Jobayer Ahmed’s textile company on the outskirts of Dhaka is suffering as a result of Bangladesh’s energy crisis.
Production expenses at Shah Fatehullah Textile Mills Limited, which employs about 2,200 people, have increased by 40% in the last two years, according to Ahmed, primarily because the gas price for the company’s in-house power plant has nearly doubled in recent months.
Despite this, “we are still not getting an uninterrupted gas supply, hampering our production,” said the third-generation industrialist who runs one of the nation’s oldest textile mills.
As Bangladesh’s fast-growing economy has moved to relying more on imported fuels such as liquefied natural gas (LNG) to meet its increasing energy requirements, market volatility caused by Russia’s invasion of Ukraine has resulted in a gas supply crunch and power outages.
And, as the dollar’s appreciation against the Bangladesh taka strained the country’s foreign currency reserves, the government has considerably increased gas and electricity costs in the last year to rein in energy subsidies, a move that has hurt entrepreneurs like Ahmed.
In the face of these challenges, Bangladesh has developed a new Integrated Energy and Power Master Plan (IEPMP) for the period 2024-2050, with the aim of ensuring an affordable, sustainable, and secure energy supply.
Energy experts say the draft plan, which is set to be finalized soon, shows positive shifts, such as a reduced focus on coal, but they are concerned about a growing dependence on LNG and unclear goals for renewable energy.
According to several experts, Bangladesh should invest more in clean energy such as solar if it is to meet a goal of generating 40% of its power from renewables, and that doing so would be far more cost effective than spending heavily on fuel imports.
