A recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights the potential for significant savings in Bangladesh’s energy sector. By implementing energy efficiency measures, the country could slash its annual LNG import bill by a staggering $460 million while reducing reliance on costly imports.
The report delves into the energy landscape of Bangladesh, examining the challenges posed by increasing LNG demand and the economic implications of continued dependency on imported fuel. Shafiqul Alam, lead analyst for Bangladesh Energy at IEEFA, emphasizes the urgent need for action to avoid being trapped in a cycle of escalating prices and supply uncertainties.
Alam’s analysis underscores how Bangladesh’s LNG import strategy, once promising, faltered amidst global disruptions caused by events like the Covid-19 pandemic and geopolitical conflicts. Despite improvements in captive power generation efficiency over the past decade, inefficiencies persist, contributing to excessive gas consumption.
The report proposes replacing aging, inefficient generators with modern models and utilizing waste heat for other purposes as key strategies to curb LNG demand. Such measures could lead to a substantial reduction in imports, representing a significant cost-saving opportunity.
While acknowledging the upfront investment required for infrastructure upgrades, the report emphasizes the long-term financial benefits. Moreover, it advocates for a comprehensive approach that includes scaling up renewable energy capacity, enhancing grid reliability, and promoting energy efficiency initiatives.
Alam urges policymakers to seize the opportunity to steer Bangladesh towards a more secure and sustainable energy future. With careful planning and decisive action, the country can mitigate the risks associated with import dependency and build resilience against future shocks in the global energy market.
