Definition of Electricity - production: This entry is the annual electricity generated expressed in kilowatt-hours. The discrepancy between the amount of electricity generated and/or imported and the amount consumed and/or exported is accounted for as loss in transmission and distribution. The per capita energy consumption in Bangladesh is one of the lowest in the region. On average per capita energy consumption in Bangladesh is 160 kg oe (Kilogram oil equivalent) compared to 530 kg oe in India, 510 kg oe in Pakistan, 340 kg oe in Nepal and 470 kg oe in Sri Lanka. The average energy consumption in Asia is 640 Kg oe. It is therefore, evident that per capita average consumption of energy in Bangladesh is far lower than the average of Asia. On top of this low level of consumption, there is already a serious energy crisis. The frequent power and gas outages threatening the citizens welfare and development projects. Due to the severe crisis of power, the government has been forced to enter into contractual agreements for high cost, temporary solutions of purchasing rental power and small IPP on an emergency basis based on diesel or liquid fuel. This has imposed tremendous financial pressure to endure power supplies. In order to work on the financial problems the government has planned long term energy strategy for development of energy. The strategy provides a balanced approach that looks at both supply increase and demand management aspects of the energy market. Energy options from the domestic sources need to be complimented with possible options for energy trade. Specifically the strategy would try to address what the government can do about gas and power and should look at various options for diversification of fuels for power generation. The strategy would also explore alternative solutions such as increased electricity imports and LNG trade. Furthermore exploration of domestically available resources such as coal, oil and gas from onshore and offshore drilling should be intensified. The supply options should be balanced with policies for proper demand management and to discourage inefficient use of electricity and conservation of energy should be given priority. When the present government assumed office, the power generation was 3525MW which has now been increased to 4699MW (as of June, 2011). The production capacity would be enhanced to 11,457MW by 2015. It requires USD 15 billion investment out of which USD 10 billion is expected to be provided by private sector. Development and investment in the power and energy sectors is different from other sectors due to the sector specific characteristic. Huge primary asset accumulation and procurement are required for investment in the power and energy sector. Strategies have been made to meet this need by involving private sector with government. Keeping this in view, the importance of external investment is substantial. On the other hand, consumers’ economic consideration is given priority over commercial interest in price setting of electricity and gas and other fuel oil. However, estimation and reevaluation of power and other energy prices is required in order to involve private sector. The reason for poor investment in the power sector in the past was due to poor pricing policies that forced publicly produced electricity to be in constant deficit and kept away private investment. It also caused poor maintenance practices resulting in power losses and frequent breakdown and outages. Other factors which have contributed to power crisis included difficult sector governance and inefficient management. It is evident that electricity should be treated as private product and its price should reflect its cost of production and a fair return on investment....
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