Jatiya Kabi Kazi Nazrul Islam University

Trishal, Mymensingh

Research Proposal
Impact of Load Shedding in Bangladesh
Submitted to
Monty Adittya
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted By
Sabiha Sultana
ID NO:19132641
Reg No:8384
Session:2022-2023
Department of Finance and Banking

Jatiya Kabi Kazi Nazrul Islam University

Submission Date :21 April,2024

 Research Proposal on Impact of Load Shedding in Bangladesh

1.Introduction:

Load shedding is the term used to describe the deliberate switching off of electrical supply to
parts ofthe electricity network, and hence to the customers in those areas. This practice is rare,
but is a corepart 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 therequired
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 toan acceptable level, or risk the entire electricity network becoming unstable and
shutting downcompletely. This is known as a “cascade” event, and can end in a total or
widespread network shutdownaffecting very large areas of a country. Load shedding normally
happens in two ways:

2.Objectives:

The overall objective of this research is to collect socio-economic data from the selected areas
in ordersto use them in and impact studies.

The specific objectives of the survey will be to collect data relating tothe following variables:

 Age & Gender

 Educational Qualification

 Occupation: Businessmen, Jobholder, Household, Student

 Location

 Income level
The specific objectives are –

 Experience of load shedding

 Hours of load shedding and frequenc

 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.Literature Review:

Electricity sector in Bangladesh's energy infrastructure is quite small, insufficient and poorly
managed. The per capitaenergy consumption in Bangladesh is one of the lowest (136 kWh) in
the world. Noncommercial energysources, such as wood, animal wastes, and crop residues, are
estimated to account for over half of thecountry's energy consumption. Bangladesh has small
reserves of oil and coal, but very large natural gasresources. 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'sinstalled 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 kWhper 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'sgeneration 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
extensiveload shedding which results in severe disruption in the industrial production and other
economicactivities. A recent survey reveals that power outages result in a loss of industrial
output worth $1 billiona year which reduces the GDP growth by about half a percentage point in
Bangladesh. A major hurdle inefficiently delivering power is caused by the inefficient distribution
system. It is estimated that the totaltransmission and distribution losses in Bangladesh amount
to one-third of the total generation, thevalue of which is equal to US $247 million per year.

4.Research Methodology

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

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
reactionabout load shedding and power crisis in Bangladesh by conducting a survey on 10
general people. To dothat survey first I had to prepare some questions and some suitable
answers against eachquestion. 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 becollected from primary sources.

Study Area:
As I will conduct the survey within my area, first I will select 5 small areas randomly. Then I will
select 2samples from each area for conducting my survey.
Sample Size:
The Sample Size of my research is 10.

Dependent Variable:
Impact of load shedding.

Independent Variables:
 Extreme weather.
 Sharply increased electric demand.
 Unplanned generation plant outages.
 Transmission constraints.
 Unexpected damage to equipment.

Model Specification:

The econometric model can be specified as follows:

Y=β0+β1X1+β2X2+β3X3+β4X4+β5X5+ε

Where:
Y=Impact of load shedding
X1=Extreme weather
X2=Sharply increased electric demand
X3=Unplanned generation plant outages
X4=Transmission constraints
X5=Unexpected demage to equipment
β0=Intercept term
β1,β2,β3,β4,β5=Coefficients of the independent variables
ε=Error term.

5.Expected Outcomes:

The study expects to identify the determinants of impact of load shedding

in Bangladesh.The outcomes will provide to take initiative and policy to
overcome load shedding that will reduce people sufferings.

6.Timeline:
Literature Review : 2 months
Data Collection : 3 months
Data Analysis : 2 months
Report Writing and Presentation : 2 months

7.Budget

The budget will primarily cover expences related to collect various types of data, phone bills,
finding the photocopy this proposal.

8.Conclusion:

To reduce excessive load shedding, we have to be more conscious about using our energy
supply. Weshould follow the rules of using the energy and maintain the time schedules that
given by ourgovernment. Government should take initiative to eliminate the crime from the
energy and powerdistributing sectors.
9.Reference:
 The daily star
 The daily sun
 www.bpdb.gov.bd
 www.bbs.gov.bd
 The new natio