Energy Efficiency-Bangladesh Context

Manjur Morshed Talukder

Energy efficiency is believe to be a hidden fuel, one that extends energy supplies, increases energy
security, lowers carbon emissions and generally supports sustainable economic growth. Although the
concept of energy efficiency began in California during 1970s, Bangladesh is yet to formulate policies,
regulations etc. However, expanding economy and rising standard of living depends on energy
services- - the primary sources like natural gas, petroleum products, wood-herbs-animal waste etc., and
the secondary sources like electric power.
Promoting energy efficiency is the key to achieve a healthier economy, a cleaner environment, and
greater energy security of a country. Industrial energy efficiency technology, energy efficiency
programs, performing research and analysis, developing standards, and framing national energy
efficiency policies for creating an atmosphere must be conducive for development. We could do more
to cut down on energy waste and save the energy resources. Bangladesh is facing an unprecedented
energy challenges resulting from increased import dependency and limited supply of natural gas. Not to
use energy efficient appliances causes the country annually more than billion dollars.
Economist Intelligence Unit finds that Industry accounts for around one-third of the worlds final
energy demand; around 60 percent of this industrial demand is from developing countries.
Industries are facing a future of restricted access proving industrial energy efficiency is to energy, and
curbs for which no longer optionalbut a clear pre-requisite for long-term industrial growth.
This is hard truth that industries that do not address energy efficiency are likely to find that their longterm financial performance will be negatively affected; meanwhile, those seek continuous improvement
in use of energy efficiently are likely to steal a march over their competitors.
Using less energy in production processes means companies can face relatively higher energy prices
without feeling the pincha clear competitive advantage.
United Nations Industrial Development Organization estimates the current energy saving potential in
manufacturing industry and petroleum refineries to be some 23-26 percent of current total industrial
energy demand worldwide.
Over the last 20 years substantial improvements have been achieved in energy efficiency in energyintensive industries, including power generation. The main feed came from the efficient processes and
technologies for these energy productivity gains. Nevertheless, significant potential for using energy
more efficiently still exists.

Energy regulation is considered as highly necessary to emerge as a major theme driving investment in
improvement of energy efficiency in sectors like power, fertilizer and industries. Regulations will
intensify pressure on energy users to improve energy efficiency. Energy efficiency programs to be
joined by regulatory mandates. Increasingly, industrial energy efficiency regulation should be linked to
wider sustainability commitments.
Energy Usages in Bangladesh
Total energy supply in Bangladesh is based on (a) traditional fuels like crop residues, animal waste and
fuel wood amounting to about 55%, (b) natural gas 24%, (c) 19% on imported oil and coal 19%, and
(d) hydroelectricity 2%. About 80% of power generation is based on natural gas. The use of oil as an
energy source has shown increasing trends. In 2009, oil represented 11.1% of total energy supply and
in 2010 18.3% and 23.8% in 2011.
Gas and Petroleum are the main source of primary commercial energy where power sector is the most
dominant user of gas (58%, including captive power) and industry is the next to it (17%), but
household and fertilizer are also have a considerable use, which are 11% and 7% respectively. On the
other hand, transport sector is the biggest consumer of petroleum product which is 45%, agriculture
21% and 9% of are used for domestic purpose. Though the use of petroleum oil in power sector is 19%,
but its use will be increased gradually in near future.
Natural gas being the major source of primary energy in Bangladesh, which is 80% of the total power
generation, saving of electricity by electric energy efficiency would be a direct saving of gas supplies.
Energy Efficiency in Bangladesh
Primarily three-fold impact would be achieved by adpting energy efficiency in Bangladesh, which are(i) improvement of energy security (ii) meeting the MGD targets and (iii) efficient environmental
management. With the energy efficiency campaign, Bangladesh can set a low carbon footprint by
lowering carbon emmissions through efficient utilization of primery energy. Subsidy in energy prices
discourages the adoption of energy efficiency projects by industries. To ensure sustainable energy
security, the gover-nment has set the following targets:
10% of primary and secondary energy saving by 2015
15% by 2021 and
20% by 2030
However, application of the culture of energy efficiency in Bangladesh may be a long-term approach,
but it needs to be implemented through a nationally integrated strategy, which would involve setting of
mandatory targets for achieving efficient use of energy in every sector of economic, social and
environmental development of Bangladesh so that energy efficiency becomes a part of the nations
sustainable development agenda. The countrys draft and revised National Energy Policy specifies
energy efficiency as the fourth fuel in addition to gas, coal and liquid fuel since substantial quantity is
used and if saved, can be mobilized for other developments. The implementation of energy efficiency

