RMG factories can cut energy bills through solar, machinery upgrades: CPD

Bangladesh's garment factories can cut energy costs and boost competitiveness by expanding renewable energy use and replacing inefficient machinery, according to a new study by the Centre for Policy Dialogue (CPD).

The think tank presented the study at a dialogue on industrial decarbonisation at BRAC Centre Inn in Dhaka today.

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The CPD gathered data from 350 RMG factories and examined 65 machine types across eight production categories, including cutting, sewing, embroidery, finishing, printing, washing and dyeing, and packing.

Rooftop solar could cut factories' electricity costs and offer some protection against fluctuations in LNG and other energy prices, said Sami Mohammad, programme associate at CPD, while presenting the study.

He said energy expenditure could be reduced through the use of solar energy.

Machinery replacement also offers substantial savings. Cutting makes up just 5.5 percent of installed machine capacity but could yield 27 percent of total savings from substitution.

Sewing, despite accounting for 85 percent of the machine stock, offers less than 3 percent savings potential as many machines are hard to replace.

Smaller factories, often running older machinery with tighter financing, showed the largest efficiency gaps, according to CPD.

The think tank recommended expanding blended finance and concessional lending for these units.

The report noted that washing and dyeing, the most energy-intensive stage, require urgent attention since solar cannot replace the gas-based thermal energy required for many of these processes.