Sweden will invest $ 1.0 billion to introduce new technology and digitalise the power grid for making the system more reliable and efficient in Bangladesh.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said this on Wednesday.
"The government is committed towards improving the power by setting up new power plants and strengthen transmission systems through new space saving substations and adopting digital power management solutions," he said.
The State Minister was witnessing a Memorandum of Understanding (MoU) at the Bidyut Bhaban in Dhaka on Wednesday as the chief guest.
Swedish Ambassador to Bangladesh Charlotta Schlyter addressed the MoU signing ceremony as the special guest.
According to a BSS report, the State Minister said the objectives of the MoU are to increase the technical collaboration, technological solutions and knowledge sharing of power sector among the Power Division, Sweden and the ABB Limited so that the various utility companies in the power sector can improve their efficiency, reliability and effectiveness.
"The grid operation of Power Grid Company of Bangladesh (PGCB) Limited and the distribution and managerial capacities of DPDC, DESCO, West Zone Power Distribution Company (WZPDCL) and REB will be immensely benefitted due to the tripartite accord," he believed.
Nasrul said that the MoU signing ceremony was the brainchild of Prime Minister Sheikh Hasina as she got the idea of technical cooperation with the Swedish Power Sector during her visit to Stockholm this year.
Bangladesh, he said, has been witnessed a rapid growth and penetration of power and electricity after 2009 and the capacity of producing more than 15,000 MW power.
"The market penetration has now reached over 80 per cent in 2017 from 42 per cent in the year 2009 that has been doubled. We have set our vision to achieve 24,000 MW power by 2021."
According to the MoU, the ABB will execute pilot projects with five power utility firms including the PGCB, Dhaka Electric Supply Company Limited (DESCO), Dhaka Power Distribution Company Limited (DPDC), Bangladesh Rural Electrification Board (BREB) and West Zone Power Distribution Company (WZPDCL).
The Sweden-based ABB Limited offered its underground substation concept which can be installed in densely-populated areas while the digital substation would save space and ensure reliability and stability of the system.
The ABB also offered to ensure automation of the grid and provide training to engineers and officials of different utility companies.
Joint Secretary of Power Division Faizul Amin, Swedish Ambassador to Bangladesh Charlotta Schlyter and Harikishan Narayan, Country Managing Director of ABB Limited, signed the MoU on behalf of their respective sides.
Representatives and officials concerned of the organisations were also present.