It was created as a public-sector organization to boost the country's power sector after the emergence of Bangladesh as an independent state in 1972.

The BPDB is responsible for the major portion of generation and distribution of electricity mainly in urban areas of the country.

[1] Subsequently, the Rural Electrification Board (REB) and the Dhaka Electric Supply Authority (DESA) was formed dividing the BPDB.

[1][2] In 2000, the transmission lines were handed over to the newly formed Power Grid Company of Bangladesh.

[4] BPDB is responsible for generation and distribution of a large part of country's total electricity demand.

As of January 2020, BPDB had a total installed capacity of 5613 MW at its own power plants located in different parts of the country.