A significant progress has been made to increase electricity generation capacity in the country over the last decade. The electricity supply for growing demand is the foremost challenge of the government, as the country move towards the vision of middle-income status by 2021 and high-income by 2041. The energy security is the concern due the running out of gas supply soon. Despite significant progress on energy in recent years, the goal of access to electricity for all would not be attainable without implementation of a consistent national energy policy. Well-coordinated national energy policy is required to achieve sustainable development goals of the country. Priorities for action and regulatory framework of energy need to identify to overcome energy crisis. Long-term energy planning and private financing policy are also crucial to extend the pace of progress in the energy sector. This review provides insights into the energy policies at different sectors, notably coal fired electricity in Bangladesh. The results revealed that the effective and efficient CO₂ emission could be reduced from power generating sector by introducing advanced fuel technologies and management system. Besides, higher thermal and mechanical efficiency can be obtained by initiating the combined power cycle systems in energy sector. The achievement in energy sector as well as challenges facing in ensuring sustainable energy is highlighted. The key challenges in the existing legal framework and substantial progress improving energy efficiency are also discussed in this review.