In generating and distributing electricity, the failure to adequately manage the load leads to extensive load shedding which results in severe disruption in the industrial production and other economic activities. A recent survey reveals that power outages result in a loss of industrial output worth $1 billion a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total transmission and distribution losses in Bangladesh amount to one-third of the total generation, the value of which is equal to US $247 million per year.
In 2011, there were proposals to upgrade the grid technologies to digital smart metering systems and investing in renewable energy technologies to produce 5% of total power generation by 2015 & 10% by 2020, as noted in the National Renewable Energy Policy of 2008. American engineer Sanwar Sunny said that the city should put more effort in zoning areas to encourage more self-reliant subdivisions and higher density housing around subways in order to be more sustainable, as during peak times load shedding would not affect everyone. It will reduce effects of power cuts and provide stability to the power sector. He proposed that Radio transmitters could be operating remotely in unlicensed radio bands using two way real time communication and transmit coded instructions from the central to the circuit breakers in selected coordinates of the micro grids substations thereby maintain multiple power flow lines with automated control and digital metering. Using this technology, Feed-in tariffs (FIT) would also be possible, as the energy usage could be monitored remotely and private power generation and energy efficient entities could be offered rebates and incentives. “This will also expedite investments in this sector, create job opportunities for engineering graduates and technicians, and ease pressures on the government" he said. Think tanks such as Bangladesh Solar Energy Society and Renewable Energy Institute (REI), along with European International Development Government Agencies such as Deutsche Gesellschaft für Internationale Zusammenarbeit supported this scheme. However, The Secretary of the Ministry of Power, Government of Bangladesh has said that the government has no plans to do so