Smart Price. A Dynamic Way to Reduce Load Shedding in Bangladesh

Abstract

This thesis is a study of how the fixed price in Bangladesh electricity systems causing load shedding. the unstable supply of electricity is hindering the normal progressions of socio economic developments of Bangladesh. People of Bangladesh still facing the load shedding problem after having enough power generations capacities. Fixed price does not have an impact on supply and demand of electricity to change according to their availability. A smart price (changes in price according to demand and supply ratio) formula could be a solution to reduce the load shedding problem in Bangladesh. Followed by system dynamics methodology an economic model of Bangladesh electricity systems is built to analyze the applicability of smart price instead of fixed price. The price variations in smart price systems will adjust the demand and supply to reduce the load shedding. A battery based inventory system will store the cheap electricity. This policy can be applied through advanced metering infrastructure with the upgraded smart grid system. Both consumer and supplier will be benefited through the process of buying and selling of electricity. The smart price policy is economically feasible to implement for consumers. Since, on average the price will be a little bit higher than the existing price for high-end consumers but the low-end consumers will pay less. Slow and phase wise implementation of the new smart price policy will give the society chance for easy adaptations and the burden of extra costs for implementations will be distributed in smaller amount.