Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Effective Start Year: 
2005
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy, Power
Energy Types: 
Coal, Power, Gas, Renewable
Issued by: 
Ministry of Power, Energy and Mineral Resources
Overall Summary: 
The National Energy Policy 2005 is a revision of the 1996 National Energy Policy and it is targeted to achieve the sustainable development of the energy sector. In particular it sets out the following objectives: (i) To provide energy for sustainable economic growth so that the economic development activities of different sectors are not constrained due to shortage of energy. (ii) To ensure optimum development of all the indigenous energy sources. (iii) To meet the energy needs of different zones of the country and socioeconomic groups. (iv) To ensure sustainable operation of the energy utilities (v) To ensure rational use of total energy sources. (vi) To ensure environmentally sound sustainable energy development programmes, with due importance to renewable energy, causing minimum damage to environment. (vii) To encourage public and private sector participation in the development and management of the energy sector. (viii) To integrate energy with rural development to boost rural economy. (ix) To bring entire country under electrification by the year 2020. (x) To ensure reliable supply of energy to the people at reasonable and affordable price. (xi) To develop a regional energy market for rational exchange of commercial energy to ensure energy security.
Access
Energy access priorities: 
To provide energy for sustainable economic growth so that the economic development activities of different sectors are not constrained due to shortage of energy. ---To meet the energy needs of different zones of the country and socio-economic groups.---To ensure reliable supply of energy to the people at reasonable and affordable price. ---Rural sector plays a vital role in the national life in terms of economic activities, agricultural production and population. Therefore, energy needs of the rural areas are to be given priority in all activities related to the overall development of the energy sector.---To accelerate electrification program using renewable energy resources---Efforts are to be made to gradually bridge the gap in electricity supply between the west and east zone.---Reliable supply of commercial fuels to rural areas is to be ensured.
Energy access action plan: 
A coalmining project is under implementation to extract coal from Barapukuria Coal Mine.---Area-based energy planning methodology is to be followed to ensure sustainable supply of biomass fuels and to meet the energy needs of rural areas. At the implementation stage commercial energy development programmes and biomass fuels development programmes are to be co-ordinated. Areas (thana / district) having scarcity of biomass fuels will be given priority under commercial energy distribution programme and biomass fuels conservation programme (e.g. improved stoves). ---Use of fuel wood is to be discouraged and replacement fuels are to be made available at an affordable price.—[…]Penetration of commercial fuels into rural areas and all other activities related thereto are be planned and implemented when the overall program for development of the commercial fuels are drawn up.---Demand of total energy in the rural areas are to be met by a mix of bio-mass fuel, commercial fuels and the renewable energy technologies and their composition would vary from place to place.---Renewable Energy: […] Priority will be given to the rural areas where national grid expansion is expensive.[...].To fulfil the GOB’s objectives of electrification, development of renewable energy resources will play a vital role for off-grid electrification.—Efforts are to be made to gradually bridge the gap in electricity supply between the west and east zone.—Gradually a regional lead generation balance is to be established in the West Zone. […]The second East West inter-connector may be taken up in future for reliability and stability of the power system.[...] Transmission and distribution network shall be developed in keeping with the planned growth in demand in the west zone. f. Reliability and quality of supply in the west zone is to be improved.---Plans for generation of electricity for isolated and remote areas like off-shore islands are to be drawn up separately and criteria for its acceptance shall be fixed on the basis of fuels and technology options relevant to such areas b. Transmission and distribution plans for similar load centres are be developed on an area basis.---Efficient network development, expansion and management capable of accessing the most efficient supply of power and transport it to customers should be designed and implemented. Resources, domestic and foreign have to be arranged for these purposes.
Energy access targets: 
To bring entire country under electrification by the year 2020.
Clean cooking solutions: 
Use of improved cooking appliances and lighting devices using commercial fuels are to be encouraged. ---Areas (thana / district) having scarcity of biomass fuels will be given priority under commercial energy distribution programme and biomass fuels conservation programme (e.g. improved stoves).
Consumer subsidies: 
Penetration of commercial fuels backed up by appropriate pricing policy is to be accelerated to ensure equitable distribution of benefits. ---Reliability of energy supply to the rural areas in terms of availability in adequate quantity, in time and at a fair price is to be ensured ---Tariff structure for rural consumers is to be developed in such a way that the PBS is economically viable, while the rates are within the purchasing power of the rural communities.
