The Energy Crisis in Bangladesh: Challenges, Impacts, and Pathways to Sustainable Solutions

Bangladesh, a rapidly developing nation in South Asia, faces a critical energy crisis that threatens its economic growth and social progress. Despite achieving 100% electrification in 2022, the country grapples with frequent power outages, an overdependence on fossil fuels, and a struggling energy infrastructure. 

This crisis stems from a combination of factors, including depleting domestic gas reserves, insufficient investment in alternative energy sources, and the challenges of meeting the growing energy demands of a burgeoning population and industrializing economy.

This paper examines the multifaceted nature of Bangladesh’s energy crisis, exploring its root causes, wide-ranging impacts on the economy and society, and the government’s efforts to address these challenges. It also evaluates potential solutions and future prospects, including the diversification of energy sources, renewable energy development, and regional cooperation. 

Bangladesh’s energy sector has undergone significant transformation over the past decade:

• Electricity access increased from 47% in 2009 to 100% in 2022
• Installed generation capacity grew from 5,272 MW in 2009 to 25,700 MW in 2022

Current energy mix (as of 2022):

Energy SourcePercentage

Natural gas49%

Oil27%

Biomass15%

Coal7%

Renewables2.8%

Key characteristics of Bangladesh’s energy sector:

• Heavy reliance on fossil fuels, especially imported fuels
  • 92% of petroleum products are imported
  • 26% of natural gas is imported as LNG
• Rapid growth in electricity demand due to economic development and population growth
• Challenges in transitioning to renewable energy sources

Key institutions governing the energy sector:

• Ministry of Power, Energy and Mineral Resources
• Bangladesh Power Development Board
• Power Grid Company of Bangladesh

Definition of energy crisis

An energy crisis can be defined as:

1. A significant bottleneck or shortage in the supply of energy resources to an economy
2. A situation where the demand for energy exceeds the available supply
3. A period of energy shortage accompanied by rapidly increasing energy prices

Key characteristics of an energy crisis include:

• Supply constraints
• Price volatility
• Economic disruption
• Increased focus on energy security and alternative sources

Thesis statement on the current energy crisis in Bangladesh

Despite achieving 100% electrification, Bangladesh is facing a severe energy crisis characterized by:

1. Supply shortages leading to frequent power outages and load shedding
2. Heavy dependence on imported fossil fuels exposing the country to global price volatility
3. Financial strain on the power sector due to subsidies and payment arrears
4. Challenges in transitioning to more sustainable and secure energy sources

This crisis threatens Bangladesh’s economic growth, industrial productivity, and development goals, necessitating urgent policy interventions and a shift towards a more diversified and resilient energy system.

Key statistics highlighting the crisis:

• Power generation capacity: 25,700 MW (as of 2022)
• Peak demand: 15,648 MW (recorded on April 19, 2023)
• Surplus capacity: Approximately 50% in summer, expected to reach 70% in winter
• Outstanding payments to private power producers: $3.5 billion (as of September 2023)
• Renewable energy share: Only 4.5% of total installed capacity (1,183 MW as of June 2023)

This introduction sets the stage for a comprehensive analysis of Bangladesh’s energy crisis, its causes, impacts, and potential solutions.

Current Energy Scenario in Bangladesh

Energy mix and primary sources

Bangladesh’s energy sector is heavily reliant on fossil fuels, with a small but growing share of renewable energy sources. The current energy mix is as follows:

1. Natural gas: 49%
2. Oil: 27%
3. Biomass: 15%
4. Coal: 7%
5. Renewable energy: 2.8%

Natural gas remains the dominant energy source, accounting for nearly half of the country’s total energy supply. However, Bangladesh is facing challenges with its domestic gas reserves, which are rapidly depleting. As a result, the country has been increasingly relying on imported liquefied natural gas (LNG) to meet its energy needs. Currently, about 26% of the natural gas used in Bangladesh is imported as LNG.

Oil is the second-largest contributor to the energy mix, with 92% of petroleum products being imported. This heavy reliance on imported fossil fuels exposes Bangladesh to global price volatility and energy security risks.

Biomass, primarily in the form of agricultural waste and wood, continues to play a significant role in the energy mix, especially in rural areas. However, the use of biomass for cooking and heating raises concerns about indoor air pollution and deforestation.

Coal currently accounts for a relatively small portion of the energy mix, but its share is expected to increase in the coming years as new coal-fired power plants come online. This shift towards coal has been controversial due to environmental concerns and the country’s climate commitments.

