Tuesday, 21 September, 2021

AFD to provide €12m for digital solutions in power sector

  • Diplomatic Correspondent
  • 12 June, 2021 12:00 AM
  • Print news
AFD to provide €12m for digital solutions in power sector

France will provide EUR 12 million, equivalent to Tk 1.24 billion, to support advanced digital solutions in the power and energy sector in Bangladesh.

A grant financing agreement to this respect was signed between French Development Agency (AFD) and the Bangladesh government this week, said the delegation of the European Union to Bangladesh in a press statement on Friday.

This agreement is part of a larger multi donor project involving the joint commitment of AFD and the European Union (EU), for a total investment of EUR 112 million.

The project called “Power Factor Improvement and Smart Grid under Dhaka Power Development Company (DPDC) Dhaka, Bangladesh” is the first ever smart grid project in Bangladesh and will be implemented over the next 5 years, reads the statement.

Through this project, 1,141,000 people will be benefited from a significant improvement in the quality of electricity service. It will also prevent an accumulated 104,000 tons of CO2 emissions per year, thereby contributing to Bangladesh’s climate goals.

With this project, AFD and the EU are reinforcing their role in supporting Bangladesh in the search for and use of advanced digital solutions in distribution stations and in medium-voltage grids.

The goal is to equip existing infrastructure with these new, innovative and reliable technologies in order to ensure services are prepared for the future.

A core aspect of Bangladesh’s economic development strategy is an improved performance of the power sector in terms of generation, transmission, and distribution. Today, the smart grid in Bangladesh is in its early stages, and merely consists of deploying smart meters.  Lotus