Abstract: The decomposition technique has enabled us to identify the factors that influence the total energy use and structural change of economy. In the present study, a complete decomposition model is employed for analyzing the correlation between energy consumption and economic development of Bangladesh for the period of 2007-2030. The activity effects, intensity and structural effects of energy use on aggregative economy were discussed through intensifying the use of energy in individual economic sectors. The trends in energy use in low and high energy intensive groups of the country’s economy are also evaluated to provide a basis of assessments of sustainability.