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Discussion on “Bangladesh Industrial Energy Efficiency Policy: A Draft for Sustainable Progress”
Dhaka Chamber of Commerce & Industry (DCCI) and South Asian Network on Economic Modeling (SANEM) jointly organized a Policy Dissemination event titled “Bangladesh Industrial Energy Efficiency Policy: A Draft for Sustainable Progress” on 29 November 2025, at the DCCI Auditorium. Chairman of the Bangladesh Energy Regulatory Commission (BERC) Jalal Ahmed graced the occasion as the Chief Guest.
In his welcome remarks, DCCI President Taskeen Ahmed said that ensuring uninterrupted energy supply to Bangladesh’s industrial sector has become one of the major challenges, which is severely hampering production, investment, and overall economic growth. He noted that although the industrial sector contributes over 35% to the country’s GDP, it is alarming that this large sector representing 19% of the country’s total gas consumers-is currently facing an existential crisis. He mentioned that after the record 178% gas price hike in FY 2023–24, the recent additional 33% increase in gas prices has reduced the production capability of textiles, steel, and fertilizer sectors by 30–50%. Moreover, due to this surge in gas prices, many SMEs have been compelled to significantly scale down their operations. Under such circumstances, he said that ensuring uninterrupted energy supply is not only a policy priority but also a prerequisite for sustainable industrialization. DCCI President emphasized on reducing dependence on fossil fuels, expanding the usage of renewable energy, establishing a detailed sustainable energy framework and preventing wastage to save the country’s industrial sector and economy.
Jalal Ahmed, Chairman, Bangladesh Energy Regulatory Commission (BERC) said that although the experts have often sounded the alarm that Bangladesh will no longer have domestic gas reserves after 2030, it is very unfortunate that there has been no significant progress in either offshore and onshore gas exploration. As a result, the country is unable to utilize its own gas resources rather depends heavily on imported gas. He added that as the energy sector is deeply interconnected with the entire economy, the government continues to provide subsidies in this sector. He pointed out that the current efficiency level in the energy sector is around 30% and by improving this the overall shortages particularly in electricity sector—could significantly be reduced. If the RMG sector prioritizes renewable energy use, the situation could improve more rapidly, he added.
Dr Selim Raihan, Professor, Department of Economics, University of Dhaka & Executive Director, SANEM presented the keynote paper. He stated that although Bangladesh has a master plan for the energy sector, due to the absence of supportive policies the industrial sector is struggling. He added that energy efficiency is not clearly or uniformly defined for industrial applications as a result, industries are not uniformly incentivized to adopt energy-efficiency practices. He mentioned that in the focus group discussions jointly organized by DCCI & SANEM stakeholders from RMG, cement, steel, commercial sectors and government agencies have been interviewed to understand the sector-specific condition and requirements for energy efficiency improvement. Awareness about energy efficiency, energy audits, energy conservation, financing and incentives, grid modernization, implementation and communication were identified as key priorities. Participants recommended energy audits, expansion of logistics services and increased supply of gas and electricity to the survival of the energy sector. Dr Raihan emphasized the importance of a structural strategy, supply-side strategy and policy and regulatory strategy for the sector.
Dr. Md. Rafiqul Islam, Member (Admin & Finance), Bangladesh Energy and Power Research Council (BEPRC) said that as energy security is equally important as national security and food security, it requires full cooperation from all relevant stakeholders. He noted that reliance on imported energy increases business costs and emphasized the need to prioritize domestic energy resources. He mentioned that energy imports amounted to around USD 20 billion in the last fiscal year, indicating ample opportunity for greater private-sector involvement.
Dr. M. Rezwan Khan, Chairman, Power Grid Bangladesh PLC & Professor Emeritus, Dept. of EEE, United International University (UIU) said that without revising the existing tariff structure, the ongoing problems of this sector cannot be resolved. He added that electricity tariffs must be differentiated between peak and off-peak hours. There is a common misconception that flaws in the electricity supply system are responsible for load shedding; however, he clarified that a major cause of electricity shortages is the government’s insufficient funds for fuel purchases.
Manwar Hossain, Chairman, Anwar Group of Industries & Former Director, DCCI emphasized that the government must prioritize the supply of electricity to industries, as inadequate energy supply is causing nearly 50% production disruption across many industries which is very alarming for our economy. He stressed on quick resolution of the existing constraints in this sector.
Mohammed Amirul Haque, President BCMA & Founder & Managing Director, Premier Cement Mills PLC said that the LPG sector can play an effective role in ensuring country’s energy security. However, instead of financial incentives, the sector faces nearly 10% taxation, which the government needs to reconsider.
Mostafa Al Mahmud, President, Bangladesh Sustainable and Renewable Energy Association (BSREA) said that despite declining gas production, demand continues to rise, and the country’s energy demand is increasing by 20% annually. He noted that although Bangladesh has supportive policies, the implementation situation is not promising. Since 50% of the country’s electricity is used in industries, he stressed that mandatory energy audits are essential.
Eng. Md. Serajul Mawla, President, Bangladesh LPG Autogas Station & Conversion Workshop Owner's Association said that there are around 2,300 LPG autogas filling stations across the country, and if renewable energy initiatives are implemented there, around 700–800 MW of electricity could be generated. However, a proper supportive policy is key. He added that entrepreneurs face harassment while obtaining licenses from various government agencies in the energy sector, which must be addressed.
Vidiya Amrit Khan, Vice President, BGMEA & Deputy Managing Director, Desh Garments Ltd. said that renewable energy contributes only 4% to the national grid, which is concerning since global buyers place high importance on sustainability. She added that although green funding is available for buildings, such support is absent for renewable energy, and financing in the energy sector remains extremely difficult.
S.M Monirul Islam, Deputy CEO & CFO, IDCOL said that gaps in implementing existing policies are exacerbating the challenges in the industrial sector. He emphasized introducing green bonds to ensure adequate financing.
In the open floor discussion, former DCCI Senior Vice President Malik Talha Ismail Bari, former Director M. Bashirullah Bhuiyan, and member M.S. Siddiqui also spoke.
DCCI Vice President Md. Salem Sulaiman, members of the board of directors and representatives from public and private sectors were also present.
Published on: 2025-11-29