Renewable energy sources, while still a small part of the overall mix, are growing. The government has set ambitious targets for renewable energy adoption, aiming to generate 40% of electricity from clean energy sources by 2041. Solar power is the dominant renewable energy source in Bangladesh, with some potential for wind energy development, particularly in coastal areas.

Electricity generation capacity and demand

Bangladesh has made significant progress in expanding its electricity generation capacity over the past decade. As of 2023, the country’s total installed electricity generation capacity, including both grid-connected and off-grid sources, stands at 30,700 MW. This represents a substantial increase from 5,272 MW in 2009.

The breakdown of electricity generation capacity is as follows:

1. Grid-connected capacity: 25,951 MW
2. Off-grid capacity (mainly captive power): 4,760 MW

The electricity generation mix in Bangladesh is dominated by fossil fuels:

1. Natural gas: 43%
2. Furnace oil: 24%
3. Coal: 17%
4. Imported electricity: 10%
5. Diesel: 3%
6. Hydro: 1%
7. Solar: 2%

Despite the significant increase in generation capacity, Bangladesh still faces challenges in meeting its growing electricity demand. The current peak demand is around 15,648 MW (recorded in April 2023), with projections suggesting it could reach 17,800 MW by 2024.

One of the most pressing issues in Bangladesh’s electricity sector is the significant surplus capacity. During periods of low demand, particularly in winter, up to 70% of the installed capacity may remain idle. This overcapacity situation has led to substantial financial burdens for the government in the form of capacity payments to independent power producers (IPPs).

The Bangladesh Power Development Board (BPDB) is struggling with mounting debts, with outstanding payments to private power producers reaching $3.5 billion as of September 2023. This financial strain is exacerbated by the country’s ongoing foreign currency shortage, making it difficult to pay for imported fuels and settle debts with IPPs.

Despite the surplus capacity, Bangladesh still experiences frequent power outages and load shedding due to fuel shortages, distribution issues, and system inefficiencies. The country’s power system suffers from high transmission and distribution losses, estimated at around 8.10% of total generation.

Per capita energy consumption

Bangladesh’s per capita energy consumption remains relatively low compared to global averages and other developing countries in the region. This low consumption level is indicative of the country’s energy poverty and the challenges it faces in providing reliable and affordable energy to its population.

Key statistics on per capita energy consumption in Bangladesh:

1. Total energy consumption: 0.29 tonnes of oil equivalent (toe) per capita
2. Electricity consumption: 570 kWh per capita (as of 2022)
3. Total electricity consumption: 76.85 billion kWh (2022)

To put these figures into perspective, the global average per capita electricity consumption is around 3,204 kWh per year, more than five times higher than Bangladesh’s consumption.

The energy consumption growth rate in Bangladesh has been approximately 3% per year between 2016 and 2022, which is about half the rate of GDP growth during the same period. This suggests that energy consumption is not keeping pace with economic development, potentially constraining further growth.

Sector-wise electricity consumption in Bangladesh is distributed as follows:

1. Residential: 56.42%
2. Industrial: 28.40%
3. Commercial and public sector: 12.74%
4. Agriculture: 2.43%

The high share of residential consumption reflects the country’s focus on rural electrification and improving access to electricity for households. However, the relatively low industrial consumption share indicates potential for growth in this sector, which could drive increased energy demand in the future.

Bangladesh has made significant strides in expanding electricity access, achieving nearly 100% electrification in 2022. However, the quality and reliability of this access remain challenges, with frequent power outages and voltage fluctuations affecting both residential and industrial consumers.

Moreover, while electricity access has improved, access to clean cooking fuels remains a significant issue. As of 2022, approximately 77% of the population did not have access to clean fuels for cooking, relying instead on biomass and other traditional fuels. This situation contributes to indoor air pollution and associated health problems, particularly in rural areas.

The low per capita energy consumption in Bangladesh presents both challenges and opportunities. On one hand, it reflects the country’s energy poverty and the need for significant investments in energy infrastructure and supply. On the other hand, it indicates substantial potential for growth in energy demand as the economy continues to develop and living standards improve.

Causes of the Energy Crisis

Overdependence on natural gas

Bangladesh has relied heavily on natural gas as its primary energy source for decades:

• Natural gas accounts for 49% of the country’s total energy mix
• 67% of Bangladesh’s energy supply comes from natural gas
• 43% of electricity generation is fueled by natural gas
• Key industries like fertilizer production and manufacturing are highly dependent on gas

This overreliance has left Bangladesh vulnerable as domestic gas reserves deplete. The country lacks a diversified energy portfolio to compensate for declining gas production.

