25-year masterplan prioritises sea gas extraction

The Ministry of Power, Energy and Mineral Resources has submitted a long-term master plan for the power and energy sector for the 2026-2050 period to Chief Advisor Muhammad Yunus.

The core objective of the plan is to ensure a reliable, affordable and sustainable supply of primary energy and electricity for all citizens through the optimal use of domestic resources, enhaced energy security, improved efficiency and environmental responsibility.

As part of the plan, a number of “first-track priority” initiatives are proposed for 2026-2030, including an offshore exploration round, increased gas production, ensuring LNG supply security, expanding refining capacity and strengthening strategic fuel storage facilities.

Long-term strategic projects outlined in the plan include offshore gas development, large-scale expansion of refining and petrochemical industries, development of hydrogen and ammonia infrastructure, geothermal energy, and tidal and ocean wave-based power generation.

A meeting on the 25-year master plan was held on Wednesday afternoon at the State Guest House Jamuna, chaired by Yunus.

Details of the discussions were shared later in a media statement issued by the Chief Advisor’s Office.

According to the statement, Yunus directed the formation of a separate and independent institution dedicated to research on power and energy.

“There must be a separate research and development institute. It cannot be under the ministry. It has to be an independent and strong institution that maintains links with all relevant organisations around the world and supports the government in policy formulation,” he said.

Describing past initiatives as “fragmented”, he said planning must begin from scratch.

“Just because something has been done in a particular way in the past does not mean we have to follow the same path.”

“A lot of things have been done in the wrong locations and with the wrong structures. This must not happen again. We have to ensure a proper framework and rules. That is why a research centre is essential,” he added.

During the meeting, the “policy gaps” of the previous three master plans were identified and briefly reviewed.

The new master plan is proposed to be implemented in three phases: the first phase from 2026 to 2030, the second from 2030 to 2040, and the third from 2040 to 2050.

Thanking officials for presenting the detailed components of the power and energy sector, the Chief Advisor said: “This is the lifeline of Bangladesh’s economy. If this sector is strong, the economy will stand on its feet. It affects the lives of every citizen.”

The statement said the master plan demonstrates how increased efficiency and the use of clean energy can reduce climate impacts even amid rapid economic growth, while also creating new economic opportunities.

Projections show that electricity demand will rise from 17 gigawatts to 59 gigawatts by 2050, potentially creating environmental and social pressures.

With the adoption of cleaner and more efficient technologies, carbon emissions per unit of electricity generation are expected to fall from 0.62 tonnes to 0.35 tonnes of carbon dioxide per megawatt-hour.

Through climate-focused initiatives, annual carbon dioxide emissions could be reduced by 64.5 million tonnes by 2050, amounting to a cumulative reduction of 1,600 million tonnes.

The statement also noted that several reforms under the master plan have already been implemented, including the repeal of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, and the adoption of the Merchant Power Policy 2025, Renewable Energy Policy 2025, Rooftop Solar Programme 2025 and Net Metering Guidelines 2025.

Recommendations were presented at the meeting on power generation, transmission and distribution, as well as environmental and economic sustainability and institutional reforms.

The target is to make the primary energy sector more secure, efficient, less import-dependent and financially sustainable by 2050.

According to the master plan, investments of between $70-85 billion will be required in the energy sector, while the power sector will need $107.25 billion during the 2026-2050 period.