In a period marked by soaring global fuel costs, currency challenges, and ongoing energy uncertainties, a recent study has brought forward a positive revelation. The Institute for Energy Economics and Financial Analysis (IEEFA) reports that Bangladesh saved an estimated $3.3 billion in the fiscal year 2023-24 through enhanced energy efficiency measures, leading to reduced reliance on fossil fuels and cutting energy imports by the equivalent of seven million tonnes of oil. This development underscores the dual benefits of efficient energy utilization, both environmentally and economically, positioning it as a crucial strategy for the country’s growth.
The report highlights that these savings stem from efficiency enhancements in households, industries, and the power sector. The widespread adoption of LED lighting, energy-efficient fans, and air conditioners contributed to lower electricity consumption in homes. Simultaneously, industries upgraded their boilers, furnaces, and captive power plants, integrating waste-heat recovery technologies. Collectively, these initiatives enabled the economy to maintain its productivity levels while significantly decreasing fuel consumption.
These achievements are also credited to strategic, long-term policy frameworks. The Energy Efficiency and Conservation Master Plan, established in 2016, aimed to reduce energy intensity by 20 percent by 2030. Notably, between FY2014-15 and FY2023-24, energy efficiency saw a 13.64 percent improvement, with a notable acceleration post-FY2020-21 due to global fuel volatility and domestic disruptions, elevating efficiency as a top priority. According to IEEFA, Bangladesh is currently on course to fulfill its national efficiency objectives and updated climate commitments, potentially ahead of schedule, indicating substantial progress.
Nevertheless, the report underscores untapped potential for further advancements. Many captive power producers continue to operate inefficiently, while broader adoption of efficient motors, electric boilers, and modern machinery could drive down fuel consumption and LNG imports. Enhanced enforcement of appliance standards, building regulations, and energy labeling is crucial to ensuring tangible and enduring savings. Concerningly, recent tariff hikes on essential components of LED lights and energy-efficient appliances may steer price-sensitive consumers towards cheaper, less efficient alternatives, necessitating urgent government intervention.
Energy efficiency emerges as a cost-efficient means to fortify energy security, alleviate pressure on foreign reserves, and fortify resilience against global fuel disruptions. Therefore, the government must prioritize energy efficiency as a strategic national agenda, fostering close collaboration among regulators, industries, and financial bodies to sustain and expand these gains. Equally vital is expediting the shift towards clean energy. Without consistent policy backing, stringent enforcement, and incentivization, Bangladesh risks reverting to higher energy consumption levels and renewed reliance on expensive fossil fuels.