Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2010
Effective Start Year: 
2013
Effective End Year: 
2021
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
Power, Gas, Renewable, Bioenergy, Hydropower, Solar, Wind, Other
Issued by: 
Government of the People's Republic of Bangladesh, Ministry of Planning
Overall Summary: 
National Sustainable Development Strategy 2010-21 (NSDS) was formulated to meet the challenges of economic, social and environmental sustainability of the economy in order to make Bangladesh reach the status of middle-income country by 2021. The vision of the NSDS is “Achieving a happy, prosperous and enlightened Bangladesh which is free from hunger, poverty, inequality, illiteracy, and corruption and belongs completely to its citizens and maintains a healthy environment”. Five Strategic Priority Areas were identified along with three cross-cutting areas with a view to achieving its stated vision and addressing long-term sustainability issue of productive resources. The strategic priority areas include sustained economic growth, development of priority sectors, social security and protection, environment, natural resources and disaster management. The three cross-cutting issues that will support the sustainable development of priority areas include disaster risk reduction and climate, good governance and gender.
Access
Bi-, multi-lateral mechanisms to expand access: 
Rural enterprises are constrained by lack of access to credit, market and electricity and lack of education and training of entrepreneurs. [...] Create an enabling environment focusing on infrastructure, rural electrification, gas connection, better physical and electronic communication services, education, training and skill formation, technological upgrading, access to market, rural financial services, and business development services.
Energy access priorities: 
Encourage construction and use of environment friendly bio-gas plant in the rural areas with necessary support.
Energy access targets: 
The objective of the power sector is to reach power generation capacity to 24,000 MW to meet projected 20,000 MW of electricity demand by 2021 which will ensure electricity for all in the country.
Clean cooking solutions: 
Disseminate use of environment friendly cooking stoves to rural households which improve women’s health by reducing indoor air pollution and save energy and time.---Popularize biogas stove for reducing dependence on fuel wood.---Ban on the use of fuel wood in brick fields will continue and be made more effective and other modes of efficient use of energy will be promoted, e.g., improved cooking stove.
Efficiency
EE priorities: 
Promote efficient use of renewable and non-renewable natural resources, energy and materials in production through technical, economic and institutional measures. It should be noted that in case of imported capital goods and materials the level of resource use efficiency is determined outside Bangladesh.---Increase efficiency in electricity production, distribution and use to meet the growing demand of electricity as short-term and build new plants as long-term strategy.
EE action plans: 
Promote demand management through strengthening existing measures and introducing new measures such as: - Reducing opening hours of shops; - Staggering weekly holiday in industries and shopping complexes; - Shift the evening peak hour of irrigation pumps to off-peak hour (11 P.M. – 5 A.M.) - Keep the temperature of AC’s in all offices at a minimum of 25 degrees Celsius; - Motivate people to abstain from using AC, calendar and pump at the peak hour; - Avoid unnecessary illumination at home, shopping centres and other places. - Examine the feasibility of re-introducing day light saving time as an energy saving device which was introduced earlier for a short period. - Diversify fuel use in electricity generation to coal, liquid fuel, and nuclear power;---Provision for dual fuel for electricity generation wherever possible.---Increase energy efficiency replacing inefficient incandescent lights, refrigerators, ACs, pumps, motors, and other electrical appliances by efficient ones and replacing the road lights by energy efficient LED and solar powered lights.---Adjust end user gas prices to encourage energy conservation and provide adequate margins for national gas companies to generate funds for investment.
EE labeling: 
All industries must hold green label through becoming energy and resource efficient with low carbon footprint and having ETP and 3R system to achieve zero discharge by 2021.
EE industry standards: 
All industries must hold green label through becoming energy and resource efficient with low carbon footprint and having ETP and 3R system to achieve zero discharge by 2021.---Examine the feasibility of providing appropriate incentives to industries to reduce emission of pollution.
EE building standards: 
Promote research on energy efficient, materials efficient and sustainable buildings and promote their use through rules and regulations as well as awareness campaign.
EE transport standards : 
All vehicles older than 15 years should be banned.
EE financial incentives: 
Examine the feasibility of providing appropriate incentives to industries to reduce emission of pollution.
EE public awareness/promotional programmes: 
Create awareness of people about efficient use of water, electricity, fuel, and other energy resources.---Promote research on energy efficient, materials efficient and sustainable buildings and promote their use through rules and regulations as well as awareness campaign.
Renewable Energy
RE priorities: 
Promote efficient use of renewable and non-renewable natural resources, energy and materials in production through technical, economic and institutional measures.---Encourage construction and use of environment friendly bio-gas plant in the rural areas with necessary support.---Promote use of renewable energy such as solar power, wind power, tidal power and biomass by providing appropriate incentives.---Promote production and use of alternative sources of energy such as solar energy, bio-gas, wind energy and [...].
RE action plans: 
Increase power generation through renewable sources such as solar, wind, and small hydro.
RE capital subsidy, grant, or rebate: 
Promote use of renewable energy such as solar power, wind power, tidal power and biomass by providing appropriate incentives.---Use of solar energy can be disseminated in off-grid rural areas and in irrigation through subsidizing capital costs.
Environment
Energy environmental priorities: 
Undertake measures to avoid risks of accident which have negative environment impacts.---Improved mass-transit systems in major cities should be introduced to reduce both traffic congestion and air pollution.---Traditional gross polluting brick kilns should be replaced by energy efficient brick kilns.
Pollution control action plans: 
All vehicles older than 15 years should be banned.
Land use change for energy production purposes: 
Provide adequate incentives for resettlement of the displaced inhabitants and for the development of the surrounding areas of the mining locations
Pricing
Fossil fuel subsidies: 
Adjust prices of electricity, gas and liquid fuel to reflect cost of production and achieve social objectives in electricity distribution through cross subsidization and explicit budget support.