Efficiency
EE priorities: 
To ensure rational use of total energy sources. ---End use based energy planning method is to be undertaken to incorporate energy conservation measures in energy planning process. Energy conservation measures will be considered in generation of power, refining of crude oil and use of energy for various end-uses (e.g. domestic, industrial, commercial, transport, agriculture). ---Use of improved cooking appliances and lighting devices using commercial fuels are to be encouraged. ---Use of efficient engines and furnaces as well as co-generation on industries, are to encouraged wherever feasible. ---PETROLEUM POLICY: Undertake systematic survey, exploration and exploration of petroleum resource and to ensure their rational use for sustainable development of the country.
EE action plans: 
Efforts are to be made to reduce the abandonment pressure wherever possible to augment the recoverable reserve of natural gas.---Energy audit is to be enforced at all levels, so that wastage of energy can be checked and corrective measures taken. To this end, the Energy Conservation Act is to be introduced and the role of Energy Monitoring and Conservation Cell (EMCC) is to be strengthened. ---Use of efficient technologies for power generation, BMRE or retrofitting are to be undertaken for the existing power plants of different types having efficiency lower than the national average of the technology. Future power plants must be base plants where natural gas is available and peaking power plants (Gas Turbine) must be highly efficient where natural gas may be or may not be available. ---Single / double shift industries are to be operated during off peak period.---All types of technical system losses are to be reduced to acceptable levels and nontechnical losses are to be eliminated. ---Adequate number of meters (system meters) are to be installed by the utilities at designated points of the gas network at the earliest. ---Power, fertilizer and all other industrial consumers are to provide their annual production and total electricity gas consumption in order to estimate specific consumption. ---Following measures are to be taken for conservation of energy. (i) Use of Power Factor Improvement plants are to be made mandatory for all new consumers using induction motors in industries, bulk commercial consumers and irrigation pumps. Existing consumers of these categories are also to be encouraged to install such plants. (ii) Attempts are to be made by the utilities to improve efficiency of the operating plants to the extent possible through rehabilitation. Replacement of power plants shall be made if this is more economic than rehabilitation. (iii) High efficiency appliance like fluorescent lamps with efficient ballast, electronic regulators for fans and high efficiency electric motors are to be used. Replacement of existing devices shall be encouraged. (iv) Industries producing conventional appliances are to be encouraged to change / modify their production line for manufacturing identified efficient appliances. (v) The utilities, local R & D and educational institutions shall undertake a joint survey to identify measures of conservation at the end-use level.----Rural industries may be offered lower tariff than the urban industries during off-peak hours in order to stimulate rural industrial activities and to facilitate efficient demand management.---Electricity consumption in rural commercial sector during peak hours is to be discouraged through the differential tariff structure.---Operation of husking and milling units during peak hours are to be discouraged by imposing high rates
EE transport standards : 
Use of lead free petrol is mandatory. ---Use of low sulfur content Diesel will be encouraged.
EE financial incentives: 
Necessary incentives (e.g. technical support, preferential credit, tax exemption etc.) will be given to achieve the targets of energy conservation. ---Incentives for fuel efficiency for all categories of end-uses may be given. ---Electricity consumption in rural commercial sector during peak hours is to be discouraged through the differential tariff structure.---Operation of husking and milling units during peak hours are to be discouraged by imposing high rates.---Any concession allowed to the agriculture, industries etc. due to tariff setting below cost of service may be compensated by the Government
EE public awareness/promotional programmes: 
Comprehensive programme of human resources development will be undertaken for each type of energy utility. Training programmes are also to be organized for consumer groups to create awareness on efficient use of energy. ---Popular awareness to be promoted regarding environmental conservation. ---(v) The utilities, local R & D and educational institutions shall undertake a joint survey to identify measures of conservation at the end-use level.
Renewable Energy
RE priorities: 
For improving the environment condition in the country, producing energy from wastes will be encouraged. [...].---To fulfil the GOB’s objectives of electrification, development of renewable energy resources will play a vital role for off-grid electrification.---To ensure optimum development of all renewable energy sources
RE targets: 
Generation of power utilizing renewable energy to share at least 5% of total demand by 2010 and 10% by 2020.
RE action plans: 
Renewable Energy: Plant location, size and design will be considered on the basis of available energy resources of the area and efficient conversion of energy will be given preference. Priority will be given to the rural areas where national grid expansion is expensive.[...].---renewable energy development program will be taken in the areas where potential renewable energy resources are available considering financial, economical & technical viability and keeping in view the Environmental Quality Standard (EQS).
