Sustained Efficiency Efforts Could Propel Bangladesh To Early Energy Goal

Bangladesh is reaping the rewards of a decade-long push to improve energy efficiency, according to a new research report by the Institute for Energy Economics and Financial Analysis (IEEFA). The study suggests that if current momentum is maintained, the country could achieve its 2030 energy efficiency target ahead of schedule.

Titled “Bangladesh Energy Efficiency Goals Within Reach”, the report was released online on Wednesday. A statement from IEEFA highlights that increased energy efficiency has already resulted in substantial savings in fossil fuel imports. Since 2016, Bangladesh has avoided hundreds of millions of dollars in import costs through improvements in energy usage.

The research analysed a decade of primary energy consumption alongside GDP growth to assess progress in energy efficiency. Authored by Shafiqul Alam, IEEFA’s South Asia energy analyst for Bangladesh, the report provides detailed insights into efficiency trends.

According to Alam, between the 2014–15 and 2023–24 fiscal years, Bangladesh’s energy efficiency improved by 13.64 per cent, approaching the 2030 target of 20 per cent. In the 2023–24 fiscal year alone, improved efficiency led to a reduction in fossil fuel use equivalent to 7 million tonnes of oil, saving approximately USD 334 million in import expenditure.

The report notes an average annual increase in energy efficiency of 1.52 per cent. If this trend continues, Bangladesh is on track to meet its 2030 target one year ahead of schedule. The report emphasises that targeting the sectors consuming two-thirds of the country’s energy—households and industry—could yield even greater savings. Practical examples include widespread adoption of LED lighting in homes, businesses, and factories, and the increasing use of energy-efficient air conditioners by consumers.

The report also recommends prioritising technological upgrades in industrial motors, motor-driven systems, captive generators, and shifting from gas to electric boilers. In the commercial sector, particularly in air-conditioned spaces, energy reduction can be achieved through labelling and passive design improvements. IEEFA stresses that energy efficiency is not only a cost-saving measure but a tool to transform the national energy system, requiring coordinated efforts among regulators, consumers, financial institutions, and technology providers.

The report makes several policy recommendations, including nationwide awareness campaigns, expanding coverage of major energy consumers, setting energy savings targets, and ensuring access to affordable financing, including support from multilateral development banks.

Bangladesh Energy Efficiency Overview (2014–2024)

IEEFA continues to monitor energy markets, trends, and policy frameworks in Bangladesh, aiming to accelerate the transition to a diverse, sustainable, and profitable energy economy.