Bangladesh plans to add 12,940 MW of capacity amid energy crisis — TIME
The Bangladeshi government has unveiled a new energy roadmap that предусматривает the addition of 12,940 MW of generating capacity through new solar and coal projects. The plan also includes upgrading electricity distribution grids and drilling 300 new wells to strengthen domestic gas supplies. The roadmap was released amid an acute electricity shortage that is affecting, among others, the country’s garment industry.
Electricity shortage and fuel imports
As TIME reports, Bangladesh’s electricity shortage has exceeded 3,000 MW. Authorities have imposed large-scale restrictions on consumers, exempting critical services, including hospitals and pharmacies. In rural areas, power outages sometimes last up to 16 hours a day.
According to the publication, the country receives nearly half of the energy it needs from the Middle East. In July–August, imports of liquefied natural gas fell by 83% due to disruptions near the blocked Strait of Hormuz and a fire that temporarily put one of two floating regasification terminals out of service.
Since the start of Russia’s full-scale invasion of Ukraine, Russia being an aggressor state, industrial gas prices in Bangladesh have increased by 150%, according to TIME, while diesel fuel prices have risen by about 70%. After the start of the war in Iran, the spot price of LNG nearly tripled.
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Impact on the garment industry
The garment industry is Bangladesh’s largest source of formal employment, directly employing around 4 million people. Last year, the sector generated $38.7 billion, or more than 80% of the country’s export revenues.
At Ha-Meem Group’s factory in Ashulia, north of Dhaka, interruptions in gas supplies force diesel generators to start automatically. The company produces 9.3 million garments per month for Gap, American Eagle and JCPenney. Its daily energy costs have risen from about $200,000 to $300,000.
Ha-Meem has installed rooftop solar panels with a total capacity of 29.2 MW, but, according to a company representative’s estimate, they help for only about four hours a day. Over the three years to June, more than 400 smaller factories left the market, while manufacturers fear that due to rising costs and supply disruptions, orders could shift to competitors in Vietnam, Cambodia or Pakistan.