RE reductions in taxes: 
Renewable energy project sponsors whether public or private shall be exempted from corporate income tax for a period of 15 years.--- 100% depreciation in the first year for solar photovoltaic, solar thermal projects and 100% depreciation in five (5) years for wind, biomass, geothermal, tidal and small hydro projects.---Exemption from income tax in Bangladesh for foreign lenders to such companies.
Environment
Energy environmental priorities: 
To ensure environmentally sound sustainable energy development programmes causing minimum damage to environment. ---Environmental issues will be considered for all type of fuels and in each and every step of fuel cycle; namely, exploration, appraisal, extraction, conversion, transportation and consumption. ---Carrying out Environmental Impact Assessment (including a consideration of social impact) should be made mandatory and should constitute an integral part of any new energy development project. ---Use of economically viable environmental friendly technology are to be promoted. ---Popular awareness to be promoted regarding environmental conservation.
Pollution control action plans: 
In case of coal based power plants, disposal of ash and reduction of environmental emission are to be considered in technology selection. ---Other technical options such as use of Catalytic Converter and Diesel Particulate Filter will be encouraged to reduce vehicular emissions---In order to reduce the air pollution in Dhaka and other cities, the Government has given emphasis on the best possible use of environmental friendly fuel CNG in transport sectors. As such government has liberalised and opened the sector for private participation to supplement the activities of the public sectors. The use of CNG in all types of road and riverine transports replacing motor spirit and diesel will be commercialized.
Carbon markets: 
Government of Bangladesh (GOB) may establish renewable energy projects considering carbon emission trading as a signatory of Kyoto Protocol.---GOB may secure funds from International Donors by implementing Clean Development Mechanism (CDM).
Green finance: 
Funds may be raised for the development of renewable energy projects issuing Corporate Bonds with the consent of the Securities and Exchange Commission (SEC).---Foreign banks may be allowed to underwrite the issue of shares and bonds by the private power companies with the recognition by SEC of such underwriting.
Land use change for energy production purposes: 
There should not be any commercial mining and quarrying inside the forest area (as legally defined in the Forest Act) and within 3 (three) Km from the forest boundary. However between 3 to 10 Km of forest boundary mining and quarrying may be allowed only where EIA shows that there is no negative impact on forest. Transportation of mining and quarrying materials should be controlled under the coverage of Forest Transit Rules.
Pricing
Renewable energy subsidies: 
The following Fiscal Incentives would be provided to renewable energy projects sponsors: .1 Renewable energy project sponsors whether public or private shall be exempted from corporate income tax for a period of 15 years.100% depreciation in the first year for solar photovoltaic, solar thermal projects and 100% depreciation in five (5) years for wind, biomass, geothermal, tidal and small hydro projects.
Energy taxation: 
PETROLEUM POLICY -FISCAL: Private and public sectors will be treated uniformly,
Energy pricing: 
Tariffs of different type of final energy such as natural gas, petroleum products & electricity will be fixed on the basis of economic cost. When it is decided to give any subsidy it will be made at end users level and Government shall make necessary arrangement with the utilities on this accounts. ---All forms of non-renewable energy are to be priced at their economic cost of supply. b. The present price of natural gas is to be raised in phases to reach its economic cost of supply. c. The price of PSC gas is to be linked to the price of high sulfur furnace oil as recommended in the Petroleum Policy. d. The present subsidy on gas price for power and fertilizer is to be removed gradually. Subsidy, if required, is to be given at the end-user level and the related liabilities cannot be passed on to the utilities. e. Differential tariff is to be applied for use of gas by the bulk user (e.g. power and fertilizer) for the off-peak and peak hours. f. While fixing up price for Diesel, MS, Kerosene, LPG etc., adequate care has to be taken to prevent adulteration of one product by the other or to discourage smuggling of the product outside the country. g. The price of coal is to be set at its economic cost of production and supply.---The pricing for associated gas would be on a cost plus basis, while for non-associated gas it will be 75% of international price of high sulfur heavy fuel oil with negotiated discounts, and to encourage exploration in offshore areas, associated or non-associated gas from such fields will be priced at 25% higher than those from onshore areas, ii. The price of locally produced LPG will be linked to international kerosene price on BTU basis with appropriate discount to encourage its local production, and iii. The value of oil from each production area will be determined on the basis of market value comparable to Asia Pacific Petroleum Price Index(APPI).---Price of natural gas and associate products to be produced and delivered will be determined through negotiation.---GOB will not regulate the price of electricity generated from renewable energy source which shall be the contracted price between the sponsor and the consumers. After establishment of ERC, it will decide about future price regulation based on GOB policies.---The GOB’s policy objectives will be addressed in tariff setting and recommendations especially on social commitments.---Rural industries may be offered lower tariff than the urban industries during off-peak hours in order to stimulate rural industrial activities and to facilitate efficient demand management.---Considering the importance of agriculture, special tariff facilities is to be offered for irrigation pumps during off-peak hours.---Electricity consumption in rural commercial sector during peak hours is to be discouraged through the differential tariff structure.---Operation of husking and milling units during peak hours are to be discouraged by imposing high rates---Tariff structure for rural consumers is to be developed in such a way that the PBS is economically viable, while the rates are within the purchasing power of the rural communities.
