Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Effective Start Year: 
2016
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
Power, Renewable, Bioenergy, Solar
Issued by: 
Power Division Ministry of Power, Energy and Mineral Resources Government of the People’s Republic of Bangladesh
Overall Summary: 
The Power System Master Plan (PSMP) 2016, sponsored by Japan International Cooperation Agency (JICA), aims at assisting the Bangladesh in formulating an extensive energy and power development plan up to the year 2041, covering energy balance, power balance, and tariff strategies. Bangladesh has an aspiration to become a high-income country by 2041. To achieve the VISION, this master plan defines the intended goal and “five key viewpoints” that are to be kept in mind by all the members who are involved in the realization of the goal: 1) Enhancement of imported energy infrastructure and its flexible operation; 2) Efficient development and utilization of domestic natural resources (gas and coal); 3) Construction of a robust, high-quality power network; 4) Maximization of green energy and promotion of its introduction; 5) Improvement of human resources and mechanisms related to the stable supply of energy.
Efficiency
EE targets: 
the aim is to achieve reductions in energy consumption of 16% in 2030 and of 28% in 2041 compared to the BAU scenario. --- [...] the aim is to realize a reduction in energy consumption in the transportation sector of 33% compared to the BAU scenario.
EE action plans: 
To implement the Action Plans proposed in the EECMP.  Energy management system (targeted for demand in the large-scale industrial sector and the commercial sector)  Performance labeling and minimum performance standards for electrical appliances (mainly targeting energy demand in the residential sector)  Implementation of energy-saving construction standards (i.e. revised BNBC)  Low-interest loan programs for the installation of EEC equipment.---Gas Use Efficiency to be enhanced to the international level with the use of the best commercially available technology (Short/Mid Term).
EE standards for appliances: 
To implement the Action Plans proposed in the EECMP. [...]  Performance labeling and minimum performance standards for electrical appliances (mainly targeting energy demand in the residential sector)
EE building standards: 
To implement the Action Plans proposed in the EECMP. [...]  Implementation of energy-saving construction standards (i.e. revised BNBC)
EE transport standards : 
In the transport sector, not only the improvement of fuel consumption efficiency for passenger vehicles but also the improvement of traffic conditions in urban areas (within Dhaka city), which are affected by chronic heavy traffic congestion, needs to be considered.  Policy measures for improvement of passenger vehicles’ combustion efficiency (e.g. eco car program)  Improvement of road network development in urban areas (e.g. road widening, construction of flyovers)  Development of railway network [...].
EE financial incentives: 
To implement the Action Plans proposed in the EECMP. [...]  Low-interest loan programs for the installation of EEC equipment
Renewable Energy
RE priorities: 
Maximization of green energy and promotion of its introduction.
RE targets: 
Renewable Energy: Domestic renewable energy power generation (cumulative): 2,470MW (by 2021), and 3,864MW (by 2041) 2) Domestic biogas production: 790,000m3/day (including additional 600,000m3/day by 2031, 3 million m3/day by 2041) 3) Cross-border Energy Imports: 3,500~8,500MW (by 2031), 9,000MW (by 2041) 4) Cross-border energy import rules and regulations’ set-up, associated with capacity building in this area (mid to long term).---2) Domestic biogas production: 790,000m3/day (including additional 600,000m3/day by 2031, 3 million m3/day by 2041)
RE action plans: 
Roadmap: 1) Domestic renewable energy power generation (cumulative): 2,470MW (by 2021), and 3,864MW (by 2041)  One project utility-scale solar park IPP project on competitive bidding basis, contracted and operation start (short term)  Wind Resource Assessment completion (short term)  Grid connection technical rules and regulations for renewable energy generation (short term)  Grid connection approval process for utility-scale renewable energy generation (short term)  Grid enhancement planning and implementation for utility-scale renewable energy generation (short term)  FIT and reverse auction setup (short term)  Network operation to manage renewable energy’s variable output (short term)  FIT revision and application to new projects (mid term)  Utility-scale solar project roll out (short to mid term).--- Glass-fiber biogas digester domestic manufacturer development (mid term)  Glass-fiber biogas digester roll-out through IDCOL loan scheme (mid to long term)
Environment
Energy environmental priorities: 
Maximization of green energy and promotion of its introduction.
Decarbonization strategy: 
In the transport sector, not only the improvement of fuel consumption efficiency for passenger vehicles but also the improvement of traffic conditions in urban areas (within Dhaka city), which are affected by chronic heavy traffic congestion, needs to be considered.  Policy measures for improvement of passenger vehicles’ combustion efficiency (e.g. eco car program)  Improvement of road network development in urban areas (e.g. road widening, construction of flyovers)  Development of railway network [...].
Pricing
Fossil fuel subsidies: 
Roadmap  Exit strategy for oil product subsidy by 2017.
Energy pricing: 
For power rates, structural reform of the existing below-cost power rates is necessary in terms of the sustainability of the power sector.
Energy Supply and Infrastructure
Energy supply priorities: 
Efficient development and utilization of domestic natural resources (gas and coal).---[...] development of domestic renewable energies is indispensable.---Improvement of human resources and mechanisms related to the stable supply of energy.---[...] significant improvements are required in many aspects of international cooperation and nuclear power generation from Bangladesh’s existing power supply development and system operation.---In order to attain efficient and economical development of domestic gas resources, introduction of technologically advanced and financially sound IOCs is considered very important. Policy and legal framework should be reviewed and changed. A new legal/regulation scheme should be developed by 2019.---Land LNG Terminal: Commence 500mmscfd of gas supply in 2027, expanded to 2,000mmscfd in 2041 2) FSRU Phase 1: Commence gas supply of 500 mmscfd in 2019, and additional 500 mmscfd as Phase 2 in 2023.---Initial land-based LNG terminal commences operation in 2027, supplying 500mmscfd of natural gas. The terminal is expanded to supply 3,000 mmscfd gas in 2041.---Roadmap  A clear strategic positioning for oil products in the energy policy by 2017.  Exit strategy for oil product subsidy by 2017.
