Energy Resources in

Bangladesh
 Overview
The power sector in Bangladesh is highly dependent on fossil
fuels, as natural gas and coal are the dominating sources for
power generation in the country. About 62.9% of Bangladeshi
generated electricity comes from natural gas, while 10% is from
diesel, 5% comes from coal, 3% of heavy oil, and 3.3% is of
renewable sources.

Despite the fact that the Bangladeshi energy sector uses and
covers varied products; electricity, petroleum products, natural
gas, coal, biomass and solar, yet the policy and decision makers
are mostly pre-occupied with electricity, as it is the most common
used form of energy in the country. Thus, because there is a
continuous and rapidly widening gap between electricity supply
and demand, therefore it is a major challenge for the energy
sector in Bangladesh.
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National Energy Policy (NEP) of Bangladesh (1996)

 Components of National Energy Policy (1996):

• Non-Renewable Energy Policy (GSB,
Petrobangla, BPC, Local & Foreign Private
Sectors).
• Petroleum Policy (Approved in 1993)
(Petrobangla, BPC, IOC, Private Sector).
• Power Policy (BPDB)
• Rural Electrification Policy (REB)
• Renewable and Rural Energy Policy (absence of
institution).

 Private Power Generation Policy 1996

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Energy Situation & Future Energy Mix of Bangladesh
Importance of Energy in Economic Development
 Energy for Survival & Economic Growth
• Per capita energy consumption of Bangladesh (about 230 kg
of oil equivalent (2014)) is one of the lowest in the
world. Major portion of Energy is Consumed for Subsistence
(e.g. cooking, lighting, heating etc.) & Small Portion for Economic
Growth (e.g. agriculture, industry, transport, commerce etc). (In developed
countries higher proportion of energy is consumed for
economic growth and smaller proportion for subsistence).
 Increase in Per Capita Commercial Energy Consumption is
Necessary to Increase Per Capita Gross National Income
(GNI).
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Per Capita Commercial Energy and Per Capita GNI

Per Capita Commercial Energy in kgOE

in 2004

Per Capita GNI in US$ in 2004

• Per Capita Commercial Energy Consumption of Bangladesh

is Very Low. Due to Dependence on Non-commercial Energy
the Position of Bangladesh is Off the Correlation Curve.
• Increase in Per Capita Commercial Energy Consumption is
Necessary to Increase Per Capita GNI.
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Energy Situation in Bangladesh
Primary Energy Supply of Bangladesh in 2005
(Dependency on Indigenous & Imported Energy Sources)

Total=31.78MTOE [Per Capita=226kgOE]

Renewable Energy (Biomass & Hydro) = 53.7%
Non-Renewable Energy (NG, Oil, Coal) = 46.3%
Oil
12%
Coal
5%
BF
NG 53%
30%
Hydro
0%
Indigenous Energy (Biomass, Hydro, NG) =83.5%
Imported Energy (Coal, Oil) =16.5%
Approximate Cost of Imported Energy=$1.8 billion 6
 Energy Situation in Bangladesh
Primary Commercial Energy Supply of Bangladesh in 2005
(Dependency on Indigenous & Imported Energy Sources)

(Total=14.78MTOE) [Per Capita=105.2kgOE]

Coal
10%

Oil
26%
NG
Hydro 64%
0%
Indigenous Commercial Energy (Hydro, NG) =64.6%
Imported Commercial Energy (Coal & Oil) =35.4%
Approximate Cost of Imported Energy =$1.8 billion
Cost saved due to use of indigenous energy =$3.28billion
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 The Framework of National Energy Policy
ECONOMIC (GDP) GROWTH

PROJECTED ENERGY DEMAND (Domestic,

Agriculture, Industry, Commercial, Transport, Power)

ENERGY
CONSERVATION
Energy Demand=Energy Supplies(Energy Security) Energy Demand > Energy Supplies (Energy Crisis)

ENERGY
BALANCE

ENERGY SUPPLIES

INDIGENOUS ENERGY IMPORTED ENERGY

SOURCES (Tree, Coal, Oil, NG, SOURCES (Coal, Oil)
Hydro, Other RE)

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Objectives of National Energy Policy of
Bangladesh (1996)

 Energy For Sustainable Economic Growth

[Development of Energy Infrastructure].
 Energy Needs of Different Zones & Socio-
Economic Groups [Development of Energy
Infrastructure].
 Optimum Development of Indigenous Energy
Sources [Increase Indigenous Energy Supply]
 Sustainable Operation of Energy Utilities
[Institutional & Policy Reforms].
 Rational Use of Energy Sources [Energy
Conservation and Efficient Use].
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Objectives of National Energy Policy of
Bangladesh (1996/2004)
 Environmentally Sound Energy Development [Protection &
Improvement of Environment].
 Public & Private Sector Participation [Implementation Strategies].