should be through specific time frame using a mix of policies, rules & regulations, incentives to
industries and people who use less energy. Taking steps for raising mass awareness in urban & rural
areas for use of energy efficient appliances and information dissemination would ultimately yield
benefit to the country.
In Bangladesh about two-third of energy is lost while converting primary, secondary and final energy
into useful energy services. To ensure energy efficiency at end-users levels, energy star labeling,
benchmarking of industrial process and in equipments, awareness building campaign is marked as
important interventions.
A widespread prevalence of low cost, less efficient, high energy consuming equipments exist in
Bangladesh which do not take into amount the life cycle costs, particularly where the energy cost
component is very low and subsidized.
Natural gas fired boiler and furnaces are extensively usd in industries and steel & re-rolling mills and
operated at around 70% efficiency compared to 85% the interantioanl norm. Efficiency imp-rovement
of boiler and furnaces is identified as an attractive and costeffective option.
By and large, action oriented national commitment from all stakeholders, regulatory bodies and support
from the government are the key to the success for achieving energy efficiency targets by 2015 and
beyond.
Institutional Arrangements
Bangladesh Energy Regulatory Commission: Energy efficiency has been in the forefront of the
Bangladesh Energy Regulatory Commission Act, 2003 with the mandate to regulate the electricity, gas
and petroleum. The provisions of the Act regarding functions of Commission on energy efficiency are
to(a) Determine efficiency and standard of the machinery and appliances of the institutions using energy
and to ensure through energy audit the verification, monitoring, analysis of the energy and the economy
use and enhancement of the efficiency of the use of energy;
(b) Ensure efficient use, quality services, determine tariff and safety enhancement of electricity
generation and transmission, marketing, supply, storage and distribution of energy.
Sustainable and Renewable Energy Development Authority: Energy efficiency is also a mandate of the
Sustainable and Renewable Energy Development Authority (SREDA) Act 2012 and Organizational
Development Plan of SREDA is focused on the following:
1. Prescribing minimum energy performance standards and informative labels for end use

equipment and appliances.

1. Encouraging the use of energy efficient equipment and appliances.
1. Encouraging consumers to use energy star labeled equipment and appliances.
iv. Promoting use of energy efficient process, equipment, devices and systems.
1. Creating provision for incentives of energy efficiency projects.
vi. Enhancing energy efficiency of high energy using sectors defined as designated consumers by

Developing specific energy consumption norms

Certifying energy managers and energy auditors
Accreditation of energy auditors
Defining the manner and periodicity of mandatory energy audits
Developing reporting formats on energy consumption and action taken on the recommendations
of the energy auditors.

1. Framing energy efficiency rules.

Areas where Energy Usages to Look into
Combined Cycle Power Plants: Generation of electric power is the biggest consumer of primary
energy. The average fuel efficiency in the public generating units is 30.4% gross or 28.5% in terms of
net generation. Steam plants and gas turbines have net outputs of 28.4% and 26.1% respectively.
Substantial quantity of gas and oil are required to generate electricity and for simple cycle gas turbine a
huge amount of heat is being released as waste. The waste heat could be used for generating further
electricity. Plans have been drawn for adding combined cycle in the existing power plants. About 710
MW additional electric power may be available from 6 power stations by converting Combined Cycle
by 2016 where one power station has been taken for Repowering (Ghorashal 3 rd units from Simple
Cycle to Combined Cycle). The key issues that affect power generation are (a) Low efficiency, (b) Low
plant factor, and (c) Lack of maintenance practice. Energy Efficiency Improvement Intervention in the
Power Generation Sector calls for (i) rehabilitation of old and inefficient power plants, (ii) replacement
or repowering of some of the power plants that are still running at very low efficiency and their
availability beyond their economic life time, (iii) new coal based power plants are to be designed with
supercritical boilers and gas based simple cycle base load power stations as combined cycle ones for
higher energy output, and (iv) peaking power plants will not be allowed to run in base load to avoid
unscheduled heat loss.
Urea Fertilizer Plants: Since 1961 six public and one international/ private natural gas ammonia urea

