Energy Efficiency and Grid Integration of Renewable Energy

Project description

Title: Energy Efficiency and Grid Integration of Renewable Energy
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Bangladesh
Lead executing agency: Ministry of Power, Energy and Mineral Resources (MPEMR)
Overall term: 2018 to 2021


Bangladesh is one of the most densely populated countries in the world, where the consistent supply of electricity is an ongoing challenge. To meet its existing and steadily growing demand for power, Bangladesh is embracing both conventional and renewable sources of energy. Solar power and efficiency gains in grid operation show particular potential to meet the growing demand. However, there are still inadequate general conditions required for stakeholders to integrate solar power into the electrical grid and improve efficiency.

In addition, feeding power from renewable energy into the existing grid causes fluctuations in frequency which poses major challenges for grid operators. Currently, Bangladesh’s power transmission and distribution systems are characterised by frequent outages, especially in rural and peri-urban areas. Recognising this problematic situation, the government intends to address this key barrier to development by ensuring the continuous supply of energy with an increase of the use of sustainable energy. The use of sustainable energy – both renewable energy and energy efficiency technologies – plays a major role in the Bangladesh Government’s efforts to meets its obligations under the Paris Climate Agreement.


Decision-makers in the energy sector of Bangladesh have successfully enabled the integration of solar power into the electrical grid and improved energy efficiency in the electrical grid.


The project is aiming to improve the conditions under which stakeholders can integrate renewable energy, especially from photovoltaic systems, into the electrical grid and improve its efficiency. To achieve the objective with its implementing partners, who are led by the Power Division of Bangladesh’s Ministry of Power, Energy and Mineral Resources (MPEMR), the project is pursuing a multi-stakeholder approach at several levels. It is structured in three components that reflect three levels of intervention:

Component A cooperates with national partners, namely the Sustainable and Renewable Energy Development Authority (SREDA), to create the general conditions needed to integrate solar energy into the grid at the macro level. It will focus on developing political and economic instruments and promoting the dialogue between public and private stakeholders.

Component B supports the Power Grid Company of Bangladesh Ltd. (PGCB) by strengthening their technical capabilities as transmission grid operator to integrate solar power into the grid. The core elements here are building capacity for computer-based simulation models and developing scenarios for integrating solar power.

Component C aims to increase the efficiency of the distribution grid in a pilot region with the West Zone Power Distribution Company Ltd (WZPDCL). This work focuses on identifying measures to minimise greenhouse gas emissions, assessing the impact of grid integration of renewable energy, using smart grid technologies and improving efficiency monitoring.