IEEFA report: Energy efficiency improvements can reduce Bangladesh’s annual LNG import costs by $460 million.

A recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) suggests that Bangladesh could save around $460 million annually by prioritizing energy efficiency over increasing liquefied natural gas (LNG) imports. The report highlights that Bangladesh’s heavy reliance on LNG imports could lead to economic strain, especially with volatile international fuel prices and supply disruptions. Currently, industries heavily rely on gas for manufacturing and power generation, but the inefficiency of existing generators and underutilization of waste heat contribute to significant gas consumption. By replacing outdated generators with more efficient models and utilizing waste heat, Bangladesh could reduce LNG demand by 21%, resulting in substantial savings. While upfront investments are necessary, the returns are promising, with payback periods estimated between 1.5 to five years. The report suggests various policy measures to enhance energy efficiency, including mandatory energy audits, scaling up renewable energy capacity, and facilitating corporate power purchase agreements for renewables. By implementing these strategies, Bangladesh can reduce its dependence on gas imports and secure a more sustainable energy future.

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