BANGLADESH: National Energy Policy

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
1996
Effective End Year: 
2004
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy, Power
Energy Types: 
All, Power, Renewable, Bioenergy, Other
Issued by: 
Ministry of Power, Energy and Mineral Resources
Source: 
Bangladesh Government Press
File: 
National Energy Policy 1996
Overall Summary: 
The objectives of the National Energy Policy (NEP) are outlined as follows. (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 meet the energy needs of different zones of the country and socio-economic groups. (iii) To ensure optimum development of all the indigenous energy sources. (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 causing minimum damage to environment. (vii) To encourage public and private sector participation in the development and management of the energy sector.
Access
Bi-, multi-lateral mechanisms to expand access: 
b. Adequate funds are to be allocated for implementation of different programmes and projects related to renewable energy technologies and biomass fuels. Private sector investment shall also be encouraged.---c. Bank loans are to be provided for implementation of renewable energy technologies in the urban areas.
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.
Energy access action plan: 
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[...].---Appropriate Institutional arrangements are to be established to implement area-based energy development programmes to ensure sustainable development of biomass fuels arid to meet rural energy needs. ---a. Penetration of commercial fuels backed up by appropriate pricing policy is to be accelerated' to ensure eql;Jitable distribution of benefits. • b.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. ---d. Alternate fuels are to be supplied in rural areas at an affordable price to encourage increase in recycling of agricultural residues back to soil in order to achieve and maintain sustainable agricultural production.---d. Planning of rural electrification Is to be coordinated with that of the BPDB In order to avoid any mismatch between the demand and supply of electricity, particularly during the Irrigation season. ---e. same set of criteria on reliability of power supply for different categories of consumers are to be applicable to the urban and rural consumers.
Energy access targets: 
c. In order to• enhance the Impact of rural electrification programme, efforts are to be made to stimulate its demand at household levels. In mid-term perspective, the aim may be to provide electricity for at least 2 fluorescent tubes of 20 w capacity to each household under each PBS.
Clean cooking solutions: 
Efficient use: a. use of improved cooking appliances and lighting devices using commercial fuels are to be encouraged.
Consumer subsidies: 
A cross-subsidy or trade-off may be made among different forms of energy or within different products of a particular form of energy to promote growth and ensure social justice. A differential price structure for different groups of consumers base.ct on social and other considerations may be retained.---some subsidy on gas price for domestic use may be given on social considerations.
Efficiency
EE priorities: 
To ensure rational use of total energy sources.
EE action plans: 
Energy audit is to be enforced at all levels, so that wastage of energy can be checked and corrective measures taken.; Demand management; Efficient use: a. use of improved cooking appliances and lighting devices using commercial fuels are to be encouraged. b. use of efficient engines and furnaces as well as co-generation in industries, are to encouraged wherever feasible ---a. All types of technical system losses are to be reduced to acceptable levels and non-technical losses are to be eliminated.---f. ural consumers are to be motivated to adapt measures on conservation, to avoid wasteful uses of electricity and to support all measures leading to conservation, reduction of system losses, efficient load management and economic operation.
EE public awareness/promotional programmes: 
Training programmes are also to be organised for consumer groups to create awareness on efficient use of energy.
Environment
Energy environmental priorities: 
To ensure environmentally sound sustainable energy development programmes causing minimum damage to environment---a. Environmental Impact Assessment should be made mandatory and should constitute an integral part of any new energy development project
Decarbonization strategy: 
Ban on. the use of woodfuel for brick burning is to be enforced• strictly.---use of woodfuel for melting bitumen for road carpeting is to be banned.
Pricing
Fossil fuel subsidies: 
A cross-subsidy or trade-off may be made among different forms of energy or within different products of a particular form of energy to promote growth and ensure social justice. A differential price structure for different groups of consumers base.ct on social and other considerations may be retained.---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 can not be passed on to the utilities.---some subsidy on gas price for domestic use may be given on social considerations.
Energy pricing: 
Tariffs of different type of final energy 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 account.---All forms of non-renewable energy are to be priced at their economic cost of supply.---a. The present price of natural gas is to be raised annually to reach its economic cost of- supply in course of next five years.
Energy Supply and Infrastructure
Energy supply priorities: 
(iii) To ensure optimum development of all the indigenous energy sources.---The strategic stock of petroleum products is to be increased from the present level of 40 days to 60 days 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.---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. ---A comprehensive assessment of non-renewable energy resource base is essential irrespective of the actual prospects of their exploitation under prevailing techno-economic situation. ---b. The mix of imported fuels and their end-uses are to be determined on the basis of their relative advantages and disadvantages. Reli nce 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 evolution of the mix of the imported fuels.---Most of the LPG is to be allocated for the west zone, primarily for the domestic sector. LPG may also be imported for meeting the demand of the country.
Energy mix: 
supply of indigenous fuels is to be maximized to the extent possible in meeting the future demands. The deficit is to be a mix of coal oil and nuclear energy.
Infrastructure development priorities: 
Establishment of adequate oil depots at the Chalna port and up country; Ensuring reliable supply of LPG through extension of LPG pipeline to Elenga and establishment of bottling plants there; Extension of natural gas pipeline: Development of infrastructure for handling and Inland transportation of imported fuels llke coal and oil; Establishment of Petroleum Refinery.
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.
Project permitting: 
Bankable documents are to be produced for a proJect in accordance with its schedule identified In the master plan. •b. Necessary attention sI1ould be given for edunng the delay in tile process of project approval. The existing procedure should be mode so all to enable the concerned utility to Implement he project according to the time schedule given In the project
Investment climate development: 
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.
Public Private Partnerships: 
To encourage public and private sector participation in the development and management of the energy sector
Governance
Energy management principles: 
End use based energy planning method is to be undertaken to incorporate energy conservation measures in energy planning process.
Energy institutional structures: 
Appropriate Institutional arrangements are to be established to implement area-based energy development programmes to ensure sustainable development of biomass fuels arid to meet rural energy needs.---Renewable Energy Developments Agency <REDA> is to be established under the Ministry of Energy and Mineral Resources for the development and diffusion (dissemination/extension> of different type of renewable energy technologies.---A national regulatory authority <National Energy Authority> attached to the Ministry of Energy and Mineral Resources is to be established.
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.
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
Technology
Natural gas transportation technology: 
The use of CNG in all types of road and riverine transports Including locomotives replacing motor spirit and diesel will be commercialized. No duty, sales tax or surcharges will be levied on equipment imported for compression and refueling 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.