Energy efficiency has emerged as an area of attention in the global power and energy sector only in recent years. The underlying principle of this concept is to use less energy input to produce same output. It has been recognized in COP 28 and a pledge was made that global average annual rate of energy efficiency should be improved from 2% to over 4% rate collectively. However, according to International Energy Agency (IEA), the global energy efficiency improvement in 2024 was only 1% despite notable investment to enhance energy efficiency. This percentage progress in energy efficiency is measured by energy intensity which is the amount of energy input needed to produce one unit of economic output/GDP.
Bangladesh has been struggling with its socio-economic structural problems from birth, and the power and energy sector has started receiving priority during the 2000s. While the focus on renewable energy transition got stronger in 2010s, energy efficiency, let alone, is farther from being a priority. The first energy efficiency plan of Bangladesh is the Energy Efficiency and Conservation Master Plan up to 2030 (EECMP 2016). Other than that, the Integrated Energy & Power Sector Master Plan (IEPMP) 2023 was another one which reiterated the targets mentioned EECMP. There is no dedicated policy for improving the energy efficiency in Bangladesh yet. While IEPMP claimed 16.1% energy efficiency improvement in 2020 and there are several initiatives for efficiency development mentioned by the government, industry insiders seem unaware of these progresses. For example, Energy Management System (EMS), under which several activities have mentioned such as designated large energy consumer program, energy auditor certification program, financing for energy efficient equipment etc. However, these pieces of information are not well circulated and most of the business leaders do not have any idea how these initiatives are working and progressing.
There is a webpage of SREDA (Sustainable Renewable Energy Development Authority) with a title “Energy Efficiency & Conservation Promotion Financing Project in Bangladesh”. This page describes some statistics about national energy intensity, final energy consumption and total energy supply etc. though after fiscal year 2021-22 no updated information is available. Besides, there are available low interest loan opportunity for using energy efficient technology and equipments through Infrastructure Development Company Limited (IDCOL) and Bangladesh Infrastructure Financing Fund Limited (BIFFL) according to this project information. Till December 2022, 43 companies have been stated to have access loan of BDT 21 billion. The companies are from various sectors: textile, RMG, cement, glass, electronics, pharmaceutical, university, real estate, and others. However, these updates and opportunities are not widespread information questioning the effectiveness of awareness raising activities and national campaign mentioned by SREDA. Though Bangladesh has been going through the digital transformation of all government and non-government information to align with the global practices, several links in government websites are found as inaccessible or unresponsive, energy efficiency page is no exception.
Considering the limited understanding about energy efficiency and further limited attention to this issue amid the political and economic turbulence ongoing since August 2024, a question may arise why do we need to focus on this issue right now? The answer is, for sustaining economic development and combating the political and economic shocks, energy security is a must. While Bangladesh faces challenges in energy supply, due to lack of self-sufficiency, import-dependency and transmission loss, efficient use of available energy sources is one of the most important short-run solutions to balance with these issues. 20% fossil fuel import reduction was possible in the last two decades in the IEA countries. Importing fuel for power generation has already become a burden for Bangladesh due to lower foreign reserve and volatile economy. It would be a great relief if we could reduce energy consumption through reducing transmission loss and improving transformation efficiency (e.g., power generation output/input). Though the initial investment for energy efficient technology could seem high, the long cost-saving nature of efficient technologies can actually raise the cost-effectiveness of the business.
Moreover, being a climate-vulnerable country, Bangladesh can advance in its journey of decarbonization by reducing energy consumption for producing same level of output. Almost 20% lesser global carbon-di-oxide emission was possible from 2010-2023 period according to IEA. Lesser use of fossil fuel not only helps to reduce import-dependency but also diminish the environmental impact due to greenhouse gas emission. Indirectly, the cost-saving benefit of energy efficiency broadens the scope for “just energy transition” by opening the opportunity of spending the saved funds for green and clean energy promotion. Thus, achieving energy efficiency targets will be helpful and effective to solve the seemingly never ending puzzle of energy security versus energy transition.
Despite notable initiatives, Bangladesh could not make the concept of energy efficiency widely adopted practice. Fragmented efforts, inadequate collaboration and lack of skilled professionals have contributed to creating lack of confidence about energy efficiency within the general population. To realize the untapped potential of energy efficiency, Bangladesh needs a multi-dimensional approach including fruitful awareness campaign, effective incentive strategy and sector specific policies with a functional public energy audit system. Regular stakeholder consultations, capacity building training for building a skilled labor force in this sector and promoting public-private partnership will play important role in spreading information and illustrating the priority of the issue. Maintaining consistency while setting priority and policy decisions is a primary weakness in implementing any target in our country. Timely auditing, increasing financial incentive outreach and continued reporting of the progress towards energy efficiency targets could contribute significantly to reducing this. Since this is comparatively a newer concept, integrating it into the culture should be our primary concern right now. Otherwise, the current situation with several initiatives and fewer implementations will sustain for long.
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