(Additional Objectives Included in Draft NEP of 2004)

• Electricity to all by 2020 [Development of Power Infrastructures]
• Rational Energy Tariff [Policy Reform]
• Regional Energy Market [Policy Reform & Infrastructure
Development]
 Ultimate Objective of NEP is to Ensure Energy Security on a
Continuing Basis with Due Attention to Environmental
Sustainability.
 Indigenous Energy Resources Provide Best Energy Security.

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Management (Governance) of Energy Sector
 Dynamic National Energy Policy According to Framework.
 Sustainable Energy Security:
• Dynamic Action Programs for Medium & Long-Term Energy
Security are Required.
• Supervisory Control & Data Acquisition (SCADA) Installed for
Monitoring Short-Term (daily, yearly) Energy Security of Gas (at
Ashuganj) & Power (within DPDC office next to Secretariat).
 Environmental Dimensions of Energy Security
 Rational Tariffs for Sustainable Operation of Energy Utilities &
Development of Energy Sector.
 Improvements in Energy (primary energy & power) Efficiency.
 Balanced Development of Energy Supply Chains (exploration,
production, transmission, distribution).
 Balanced Development of Electricity Supply Chain (generation,
transmission, distribution).
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Environmental Dimensions of Energy Security

 As per Environment Conservation Act & Rules it is mandatory to

undertake EIA & prepare EMP for all the development projects of
energy sector through out the fuel cycles & for the lifecycle of the
projects.
 Some examples of energy security and environment are presented
below.
o Energy Security & Localized Environmental Degradation
 Deforestation and Degradation of Soil.
 Negative Impacts Karnaphuly Hydropower Project.
 Negative Impacts Coal Mining Projects in Coal Zone.
• Energy Security & Dispersed Environmental Problems.
 Mitigation of Indoor Air Pollution.
 Reduction of Emission of Green House Gases.
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Energy Use & Climate Change
• According to IPCC Increase in Global Mean Surface
Temperature of Earth by 1.5 to 6 degree centigrade between
1990 & 2100. Which will cause rise of Sea Level. IPCC is
Awarded Nobel Peace Prize in 2007 with Algore.
• Kyoto Protocol 1997: Binding Commitments for Industrialized
Countries to Reduce their GHG Emission 5% below 1990 Level
by the First Commitment Period (2008-2012).
• Follow up Actions of Bali Conference (held in Dec. 2007) to
Reach Agreement for Post-2012 period by 2009.
• COP 15 Meeting held at Copenhagen in December 2009
without any decision.
• Next Meeting to be held in Mexico in 2010.
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Carbon Dioxide Emissions for Different Countries
1990 (Kyoto) 1998 2000 2002
Description Ton/Capita Ton/Capita Ton/Capita Ton/Capita
Bangladesh 0.1 0.19 0.2 0.3
China 2.1 2.5 2.2 2.7
India 0.8 1.1 1.1 1.2
Nepal 0.13 0.1 0.2
Pakistan 0.6 0.74 0.8 0.7
Sri Lanka 0.2 0.43 0.6 0.5
USA 19.3 20.2 19.8 20.2
Low Income 0.7 0.69 0.8 0.8
Countries
Middle Income 2.7 5.9 3.2 3.3
Countries
High Income 11.9 13.1 12.4 12.8
Countries
World 3.3 3.87 3.8 3.9

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Sustainable Development of Biomassfuels
 Biomassfuels (traditional renewable energy resources) supply about 50%
of total primary energy need of the country, mostly consumed in rural
areas & in some urban areas. In future the share of biomassfuels in total
energy supply will gradually decrease due to increasing use of
commercial fuels.
 Tree plantation programs undertaken & promoted by the Department of
Forest are insufficient to maintain regenerative supply of biomassfuels.
Simultaneous attentions are to be given by the energy planners to
undertake energy efficient projects & substitution measures to reduce
their demand.
 Renewable supply of biomassfuels will able to meet a part of total energy
need.
 Benefit of sequestration of carbon dioxide gas due to tree plantation is
shared along with the global population & other economic benefits from
trees are enjoyed by the local community & respective owners.
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Sustainable Development of Renewable Energy

 Infrastructure Development Company Limited (IDCOL) has implemented

successful program for the promotion of solar PV with participation of
Grameen Shakti, BRAC Foundation, Shrijoni Bangladesh, TMSS, Coast
Trust and Some other NGOs working at the field level. IDCOL have also
undertaken a project on promotion of biogas technology at household level.
 Establish 0.4 million solar home system in rural areas with capacity of
11MW.
 IFRD, of BCSIR implemented projects on promotion of biogas technology &
improved stoves on intermittent basis.

