Formulation of investment strategies for sustainable development of energy & power sector of Bangladesh

Abstract

Appropriate investment strategies have to be evolved for maintaining sustainable supply of energy and power to ensure economic development. Energy and Power Sector investment in Five Year Plans, Master Plans and their allocations in Revised Annul Development Programs (RADPs) of Bangladesh have been studied from 1991 to 2010. It has been observed that energy and power are considered as two separate sub-sectors in investment plans, while allocation and distribution of investment among different segments of energy (e.g. exploration & production, transportation & distribution) and power (e.g. generation, transmission & distribution) supply chains are adhoc and inconsistent. As a result, development of energy and power supply chains was affected and did not take place in a synchronized and balanced manner. Finally, it could not reach the development needs. Lack of appropriate institution(s) for energy and power sector planning has been identified as the major impediment for adhoc investment decisions. In order to rationalize the energy and power sector investment strategy, it is suggested that instead of existing practices of sub-sectoral planning (e.g. gas, power etc.), an Integrated Energy and Power Sector Master Plan consisting of all primary energy resources and power should be prepared by an independent institute to ensure synchronized and balanced development of different segments of energy and power supply chain.