Depletion of domestic gas reserves

Bangladesh’s natural gas reserves are rapidly diminishing:

• Remaining proven gas reserves are estimated at only 10-11 trillion cubic feet (Tcf)
• At current consumption rates of about 1 Tcf per year, reserves may be depleted within 10 years
• Production from existing gas fields is declining steadily since peaking in 2016
• No major new gas fields have been discovered in the last two decades
• Offshore exploration efforts have been limited and unsuccessful so far

The depletion of domestic reserves has forced Bangladesh to increase expensive LNG imports to meet demand.

Insufficient investment in alternative energy sources

Bangladesh has made limited progress in developing alternative energy sources:

• Renewable energy accounts for only 2.8% of the total energy mix
• Solar power contributes just 2% of electricity generation
• Wind power potential remains largely untapped despite studies showing significant capacity
• Coal power development has been slow and controversial
• Nuclear power plans face delays and financing challenges

Lack of investment in diversifying the energy mix has left Bangladesh overly reliant on gas and vulnerable to shortages.

Rapid industrialization and urbanization

Bangladesh’s fast-growing economy has dramatically increased energy demand:

• GDP growth has averaged over 6% annually for the past decade
• The industrial sector now accounts for 28.4% of electricity consumption
• Urbanization is increasing at 3% per year, driving up residential energy use
• Electricity access has expanded from 47% in 2009 to nearly 100% in 2022
• Per capita electricity consumption, while still low, is rising rapidly

Energy infrastructure and production have struggled to keep pace with surging demand from economic development.

Global energy market volatility

As a net energy importer, Bangladesh is exposed to international market fluctuations:

• LNG import prices have been highly volatile, spiking during the global energy crisis
• Bangladesh pays up to 24 times more for imported LNG compared to domestic gas production
• Foreign currency shortages have hampered fuel imports and power generation
• Geopolitical events like the Russia-Ukraine war have disrupted global energy markets
• OPEC+ production cuts have driven up oil prices, affecting Bangladesh’s energy costs

Reliance on energy imports leaves Bangladesh vulnerable to external shocks and price volatility in global markets.

These interrelated factors have combined to create a severe and persistent energy crisis in Bangladesh, necessitating urgent policy interventions and a shift towards a more diversified, sustainable energy system.

Impacts of the Energy Crisis

Economic Impacts

1. Industrial Production Slowdown:

• The energy crisis has severely affected industrial production, particularly in energy-intensive sectors.
• The Ready-Made Garments (RMG) industry, which accounts for 84% of Bangladesh’s exports, has seen a 50% drop in production over the last year.
• Other affected industries include textiles, leather, ceramics, metal, and steel.
• Small and medium enterprises (SMEs) are disproportionately affected as they often lack backup power systems.
• Tanneries report damage to 1,000 to 2,000 pieces or 40,000-45,000 square feet of leather during a single load shedding event.

1. Effects on GDP Growth:

• The energy crisis threatens Bangladesh’s status as one of the fastest-growing economies in the region.
• Power shortages and increased production costs are likely to slow down economic growth.
• The industrial sector, which accounts for 28.4% of electricity consumption, is particularly vulnerable.
• Reduced industrial output and exports could significantly impact GDP growth rates.

1. Foreign Exchange Reserve Depletion:

• Bangladesh’s foreign currency reserves are being rapidly depleted due to high energy import costs.
• The country needs approximately $13 billion for fuel imports in FY2023-24.
• Reduced exports, particularly from the RMG sector, are further straining foreign exchange reserves.
• This depletion is creating a vicious cycle, making it harder to import the necessary fuel and exacerbating the energy crisis.

Social Impacts

1. Load Shedding and Power Outages:

• Daily power cuts lasting several hours have become common across the country.
• Some areas experience power outages every alternate hour.
• At least 21 neighborhoods in Dhaka face more severe and frequent load shedding.
• The national grid can only supply 14,000-14,500 MW against a demand of 15,500-16,000 MW daily.

1. Effects on Daily Life and Public Services:

• Education: Schools and universities are severely affected, with some halting classes or reverting to online learning.
• Healthcare: Hospitals and clinics face challenges in providing continuous care.
• Transportation: Increased fuel costs have led to higher transportation expenses.
• Food Security: Gas shortages affect cooking and food preparation, especially for low-income families.
• Work and Productivity: Both formal and informal sectors face reduced working hours and productivity.
• Quality of Life: High temperatures (38-41°C) combined with power outages are causing significant discomfort and health risks.

