The power supply situation in Bangladesh remains as precarious as ever; with power outages becoming more erratic and load shedding persistently higher than the corresponding months in the previous year (see Figure). Bangladesh is currently experiencing unprecedented levels of load shedding nationally. Brought about by a shortage of generation supply capacity, load shedding is a last resort measure to prevent a collapse of the national electricity supply system. The risk of load shedding will remain high until at least 2013 if further actions are not taken to ameliorate the situation. Specific and immediate interventions were needed to minimize the risk of load shedding until the new peaking plant and base load electricity generating capacity being built comes online.
The government has taken initiatives to increase the generation capacity to 7,000 MW by 2013 through various technologies (fossil fuel and renewable) with both private and public sector participation. A large portion of this plan relies on quick rental power based on imported liquid fuels which are expensive, more than three times the cost per unit of electricity at which power is currently produced by large power plants.