five-Year Plan and beyond. The purpose of this case study is to conduct a systematic review of Bangladeshi power sector performance after independence, from 1972 through post-2000, including the Sixth and Seventh Five-Year Plans with their notable reforms, sector unbundling, potential concerns, and realistic adjustments related to developmental targets. This study adopted a qualitative research design comprising semi-structured interviews and archival data. The results reveal that the Vision 2021 initiative was instrumental in ensuring universal access to power. It was also revealed that there is no predetermined process to achieve the desired power sector outcome, as a successful outcome is dependent on contextual factors, complementary and targeted policies, and alternative institutional pathways to achieve the best sector performance outcomes. Despite significant achievements in raising the installed generation capacity in the power sector, serious operational deficits and structural weaknesses remain. These are (i) the increased cost of electricity production, and (ii) continuing operational deficits in the power sector. Some revisions have been suggested for the long-term sustainability of this sector. This study is the first of its kind to systematically analyze Bangladesh's power sector performance from post-independence through post-2000 to 2024.