Energy Supply and Infrastructure
Energy supply priorities: 
The emergency stock is to be maintained at 60 days of consumption. Such reserves in storage tanks are to be distributed all over the country and reserve capacity for each location are be determined by considering extreme natural events[...] . ---Natural gas: Stand-by wells are to be provided to meet emergency situation. The reserve margin in this case is recommended to be 20% of the producing wells. ---To ensure optimum development of all the indigenous energy sources. ---Coal will play an important role in meeting the future energy needs of the country. [...]. To ensure efficient management the mining activities will be conducted through Barapukuria Coal Mining Company. ---The strategic stock of petroleum products is to be maintained at 60 days of consumption[...]. ---Adequate emergency stock of coal is to be maintained in off-shore islands and flood prone areas to meet the cooking fuel needs of such places at the time of emergency. ---Stand-by wells are to be provided to meet emergency situation. The reserve margin in this case is recommended to be 20% of the producing wells. ---[...]Extensive exploration need to be continued to upgrade structural leads to established structures [...] to delineate new structures in the unexplored and virgin areas. ---The public sector utilities are to intensify exploration. [...].---Comprehensive reservoir study of the developed gas fields need to be undertaken to determine their actual field potential.---Marginal gas fields are to be developed to augment gas production volume.---Gas fields having higher NGL content are to be given priority for development in order to increase NGL supply. ---The target of producing one million tonne of coal from Barapukuria by 2004 is to be achieved. ---Techno-economic feasibility of Khalaspir coal deposit in Rangpur is to be taken up at the earliest.---Appraisal of coal basins in Rangpur Dinajpur belt is to be completed and depending on the findings, techno-economic feasibility of their exploitation are to be taken up. ---Exploration for coal in the north-western part of the country including the identified potential coal basins is to be undertaken on a priority basis.---The feasibility study on extraction Coal Bed Methane (CBM) from Jamalgonj and Khalaspir is to be undertaken on a priority basis ---Areas having prospects of uranium and thorium deposits are to be appraised and, studies may be conducted on the techno-economic viability of production at prospective sites. ---Considering the importance of equitable development both in East and West Zone of the country the following measures will be considered: a. Special incentives for exploration and production of oil and gas; b. Exploration and development of coal, including that at Barapukuria and Khalaspir, and CBM; c. Use of furnace oil of ERL for power plants and industries; ---Production of liquid fuels like Petrol, Kerosene, Diesel Oil from Natural Gas (NG) will be encouraged. ---PETROLEUM POLICY: Undertake systematic survey, exploration and exploration of petroleum resource and to ensure their rational use for sustainable development of the country.---Direct and total replacement of biomass by commercial energy will be prohibitive for financial and infrastructural constrains. Biomass fuels will, therefore, continue to play an important role in the energy scene of the country for many years to come.---Local coal is to be given preference for the future coal fired plants. In case of import of coal, infrastructure for its handling and transportation are to be developed in keeping with the volume of coal import for power generation.
