Energy Consumption Reduction of Bangladesh using Nudge via Smart Grid: An Empirical Approach

A smart grid is a digitally intertwined electrical network which delivers electricity to consumers through a multidirectional controlling system. Such systems allow analysis, monitoring and communication within the power transmission network to increase efficiency, minimize energy consumption and maximize the use of power used between production to consumption. The present power transmission system in Bangladesh is piled atop very old and rickety system, Bangladesh suffers from a massive load-shedding problem based on multifaceted issues. Alongside improving on power generation capacity and moving towards a smart grid system, the country needs to consider and move towards an energy efficient culture using the smart grid systems in order to further reduce power shortage problem. This paper will assess the effectiveness of behavioral science and nudge theory in developing an energy-conscious culture to save energy waste. The many examples of energy efficiency behaviors implemented around the world will be discussed in detail trying to find an approach appropriate for the country. The intent of this paper is to draw the attention of policymakers, engineering researchers and professionals towards such passive and low-cost approaches that has high potential to become successful on a microeconomic and macroeconomic scale.