The Bangladesh Rural Electrification Board (BREB) is set to upgrade 25 low-capacity substations by 2029 to improve electricity supply to industrial and commercial consumers in rural areas, amid increasing demand and strain on existing infrastructure.
The planned upgrades will take place in 20 upazilas across 14 districts — Cumilla, Dhaka, Gazipur, Manikganj, Munshiganj, Narayanganj, Narsingdi, Tangail, Gopalganj, Jashore, Satkhira, Mymensingh, Pabna, and Rajshahi — where industrial activity under BREB’s jurisdiction has been expanding rapidly.
To implement the initiative, the Power Division has proposed a Tk 1,818 crore project titled “Modernisation and Capacity Enhancement of Existing 33/11kV Substations in BREB’s Industry-Rich Areas.” The proposal is set to be tabled at the upcoming Executive Committee of the National Economic Council (Ecnec) meeting on Sunday, Planning Commission sources confirmed.
Increasing Demand Driving the Need
As Bangladesh’s rural economy grows, the number of BREB’s industrial and commercial customers has surged, placing mounting pressure on its 33/11kV substations. A recent study by the Infrastructure Investment Facilitation Company (IIFC) projects the power demand at these 25 substations to grow from the current 842MVA to 966MVA by 2033.
To accommodate this growth, the Power Division estimates a capacity enhancement of 593MVA, bringing total capacity to 1,435MVA, based on a 70% loading criterion. The proposed project specifically aims to add 418MVA of capacity, while the remaining 175MVA will be addressed by future projects.
In addition to capacity enhancement, the initiative targets reducing the system loss to 5.82% from the current 6.62% in the project areas and lowering the System Average Interruption Duration Index (SAIDI) to 300 minutes from 332 minutes.
National Energy Goals Aligned
The upgrade aligns with Bangladesh’s Perspective Plan 2021–2041, which sets a target of reducing transmission and distribution (T&D) losses to 8% by 2031, down from the current 11%. The plan also anticipates electricity demand to reach 82,000MW by 2041, growing at an annual rate of 9.3%.
“The implementation of this project will modernise and enhance the power distribution system of 15 Palli Bidyut Samities under BREB, ensuring reliable electricity for the industrial sector,” said Md Ruhul Amin, Member of the Industry and Power Division at the Planning Commission.
Project Scope and Foreign Support
The project includes construction and upgradation of 625km of distribution lines, covering 223km of 33kV lines and 287km of 11kV lines to be upgraded, and 49km of 33kV and 66km of 11kV lines to be newly constructed.
German development partner KfW has pledged to provide $80 million in loans and $1 million in grants to support the project. The loan agreement is expected to be signed following Ecnec approval.
The IIFC’s feasibility study identified 93 underperforming substations requiring urgent attention. Based on strategic importance and funding availability, 25 substations were prioritized for immediate upgrade under this scheme.
The Project Evaluation Committee (PEC) reviewed and endorsed the Development Project Proposal (DPP) at a meeting on April 21 this year.
“Apart from upgrading the substations, the project will reduce power system losses and improve supply reliability by reducing system interruptions,” added Ruhul Amin.