Energy mix: 
Supply of indigenous fuels is to be maximized to the extent possible in meeting the future demands. b. The mix of imported fuels and their end-uses are to be determined on the basis of their relative advantages and disadvantages. Reliance on a single fuel type is to be avoided in order to minimize the effect of any future global energy crisis. Security of energy supply, logistics of transportation and handling, environmental pollution along with economics of energy supply will influence the mix of the imported fuels. ---Demand of total energy in the rural areas are to be met by a mix of bio-mass fuel, commercial fuels and the renewable energy technologies and their composition would vary from place to place.---Generation of power utilizing renewable energy to share at least 5% of total demand by 2010 and 10% by 2020.---Efforts are to be made to maximize use of indigenous fuels, namely natural gas, coal, hydro-electricity and coal bed methane in the future generation mix of the country. b. A mix of fuel for power generation is to be evolved so as to reduce reliance on any particular fuel type. Least cost fuel option for generation of electricity should be chosen.
Infrastructure development priorities: 
NGL plants at Ashugonj and Kailashtila are to be commissioned at the earliest. ---Development of the national gas grid, inter-connecting the demand centres with it should be completed as soon as possible. --- Infrastructure for transportation of crude to the refinery site, including pipeline if the site is inland, should be developed in parallel to installation of the refinery (ies). ---Construction of nuclear power plants is to be considered on the basis of its cost-economics viz-a-viz alternatives using imported fuels and the problems of logistics of handling and transportation of oil and coal. [...].---Gradually a regional lead generation balance is to be established in the West Zone. The inter-connector should not be loaded beyond 50% of its capacity so that outage of one circuit will not overload the other circuit. The second East West inter-connector may be taken up in future for reliability and stability of the power system.---More Gas based power plants should be planned and implemented in the West Zone. The first coal-fired plant in the west zone is to be taken up for implementation urgently.---Efforts are to be made to implement the Ruppoor Nuclear Power Project, if this option is found competitive with the imported fuels, e.g. coal and oil. e. Transmission and distribution network shall be developed in keeping with the planned growth in demand in the west zone. ---Power Supply to Isolated and Remote Load Centres[...]: Transmission and distribution plans for similar load centres are be developed on an area basis.---Efficient network development, expansion and management capable of accessing the most efficient supply of power and transport it to customers should be designed and implemented. Resources, domestic and foreign have to be arranged for these purposes. The transmission network will be owned, operated, planned and developed by a corporatized entity in the public sector.
Regional integration priorities: 
To develop a regional energy market for rational exchange of commercial energy to ensure energy security. ---Regional / International cooperation on energy may be explored for minimizing the gaps in energy supply of the countries in the region by developing a regional energy market.
Cooperation in connectivity: 
Regional / International cooperation on energy may be explored for minimizing the gaps in energy supply of the countries in the region by developing a regional energy market.
Trade
Energy trade priorities: 
To develop a regional energy market for rational exchange of commercial energy to ensure energy security. ---Import of liquid fuels is to be determined by the market force. However, its consumption is to be limited primarily to such uses for which alternatives are not either available or affordable by the vast majority of the population.---Replace oil import by gas as far as possible and to augment energy supply by other undeveloped commercial energy sources such as coal, coal bed methane, peat as well as LPG and all other possible sources of conventional and non conventional energy[...].
Standard power production and purchasing agreements: 
Companies will remain harmless of taxes as are determined under the terms of PSC.---Repatriation of profit as per production sharing contract (PSC) provision will be allowed.Repatriation of profit as per production sharing contract (PSC) provision will be allowed
Import taxes and fee exemptions: 
No duty will be levied on machinery, equipment and consumables imported for petroleum operation during exploration, development or production stage,[...].---The equipment imported for enhanced oil and gas recovery will also be subject to the same concessionary rate duty, and locally manufactured machinery and equipment used by the exploration companies will be entitled to all such benefits as are admissible on their export---No duty, sales tax or surcharge will be levied on equipment imported for compression and refuelling of natural gas and for conversion of vehicles. Local as well as foreign private capital will be encouraged to invest in all phases of CNG business.---Renewable Energy: The sponsors will be allowed to import plant and equipment directly related to renewable energy projects without payment of customs duties, VAT (Value Added Tax) and any other surcharges as well as import permit fee provided that the equipment is not manufactured or produced locally
Energy export financial incentives: 
Companies will remain harmless of taxes as are determined under the terms of PSC.
Advance rulings: 
Pre-shipment inspection of machinery and other imported items will be mandatory,
Investment
Energy sector investment priorities: 
Systematic research programmes will be undertaken for each type of the energy utility. Necessary facilities and resources will be made available to implement different research programme on a continuous basis. Collaborative linkages among utilities and R&D institutions will be strengthened to implement different research programmes. A certain percentage of earnings of the utilities should be dedicated for R&D purpose. Accordingly various R&D institutions will also be established and strengthened (as applicable) under the Ministry of Power, Energy and Mineral Resources.
