A Research Proposal on Impact of Load Shedding in Bangladesh

1.0. Introduction:

Load shedding is the term used to describe the deliberate switching off of electrical supply to parts of
the electricity network, and hence to the customers in those areas. This practice is rare, but is a core
part of the emergency management of all electricity networks.
Load shedding can be required when there is an imbalance between electricity demand (customers’
usage) and electricity supply (the ability of the electricity network to generate and transport the
required amount of electricity to meet this demand).

When there is a shortfall in the electricity supply, there can be a need to reduce demand very quickly to
an acceptable level, or risk the entire electricity network becoming unstable and shutting down
completely. This is known as a “cascade” event, and can end in a total or widespread network shutdown
affecting very large areas of a country. Load shedding normally happens in two ways:

2.0. Objectives:

The overall objective of this research is to collect socio-economic data from the selected areas in orders
to use them in and impact studies. The specific objectives of the survey will be to collect data relating to
the following variables:

1. Age & Gender

2. Educational Qualification

3. Occupation: Businessmen, Jobholder, Household, Student

4. Location

5. Income level

The specific objectives are -

> Experience of load shedding

> Hours of load shedding and frequencies

> Bearable hours

> Adopted for alternatives

> Affected with respect to time and season

> Affected activities

> Solutions taken at personal/ household level

> Degree of problem

> What is the main reason behind this recent power crisis in Bangladesh?

> Is corruption and technical system loss are only responsible about this power crisis?

> What should be the role of government to reduce this Power crisis?

3.0. Literature Review:

Electricity sector in Bangladesh

Bangladesh's energy infrastructure is quite small, insufficient and poorly managed. The per capita
energy consumption in Bangladesh is one of the lowest (136 kWh) in the world. Noncommercial energy
sources, such as wood, animal wastes, and crop residues, are estimated to account for over half of the
country's energy consumption. Bangladesh has small reserves of oil and coal, but very large natural gas
resources. Commercial energy consumption is mostly natural gas (around 66%), followed by oil,
hydropower and coal.

Electricity is the major source of power for country's most of the economic activities. Bangladesh's
installed electric generation capacity was 4.7 GW in 2009; only three-fourth of which is considered to be
‘available’. Only 40% of the population has access to electricity with a per capita availability of 136 kWh
per annum. Problems in the Bangladesh's electric power sector include corruption in administration,
high system losses, and delays in completion of new plants, low plant efficiencies, erratic power supply,
electricity theft, blackouts, and shortages of funds for power plant maintenance. Overall, the country's
generation plants have been unable to meet system demand over the past decade.

In generating and distributing electricity, the failure to adequately manage the load leads to extensive
load shedding which results in severe disruption in the industrial production and other economic
activities. A recent survey reveals that power outages result in a loss of industrial output worth $1 billion
a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in
efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total
transmission and distribution losses in Bangladesh amount to one-third of the total generation, the
value of which is equal to US $247 million per year.

Renewable Energy: Bangladesh has 15 MW solar energy capacities through rural households and 1.9
MW wind power in Kutubdia and Feni. Bangladesh has planned to increase renewable energy 450 MW
by 2015 and 1600 MW by 2020.

Recent Plans: The Ministry of Power and Energy has been mobilizing Tk 40,000 crore ($5.88 billion) to
generate 5,000 MW of electricity to reduce load shedding into a tolerable level. Under the plan, the
Power Development Board (PDB) had produced 500 MW gas-fired electricity between July to
December, 2009 to overcome load shedding within December. The PDB had hired furnace-oil based
1,000MW of electricity from private sector from January to June 2010. In 2011, the government would
install furnace-oil based 800 MW capacity of power plant. The PDB officials would seek suitable place to
establish the plant, a senior official of the PDB said. Besides the government would also hire another
diesel or furnace oil based power plant having capacity of 700 MW in 2012 to keep load shedding into
mild level, the official said. However, the government also contemplates to establish four coal-fired
based power plants with capacity of producing 500 MW of electricity each with public and private
partnership (PPP) in Rajshahi and Chittagong region. The government has initially tried to create fund of
Tk 6,000 crore to implement the plan, sources said. The power division has tried to utilize the
government's budgetary allocation of Tk. 2000 crore for PPP in this regard, sources added. "If we can
create the fund of Tk. 6,000 crore, it would be possible also to mobilize Tk 40,000 crore under PPP to
produce 5,000 MW f electricity within four and half years," PDB chairman ASM Alamgir Kabir told the
New Nation on June 29, 2010. During the meeting, Prime Minister Sheikh Hasina permitted the power
division to implement the PDB plan to reduce load shedding up to a tolerable level.

