GTZ PROGRESS

December 2009: Energy is a costly input in the production cycle of the readymade garment (RMG) industry in Bangladesh, where frequent power shortages in the main grid force enterprises to depend on generators. Still, the majority of RMG factories use energy inefficiently, mainly due to lack of know-how and limited exposure to energy-efficient technologies.

In response, PROGRESS’ environmental component undertook a project for promotion of low-cost energy management solutions. As a first step, PROGRESS developed an energy management system tailor-made for the specific circumstances of the industry. Further, PROGRESS entered into public private partnerships with nine pilot factories and conducted ‘walk-through’ energy audits in all of them. These assessments provided a wealth of information; the case study below outlines the conclusions of one such situation analysis.

• establish a benchmarking tool for energy performance evaluation of RMG companies in Bangladesh;
• promote energy saving measures through a variety of awareness raising and knowledge dissemination activities, and
• develop the capacity of a number of factory officers and local service providers in order to ensure a sustainable supply of energy-related advisory services in the future.

• Factory profile: The enterprise is a 100% export-oriented home textile industry having composite units of spinning, weaving (20,000 meters/day), printing (40,000 meters/day), finishing and confectioning. It employs nearly 1500 workers.
• Energy demand and CO2 emissions: Because of the irregular supply of utility power, the factory generally runs on captive power (natural gas - 49% for generation; 50% - boiler, and 1% electricity). The plant emits 19,166 tons of CO2 per year. In 2008 the energy consumption bill totaled BDT39.16 million (approx. US$660 thousand).
• Results: if all measures listed below are implemented, the factory could reduce energy consumption and costs by 20% and 22% respectively, and cut its carbon dioxide emissions by 25%. The required investment will be about US$100,000 realizing cost savings of US$125,000 per year.