Financial incentives for energy infrastructure: 
Considering the energy sector as the infrastructure for development, its projects, when financed by the Government shall be allowed interest rates not more than the lowest slab of interest for commercial loans. ---A revolving Renewable Energy Trust Fund may be created with grants from Global Environmental Facility (GEF) and other climate change abatement funds to support renewable energy projects in Bangladesh.
Project permitting: 
A master plan for the sector is to be developed, identifying projects along with the recommended phasing of implementation. Bankable project documents are to be produced for projects in accordance with its schedule identified in the Master Plan. Necessary attention should be given for reducing the delay in the approval process. The existing procedure should be modified as to enable the concerned utility to complete the projects in time. ---Public sector utilities are to be encouraged to mobilize own resources for their projects. The existing formalities for using internal resources of the utilities for implementation of their projects are to be simplified. ---Local private companies will be encouraged to seek joint ventures with foreign companies and /or with BAPEX in exploration
Investment climate development: 
In course of time import, processing, distribution and marketing of petroleum fuels will be opened to the private sector provided the private sector investors develop their own infrastructure[…]. ---To allow healthy competition and to ensure efficient operation both public and private sector enterprises will enjoy similar / uniform investment incentives offered by the Government.---Corporatised public sector utilities shall be allowed to raise finance from the market through floating of shares and debentures and also bank loans---Foreign and local entrepreneurs are to be encouraged to invest in exploration for petroleum and solid fuels in the country.---Dependence on external donors is to be gradually reduced by internal financing to the extent possible. Public sector utilities are to be encouraged to mobilize own resources for their projects. The existing formalities for using internal resources of the utilities for implementation of their projects are to be simplified. ---Public sector utilities are to be allowed to mobilize finance from the market through bank loans debentures and floating shares.---Private sector financing is to be encouraged---Energy sector projects should be given protection against foreign exchange fluctuations.---PETROLEUM POLICY: Adopt uniform policy instrument for both public and private sector (local and foreign) enterprises [...]. Encourage involvement of private sector in the petroleum industry and trade,[...]Create a competitive environment for giving the best deal to the consumer in price and quality, [...]. ---Foreign companies investing in refinery or in blending plants whether on their own or in association with local investors will enjoy the benefit of Foreign Private Investment (Promotion and Protection) Act, 1980.----No duty, sales tax or surcharge will be levied on equipment imported for compression and refuelling of natural gas and for conversion of vehicles. Local as well as foreign private capital will be encouraged to invest in all phases of CNG business.--Attract private investment (domestic and foreign direct) in the development of marginal/abandoned gas fields.---Private capital investment for implementing the renewable energy is a major issue to be considered. This policy envisages accomplishment of its objectives by mobilizing a concerted national effort with the continued co-operation and commitment of government, international organizations, bilateral and multilateral funding institutions, Civil Society Organizations (CSOs), Community Based Organizations (CBOs), Non-government Organizations (NGOs), research organizations, universities and private sector etc.---To encourage public and private sector participation in the development renewable energy.---Renewable Energy: Foreign banks may be allowed to underwrite the issue of shares and bonds by the private power companies with the recognition by SEC of such underwriting. Tax facilities for private sector instruments as available to Non-Banking Financial Institutions---Exemption from income tax in Bangladesh for foreign lenders to such companies.The foreign investors will be free to enter into joint ventures.
Public Private Partnerships: 
To encourage public and private sector participation in the development and management of the energy sector. ---To encourage public and private sector participation in the development renewable energy.
Governance
Energy management principles: 
To ensure sustainable operation of the energy utilities.---To improve management efficiency; generation, transmission and distribution systems of power sector will be managed as separate cost and profit centers. Existing power utilities will be corporatised and allowed to operate on commercial basis. ---[...] Petrobangla is to be corporatised and converted into a Public Limited Company (Holding Company) under the Companies Act of 1994 with necessary organizational and financial restructuring and the ownership to remain with Government. ---Long term planning for development of the power sector is to be drawn up on the basis of the projection on demand, cost of supply, reliability and quality of supply and adequate transmission and distribution facilities.
