Abstract. Deficiency in energy sector is a major problem, which can hinder the development workflow of any country. Being the eighth most populated country in the world with a total electricity generation of only about 5000 MW and consumption of 146 kWh per capita, Bangladesh is one of the most electricity-deprived countries around the globe. In addition, absence of adequate investment and mass people awareness is a major problem in this country. Therefore, it would be very difficult to achieve overall progress without ensuring energy security by utilizing the promising renewable energy sources. In order to achieve the Millennium Development Goal (MDG), it is must for a third world country like Bangladesh to address the issue of energy deficiency promptly. In this context, renewable energy is the sustainable solution of energy security as well as social, environmental and economical problems. This paper summarizes the current energy scenario of Bangladesh, impacts of pollution from conventional energy sources, prospects of renewable energy development, and estimates the total investment required in Bangladesh to promote renewable energy sector by the year 2020.