Bangladesh Saves Dollars Through Improved Energy Efficiency, Says IEEFA

Bangladesh is reaping significant benefits from a decade of initiatives aimed at improving energy efficiency, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The research suggests that, if current efforts continue, the country could achieve its energy efficiency targets ahead of the 2030 deadline, while also reducing import costs for fossil fuels.

The report, titled “Bangladesh Energy Efficiency Goals Within Reach”, was released online on Wednesday. A press release from IEEFA highlighted that improvements in energy efficiency have helped Bangladesh save hundreds of millions of US dollars in fossil fuel imports since 2016.

The study analysed Bangladesh’s primary energy consumption relative to GDP growth over the past decade to assess progress in efficiency. Shafiqul Alam, IEEFA’s South Asia energy analyst and the lead author of the report, noted that between the 2014–15 and 2023–24 fiscal years, energy efficiency increased by 13.64 per cent, moving the country closer to its 2030 target of 20 per cent. In the 2023–24 fiscal year alone, improved efficiency reduced fossil fuel consumption by the equivalent of 7 million tonnes of oil, helping avoid approximately USD 334 million in import costs.

According to the report, the annual average rate of energy efficiency improvement is about 1.52 per cent. If sustained, Bangladesh could reach its 2030 target a full year ahead of schedule. Targeting the household and industrial sectors—which account for roughly two-thirds of total energy use—could generate further savings. Practical measures, such as the widespread adoption of LED lighting in homes, commercial buildings, and factories, and the use of energy-efficient air conditioners, have already contributed to significant efficiency gains.

The report emphasises that, despite progress, further efficiency gains in industrial motors, motor-driven systems, captive generators, and gas-to-electric boiler conversions should be prioritised. In commercial sectors, especially where air conditioning demand is high, energy labelling and passive design strategies are crucial. Energy efficiency is not just a cost-saving measure; it can accelerate the transformation of the national energy system. Coordinated action among regulators, consumers, financial institutions, and technology providers is essential.

IEEFA recommends expanding awareness programmes, setting energy-saving targets for major consumers, providing low-cost financing for efficiency projects, and leveraging multilateral development bank support where necessary. Through regular monitoring of energy markets, trends, and policy impacts, IEEFA aims to promote a diversified, sustainable, and profitable energy economy in Bangladesh.

Key Data – Bangladesh Energy Efficiency Progress