Infrastructure development priorities: 
Enhancement of imported energy infrastructure and its flexible operation.---Construction of a robust, high-quality power network.---Gas Transmission and Distribution infrastructure to be modernized by 2019 - Transmission and Distribution gas Infrastructure should be electronically mapped and able to introduce advanced monitoring and control systems to support the efficient use of gas.---Master Plan for LNG Introduction to be prepared and completed by end of 2017, covering economic analysis, construction schedule, operational risks, energy security, and international cooperation (including joint LNG infrastructure operation).---Implementation of import coal infrastructure in the F/S. -[...] - The first phase of the CTT (Coal Transshipment Terminal) will commence operation in 2025 (planned amount of coal: 10.4 million t/year); the object of the second phase will include those power stations that commence operation by 2029 (amount of coal: 25.6 million t/year) and use the CTT. For the future, with an increase in the development of new coal-thermal power plants there is a need to implement the F/S for the infrastructure and plan for efficient coal transportation.---Completion of FS and establishment and capacity building of organizations engaged in the pumped-storage power generation (PSPG) by 2020.[...] It is necessary to conduct a pre-FS or FS for the construction of a pumped-storage power plant (PSPP) at the candidate sites identified in this survey when the topographic maps of the areas concerned have been created and the residents in the areas have given consent to the construction. Human resource development will also be required for the development of PSPG. [...] Completion of Detailed Design by 2023.[...]  Commencement of Construction of a PSPP by 2024.  Commissioning of the first unit of a PSPP by 2030
Cooperation in connectivity: 
[...] significant improvements are required in many aspects of international cooperation and nuclear power generation from Bangladesh’s existing power supply development and system operation.---Master Plan for LNG Introduction to be prepared and completed by end of 2017, covering economic analysis, construction schedule, operational risks, energy security, and international cooperation (including joint LNG infrastructure operation)
Trade
Energy trade priorities: 
Acquisition of energy resources from overseas is necessary in order to maintain and/or increase the national energy assets belonging to Bangladesh. (Mid/Long Term).---3) Cross-border Energy Imports: 3,500~8,500MW (by 2031), 9,000MW (by 2041) 4) Cross-border energy import rules and regulations’ set-up, associated with capacity building in this area (mid to long term).
Bi- and multi-lateral energy agreements: 
Road Map: Agreement acquisition with India is indispensable in order to achieve the plan for power imports from the neighboring countries that are mentioned above. In particular, it is important to negotiate tenaciously on the following items.  Advanced development of the Case 3 line [...]  Securing power transmission capacity in India. [...]  Direct connection of PSPP in Meghalaya state to Bangladesh system
Import taxes and fee exemptions: 
 Import duty/levy on glass-fiber biogas digester/material removal (short term)
Governance
Energy management principles: 
Necessity of institutionalization of technical standards: National technical standards that would reduce the amount of accidental trouble and disasters are not regulated. These five provisions are essential for stable operation in Bangladesh. (2) Targets to Achieve  Periodic inspections;  Safety audits;  Chief engineer;  Safety regulations;  Technical standards.
National policy structure: 
Legal framework to enhance gas efficiency to be in place by 2019: - Efficiency to be enhanced to the international level and discourage the use of substandard facilities.
Technology
Clean energy technology priorities: 
[...] significant improvements are required in many aspects of international cooperation and nuclear power generation from Bangladesh’s existing power supply development and system operation.---In order to attain efficient and economical development of domestic gas resources, introduction of technologically advanced and financially sound IOCs is considered very important. Policy and legal framework should be reviewed and changed. A new legal/regulation scheme should be developed by 2019.----Gas Use Efficiency to be enhanced to the international level with the use of the best commercially available technology (Short/Mid Term).---(ii) Legal and implementation framework: All legal and implementation framework shall be established, and even be in an active before a commissioning of the first nucleare power generation as follows;  Meeting IAEA safety standards  Establishment of fuel cycle management  Proper knowledge about nuclear safety and public acceptance  Participating international framework  Ratification of the international law and standards (iii) Comissioning of generation  2024/25: 1st and 2nd units  2030/31 3rd and 4th units  2040/41 5th and 6th units
Gas-to-power technology: 
Improvement of human resources and mechanisms related to the stable supply of energy [...] efficiency improvement of gas fired power plants, and the development of legal systems and human resources for its realization, are urgently necessary.
Natural gas transportation technology: 
In order to attain efficient and economical development of domestic gas resources, introduction of technologically advanced and financially sound IOCs is considered very important. Policy and legal framework should be reviewed and changed. A new legal/regulation scheme should be developed by 2019.---Gas Transmission and Distribution infrastructure to be modernized by 2019 - Transmission and Distribution gas Infrastructure should be electronically mapped and able to introduce advanced monitoring and control systems to support the efficient use of gas.---Land LNG Terminal: Commence 500mmscfd of gas supply in 2027, expanded to 2,000mmscfd in 2041 2) FSRU Phase 1: Commence gas supply of 500 mmscfd in 2019, and additional 500 mmscfd as Phase 2 in 2023.