On January 7, 2026, the Interim Government's Advisor for the Ministry of Power, Energy and Mineral Resources Muhammad Fauzul Kabir Khan submitted to the Chief Adviser Prof. Muhammad Yunus a new 25-year power and energy sector master plan to be implemented during 2026-2050. As reported, the master plan would be implemented in three phases: 2026-2030, 2030-2040 and 2040-2050.The Master Plan projected country's peak electricity demand of 59,000 megawatts by 2050 (current electricity demand considered to be 16,700 MW).
The Chief Adviser's press wing issued a press release claiming that the newly submitted power and energy sector master plan would require an estimated $177 billion to $192 billion. The Chief Adviser said 'This is the lifeline of Bangladesh's economy. If this sector becomes strong, the economy will stand.'
The press-release said the new master plan analysed policy gaps in the masterplans prepared in 2005, 2010, 2016 and an Integrated Master Plan (prepared by the previous governments with the JICA support) while formulating the new one. The Integrated Power and Energy Master Plan 2023 projected that country's peak electricity demand could reach to 70,500 MW by 2050. Critics said the overestimated projected electricity demand enabled the former government to allow installation of a large numbers of power plants without securing primary fuel supply and necessary transmission and distribution network upgrade. Also, the electricity demand growth for industrial and commercial consumers was far below the projections for the last decade. As a result, nearly forty per cent of the installed power generation capacities remained idle so far. The newly prepared master plan aims to ensure reliable, affordable and sustainable energy for all through 'optimal use of domestic resources, energy security, efficiency improvements and environmental responsibility'. The new plan, however, failed to offer sustainable primary energy supply strategy for the projected growth of power sector.
The non-government think tank Centre for Policy Dialogue (CPD) suggested that the Interim Government repeated the same mistakes while preparing the Draft Energy and Power sector Master Plan. CPD questioned the reasons for 'hasty' drafting of the master plan without proper consultations with the major stakeholders. As per CPD observations, 'the new master plan contained the same concerns and mistakes like the previous versions of the master plan. It suggested that the new master plan reflected the bureaucratic dominance and 'energy import pressure groups' vested interests' and showed more reliance on imported oil, LNG and coal. CPD claimed that the government's new energy and power sector master plan 2026-2050, if implemented, would push the country backward from a sustainable energy pathway. CPD considers that implementation of the new master plan 'would run counter to energy transition goals and drive towards locking the country into expensive, carbon intensive fossil fuel infrastructure for decades. CPD analysts believe that Bangladesh's future industrial growth is expected to be labour-intensive, more service oriented and less energy intensive. Therefore, about half of the projected electricity generation capacity would meet the country's demand by 2040 (estimated to be below 30,000 MW by 2040). CPD further considers that 'Bangladesh is yet to be technically and economically ready for green hydrogen or green ammonia'. CPD observed that the new master plan largely ignored the potential of regional power trade despite opportunities to access cost-effective electricity from India, Nepal and Bhutan.
The interim government outlined that the new Power and Energy Sector Master Plan (2026-2050) included offshore oil and gas exploration, increased gas production, LNG supply security, petroleum refinery capacity expansion and strategic energy capacity development as priority projects. The new master plan included long term energy projects like developing hydrogen and ammonia infrastructure, geothermal and tidal energy, ocean wave energy development initiatives. Chief Adviser Prof. Yunus considers necessary establishment of a separate, autonomous research and development institute for power and energy for assisting the government policy formulation.
Some observers considered the new master plan a very costly wish list by inclusion of hydrogen and ammonia infrastructure development, geothermal energy development and tidal and ocean wave-based power generation. They opine that current energy crisis needs urgent pragmatic policies supported by public and private sector investment (including foreign direct investment).
Professor M. Tamim, Vice Chancellor of Independent University, Bangladesh and a leading energy expert considers that Bangladesh is now facing one of its most serious risks from the perspective of energy security. He feels that the global energy market situation remains complex and Bangladesh needs to address the issues urgently to overcome its serious energy and investment crisis. He suggested that the next government must make clear political decisions to promote domestic oil and gas exploration, coal extraction, and renewable energy development. He further suggested that the governments' primary objective should be to create enabling investment confidence and formulate policies for bankable project implementation combining domestic and foreign initiatives.
Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues. mushfiq41@yahoo.com
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