Industrial Energy Efficiency to Curb Bangladesh’s Short-term LNG Demand Growth 2

While the plan to import energy for development hinged on the country’s anticipated financial capacity, it was not designed to cope with the high level of volatility in the international fuel market, depreciation of the local currency and weak fiscal conditions. [...] The role of natural gas can Pattern be best understood from its use in important sectors of the economy and the energy mix of the power sector (see Figures 2 and 3). [...] Gas-fired Captive Power Generation in Bangladesh The Bangladesh government approved onsite captive power generation against the backdrop of electricity shortfalls and the urgency to support industries in the growing economy. [...] As such, to align the gas outlook for captive generation with the power sector development plan, Bangladesh would need to focus on improving the reliability of grid electricity to encourage industries to shift to the grid gradually. [...] While the low-cost financing facilities available in Bangladesh can derisk investment in energy efficiency and mobilise private capital, the size of the pool is tiny compared with the volume of finance needed to foster industrial energy efficiency.