Environmental Impacts

• Increased reliance on fossil fuels: As Bangladesh struggles to meet energy demand, there’s a risk of increased dependence on coal and oil-based power generation.
• Delayed transition to renewables: The crisis may slow down investments in renewable energy sources, hindering Bangladesh’s climate goals.
• Air pollution: Greater use of diesel generators and other backup power sources contributes to air pollution in urban areas.
• Water pollution: Some industries may cut corners on environmental safeguards to reduce costs, potentially leading to increased water pollution.
• Climate change vulnerability: The energy crisis may divert resources from climate adaptation efforts, leaving Bangladesh more vulnerable to climate impacts.

Government Policies and Initiatives

Power System Master Plan (PSMP)

The Power System Master Plan (PSMP) 2016 is a key policy document guiding Bangladesh’s energy sector development:

• It outlines strategies for power generation, transmission, and distribution until 2041
• The plan aims to diversify the country’s energy mix and reduce dependence on natural gas
• PSMP 2016 is being updated to the Integrated Power and Energy Master Plan (IEPMP)
• The new IEPMP emphasizes renewable energy and aims to align with Bangladesh’s clean energy targets

Key features of the IEPMP:

• Focus on energy efficiency and conservation
• Promotion of renewable energy sources
• Consideration of environmental impacts and climate change
• Integration of power and energy sector planning

Renewable Energy Targets

Bangladesh has set ambitious renewable energy targets to address its energy crisis and meet climate goals:

• 40% of power generation from clean energy sources by 2041
• Short-term target: 15% of electricity from renewables by 2030
• Long-term vision: 100% renewable energy by 2050

Current status and challenges:

• Renewable energy currently accounts for only 2.8% of the energy mix
• The country is far from achieving its clean energy goals
• Lack of investment and infrastructure are major hurdles

Strategies to achieve targets:

• Emphasis on solar power development
• Exploration of wind energy potential
• Promotion of biomass and waste-to-energy projects

LNG Import Strategy

To address the shortfall in domestic gas production, Bangladesh has adopted an LNG import strategy:

• Construction of floating storage and regasification units (FSRUs)
• Plans for land-based LNG terminals
• Long-term supply agreements with Qatar and Oman

Challenges:

• High costs of LNG imports compared to domestic gas production
• Volatility in global LNG prices affecting Bangladesh’s energy security
• Foreign exchange reserve depletion due to high import costs

Future outlook:

• Bangladesh may not benefit significantly from global LNG oversupply due to infrastructure limitations
• Focus on industrial energy efficiency to curb short-term LNG demand growth

Regional Power Trade Agreements

Bangladesh is actively pursuing regional power trade agreements to enhance energy security:

• Trilateral power trade deal with India and Nepal
• This agreement allows Bangladesh to import hydropower from Nepal via Indian transmission lines
• Potential to import up to 500 MW of electricity from Nepal

Benefits of regional cooperation:

• Diversification of energy sources
• Access to cheaper and cleaner hydropower
• Enhanced energy security through interconnected grids

Challenges:

• Need for significant infrastructure development
• Political and regulatory hurdles in cross-border energy trade
• Balancing national interests with regional cooperation

These government policies and initiatives demonstrate Bangladesh’s efforts to address its energy crisis through diversification, renewable energy adoption, and regional cooperation. However, successful implementation remains a challenge, requiring sustained commitment, investment, and international support.

Challenges in Addressing the Crisis

Financial constraints

1. Limited foreign exchange reserves:

• Bangladesh is struggling to import sufficient fuel due to depleting foreign currency reserves.
• The country needs approximately $13 billion for fuel imports in FY2023-24.
• Reduced exports, particularly from the Ready-Made Garments sector, are further straining foreign exchange reserves.

1. Mounting debt and subsidy burden:

• The Power Development Board (PDB) is facing a significant financial crisis.
• Private power plants claim arrears of around Tk 30,000 crore ($3.5 billion) from PDB.
• The government is issuing special bonds to pay for subsidies and arrears in the power sector.

1. High costs of renewable energy projects:

• Implementing the targeted 37.8GW of new renewable energy capacity by 2050 is estimated to cost $37.4 billion.
• Current financing schemes are inadequate, with loan caps too low for utility-scale projects.

