Energy-based economic development (EBED) can provide economic, social and environmental benefits related to national economic development and sustainable growth activities. As both policy and research interests in responsible mechanisms for economic development grow, EBED benefits are becoming increasingly attractive to planners in both developed and developing countries. The incentives, trade-offs and pay-offs for developing countries, however, are not well documented. This paper aims to address this gap by identifying the general scope and role of EBED in a developing economy context and by outlinining opportunities and challenges for decision-makers.