The Bangladesh Rural Electrification Board (BREB) is set to implement a Tk 1,818 crore project aimed at strengthening the electricity supply in the country’s industrial zones. The project, which is designed to enhance power reliability and efficiency, will focus on upgrading and expanding outdoor substations in key industrial areas.
The project is expected to reduce system losses and improve the overall electricity distribution network, ultimately supporting the rapid expansion of industries across Bangladesh. This significant initiative will be presented at the upcoming Executive Committee of the National Economic Council (ECNEC) meeting for approval.
As part of the project, 25 substations across 20 districts will be modernized, increasing the overall capacity by an additional 418 MVA to meet growing electricity demands. Once completed, system losses are expected to decrease from 6.62% to 5.82%, while the Average Interruption Duration Index (AIDI)—which measures the average time for power outages—will be reduced from 332 minutes to 300 minutes annually.
The modernization initiative addresses the increasing demand for electricity, especially in industrial zones, where low-capacity substations struggle to meet power requirements. The upgrades are aimed at ensuring these regions receive uninterrupted electricity, an essential factor for the continued growth of industries.
The project also includes the construction of new substations and the expansion of existing power lines. This will involve the installation of 115 km of new 33 kV lines, 230 km of 11 kV lines, along with other infrastructure upgrades to accommodate the rising power needs of industries.
The total cost of the project will be Tk 1,818 crore, which will be financed through a combination of government funds, a loan from the KfW Development Bank of Germany, and internal financing. Of this, Tk 479.97 crore will come from government funding, Tk 1,080.67 crore from the KfW loan, and Tk 257.35 crore will be covered by internal funds. The project is expected to be completed between 2025 and June 2029.
Md. Fazle Rabbi, Deputy Director of the Operations and Planning Department at BREB, told TIMES of Bangladesh, “This initiative is aimed at ensuring a continuous and stable electricity supply for industries, as unreliable power leads to significant losses. Modernizing outdated substations will substantially improve efficiency and reliability.” He further added, “Once the project is completed, system losses will be reduced, and the average duration of power interruptions will decrease, benefiting the industrial zones.”
The project is set to improve electricity access in key industrial areas, providing a stable power supply that is essential for industries such as textiles, pharmaceuticals, ceramics, and agro-processing.