Infrastructure limitations

1. Inadequate transmission and distribution systems:

• The power grid in Bangladesh lacks robustness and reliability.
• Frequent power outages and voltage fluctuations are common.
• Limited transmission and distribution capacity restricts power evacuation from renewable energy sources.

1. Land scarcity:

• Bangladesh’s high population density makes it challenging to find suitable land for large-scale renewable energy projects.
• The land acquisition process is complex and time-consuming, delaying project implementation.

1. Dependence on imported technology:

• Most clean energy technologies are imported, requiring significant foreign currency.
• This dependence exacerbates the foreign exchange crisis.

Technological barriers

1. Limited domestic technological capacity:

• Bangladesh lacks sufficient technical expertise in renewable energy technologies.
• There is a shortage of trained engineers, technicians, and managers in the renewable energy sector.

1. Grid integration challenges:

• The existing grid is not well-equipped to handle the variability and intermittency of renewable energy sources.
• This can affect grid stability and power quality.

1. Insufficient research and development:

• There is a need for more R&D activities to improve the efficiency and performance of renewable energy systems.
• Educational institutions do not offer adequate courses and programs on renewable energy technologies.

Environmental concerns

1. Pollution from fossil fuel-based power generation:

• Heavy reliance on coal and oil-based power plants contributes to significant air pollution.
• This leads to adverse health impacts and environmental degradation.

1. Climate change vulnerability:

• Bangladesh is highly susceptible to climate change impacts such as floods, droughts, and sea-level rise.
• The energy crisis may divert resources from climate adaptation efforts.

1. Balancing development and environmental protection:

• There’s a need to balance the country’s energy needs with environmental conservation.
• Rapid industrialization and urbanization are putting pressure on natural resources and ecosystems.

1. Waste management issues:

• The disposal of solar panels and batteries at the end of their lifecycle poses environmental challenges.
• There’s a lack of proper recycling facilities for renewable energy equipment.

Bangladesh needs to focus on diversifying its energy mix, improving infrastructure, developing local technological capacity, and implementing environmentally friendly policies to overcome these hurdles and achieve a sustainable energy future.

Potential Solutions and Future Prospects

Diversification of energy sources

Bangladesh’s energy sector is heavily reliant on natural gas, making diversification crucial for long-term energy security. The country is actively pursuing a more balanced energy mix:

1. Coal: Despite environmental concerns, Bangladesh is developing coal-fired power plants to reduce dependence on gas.
2. Nuclear power: The country is constructing its first nuclear power plant at Rooppur, with a capacity of 2,400 MW.
3. Liquefied Natural Gas (LNG): Bangladesh is increasing LNG imports to supplement declining domestic gas production.
4. Renewable energy: The government aims to generate 40% of electricity from clean energy sources by 2041.

This diversification strategy aims to enhance energy security, reduce vulnerability to supply disruptions, and create a more sustainable energy sector.

Renewable energy development

1. Solar power potential

Bangladesh has significant solar energy potential due to its geographical location:

• The country receives an average of 4-6.5 kWh of solar radiation per square meter daily.
• The government aims to install 40 GW of solar capacity by 2041.
• Current initiatives include:
  a) Solar Home Systems (SHS) program: Over 5 million SHS installed, benefiting 18 million people.
  b) Solar irrigation pumps: Replacing diesel-powered pumps with solar-powered ones.
  c) Rooftop solar: Mandating solar panels on all new buildings.
  d) Utility-scale solar parks: Several large-scale projects are under development.

Challenges include land scarcity, high initial costs, and grid integration issues. However, innovative solutions like floating solar panels on water bodies are being explored.

1. Wind energy prospects

While less developed than solar, wind energy has potential in Bangladesh:

• Coastal areas and offshore locations show promising wind resources.
• The government plans to install 1,000 MW of wind capacity by 2030.
• Current projects include:
  a) A 60 MW wind power plant in Cox’s Bazar.
  b) Feasibility studies for offshore wind farms in the Bay of Bengal.

Challenges include high initial costs, lack of reliable wind data, and potential conflicts with other land uses. More research and investment are needed to fully realize wind energy potential.

Energy efficiency measures

Improving energy efficiency is crucial for Bangladesh to manage its energy demand:

1. Industrial sector:

• Implementing energy management systems in factories.
• Promoting energy-efficient technologies and processes.
• Offering financial incentives for energy-efficient upgrades.