Renewable energy subsidies: 
Promote use of renewable energy such as solar power, wind power, tidal power and biomass by providing appropriate incentives.---Use of solar energy can be disseminated in off-grid rural areas and in irrigation through subsidizing capital costs.
Energy pricing: 
Adjust prices of electricity, gas and liquid fuel to reflect cost of production and achieve social objectives in electricity distribution through cross subsidization and explicit budget support.----Adjust end user gas prices to encourage energy conservation and provide adequate margins for national gas companies to generate funds for investment.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Increase power generation through renewable sources such as solar, wind, and small hydro.---Construct a national gas transmission network by connecting main demand centres with gas fields.---Gas extraction will be based on a long term plan balancing both present and future needs of the country.---Continue coal exploration to estimate total coal reserves of the country.---Promote production and use of alternative sources of energy such as solar energy, bio-gas, wind energy and nuclear energy.
Regional integration priorities: 
Consider regional and sub-regional energy cooperation with neighbouring countries.---A [...] verdict is expected by 2014 concerning maritime dispute with India in the western area of the sea. Bangladesh will need to start policy planning to take advantage of these historic events.---Explore possibilities of hydroelectric power generation and use in co-operation with Bhutan, India, and Nepal.
Trade
Energy trade priorities: 
Export diversification will be promoted through ensuring export competitiveness by addressing border barriers and beyond the border constraints, reducing anti-export bias of the trade regime by rationalizing the tariff and subsidy regime, and reducing antidiversification bias by providing emerging and potential exports a policy environment similar to RMG.---Enhance power supply through increased generation using different funding mechanisms such as [...] import from neighbouring countries such as India and Bhutan.
Advance rulings: 
Promote efficient use of renewable and non-renewable natural resources, energy and materials in production through technical, economic and institutional measures. It should be noted that in case of imported capital goods and materials the level of resource use efficiency is determined outside Bangladesh.
Investment
Energy sector investment priorities: 
Public investment will be enhanced by focusing more on investment in infrastructure programmes (energy, [...]) along with investment in human resource development, investment in research and development [...].
Financial incentives for energy infrastructure: 
Increase financial capacity of BAPEX by forming Gas Development Fund as well as its technical capacity to undertake exploration.
Project permitting: 
Attract investment by IOCs under PSAs in exploration in new areas especially the offshore blocks where domestic companies do not have prior experience and facilitate the process through speedy processing of tenders and signing of agreements for offshore blocks.
Investment climate development: 
Private investment, being the main driver of growth, will continue to be encouraged by improving incentives for investment through further business deregulation, reforming taxes to discourage speculative investments in real estate and stock markets and support investments in manufacturing and infrastructure, further improving the efficiency of the financial sector to lower intermediation costs and provide long term financing options through an efficiently managed stocks and bond market.---Investment climate will be improved by improving legal and administrative systems including property rights issues and socio-economic environment including law and order situation and by sound management of monetary policy and sustainable management of public finances.--- FDI will be attracted through improving the investment climate by reducing constraints in infrastructure, regulatory framework, and policy environment, by addressing the general governance situation including cost of doing business, by encouraging regional investment in emerging sectors, by establishing special economic zones along international borders, and by encouraging NRBs to invest.---Enhance power supply through increased generation using different funding mechanisms such as public-private partnership, private investment, FDI and joint venture[...].---Attract investment by IOCs under PSAs in exploration in new areas especially the offshore blocks where domestic companies do not have prior experience and facilitate the process through speedy processing of tenders and signing of agreements for offshore blocks.
Public Private Partnerships: 
Quality of investment will be enhanced by improving the planning and budgeting processes and strengthening monitoring and evaluation. PPP will be promoted in the financing of infrastructure.---Enhance power supply through increased generation using different funding mechanisms such as public-private partnership, private investment, [...].
Overseas investment support: 
Export diversification will be promoted through ensuring export competitiveness by addressing border barriers and beyond the border constraints, reducing anti-export bias of the trade regime by rationalizing the tariff and subsidy regime, and reducing antidiversification bias by providing emerging and potential exports a policy environment similar to RMG.
Governance
Energy management principles: 
The objective of the energy sector strategy is to provide energy security by tapping all conventional and non-conventional sources of energy to ensure accelerated pace of economic development and industrial production.---Reform energy sector to reduce cost and improve service delivery, and reduce system loss.---The objective of primary energy sector is to provide, along with power sector, energy security by 2021.---Improve technical and commercial performance of gas distribution companies to reduce distribution losses and improve end use efficiency.---Build awareness of people about mining methods especially for open pit coal mines.---Obtain public opinion of the locality, ensure environmental safeguards, and undertake infrastructure development and rehabilitation of affected people of the area where open pit mining is found to economically profitable.
National policy structure: 
Formulate and approve National Coal Policy highlighting issues relating to exploration, extraction and utilization at present as well as in future.
Technology
Clean energy technology priorities: 
Promote use of environment friendly technology in electricity generation wherever possible.---Promote production and use of alternative sources of energy such as [...] nuclear energy.
Clean energy technology deployment: 
Implement imported coal based and nuclear fuel based power plant ensuring adequate safeguards as recommended by PSMP 2010.
Low-emission and cleaner coal technology: 
Promote technologies in extraction and utilization of coal which have lower environmental impacts. Since carbon emission from coal use is higher compared with other primary energy best available technology will need to be used to minimize its environmental impacts.
R&D energy efficiency: 
Promote research on energy efficient, materials efficient and sustainable buildings and promote their use through rules and regulations as well as awareness campaign.