Electricity is a key ingredient of socio-economic development of the country. Adequate and reliable supply of electricity is an important pre-requisite for attracting both domestic and foreign investment. The Government has given top priority to the development of the sector considering its importance in overall development of the country. The Government has set the goal of providing electricity to all citizens by 2020.

Power Division was established in 1998 under the Ministry of Power, Energy and Mineral Resources vide Cabinet Division Notification No. CD-4/1/94-Rules/23(100), dated 25 March 1998. It is entrusted with the responsibility of overall management of the power sector in Bangladesh.

Reliable supply of electricity is a pre-condition for poverty reduction and economic development. In Bangladesh, 47% of total populations have access to electricity but reliable and quality power is still a faraway. To alleviate poverty in the face of resource limitations and high population density, Bangladesh requires an economic growth rate of more than 7% p. a. In order to achieve this growth rate, electricity growth need to be achieved by 10%. By best utilizing the natural, human and agricultural resources the desired pace of GDP growth could be attained by increasing electricity generation at much higher rate, which is the key target for development.

Government of Bangladesh has made vision and policy statement for power sector development. It is government's constitutional responsibility to provide electricity to all. In the vision statement it was mentioned that providing access to affordable and reliable electricity to all the people of Bangladesh by 2020 is a befitting national goal to usher the next millennium.