Energy audit mandatory for four industries

The government has made it mandatory for designated consumers (DCs) under four key sectors – textile, readymade garment, jute and cement – to submit energy audit reports from this year, in a bid to bring down industrial energy usage to a reasonable level.

Initially, DCs of textile, including weaving, spinning and dyeing factories, apparel industry, jute processing and goods factories, and cement and clinker grinding factories will have to submit this report. Other industries will be brought under the purview of this rule in later phases.

The Power Division, under power, energy and mineral resources ministry, issued a circular after amending the Energy Efficiency and Conservation Rules 2016 on January 16. A gazette notification in this regard was issued on February 1.

Bangladesh is inching towards an energy crisis, and businesses have been demanding adequate supply of energy to keep the wheels of the economy turning. To cover the country’s energy needs, the government is importing fuel at high costs, and subsidising sales of this commodity.

It should also be noted that the government has to comply with the International Monetary Fund’s (IMF) condition to withdraw subsidies from the energy sector. The recent move is part of the government’s efforts to reduce energy sector expenditure and boost cost effectiveness.

Audit mandatory for all from 2025

Last November, Sustainable and Renewable Energy Development Authority (SREDA) declared as DCs more than 150 businesses – designating them as big consumers of energy. Among these businesses, 81 belong to textile and apparel industries, and 7 belong to the cement industry.

SREDA plans to gradually designate as DCs the rest of the businesses under such sectors. The authority has been certifying energy auditors for the last three years, and the country currently has 18 such auditors.

To ensure proper auditing, the authorities have drafted Energy Audit Regulations 2022, which is an amended version of the Energy Audit Regulations 2018. SREDA sources say the amended regulations – featuring punishment for non-compliance – may soon be implemented.

The SREDA circular mentions that though it is mandatory for four industries, including textile and apparel, to submit energy audit reports, other DC companies can choose to participate in the process.

Mandatory submission of energy audit reports will be made mandatory in 11 more sectors in 2024.

Those are – power plants, chemical fertiliser factories, paper and pulp industry, sugar, food processing industry, glass, ceramic, brick kilns, transportation terminals, multistoried residential and commercial buildings such as offices, shopping malls, hotels and shops.

This audit will be mandatory for all 17 sectors from 2025.

SREDA will also launch initiatives to preserve energy in micro, small and medium industries, by helping such ventures get government loans, grants, technical support, consultation, training, and primary energy audit services.

Annual Energy Report now compulsory

The amended rules further mention that every industry will have to submit annual energy reports to SREDA.

Such a report must have detailed information about the company submitting it, including the business’ total production in the last two years, and usage amount of different types of energy.

A company will have to submit feasible plans containing yearly and medium-term policies and goals for energy efficiency and preservation.

After SREDA declares a company as DC, it will have 18 months to get audited by a certified energy auditor, and submit a report to the authority. Every DC will have to submit this report every three years, starting from the submission date of the first report.

Industries, which are not designated as DCs, will have to submit only their annual energy report annually.

Under the 17 sectors, any company using at least 1,500 to 30,000 tonne oil equivalent (TOE) of energy annually has been designated as a DC.

The minimum criteria for being designated as a DC is 30,000 TOE for power plants, 10,000 TOE for fertiliser factories, 6,000 TOE for jute and jute processing industries, and 5,000 TOE for paper and pulp, textile, garments, cement and clinker factories, iron and steel mills, sugar, food processing, chemical pharmaceutical, glass, ceramic industries.

Besides, the minimum criteria will be 4,000 TOE for the brick sector, 3,000 TOE for the transportation sector, and 1,500 TOE for multi-storey residential, commercial and institutional buildings, offices, shopping malls, hotels, shops, hospitals and educational institutions.

Speaking to The Business Post, a senior official of SREDA said, “We will gradually bring all energy users under classification. We will then offer training and other support on cost effective use of energy.

“SREDA has already designated 150 companies as DCs. Everyone will have to submit an annual energy report. Using those reports, we will designate more entities as DCs.”

The official continued, “The submission of energy report for all industries, and energy audit report for DCs, has been made mandatory by amending the rules, with the goal to cut down energy usage of those companies, and boost their usage of sustainable power.

“Such reports will help SREDA decrease energy usage in the country. We also plan to bring all companies under an energy management programme. All companies will be audited by SREDA certified auditors. Such steps will help us reduce specific types of energy consumption.”

Labeling to ensure energy efficiency

The Bangladesh Standards and Testing Institution (BSTI) will facilitate testing of energy-using machinery and equipment and set testing procedures to examine energy efficiency under the labeling programme.

The rules have been amended to allow any other government agency, except the BSTI, to conduct the same.

SREDA will focus on energy efficient labeling and setting a minimum requirement for energy efficiency for machinery and equipment, in a bid to encourage energy efficiency among the consumers.

A few new products – electric light, induction cooker, room heater, and exhaust and ventilation fan – have been included in the labeling programme.