Battery-powered rickshaws: A complex policy equation for Bangladesh

Bangladesh’s roads are increasingly dominated by battery-powered rickshaws, or the so-called “three-wheeled Teslas,” with more than 6 million reportedly operating nationwide and around 1-1.2 million in Dhaka. Their rapid expansion, particularly over the past three years amid weaker oversight following political changes, has turned them from a local transport solution into a wider policy challenge involving electricity demand, environmental pollution, public health and the livelihoods of millions of drivers.

According to figures cited from BRTA and various organisations, the vehicles have moved beyond narrow lanes into major roads. Their expansion has made regulation increasingly difficult because the sector simultaneously provides affordable transport and employment while creating substantial unplanned costs.

Electricity demand adds pressure to the grid

The scale of charging demand is significant. If one rickshaw consumes an average of 6-9 units of electricity a day, the national fleet requires roughly 750-800 megawatts of electricity daily, while monthly consumption reaches about 720 million units, or 720 gigawatt-hours, with an estimated market value of Tk 7,500-9,000 million.

Most charging takes place at night, often through informal or unauthorised connections. The absence of a separate tariff structure, designated charging stations and systematic load management makes it difficult to incorporate this demand into national electricity planning.

«An unplanned charging economy is adding another layer of complexity to an already pressured electricity system.»

Although Bangladesh has expanded its electricity generation capacity, actual supply often falls below demand during periods of extreme heat and peak consumption. Unregulated charging can therefore compete with industrial and residential demand while also contributing to subsidy and revenue losses when electricity use remains outside formal metering systems.

Lead batteries create an environmental burden

Each rickshaw generally uses a lead-acid battery with a lifespan of around one to one and a half years. With millions of vehicles on the road, this creates a continuous stream of discarded batteries, many of which enter informal and poorly controlled recycling networks.

Battery melting in open areas has become a recurring environmental concern, allowing lead to enter soil, water and air. The Department of Environment has also expressed concern about the growing problem. Discarded vehicle components, tyres and other materials add further pressure to waste-management systems and may create longer-term risks to soil fertility and drinking-water quality.

The environmental problem is closely connected to the scale of the fleet. Faster growth means more frequent battery replacement, while weak collection and recycling systems increase the possibility that hazardous materials will remain within communities.

Drivers face health and safety risks

The drivers themselves are among the least visible victims of the expansion. Long hours spent sitting in a bent posture, often while driving over uneven roads, can contribute to back and spinal problems.

Lead exposure during battery maintenance or unsafe repair practices can also create long-term risks to the nervous system, kidneys and reproductive health. Children living near informal battery-recycling activities may face additional exposure to lead, which can affect intellectual development.

Road safety presents another concern. Large numbers of drivers operate without formal training or licences, increasing the potential for accidents and adding to the wider social cost of the sector.

These problems reinforce one another. Electricity shortages can encourage informal charging, while uncontrolled fleet growth increases battery consumption and waste. Environmental exposure and unsafe working conditions can then affect drivers’ health, potentially increasing national healthcare costs and reducing labour productivity.

Regulation must balance livelihoods and risk

Government agencies have recently moved toward regulating the sector through discussions on registration, an integrated policy framework and restrictions on where the vehicles can operate. However, simply banning or shutting down the sector would be difficult because millions of livelihoods depend on it.

A more comprehensive framework could include:

• Dedicated charging periods and separate electricity tariffs to reduce pressure during peak hours.

• A gradual transition from lead-acid batteries to lithium-ion or other safer technologies.

• Scientific collection and regulated recycling of discarded batteries.

• Mandatory driver training, licensing and basic occupational health standards.

• Technical standards for vehicle design and speed limits.

Battery-powered three-wheelers have become an important part of Bangladesh’s transport system because they are affordable, accessible and employment-intensive. But their uncontrolled growth over the past three years demonstrates how an unregulated solution can generate new national problems.

The policy challenge is therefore not simply whether these vehicles should remain on the roads. It is how Bangladesh can formalise, regulate and improve a transport sector without eliminating the livelihoods and mobility benefits it provides.