Bangladesh is reaping the benefits of various initiatives undertaken over the past decade to enhance energy efficiency.

If this trend continues, the country could achieve its energy efficiency goals ahead of schedule—according to information revealed in a report by the international research organization, the Institute for Energy Economics and Financial Analysis (IEEFA).

The report, titled ‘Bangladesh Energy Efficiency Goals Within Reach’, states that since 2016, increased energy efficiency has enabled Bangladesh to save billions of dollars in fossil fuel imports. This has simultaneously reduced pressure on foreign exchange reserves and yielded environmental benefits.

Shafiqul Alam, the report’s author and IEEFA South Asia’s Lead Energy Analyst for Bangladesh, said that energy efficiency in the country has increased by 13.64 percent from the 2014-15 fiscal year to the 2023-24 fiscal year. Whereas the target set for 2030 is 20 percent.

According to the report, the increase in energy efficiency in the 2023-24 fiscal year alone reduced fossil fuel consumption equivalent to 7.2 million tons of oil. As a result, it has been possible to avert an estimated $3.34 billion in fuel import costs. IEEFA notes that after initial progress following the 2016-17 fiscal year, the pace of energy efficiency improvement slowed down for some time.

However, global energy price hikes and supply crises after the 2021-22 fiscal year turned energy efficiency into an urgent priority once again. In this context, the Energy Efficiency and Conservation Master Plan formulated in 2016 has served as an important foundation.

Shafiqul Alam further stated that the average annual growth rate of energy efficiency in Bangladesh is approximately 1.52 percent. If this rate is maintained, there is a possibility that the 2030 target will be achieved at least a year ahead of the scheduled time.

The report also made several recommendations to further increase energy efficiency. These include raising nationwide awareness on energy efficiency through regular programs, bringing larger energy consumers under coverage, and setting specific conservation targets for them.

In addition, emphasis was placed on the effective implementation of the National Building Code 2020 to encourage energy-efficient designs in new buildings, thereby reducing dependence on appliances that consume excessive electricity.

The report proposed the establishment of a ‘Super Energy Service Company’ to manage all challenges in implementing energy efficiency projects.

Simultaneously, it recommended ensuring low-cost financing for such projects and creating opportunities for accessible financing supported by multinational development banks if necessary.

RS