| Project Detail |
The proposed program will contribute to the governments program to improve demand-side management and energy conservation by installing prepaid gas meters for all domestic customers by December 2023 and improve operational performance of the gas distribution companies, focusing on the governments priority areas of Greater Dhaka and Chittagong. Installation of prepaid gas meters is expected to (i) reduce system losses through saving of gas by preventing gas wastage, (ii) build up awareness among customers to use gas more efficiently, (iii) improve financial health of gas distribution companies by earning revenues in advance and reducing billing, collection, and monitoring cost, (iv) improve management efficiency and enhance customer service of gas distribution companies, (v) prevent accident due to gas leakage in internal pipelines, and (vi) help meet the national climate target by reducing carbon emissions by gas savings.
Project Name Smart Metering Energy Efficiency Improvement Project
Project Number 56004-001
Country / Economy Bangladesh
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
The proposed program will contribute to the governments program to improve demand-side management and energy conservation by installing prepaid gas meters for all domestic customers by December 2023 and improve operational performance of the gas distribution companies, focusing on the governments priority areas of Greater Dhaka and Chittagong. Installation of prepaid gas meters is expected to (i) reduce system losses through saving of gas by preventing gas wastage, (ii) build up awareness among customers to use gas more efficiently, (iii) improve financial health of gas distribution companies by earning revenues in advance and reducing billing, collection, and monitoring cost, (iv) improve management efficiency and enhance customer service of gas distribution companies, (v) prevent accident due to gas leakage in internal pipelines, and (vi) help meet the national climate target by reducing carbon emissions by gas savings.
Project Rationale and Linkage to Country/Regional Strategy
Fast economic growth in Bangladesh has been accompanied by a rapid increase in energy consumption, as well as rising carbon dioxide (CO2) emissions. In 2010, the total primary energy supply in Bangladesh reached 1.25 million tera-joule (TJ), while the corresponding CO2 emissions were 49 million tons (MtCO2). By 2019, these two indicators soared to 1.81 million TJ and 88 MtCO2 (rising by 45% and 80%), respectively. This has translated into a fast domestic energy supply deficit, a situation that net energy imports tripled from 180 TJ to 533 TJ during the period.[1]
Waste of natural gas is prevalent among domestic customers who consume about 13% of national gas production. While all other customer categories are provided with gas meters, most domestic customers use non-metered gas. Domestic customers now pay a fixed amount of Taka 975 per month for each double burner regardless of the quantity of gas they use. Since they do not pay for every unit of gas, they tend to use gas inappropriately often using gas for drying clothes, keeping rooms warm in winter, and even saving the expenses of match sticks, nor do they consider using more efficient gas appliances. Some domestic customers do not report gas leakage in internal pipelines because it doesnt affect their bills, which leads to increased system losses and potential accident.
Of nearly 4.3 million domestic gas customers nationwide, only about 350,000 have come under prepaid metering coverage as of November 2021. Following the governments program to install 2 million prepaid gas meters by December 2022 and 100% domestic customers under prepaid gas metering coverage by December 2023, each of six gas distribution companies are making the move to procure and install prepaid gas meters for the remaining domestic customers in accordance with the governments standard technical specifications. A feasibility study conducted by the government estimated that the amount of actual gas saving by a prepaid gas meter could be 44.69 cubic meters a month. If all domestic customers are under prepaid gas metering coverage nationwide, the amount of gas saving could reach 43 BCF or Tk.16 billion a year.
Impact
(i) Energy intensity lowered (Energy Efficiency and Conservation Master Plan up to 2030)
(ii) Greenhouse gas emissions reduced (Updated Nationally Determined Contribution) |
