Dhaka Power Distribution Company (DPDC) will be installing smart grids in the capital’s Dhanmondi, Azimpur, Green Road, Lalmatia and Asad Gate areas.
New substations will accompany the region's first smart grids in these five areas.
France Development Agency (FDA) has agreed to donate $12 million to the project.
An FDA team arrived in Dhaka last month to examine DPDC’s substations and transmission in various areas, as well as discuss the plan for smart grid roll out.
Managing director of DPDC Bikash Dewan said: “FDA is ... providing funds for a tech-smart transmission project. [The] will present the proposal of the smart grid investment in their board meeting and then finalise it by signing with Bangladesh Economic Relations Department (ERD).
“We will begin by setting up the grids in five areas but we aim to do so all over the city eventually. But to do so, we require huge amounts of investment,” he added.
With underground and street power lines entangled, power connection problems arise frequently and restoration times are lengthy.
Bikash Dewan said: "With the help of smart grids, we can instantly address issues such as power outage in an area or house as they will use sensors and automatic response mechanisms to deliver immediate responses.”
“Smart grid will prevent loss of power in nearby areas due to power mishaps in some other area as all its functions will be computer-regulated.”
Regarding smart grid, DPDC Executive Director Engineer Md Ramiz Uddin Sarker said: “With the help of this technology one can monitor one’s power consumption. Similarly, it is possible to use technology to ensure a smooth and flawless transmission of electric power.
“Usually a lot of time is wasted on locating transmission failures. But now, using modern technology, we can locate and fix the issue instantly.”
Electric meter boxes containing a type of SIM card will be installed at households and organisations. These boxes will transmit consumption data to a modern central management ward every 15 minutes.
Smarts grids will allow the city to determine peak and off peak costs, allowing consumers to decide their consumption based on those prices. According to DPDC, customers can choose a power plan that suits their needs, similar to mobile phone and internet packages.