It is noteworthy that Power Factor Improvement and Smart Grid under Dhaka Power Development Company (DPDC) is a blended finance project, where the EU grant is combined with AFD’s soft loan for a total loan of 112 million Euros. The project has the following salient features:
· A total of 1,141,000 people will benefit from a significant improvement in the quality of electricity service;
· It helps fight climate change by preventing 104,000 tons of CO2 emissions accumulated per year;
· This is the first smart grid project in Bangladesh.
With this project, AfD and the EU are strengthening their role in supporting the Government in the exploration and use of advanced digital solutions in distribution stations and medium-voltage grids.
The goal is to equip existing infrastructure with these new, innovative and reliable technologies to ensure that services are future ready.
A key aspect of Bangladesh’s economic development strategy is the improved performance of the power sector in terms of generation, transmission and distribution.