Govt Unveils 25-Year Power and Energy Master Plan

The government has unveiled a new 25-year power and energy master plan, covering the period from 2026 to 2050, with an estimated investment requirement of $177 billion to $192 billion.

Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan presented the plan to Chief Adviser Prof Muhammad Yunus at the State House Jamuna, in the presence of advisers and senior officials.

During the meeting, policy gaps in the previous master plans prepared in 2005, 2010 and revised in 2016 were reviewed. Officials noted that earlier plans suffered from fragmented implementation and structural weaknesses.

The new plan projects peak electricity demand of 59,000 megawatts (MW) by 2050, significantly lower than the 70,500 MW forecast in the 2023 plan. Current peak demand stands at around 16,700 MW.

The 2023 integrated power and energy master plan had faced criticism from local experts for overestimating demand and relying on costly fuel sources, prompting calls for a revised approach following the formation of the interim government.

According to officials, the updated plan aims to ensure reliable, affordable and sustainable energy through optimal use of domestic resources, improved efficiency, energy security and environmental responsibility.

The plan places strong emphasis on clean and efficient technologies, aiming to cut carbon dioxide emissions per megawatt-hour from 0.62 to 0.35 tonnes. This could reduce emissions by about 64.5 million tonnes annually and nearly 1.6 billion tonnes by 2050.

Implementation will take place in three phases—2026–2030, 2030–2040 and 2040–2050. Priority projects in the first phase include offshore energy exploration, increased gas production, LNG supply security, refinery expansion and strategic energy storage.

Long-term initiatives include offshore gas development, large-scale refining and petrochemical projects, hydrogen and ammonia infrastructure, geothermal energy, and tidal and ocean wave power.

Prof Yunus described the power and energy sector as the lifeline of the economy and stressed the need for a separate, autonomous research and development institute to support policy formulation and ensure disciplined planning.

He also highlighted the importance of alternative energy sources, noting that past projects often suffered from poor planning and location choices, mistakes he said must not be repeated.

Officials said the master plan includes wide-ranging recommendations on power generation, transmission, distribution, environmental protection and institutional reform to build a secure, efficient and financially sustainable energy sector by 2050.