1. Building sector:

• Developing and enforcing energy-efficient building codes.
• Promoting green building practices and certifications.
• Encouraging the use of energy-efficient appliances and lighting.

1. Transportation sector:

• Improving public transportation systems.
• Promoting electric vehicles and developing charging infrastructure.
• Implementing fuel efficiency standards for vehicles.

1. Power generation and distribution:

• Upgrading old power plants to improve efficiency.
• Reducing transmission and distribution losses.
• Implementing smart grid technologies.

The government has set a target to reduce energy intensity by 20% by 2030 compared to the 2013 level. USAID’s Bangladesh Energy Efficiency Project has already helped save over 400 GWh of electricity annually.

Regional energy cooperation

Bangladesh is actively pursuing regional energy cooperation to enhance its energy security:

1. Cross-border electricity trade:

• Importing hydropower from Nepal and Bhutan through India.
• Exploring potential electricity imports from Myanmar.

1. Regional power grid interconnections:

• Bangladesh-India-Nepal-Bhutan (BINB) power grid interconnection project.
• Potential connection to the ASEAN Power Grid.

1. Joint renewable energy projects:

• Collaborating with India on large-scale solar and wind projects.
• Exploring offshore wind potential in the Bay of Bengal with regional partners.

1. Knowledge and technology sharing:

• Participating in regional forums like SAARC Energy Centre.
• Collaborating on research and development of renewable energy technologies.

1. Energy resource sharing:

• LNG terminal sharing agreements with neighboring countries.
• Joint exploration of offshore oil and gas resources.

The South Asia Subregional Economic Cooperation (SASEC) program is playing a crucial role in facilitating regional energy cooperation. These initiatives aim to create a more integrated and resilient energy system in the region.

Conclusion

A. Summary of key findings

1. Bangladesh’s energy sector is heavily reliant on fossil fuels, particularly natural gas, which accounts for 49% of the energy mix.
2. The country faces significant challenges in meeting its growing energy demand due to depleting domestic gas reserves and increasing dependence on imported fuels.
3. Renewable energy adoption remains low at only 2.8% of the total energy mix, despite the country’s potential for solar and wind energy.
4. The energy crisis has led to frequent power outages, affecting industrial production and economic growth, particularly in the crucial Ready-Made Garments (RMG) sector.
5. Foreign exchange reserve depletion due to high energy import costs is exacerbating the crisis and limiting the country’s ability to secure energy supplies.

Long-term outlook for Bangladesh’s energy sector

1. The government has set ambitious targets for renewable energy adoption, aiming for 40% of electricity generation from clean energy sources by 2041.
2. Bangladesh plans to diversify its energy mix by increasing LNG imports, developing nuclear power, and exploring regional energy cooperation.
3. The country is expected to face continued challenges in balancing energy security, affordability, and environmental sustainability in the coming decades.
4. The success of Bangladesh’s energy transition will depend on its ability to attract investments, develop infrastructure, and implement effective policies.

Recommendations for sustainable energy security

1. Accelerate renewable energy development:
   • Increase investments in solar and wind energy projects
   • Implement supportive policies and incentives for renewable energy adoption
   • Develop local manufacturing capabilities for renewable energy technologies
2. Improve energy efficiency:
   • Implement stricter energy efficiency standards for buildings, appliances, and industries
   • Promote energy-efficient technologies and practices across all sectors
   • Develop and enforce demand-side management programs
3. Diversify energy sources:
   • Continue efforts to develop a balanced energy mix, including natural gas, LNG, coal, nuclear, and renewables
   • Explore and exploit domestic energy resources, including offshore gas and coal reserves
   • Pursue regional energy cooperation and cross-border electricity trading
4. Strengthen energy governance and policy implementation:
   • Enhance the capacity of regulatory bodies and energy institutions
   • Improve transparency and reduce political influence in the energy sector
   • Implement market-based pricing mechanisms to reduce subsidies and improve sector financial health
5. Invest in energy infrastructure:
   • Upgrade and expand the power transmission and distribution network
   • Develop smart grid technologies to improve system efficiency and reliability
   • Invest in energy storage solutions to support renewable energy integration
6. Promote research and development:
   • Increase funding for energy-related research and innovation
   • Collaborate with international partners on clean energy technologies
   • Develop local expertise and human resources in the energy sector
7. Enhance energy security through regional cooperation:
   • Pursue cross-border electricity trading with neighboring countries
   • Participate in regional energy initiatives and forums
   • Develop joint renewable energy projects with regional partners