plants are in operation in the country. These plants produce per year 2.9 million tons of urea and 1.9
million tons of ammonia. Almost all the plants are more than twenty years old. Natural gas
consumption of these plants is more than double when compared with that of state-of-the art urea plant.
As such the best option is to replace the very old plants by new ones and retrofit the other plants where
possible.
Steel Mill Furnace: About 2.5 million tons of rods and flat bars are produced annually in the country
from processing imported ingots by 250 mills. Out of the total, 225 mills are not using modern
technology and specific energy consumption are at about 75-90 cubic meters of natural gas per ton of
steel compared to 30-40 cubic meter natural gas per ton consumption in modern mills. Necessary
arrangements have to be to conduct for motivational campaign among the mill owners to improve the
energy efficiency.
Energy efficiency in the Industries: Industrial sectors are the next major consumers of primary energy.
Because of inefficient and old boilers, furnaces and motors used in the industries, a huge amount of
energy is being wasted. This causes to bring them under energy efficiency compliance by conducting
survey about their use of energy and its wastage and to formulate policy on how to obligate the sector
to reduce their energy wastage.
Rice Husk Parboiling: About 90% of all harvested rice is parboiled mostly using conventional boilers.
Nearly 50,000 rice husking mills around the country are operated by using husk as fuel. Deutsche
Gesellschft fr Intenatonale Zusammennarbeit (GIZ) of Germany under a project Sustainable Energy
for Development (SED) has demonstrated a saving of up to 50% energy used for parboiling, which has
been popularized among the mill owners and by now about 40 mills have replaced the traditional
system. The initiative may save up to 2-4 million tons of rice husks, which can be used to generate
more than 100 MW electric power.
Improved Brick Kiln: Rapid urbanization has created a booming construction industry and the
production of bricks rose to 8.6 billion each year with demand for the bricks rising at an annual rate of
about 5.28 percent. About 4000 brick kilns are listed in Bangladesh and it is anticipated that more
number of kilns are growing day by day. This brick kilns are not energy efficient and huge fuel are
used. Introduction of energy efficient, smokeless brick-making technology has emerged as the Hybrid
Hoffman Kiln and the same has been remodeled to utilize the same in Bangladeshs brick-making
industry. The newly introduced smokeless technologies will operate under higher energy efficiency
yielding other benefits.
Energy efficiency in the building construction: In buildings construction energy saving measures are
overlooked and the end user unknowingly suffers from higher energy costs. This has generated to
revise the old building code for residential apartments, commercial, office buildings etc. to address
energy efficiency issues involving use of energy efficient bricks promoting mandatory and voluntary
measures for green building.
Programs to Launch:

Energy Audit: Usage of energy needs to be technically audited by the accredited energy auditors
qualified and having expertise in energy managem-ent, project management, financing and
implementation of energy efficie-ncy projects. Necessary regulat-ions will be prep-ared to conduct the
technical audit.
Captive Power Generation: The waste heat from 2000 MW captive power generation in industries have
not been tapped, which can be used for chilling, drying, produ-cing steam etc. should be initiated.
Light Emitting Diode (LED lamp): LED lamp is considered to be more energy efficient appliance and
should be encouraged to use. Peak-hour demand of electricity specially the security lighting would also
be introduced in the urban areas.
Improved Cook Stove: Large quantity of primary energy is required for cooking and basically firewood,
animal waste are widely used around the country, about 82.6% of the people in the rural areas-a greater
segment of population are dependent on such energy for cooking purpose. About 8 million cubic feet of
wood are used annually of which, 63% is for cooking and 37% is for industrial and commercial
purposes causing rapid deforestation and health hazard in the country. GIZ has developed a business
model to make the improved cooking stove program, which save 50% energy and more than 0.4
million of cooking stove has been distributed. By 20130 distributions would be 100% of the cooking
stove.
Utilization of Exhaust Heat: Waste heat of industries and power plants are one of the major energy
sources for cogeneration in other industries such as for chilling, drying or any other suitable purposes.
Utilities will identify suitable industries and implement demo-projects by 2015 to popularize it. A study
will also be conducted in captive power generation to explore the possibilities of cogeneration.
Energy Star Labeling: Necessary legal instrument would be formulated to launch the energy star
labeling program so that the appliances users get the benefit of proper appliances.
Energy Efficiency of Boilers: Industries using natural gas and petroleum products are using inefficient
boilers. Utilities are to identify the industries operating inefficient boiler and they will make aware the
industrial consumers to improve their boiler efficiency.
Human Resources: Human resource is the key issue for the energy efficiency programs. The status on
this issue is at initial stage. This is a challenge to proceed with the energy efficient program for which
necessary manpower to be developed by imparting hands-on training both locally and abroad.
Financing Energy Efficiency Projects:
Currently there is no financial mechanism or incentives in place in Bangladesh for targeting energy
efficiency investments. For sustainability (a) government policy must be targeted to encourage
efficiency improvements including financing, (b) industry must have the technical knowhow and

management systems to plan energy efficiency projects, and (c) financial sector must understand the
potential of energy efficiency to lend the industries with soft loan.
The promotion of energy efficiency by private sector and corporate bodies through its corporate social
responsibility funds may be effective bringing the practice in-house and then spreading it to targeted
communities. For transforming the conventional technologies to the most cost effective energy efficient
technologies, the financial institution can provide necessary soft loans to the industries.
Manjur Morshed Talukder;
Former Managing Director, GTCL
& Energy Consultant
manjurmorshed75@hotmail.com

Energy Efficiency-Bangladesh Context