Bangladesh Industry Leads Solar Transition: Mitigating Energy Crisis

Bangladesh has been forced to cut power for over 125 days in the first eight months of 2023, as compared to 113 days in entire 2022! The country has been facing its worst energy crisis in over a decade’s time and the industry says the crisis has been worsening during power-use peak period of July-October. According to government data, fuel shortages (both gas and coal) are the main reason for supply shortfalls. This energy crisis has caused a temporary halt in the consistent performance of the country’s apparel manufacturing industry.

In light of the projected energy requirements of Bangladesh, which are anticipated to reach 50,000 MW per day by 2030, the country is presently capable of producing approximately 25,000 MW. However, due to certain operational issues, a portion (~10,000 MW capacity) remains untapped, resulting in the current daily electricity production of around 15,000 MW.

The apparel manufacturing industry has now taken the onus on itself to address the energy crisis for not only its own survival but also to embark on a sustainable future with thrust on renewable energy.

RMG industry striving hard to contribute to renewable energy generation

Many garment manufacturing groups are focusing on setting up renewable energy plants in the country. KFL Group – one of the growing textile conglomerates in the country – had secured funding from the World Bank for its Solartech Initiative around five years ago. As a certified green factory, the group is delighted with the outcomes it has achieved so far, notably a 40 per cent reduction in electricity consumption – all thanks to massive solar power installations in its green factory.

During factory downtime, such as holidays, the group has successfully been supplying excess electricity to the Bangladesh Government, establishing itself as a pioneer in collaborative renewable energy projects. Recognising the need to promote wider adoption of solar energy within the industry, KFL has partnered with LONGI, the world’s leading solar power plant company based out of China.

“LONGI has become a major stakeholder in Bangladesh and we have formed a joint venture this year to represent their interests in the country. Together we are in the process of setting up another 5 MW solar power plant within our factory premises,” asserted Humayun Kabir Salim, Managing Director of KFL Group.

To accelerate the country’s efforts in this domain, KFL Group’s collaboration with LONGI will prove to be instrumental, believes Humayun. The new initiative is called KFL Solartech Limited that has been established under the concern of KFL Group to provide solutions on CAPEX and OPEX model project development, detail design engineering, project installation and commissioning services.

As per Humayun, the initial focus will be on the Readymade Garments (RMG) industry, given its significant contribution in the country’s economy, and subsequently, he plans to extend support to other industries.

“As part of the government’s commitment to sustainability, no projects involving diesel, fossil fuels or gas power plants will be permitted going forward. In addition, the government has assured us of subsidies to establish an Independent Power Producer (IPP) plant, enabling us to directly transfer power to the national grid,” informed Humayun.

Within Bangladesh’s industrial landscape, few establishments hold the prestigious LEED Platinum certification with a strong focus on renewable energy initiatives and Indika Wanigabaduge, CEO of Fortis Group – one of the most prestigious activewear and lingerie manufacturers in the country – proudly asserts that three of these belong to their organisation.

As Bangladesh grapples with energy challenges, Fortis Group consistently adopts sustainable practices. At KA Design, one of the group’s six sister concerns, 65 per cent of electricity consumption is derived from solar panels, symbolising the unwavering commitment to renewable energy.

In line with this ethos, the group is actively working to introduce solar power panels at Habitus and Quattro factories, further amplifying their commitment to sustainability.

“We are one of the leaders in using renewable energy across our factories and we will continue doing so,” commented Indika.

Similar efforts have been made by leading textile group Pakiza Knits Composite Ltd. (PKCL) where the ongoing projects strongly aim at enhancing investment in renewable energy sources. Currently, PKCL relies on three-megawatt electricity from gas generators, but it is working towards converting the entire system to solar power.

Rakibul Islam, Managing Director, PKCL mentioned, “Firstly, I aim to transition to full solar energy utilisation. This shift would allow to operate solely on solar energy for at least 12 hours, resulting in substantial energy cost savings of approximately 20 per cent – 25 per cent.” Rakibul further said that sustainable projects like this one often receive more favourable financing terms, including lower interest rates, from banks.

Not just solar plants, PKCL has achieved substantial results in utilisation of jute as a sustainable solution. Fabric scraps and waste are commonly generated in factories and often sold at minimal costs. PKCL utilises this waste in its boilers to generate steam.

“However, we are also mindful of the environmental impact, particularly regarding air pollution. To address this concern, we are studying the waste-to-energy technology employed in Switzerland, where waste is burned and the resulting ashes are treated before being released into the air. Our priority is to ensure that any solutions we adopt are environmentally friendly,” asserted Rakibul.

Another factor that’s pushing Bangladesh to embrace renewable energy is the buyer! Presently, the buyers in EU and USA are under tremendous pressure from their respective governments to reduce their carbon emissions. If the retailers are not reducing the carbon emission, the country’s goal of reduction in carbon footprints can’t be met. And, when retailers set targets of certain initiatives to ensure sustainability in their businesses, they give targets to their suppliers as well.

Achieving the country’s renewable energy utilisation won’t be possible without stalwarts like Pacific Jeans whose approach is more target-driven rather than being concept-based. Pacific Jeans plans to install rooftop solar plants at 10 of its companies by 2025. This entire set-up will be done on 4.41 lakh square feet area that will produce an estimated 32.70 MW electricity per day which is 20 per cent of the total power demand of Pacific Jeans Ltd., and will save 6,458 tonnes of carbon dioxide emission.

A rooftop solar power plant with automatic cleaning system having capacity of 3.5 MW per day was installed at Universal Jeans Ltd., a concern of Pacific Jeans at the Chattogram EPZ, last year; whereas a solar power plant with a daily production capacity of 5.5 MW has recently been installed at Pacific Jeans Ltd., that meets 15 per cent of the total power demand of the factory.

“At Pacific, our main target is to reduce CO2 emissions by 65 per cent and increase the use of renewable energy to 50 per cent by 2030, from the 2018 baseline. To reach that goal, we have taken many ‘realistic’ initiatives. All these goals are aligned with our customers’ goals,” commented Syed M Tanvir, MD, Pacific Jeans Ltd.