Only 3.0 per cent of surveyed readymade garment (RMG) factories in Bangladesh meet their energy needs through renewable sources, with solar power being the only form of renewable energy currently in use, according to a new study.
The study, conducted by Mapped in Bangladesh (MiB), found that the majority of factories remain heavily dependent on conventional power sources, particularly the national grid.
According to the findings, around 61.5 per cent of factories' energy consumption comes from the national grid, while 35.5 per cent is supplied through captive power generation systems.
The study also highlighted the limited scope for expanding rooftop solar despite its potential. Only about 5.8 per cent, or 9.07 million square feet, of the total floor space of surveyed factories is currently suitable for solar panel installation.
Even if the entire suitable rooftop space is utilised, it would meet only around 13 per cent of the factories' total energy demand under existing efficiency levels, the report noted.
MiB surveyed 878 export-oriented garment factories -- 616 in Gazipur and 262 in Narayanganj -- between November 2023 and May 2024 to assess energy consumption patterns, renewable energy adoption, emissions profiles and rooftop solar potential.
MiB team members Faizul Islam and ANM Ata Ullah presented the findings at a programme held at a city hotel on Tuesday, where Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood attended as the chief guest.
MiB is a digital platform that maps Bangladesh's export-oriented garment factories and is implemented by the Centre for Entrepreneurship Development (CED) at BRAC University.
The report revealed that around 80 per cent of factories receive less than 1.0 per cent of their
total energy from renewable sources, while only 5.0 per cent source more than 10 per cent of their energy from renewables.
Large factories show comparatively greater diversification in energy sourcing, whereas small and micro factories remain highly dependent on grid electricity. Renewable energy adoption among smaller factories remains below 1.0 per cent, according to the study.
The surveyed factories consume around 70.2 million kilowatt-hours (kWh) of electricity every month, generating an estimated 41.5 million kilograms of carbon dioxide (CO?) emissions monthly.
The report identified high installation costs as the biggest obstacle to adopting renewable technologies in garment factories. Other major barriers include high maintenance costs, lack of awareness among decision-makers, unfavourable energy policies and space constraints, particularly for smaller units.
The study recommended decarbonising the national grid, scaling up rooftop solar systems, enabling offsite renewable energy procurement through power purchase agreements (PPAs) and solar zones, and promoting energy-efficient machinery.
Speaking at the programme, Energy Minister Iqbal Hassan Mahmood indicated that electricity prices may rise further, saying the government purchases power at high rates but sells it at lower prices.
"There is no alternative to solar power in the current context," he said, adding that the government plans to generate 5,000 megawatts of solar energy over the next five years.
The minister also hinted that the upcoming national budget could include measures to encourage greater use of solar energy.
He said import duties on various types of solar power equipment would be withdrawn to support renewable energy expansion.
To prevent misuse of duty benefits, the government may introduce a bonded warehouse system for solar equipment imports if necessary, he added.
Mr Mahmood also said the government plans to introduce rooftop solar systems in buildings across Dhaka with private sector support.
DBL Group Vice Chairman MA Rahim stressed the need for a stable long-term policy framework for at least five years to help entrepreneurs plan investments and business operations.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Sheikh HM Mustafiz urged the government to provide low-cost, long-term financing facilities for small and medium factories to install solar panels.
"There is no alternative for SME entrepreneurs in the garment sector but to adopt renewable energy, including solar power, due to increasing pressure from international buyers," he said.
However, he identified financing as one of the biggest challenges for factory owners.
"If entrepreneurs fail to shift to renewable energy, they will face serious challenges in the future," he added, noting that major global buyers, including H&M, have already set targets for supplier factories to reduce carbon emissions by 25 per cent.
BRAC University Pro-Vice Chancellor Prof Arshad Mahmud Chowdhury, BRAC Business School Dean Prof Mujibul Haque and Bangladesh Investment Development Authority Executive Member Nahian Rahman Rochi, among others, also spoke at the event.
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