3rd June 2021
EP Report

Experts suggest apparel, textile industries

Experts at a recent webinar have stressed on ensuring energy efficiency in the country’s apparel industry to make the highest export earning sector competitive in the global market. They also warned of losing market to countries that have already reduced costs through ensuring energy efficiency in their production facilities, and would be able to supply apparel items at a price lower than that of Bangladesh. The experts suggested the local industry to spearhead the energy efficiency measures in the readymade garment and textile industries by now to minimize energy cost as well as the production cost.

 

Energy & Power magazine with support from SREDA and GIZ organized the webinar titled “Working Group Concept to Promote Energy Efficiency in Garment and Textile Industries” on 22 May 2021.  EP editor Mollah Amzad Hossain moderated the webinar.

 

Taking part in the discussion, Habibur Rahman, Secretary of Power Division, emphasized on conducting a study to assess the position of Bangladesh in the context of energy and power usage in the garment and textile sector. He said that such study would help determine what Bangladesh would need to do in achieving the energy efficiency.

 

He also mentioned that the garment and textile industries contribute 85% to our export earnings. Many factories of the sector are already working on energy efficiency and many others are yet to start working. However, all industries should harness the low-hanging fruits sooner rather than later. To ensure the sector’s competitive advantage in the international arena, there is no alternative to that approach. He stressed on the need for free flow of data and information in this regard. As an MOU has been signed between SREDA and BGMEA for broader collaboration on sustainable energy, i.e. energy efficiency and renewable energy, targeting the garment industries, the foundation for optimization of energy use is set. The Power Division could also act as a facilitator for the sector on its journey towards energy efficiency.  

 

In his keynote presentation, Shafiqul Alam, Senior Advisor of REEEP II, GIZ, said the garment and textile industries are integral parts of national development as they contribute more than 10% to the Gross Domestic Product (GDP) of Bangladesh. On energy front, garments and textile industries together consume 3,740 KTOE of primary energy per annum which is almost one-third of the total primary energy use in the country’s industries. Technical studies substantiate that the garment and textile industries combined can save 1,159 KTOE of primary energy from the business-as-usual scenario if energy efficiency and conservation measures are applied.

 

However, there are numerous challenges to realize the benefits of energy efficiency, including technical capacity gap of industry personnel and lack of communication between different departments of an industry etc. To address these challenges, Small Energy Efficiency Working Group (SEEWG) has been formed taking officials from technical, planning, procurement and finance departments, and have been piloted in three industries during August-November period of 2020. Each SEEWG has 5-6 members and is being coordinated by one of the members in conducting energy audit and economic analysis, preparing action plan and presenting results to the top management. The concept is easy to implement within a short span of time. This initiative was part of GIZ’s regional energy efficiency program under its internal sector network called TUEWAS and implemented in Bangladesh, India, Nepal and Vietnam in 2020. The Bangladesh part has been implemented by the Renewable Energy and Energy Efficiency Program (REEEP II) of GIZ Bangladesh and supported by BGMEA and SREDA.

 

The results of the three industries, namely Tusuka Group, Mohammadi Group and DBL Group, are quite encouraging. SEEWG of DBL Group has identified annual natural gas saving potential of 1.9 million cubic meter. Similarly, Tasuka Group can save 88,110 Kwh power and 81,000 cubic meter of gas annually. On the other hand, Mohammadi Group can save 34,602 Kwh power and 5,471 cubic meter of gas per annum. Excluding one big investment, average payback period of the energy efficiency opportunities is three years. Remarkably, the industries have already saved around 5% of their annual energy consumption attributable to implementation of some of the measures recommended under the SEEWG program. Another 10-12% energy saving is possible once they undertake and implement the remaining measures for energy efficiency and conservation. Managements of the industries are interested to implement the remaining measures, noted Shafiqul Alam.

 

Faruque Hassan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that climate change is an important aspect in energy use. The readymade garment sector is endeavoring to address all relevant aspects. We are committed to reduce carbon emission. In many areas, we have already achieved mentionable successes. Bangladesh proudly possesses 39 of the 100 LEED factories of the world. Eight of the 10 top green companies are now in Bangladesh. Three of those companies have worked in the Small Working Group. We believe, we can expand this jointly. BGMEA has concluded MOU with SREDA. We believe, more good work can be done through this initiative.

 

Energy expert Prof Dr. Ijaz Hossain mentioned that the keynote presentation has used old data from 2016. Does this mean we are not aware of the present situation? Absence of updated data is a genuine problem in Bangladesh. Data are not supplied when asked. The mentality for data generation has not developed in Bangladesh. My expectation was to get updated data from this program. Garments industry is a major sector. SEEWG is a good concept, but in small garments, the implementation could require structural changes, for instance, having qualified engineers and other personnel.

 

Mohammad Alauddin, Chairman of SREDA (Sustainable and Renewable Energy Development Authority), said the small working group is not only a mere concept, it is proven through this pilot initiative. As we know, team approach is always better, SEEWG is also like that. SREDA would be happy to further support the dissemination of this concept, which has the potential to deliver great results in the sector. SREDA is working on setting limits of energy efficiency, devising regulations. SREDA is also working on renewable energy development. The introduction of net-metering policy has started yielding the outcome as the rooftop solar in garments industries is expanding now.  

 

Sharing his experience from Vietnam, Mr. Markus Bissel, Head of Component Energy Efficiency, Renewable Energy and Energy Efficiency (4E) Project, GIZ Vietnam, mentioned that Vietnam now ranks 5th in RMG trading. Around 3.5 million people is working in the industry. Even during the Covid-19 pandemic, it achieved 7.5% growth. But the energy cost is 1.5% to 1.7% higher than Thailand and China. They have taken up some energy-saving projects. The target is to achieve energy efficiency. The government has adopted some projects for EE as well. The plan for Small Working Group Concept has been finalized for 30 energy intensive industries.

 

Engr. Khondkar Saleque Sufi, International Energy Consultant, observed that Bangladesh Energy Regulatory Commission (BERC) must audit and monitor energy efficiency of industries. It must set parameters and advise industries for generating compliance reports. Without energy efficiency, Bangladesh cannot achieve sustainable energy security. The government must work for developing competent technical resources for achieving this. He further added that, SEEWG is a viable concept for Bangladesh’s industries that want to enhance business competitiveness.

 

Dr. Nurul Islam, energy expert, observed that the decision must be taken on publishing energy data annually and it must be made accessible to all. Otherwise, it will remain confined to a selected group and greater public would remain in the dark. It would be much easier to work together if all are on the same page about energy use.

 

Mohammadi Rehan Idrisee, head of operation of Mohammadi Group, described the experience about working in Small Working Group and mentioned that 15% power savings has been achieved from each fan by using sensor-based fan housing. New technology using boiler has also saved energy. The plan is to harness up to 55% electricity from rooftop solar for which the cost is expected to be about Tk 3.00 per unit.

 

Mohammed Zahidullah, Chief Sustainability officer of DBL Group, said GIZ has given a great concept. Expertise of four or five personnel can be developed at the same time. Even if one leaves the institutional memory. We included two from factory and two from project planning of the corporate office in the group. They are now working as per the roadmap given to them. The benefit and knowledge gained is being transferred to a model. We have decided to engage an energy manager in each factory.

 

He said black water was not being used in wastewater treatment plant. Now that is being reused. We are now reusing 10,187 cubic meter water. The Tk 600,000 we invested for that intervention would return in 10 months. Six pumps were in use earlier. After automation, however, we sometimes use two pumps and in cases we use three. On very rare occasions, six pumps are in operation. This saves lot of energy.

 

 


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