Nuclear Power Plant: Bangladesh plans to set up the 1,000 MW power plant at Rooppur, 200 km (125
miles) northwest of the capital Dhaka, by 2011.

4.0. Methodology:

4.1 Major points:

l Research type – Exploratory Research

l Population size – People of Dhaka city

l Sample size – 10 People

l Sampling technique – Multistage Stratified Random Sampling

l Nature of data collection – Both Primary and Secondary data

l Data collection instrument – Questionnaire

l Data processing instrument – Microsoft Office 2010

4.2 Research Method

A descriptive research approach will be used to conduct the study. I used the survey method and
secondary data.

4.3 Sources of Data

1. Primary Data

2. Secondary Data

Primary Data: I have collected my primary data to figure out the main reasons and public’s reaction
about load shedding and power crisis in Bangladesh by conducting a survey on 10 general people. To do
that survey first I had to prepare some questions and some suitable answers against each
question. Then I had to pretest that questionnaire outside of the sample.

After that I went out for general people to conduct my survey. The businessmen, shopkeepers, teachers,
retired peoples, servants, housewives and students will be participating in my survey.

Secondary Data: I will collect our secondary data from the Bangladesh Bureau of Statistics (BBS),
Bangladesh Power Development Board (BPDB), and from internet. However, bulk of the data will be
collected from primary sources.

4.4 Study Area:

As I will conduct the survey within my area, first I will select 5 small areas randomly. Then I will select 2
samples from each area for conducting my survey.

4.5 Sample Size:

The Sample Size of my research is 10.

4.6 Sample Selection Procedures:

In sample Selection, I used Multistage Stratified Random Sampling. I have selected residential areas as
well as business and trade areas to conduct my research. Then from each area, I have selected ten
people as sample. I have tried to involve all types of people as, Businessmen, Jobholder, Household,
Students in my survey.

4.7 Instruments to be used:

I have collected these data using questionnaire. The questionnaire are first pretested outside the sample
area and then it administered in the test area.

5.0. Justification:

If I want to tell about the significance of this type of research, I can say that, Load Shedding becomes the
most common and disgusting problem to all people of this country. Though I have collected data of this
research from a small portion of sample but it is now a major problem to all of us.

6.0. Budget

In this research, I, the researcher will be responsible for the expected expenditures in conducting this
study. My expected expenditures will be as follows in the different activities:

SL. No. Expenditure purpose Expenditure amount(BDT )

1. For searching the web to collect various types of 45

data

2. The phone bills 15

3. For doing the photocopy this proposal 30

Expected Total cost 90

7.0. Conclusion:

To reduce excessive load shedding, we have to be more conscious about using our energy supply. We
should follow the rules of using the energy and maintain the time schedules that given by our
government. Government should take initiative to eliminate the crime from the energy and power
distributing sectors.

8.0. Limitations :

There were certain limitations regarding the study that is summarized below:

 The main hindrance behind preparing this report is time. So, it is not possible to go through in
depth within this short span of time.

 Deficiencies in data required for the study. It did not cover most recent data.

 Confidentiality of Data- Information regarding the actual performance and position as it is

related to the government’s reputation and financial stability that’s why it is quite hard to go
through the information.

 I carried out such a study for the first time, so in experience is one of the main constraints of the
study.

9.0. Reference:

Ø The daily star

Ø The daily sun

Ø www.bpdb.gov.bd

Ø www.bbs.gov.bd

Ø The new nation

Ø The news channels