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FGD on Energy efficiency in the Industrial sector of Bangladesh

Dhaka Chamber of Commerce & Industry (DCCI) and South Asia Network on Economic Modeling (SANEM) jointly organized a focus group discussion meeting on "Energy Efficiency in the Industrial Sector of Bangladesh" held at Dhaka Chamber Auditorium on July 28, 2025.

Dhaka Chamber President Taskeen Ahmed, in his welcome speech, said we have to bring about a behavioral change among us to bring energy efficiency into effect across the board. He said considering the contemporary geo-political situation, the country's private sector is under considerable pressure, as well as the lack of uninterrupted quality energy and power supply in the industry, we are lagging behind in the production, which is hampering our competitiveness in the international export market. He also stressed the need for regular implementation of 'Energy Audit' in industrial units. He called for involving the academia in sector-wise research of industry and necessary 'industry mapping'.

Dr. Selim Raihan, Executive Director of SANEM, said that although an Energy Efficiency and Conservation Master Plan was formulated in 2016 and an Integrated Energy and Power Sector Master Plan was developed in 2023 for the energy and power sector, there is still no specific government policy or action plan focusing on energy efficiency itself. Therefore, the issue needs to be considered with due diligence, he added. He stated that there are definitional and conceptual differences regarding energy efficiency across various sectors of the country. Moreover, Dr. Raihan opined that there are significant barriers in the country’s energy resources extraction and supply system. Besides, he stressed on the need for investigation whether the planned initiatives on energy efficiency have been implemented, what kinds of incentives have been provided in the industrial sector in this regard, and how effective those have been. He also emphasized on the importance of achieving technological advancement in this sector.

During the event, SANEM delivered a presentation on energy efficiency in the industrial sector, which shed light on the current state of energy efficiency, the use of necessary technologies, standardized measurement tools for assessing energy efficiency, and how interrupted energy supply is undermining overall efficiency.

Chairman of Bangladesh Energy and Power Research Council (BEPRC) Mohammad Wahid Hossain ndc said there is a gap in the dissemination energy-related information, due to which the private sector of the country is sometimes not aware of many government services or initiatives in this regard. He said the financial capacity of our private sector has increased a lot, so he urged the private sector to come forward to finance energy related research activities, through which it will be able to use new technologies, increase consumer awareness, and above all, formulate a sustainable business-friendly energy plan. He cited an example that with the price of saving one megawatt of power can generate almost 2 megawatt of power in return.

Asif Ibrahim, former president, DCCI and vice-chairman, New Age Group, said industries especially of SME sector, are being severely affected in the production activities due to energy shortage. Moreover, they are facing problems of access to finance due to the complexity of the loan process, which needs to be resolved. He said it will be possible to increase energy efficiency in the industrial sector if the existing high duty rate on import of machinery is reduced, especially to increase the capacity of using renewable energy. He said that at present, solar panels have been installed in about 250 factories of the readymade garment sector, which is playing a special role in the use of alternative power in the industry here.

Md. Rafiqul Alam, Additional Secretary (operation), Energy and Mineral Resources Division, said that government is now allowing the private sector to import LNG. He said through the use of efficiency we will be able to save 5-10% power. But first of all we need to embrace the technology to be efficient in this regard, he said. He also said that a huge research is needed in the energy sector and he invited private sector to come forward with RnD financing along with the academia. He also said that government has a plan for 100 gas well exploration by 2030 to increase the local production and reduce the dependency on imported LNG. We have various laws and regulations already but in compliance issue, we are still lag behind.

Md. Jahidul Islam, Joint Secretary (training wing) of the Power Division, said that 27% of our total produced energy is consumed in the industrial sector and it will increase to 40% by 2050. He said if we can implement energy efficiency, we will be able to provide this resource to more people. He also informed that the government will revisit the energy master plan soon. He also requested the private sector to use energy efficient machines and equipment in the industries. But for this awareness creation is necessary, he told later.

General Manager of Petrobangla Md. Imam Uddin Sheikh said that our demand for gas in the country is 3,800 million cubic feet per day, although we can supply only 2900 million cubic feet of gas, there is a shortage of 900 million cubic feet of gas. He said that if the private sector wants quality uninterrupted gas supply they should come under industrial zone because it is easy for energy distribution companies to provide in a zone. But at present industries are scattered and unplanned in different places which is a bottleneck, he added. He also said that industries are the priority of the government to supply power and energy.

Engr. Mohammad Ahsanul Amin, General Manager of BAPEX, stated that it cannot be denied that sufficient energy is not being supplied to the industry. He also said that to ensure energy availability for the industrial sector, BAPEX has taken an initiative to drill 100 wells across the country by 2030 to enhance local supply capacity.

Shamim Ahmed, President of the Bangladesh Plastic Goods Manufacturers and Exporters Association urged the government to allow and incentivize the private sector to import LNG and its regasification process. He also said that we need to reduce dependency on imported LNG and go for massive local offshore and onshore gas exploration. Moreover, a policy for energy efficiency will help wider transmission and conservation as well.

Mansoor Ahmed, Senior Vice President of BKMEA, said that industries do not get adequate gas supply moreover, they are deprived of reliable electricity supply. He also said that bringing energy efficiency is not an optional rather it is a necessity now. He also urged for diversification of energy import source. He also put emphasis on expanding green financing facilities for the entrepreneurs and reducing dependence on LNG.

Inamul Haq Khan, Senior Vice President of BGMEA, said that the high cost of energy is one of the key barriers to establish new industries in the country. He mentioned that in the greater Gazipur industrial area, there is at least 6–8 hours of load shedding on daily basis, as a result the entrepreneurs have to bear BDT 4–5 lakh of additional cost per day. Moreover, delays in manufacturing are disrupting exports badly and Bangladesh is continuously losing its competitiveness globally, he added. He also stated that producing renewable energy by 10% could save up to 220 megawatts of power. However, importers of solar/renewable related equipment do not get any duty benefits as a result of that it is not expanding at a desired level, he opined.

DCCI Convenor Engr. Nurul Aktar said that if we need to popularize energy efficiency, in that case we have to give incentives to the import of energy efficient accessories and equipment. Not only efficiency, he also stressed on energy storage and he urged for duty benefits for the battery producers.

DCCI Vice President Md. Salem Sulaiman and members of the Board of Directors were also present during the event.

Published on: 2025-07-28