Bangladesh avoided about 3.3 billion US dollars in fossil fuel imports during the 2023–24 financial year as a result of improved energy efficiency, according to new analysis from the Institute for Energy Economics and Financial Analysis. The institute said reduced fossil fuel use helped ease pressure on the country’s energy system and lowered reliance on imported fuels.
Avoided Fuel Use And Import Savings
IEEFA said the savings were achieved by avoiding the consumption of around 7.0 million tonnes of oil equivalent of fossil fuels in FY2023–24. The institute said the figures demonstrate how energy efficiency has become an increasingly important factor in managing energy demand and import exposure.
Progress Over The Past Decade
Between FY2014–15 and FY2023–24, Bangladesh’s energy efficiency improved by 13.64%, according to IEEFA. The country has set a national target of a 20% improvement by 2030, implying an average annual efficiency gain of about 1.52% over the past decade.
IEEFA said efficiency gains accelerated after FY2016–17, slowed in subsequent years, and then increased again around FY2020–21. The institute linked the renewed momentum to supply disruptions and higher energy tariffs, which pushed energy efficiency higher on the policy agenda.
Targets Likely To Be Met Early
IEEFA said Bangladesh is on track to meet its existing energy efficiency targets about one year ahead of schedule. This assessment also applies to the country’s updated nationally determined contribution target, which calls for a 19.2% improvement in energy efficiency by 2035 compared with 2022 levels.
According to the institute, current trends suggest this target could also be reached roughly a year earlier than planned.
Focus Areas For Future Efficiency Gains
Looking ahead, IEEFA said households and industry account for roughly two-thirds of Bangladesh’s total energy consumption and should therefore be the main focus of further efficiency measures.
The institute pointed to the wider adoption of LED lighting and more efficient air conditioners as examples of initiatives that have already delivered measurable energy savings. It said additional gains could come from stronger appliance standards and labelling requirements, as well as greater use of passive design features in buildings to reduce energy demand.
Cost Barriers And Policy Recommendations
IEEFA said the cost of energy-efficient technologies remains a barrier to faster adoption. It noted that import duties of around 62% on LED components, along with higher minimum duties on inverter compressors, increase prices for consumers and slow uptake of efficient appliances.
Among its recommendations, the institute called for regular public awareness programmes, an expansion of energy-saving targets to cover more large energy consumers, stricter enforcement of the National Building Code 2020 to support passive building design, and the creation of a “super ESCO” to help scale up energy efficiency projects.
Featured image credits: Wikimedia Commons
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