Cabinet clears integrated energy plan framework to fix fragmented planning, curb circular debt

The government has moved to institutionalise a national Integrated Energy Plan to address long-standing fragmentation in energy policymaking, as part of broader efforts to manage circular debt, improve coordination across ministries and ensure consistent, evidence-based decisions in the sector.

The plan, recently approved by the Cabinet Committee on Energy (CCoE), seeks to resolve chronic issues arising from silo-based planning, ad-hoc resource allocation and weak inter-ministerial coordination, which have contributed to inefficiencies and instability across the power, petroleum and water sectors.

Under directions from the Prime Minister’s Office, the Ministry of Energy—covering both Power and Petroleum Divisions—was tasked with developing a formal coordination mechanism involving the ministries of Power, Petroleum and Water Resources to deal with cross-cutting energy challenges. The ministries had already been mandated to prepare an Integrated Energy Plan under the National Electricity Policy 2021, approved by the Council of Common Interests.

Following the directive, an inter-ministerial meeting was held in September 2025 under the chairmanship of the Minister for PD&SI, with participation from the ministers for Power, Petroleum, Water Resources and Economic Affairs. The meeting reviewed a proposed Integrated Energy Planning Ecosystem, including the establishment of a dedicated secretariat, defined institutional roles and a high-level roadmap.

Participants agreed that development of the Integrated Energy Plan was a national priority and recommended that the proposal be examined at the secretary level. A follow-up meeting in October 2025, attended by secretaries from the ministries of Power, Petroleum, Planning and Water Resources, broadly endorsed the proposed structure and roadmap.

The CCoE has since approved the overall Integrated Energy Plan architecture, the planning ecosystem and a high-level roadmap covering 2025–27. It also cleared the formation of a steering committee, along with its terms of reference, for formal notification.