SUSTAINABLE ENERGY SECURITY FOR ECONOMIC DEVELOPMENT: TRENDS AND CHALLENGES FOR BANGLADESH

Energy plays a pervasive role that accelerates the socio-economic progress of a nation. Almost every economic activity involves energy as an input and securing sustainable sources of energy is an important strategic priority for most nations. This is true in the case of Bangladesh, which is also one of the fastest growing economies in the world. Bangladesh has been deemed a “New Asian Tiger” and aims to be designated as a “middle-income” nation by 2021. The country has been identified by Goldman Sachs as one of the “Next Eleven” countries, which are 11 nations with the high potential of becoming among the world's largest economies in the 21st century along with Brazil, Russia, India, China, and South Africa (BRICS). Bangladesh has exhibited constant gross domestic product (GDP) growth, net power generation growth, and growth in industrial production over the past few years. Given the growing importance of Bangladesh in the global economy, the aim of this paper is to deliver an up-to-date assessment of the nation’s energy mix and overall energy scenario for the country. The paper investigates the energy situation in Bangladesh and evaluates whether there is a relationship among real GDP growth, net power generation growth, and industrial production growth (manufacturing, mining, and construction) for Bangladesh. The paper’s findings suggest that in the short run there is a significant relationship between the GDP growth rate and industrial production growth rate in Bangladesh. Moreover, the paper indicates that there is a significant increase in net electricity generation, which is influencing industrial production growth in Bangladesh. Additionally, the research findings and conclusions offer some suggestions for the country’s power sector and implications for its energy security.