 Sustainable Energy Development Agency (SEDA) should be established

for Promotion of Renewable Energy Development & Efficient Energy Use
Programs. The process of establishing SEDA has bee continuing for last 14
years.

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Continuing Assessment of Import & Export of Energy
 Energy Import (Reduce energy import bill)
• Petroleum Import will Increase;
• Reduce Petroleum Import by promoting CNG in Transport.
• Coal Import will Decrease with the Increase of Local Coal Production.
• PGCB has signed agreement with Indian Power Grid Company Ltd. for import of
250MW electricity from India tentatively from July 2012.
• Low Prospect of Import of Electricity from (Bhutan, Nepal). Because of India’s Need
for Electricity.
• Possibility of Gas Import (if new gas not discovered) via pipeline and/or as LNG
should be considered seriously.
 Energy Export would Affect Energy Security (provision of gas export from offshore
areas).
• Increase local use of Coal; No Coal Export.
• Develop Capacity to Purchase IOC’s Share of Gas through Tariff Rationalization.
• Phasing of Coal Development & IOC’s Exploration Corresponding to Local Demand
of Coal & Gas to Avoid Export Pressure.
 Bill submitted in the Parliament to ban export of energy for next 50 years should be
enacted to ensure energy security

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Sustainable Human Resources Development (HRD)

 At entry level competent professionals should be

Recruited on a regular basis.
 Training Program for Energy Managers Should be
Developed & Implemented on a Continuing Basis to
Improve the Capability of the Professionals Working at
Lower, Medium & Higher Levels of Management of
Different Energy Organizations.

MNI-BPATC-SSC52 Energy-10 18
Sustainable Human Resources Development (HRD)

 Considering the complex & technical nature of different factors

affecting the decision making process in energy sector, Special
Workshops & Seminars on different aspects of National Energy
Policy should be organized periodically for the Policy Planners
and Decision Makers of Energy Sector & other related sectors.

 Lack of National Capability in Handling FDI Project Proposals.

Necessary Institutional Arrangements should made to Develop
Capabilities to Assess FDI Projects.

 Separate Budget Allocation should be Made for HRD for

Energy Management.

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The Way Forward
 Bangladesh located in the most energy deficit region (Asia
Pacific) of the World. Should try to meet long-term energy
security based on indigenous energy sources (Natural Gas &
Coal).

 The country has adequate reserves of Natural gas and coal to

ensure long-term energy security, provided coal & gas are not
exported & developed in synchronization with demand.

 Political consensus required for- long-term (50 Yrs) energy

security, rational energy pricing and institutional reforms.

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The Way Forward
 Prepare Dynamic & Integrated National Energy Policy.
 Enact Law to Ban Export of Energy (Natural gas & Coal).
 One Minister should be responsible for MOPEMR.
 Change the Name of the Ministry from “Ministry of Power Energy & Mineral
Resources” to “Ministry of Energy & Power”.
 Reduce Corruption on Priority Basis (Ensure Good Governance).
 Demand Management of Power in a Planned Manner.
 Give Subsidy for Fuel used in Irrigation.
 Establish NAPEX by Merger of BAPEX, BGFCL, SGFL.
 Establishment of NAPEX will be more Beneficial than forming Joint Venture
Agreement with the IOCs (BAPEX-NIKO JVA).
 Activate the PSCs of Second Round of Bidding.
 Optimum Development of all Indigenous Energy Resources Including RE.

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The Way Forward
 Give Priority Attention to Repair & Maintenance Projects.
 Consider Development of Nuclear Power Under Long Term Perspective.
 Sustainable Development of Energy Supply Chain.
 Sustainable Development of Electricity Supply Chain.
 Rational Tariffs for Energy .
 Special Projects to Supply Energy in Energy Deprived Areas (gas supply
to Rajshahi & Khulna Divisions).
 Special Projects to Supply Energy for the Poor.
 Encourage Public-Private Participation for Energy Sector Development.
 Capacity Development through Training (governance issues have become
knowledge intensive).
 Strategies for Energy Import.
 Strategies for Electricity Import.
 Ensure Environmental Sustainability.
 Continue Institutional Reforms to Improve Management Efficiency.

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