National policy structure: 
There is a need to adopt Energy Conservation Act (in the process of approval by the Government for enactment) to provide a legal basis and to decide appropriate strategies for energy conservation. ---A master plan for the sector is to be developed, identifying projects along with the recommended phasing of implementation. ---Ministry of Power, Energy and Mineral Resources should undertake the tasks of preparing a long-term energy plan (perspective plan). The proposed plan should ensure balanced and sustainable development of different parts of the country. There is a need to develop in-house institutional capabilities to prepare National Energy Plan. ---Implementation of National Energy Policy will necessitate introduction of new Acts and modifications of the relevant Acts and Ordinances in this regard. ---Environmental issues to be considered under National Energy Policy are to be mandated under National Environment Policy and Environment Act.
Energy institutional structures: 
One single Ministry (Ministry of Power, Energy and Mineral Resources) shall sponsor and co-ordinate the entire range of energy related activities. ---Appropriate institutional arrangement are to be established to implement area based energy development programmes to ensure sustainable development of biomass fuels and to meet rural energy needs. ---An Energy Regulatory Commission (ERC) will be established to carry out [...] regulatory functions of electricity and natural gas[...].---A high power Energy Advisory Council consisting of representatives from politicians, policy makers, professionals and experts of the energy sector may be formed. This council, considering the overall national and international energy situation, may give necessary policy guidelines for the energy sector. ---[...] Petrobangla is to be corporatised and converted into a Public Limited Company (Holding Company) under the Companies Act of 1994 with necessary organizational and financial restructuring and the ownership to remain with Government. ---Strengthen the research, technical and administrative capabilities of the government agencies responsible for making policies and their effective implementation[...].---Renewable Energy Development Agency (REDA) will be established under the Power Division, Ministry of Power, Energy and Mineral for promotion and development of different type of renewable energy technologies (RETs). REDA will start functioning with GOB fund and subsequently devise its business plan for long-term sustainability. REDA will look after government interest in renewable energy projects.
Rural energy agency or equivalent: 
Rural Electrification Board will be allowed to continue the implementation and management of Area Coverage Rural Electrification (ACRE) programme for designated rural areas of the country. ---Renewable Energy Developments Agency (REDA) is to be established under the Ministry of Power, Energy and Mineral Resources for the development and diffusion (dissemination / extension) of different type of renewable energy technologies. Until REDA is formed Power Cell of the Power Division of the Ministry of Power, Energy and Mineral Resources will carry out all primary and initial works related to development of renewable energy. ---Appropriate modifications / revisions of the existing laws, acts, regulations, ordinances, etc are to be made in consultation with the Ministry of Law in order to facilitate implementation of various provisions of the National Energy policy.
Statistics collection and management: 
A comprehensive data base, containing all information and data required for exploration, is required to be developed by continuously updating geological, geophysical and geochemical information ---A database on the power sector is to be developed which shall be continuously updated.
Technology
Clean energy technology priorities: 
Use of economically viable environmental friendly technology are to be promoted. ---Use of fuel wood is to be discouraged and replacement fuels are to be made available at an affordable price ---Use of efficient technologies for power generation, BMRE or retrofitting are to be undertaken for the existing power plants of different types having efficiency lower than the national average of the technology. Future power plants must be base plants where natural gas is available and peaking power plants (Gas Turbine) must be highly efficient where natural gas may be or may not be available.
Natural gas transportation technology: 
Fiscal incentives, including reduced taxes and duties may be given to promote the use of Compressed Natural Gas (CNG) in transports. ---The strategy for the development of CNG as transportation fuels are: (i) Banning of diesel buses and trucks in cities roads with a rigid cut off date (ii) To convert existing petrol vehicles to CNG by establishment of sufficient number of conversion workshop by Public/Private Sector in all the major cities (iii) To install and operate adequate number of CNG refueling station by Public and Private Sector in the major cities and the connecting highways (iv) Set up emission standard for CNG vehicles (v) Elimination of two-stroke baby taxi (vi) Encourage introduction of CNG dedicated buses and four-stroke Baby Taxis through reduction of duty. (vii) Monitor CNG converted vehicles closely to ensure quality of emission and to ensure pollution control (viii) To introduce appropriate regulatory framework for more systematic monitoring, closer control and regulation.
R&D energy efficiency: 
Use of efficient technologies for power generation, BMRE or retrofitting are to be undertaken for the existing power plants of different types having efficiency lower than the national average of the technology. Future power plants must be base plants where natural gas is available and peaking power plants (Gas Turbine) must be highly efficient where natural gas may be or may not be available.