Solar, new machinery could slash RMG energy costs: CPD

Smaller factories face the biggest efficiency gaps, largely because they tend to operate older machinery and have more limited access to finance, the CPD said.

Bangladesh’s ready-made garment factories could significantly reduce energy costs by expanding rooftop solar and upgrading inefficient machinery, helping the industry improve competitiveness and cut its carbon footprint, a Centre for Policy Dialogue study has found.

The CPD presented the findings at a dialogue on industrial decarbonisation at BRAC Centre Inn in Dhaka on Sunday.

Researchers analysed data from 350 garment factories and assessed 65 types of machinery across eight production areas, including cutting, sewing, embroidery, finishing, printing, washing and dyeing, and packing.

Rooftop solar could lower electricity bills while reducing factories’ exposure to fluctuations in liquefied natural gas and other energy prices, Sami Mohammad, a CPD programme associate, said while presenting the study.

The study also found considerable scope for savings through machinery replacement. Cutting equipment accounts for only 5.5% of installed machine capacity but could generate 27% of the total potential savings from machinery substitution.

By contrast, sewing machines make up about 85% of the machinery stock but offer less than 3% of the potential savings because many are difficult to replace.

Smaller factories face the biggest efficiency gaps, largely because they tend to operate older machinery and have more limited access to finance, the CPD said.

It recommended expanding blended finance and concessional lending to help these factories invest in energy-efficient equipment and cleaner technologies.

Washing and dyeing require particular attention, the study said, as they are among the most energy-intensive stages of production. Solar power alone cannot replace the gas-based thermal energy needed for many of these processes.