CPD urges govt to halt energy master plan draft over fossil fuel risks

The Centre for Policy Dialogue (CPD) on Wednesday urged the interim government to immediately suspend work on the Energy and Power Sector Master Plan (EPSMP), warning that the draft could lock Bangladesh into costly, carbon-intensive fossil fuel infrastructure for decades.

At a media briefing in Dhaka, CPD Research Director Khondaker Golam Moazzem said the proposed plan represents a backward shift in energy policy, driven more by bureaucratic dominance and vested interests than by the country’s long-term economic and energy needs.

He described the draft as fundamentally flawed and non-participatory, with renewable energy failing to emerge as a core priority. Instead, domestic coal is being promoted under the banner of “resource optimisation”, raising the risk of long-term carbon lock-in.

Moazzem also questioned the rationale for planning nearly 60,000 megawatts (MW) of power capacity, asking who would consume such a volume of electricity. CPD’s analysis suggests that about half of the pro-posed capacity would be sufficient to meet demand by 2040, given Bangladesh’s expected shift towards service-oriented, labour-intensive industries with lower energy intensity.

“Overestimating demand will only deepen excess capacity and intensify financial stress in the power sector,” he warned.

CPD said the entire EPSMP process should be halted and deferred until after national elections, allowing an elected government to undertake a fresh, transparent and inclusive planning exercise.

The think tank also argued that the draft reflects pressure from foreign partners and entrenched domestic energy lobbies, particularly over the expansion of liquefied natural gas (LNG) infrastructure. Referring to up-coming economic and trade agreements with Japan and the United States, Moazzem said there are indications that energy-related commitments have influenced the master plan.

Presenting the keynote paper, CPD Senior Research Associate Helen Mashiyat Preoty said the draft gives inadequate attention to grid up-gradation. She noted that smart grid implementation has been pushed back to 2040, even though the existing grid cannot accommodate more than 20% variable renewable energy.

She further criticised the renewed tilt towards fossil fuels, especially coal and LNG. The draft proposes expanding coal-based power capacity from 6.8 gigawatts to 12.9 gigawatts and prioritises new LNG terminals, along with additional floating storage and regasification units.

“These are high-cost investments that undermine long-term energy security,” Preoty said, urging policymakers to abandon coal and LNG ex-pansion in favour of renewable energy.

CPD recommended scrapping plans for new coal-fired power plants, initiating a time-bound phase-out of existing coal capacity, halting new LNG terminal projects, and redirecting investment towards domestic gas exploration.

The organisation also called for redefining renewable energy policy to focus on proven sources such as solar and wind, prioritising high-potential regions including Chattogram, and integrating regional renewable energy trade—particularly cross-border imports from Nepal and Bhutan—areas largely overlooked in the draft.