CPD urges to halt draft over fossil fuel risks

Business Report :

The Centre for Policy Dialogue (CPD) yesterday called on the interim government to immediately suspend the formulation of the Energy and Power Sector Master Plan (EPSMP), warning that the draft represents a backward shift in policy and is driven more by bureaucratic dominance and vested interests than by Bangladesh’s long-term economic and energy needs.

CPD also assessed that the draft could lock Bangladesh into costly and carbon-intensive fossil fuel infrastructure for decades.

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

He said the draft is fundamentally flawed and non-participatory, with renewable energy failing to emerge as a core priority. Instead, domestic coal is being promoted under the guise of “resource optimisation,” raising concerns about future carbon lock-in.

Moazzem also questioned the rationale behind planning for nearly 60,000 megawatts (MW) of electricity capacity, asking who would ultimately consume such a volume of power.

CPD’s analysis suggests that roughly half of the proposed capacity would be sufficient to meet demand by 2040, given Bangladesh’s expected shift towards service-oriented, labour-intensive industries with relatively low 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 in relation to the expansion of liquefied natural gas (LNG) infrastructure.
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 the draft largely overlooks.
Referring to upcoming economic and trade agreements with Japan and the United States, Moazzem said there are strong 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 upgradation.
She noted that smart grid implementation has been pushed back to 2040, even though the existing grid cannot accommodate more than 20 per cent variable renewable energy.
She also criticised the plan’s renewed tilt towards fossil fuels, especially coal and LNG. The draft proposes expanding coal-based power generation capacity from 6.8 gigawatts to 12.9 gigawatts and prioritises new LNG terminals alongside 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 expansion in favour of renewable energy.
CPD recommended scrapping all 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.