Rooftop solar can meet up to 14% of RMG factories' electricity demand: Study

A new study has found that rooftop solar installations could potentially meet up to 14% of total electricity demand in Bangladesh's ready-made garment sector, according to a survey conducted by Mapped in Bangladesh (MiB) covering 878 export-oriented garment factories.

According to the report, the amount of power currently generated from solar in these factories accounts for only 3% of their total power consumption, despite growing potential.

The report was launched at an event held at a hotel in Banani, Dhaka today (19 May).

The study also found that around 80% of factories receive less than 1% of their total energy from renewable sources, while only 5% of factories source more than 10% of their energy from renewables.

It further revealed that 61.5% of factory energy consumption comes from the national grid, while about 36% is generated from captive power systems.

The survey, conducted between mid-2023 and 2024 across factories in Narayanganj and Gazipur, was jointly presented by MiB team members Faizul Islam and ANM Ata Ullah.

Mapped in Bangladesh (MiB) is a digital platform that maps export-oriented RMG factories in Bangladesh, implemented by the Centre for Entrepreneurship Development (CED) at BRAC University.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Sheikh Mustafiz said there is no alternative for SME entrepreneurs in the ready-made garment sector but to adopt renewable energy, including solar power, due to growing pressure from global buyers.

However, he identified financing as one of the major barriers.

"If entrepreneurs fail to shift to renewable energy, they will face serious challenges in the future. Major buyers, including H&M, have set targets for their supplier factories to reduce carbon emissions by 25%," he said.

Minister for Power, Energy and Mineral Resources Iqbal Hassan Mahmood expressed hope that the government aims to generate at least 5,000 megawatts of electricity from the solar sector within the next five years, saying several initiatives would be taken to achieve the target.

As part of the initiative, import taxes on various types of solar equipment will be withdrawn.

However, he said the government may introduce a bonded warehouse system for solar equipment imports to prevent misuse of the duty-cut facility and is also planning to introduce rooftop solar systems in buildings across Dhaka with private sector support.

 "If fully implemented, it would be possible to generate electricity equivalent to 5,000 megawatts from solar energy in Dhaka alone," he added.

The minister also noted that under the current circumstances, there is no alternative to increasing electricity prices.